FY16 results have exceeded our prior forecasts on a stronger than expected performance fee outturn for the year. Earnings grew by 21% as a result, whilst good underlying cash generation has prompted an increased dividend payout with a 9.0p final (N+1Se 6.0p). Our forecasts remain unchanged, not expecting a repeat of FY16 performance fees. We do increase our 12m Target Price from 312p to 335p as we roll forward our valuation basis to a 10x cal’17 PER, retaining our BUY recommendation.
