Net outflows in Q2 come as little surprise given the backdrop with some respite from positive performance. We expect that there will be some decision paralysis during cal’Q4 in the run up to the Autumn Statement. Clients are seeking diversification away from crowded US/growth exposures and process differentiation has attracted several unfunded mandates and addition to buylists. The expectation that redemptions will continue unabated ahead of the Autumn Statement prompts us to moderate our flow recovery assumptions; this drives a ~18% annualised reduction in EPS. We see long term value given the differentiated fund management process. The shares continue to trade on <10x PER. We reiterate BUY/550p TP from 620p).
