R&M has reported an outflow in Q1 – the first since IPO – however, redemptions are concentrated in low margin Derivative Solutions whilst higher margin Equity Solutions has outperformed. We increase our management fee EPS by 1-2% given flows. Also nudging up our headline EPS by 5-6% and DPS by 6-7% on a higher performance fee forecast. Potential for growth remains, indicated by “in transition” mandates and pipeline commentary. We reiterate our BUY and 400p target price (17.5x FY19e PER).