Mild improvements in Q2-24 Despite a market backdrop that remains supportive and despite some overall flow recovery, Q2-24 active flows remain anaemic. The ''flowless recovery'' continues for most. We believe Asset Managers need rates to fall for organic growth to resume for the sector. We continue to see evidence of rates moving past their peaks having a positive impact on passives, private markets and fixed income. Momentum worsening for DWS: downgrade to Neutral Redemptions at DWS''s largest open-ended real estate funds have picked up in Q2, following the 12m notice periods for redemptions. We expect this trend to accelerate and be a drag (RE is ~17% of group revenues). This in conjunction with active equities remaining in outflows represents a material obstacle to turn base fee growth back into positive territory: we estimate -1.3%/yr base fee growth in Q2. Given this, markets remain the key support for the guided 59% CIR in 2025E. Top picks in asset management: Man Group and BlackRock Despite flattish performance in Q2 at key AHL and GLG funds, these remain strong relative performers and are well ahead of their high-water marks. We see strong optionality for performance fees and for flows, while the stock trading at close to trough multiples provides a good entry point. BlackRock remains well positioned towards the long-term trends with ETF flows picking up and base fee growth re-accelerating. We see a good case for a re-rating of the stock, especially with the mix of earnings increasingly shifting towards alternatives, ETFs and technology. Remain cautious on Schroders and abrdn While we have limited downside to our TP at Schroders and abrdn, both managers continue to suffer from challenging flow and performance momentum. Schroders benefits from exposures in Wealth and in alternatives, though we expect both segments to be below guidance at Q2 and we also see risks to operating margins.