Net flows were improving during January and February although this was derailed by geopolitical “risk off” in March. Overall, Q4 net outflows totalled £836m. AuM declined by 9% qoq to £19.6bn in Q4’26 but has already recovered markedly (+5% in April to date; £20.8bn) in line with markets. With improving Institutional pipeline, Liontrust has won £500m AuM from new/extended mandates to be funded imminently. With recovery in AuM in April, we make no material changes to estimates (<2%). Given improving momentum beneath the Q4 numbers, we believe the 7x PER and 9% dividend yield are pricing the shares asymmetrically to the downside. We reiterate our BUY and 550p 12m TP (14x FY27e PER).
