Impressive consistency in strength of net flows

BM has recorded yet another quarter of positive net flows: +£373m in Q3 of FY23 (to 31 Mar 23), its eighth in succession. This is a hugely impressive achievement considering the last five of these quarters was a period characterised by market falls, economic uncertainty, and investor nervousness – an environment more typically associated with depressed flows. BM’s net flows have now been above peer group median levels since calendar Q4 of 2021.

Our fundamental valuation remains at 3150p per share, 77% above the current share price. We also flag that BM’s P/E ratio of 11.9x is 30% below a peer group median of 17.0, despite its organic growth rate being higher than most peers. We see potential for a re-rating.