PDL reported 1Q21 FUM of A$97.4bn, up 5.4% on the previous quarter (-3.9% on pcp). Investment performance was partially offset by net outflows and currency. JOHCM experienced outflows of A$1.4bn (2.8% of opening FUM). Whilst relatively modest, outflows have continued given the CY20 under-performance of two UK funds. We see PDL returning to net inflows as the key catalyst for a further share price re-rating. We maintain an Add recommendation. Whilst market direction is currently the primary driver of earnings, PDL’s valuation is undemanding (~14x FY21 PE); the group has a net cash position; and solid leverage to a broader equity market recovery.