AUM fell 8% in Q2-26 (Jan 26 - Mar 26) from £24.2bn to £22.3bn. Investment performance was positive at +£0.1bn but net outflows totalled -£2.0bn. This was a quarter of very heavy outflows for equity funds generally, and active funds especially (see page 2). Impax was no exception. Since our last note in early-Jan, the war in Iran has undoubtedly shaken markets and weakened investor sentiment. We reduce our end-FY26 AUM forecast from £28.1bn to £22.8bn. Impax has guided to FY26 revenue being in the £109m - £113m range, which is well below our previous forecast of £129m. The group has, however, announced that it will be reducing costs via a new efficiency programme, which will mitigate the impact of the revenue fall on profits.