0851 GMT - Investors are encouraged by improving flow and margin trends at traditional European asset managers, Citi analysts say. Traditional manager fund flows were robust in July, tracking at a 4% run-rate, excluding money market, the analysts write. Man Group remains the strongest outperformer, Citi adds, while Aberdeen Group continues to lag peers. Asset class trends were mostly unchanged in July, with passive continuing as the main driver of inflows, Citi says. Retail demand seems to have recovered, the analysts note. Amid improved investor sentiment, valuation has also shifted, with traditional asset managers only at a modest discount to private market peers, which are growing faster but have a more uncertain growth outlook. Man Group and Aberdeen shares are up 35% and 21%, respectively, over the year to date.