fundeye

Impax enjoys record inflows for its half year

News Team, 04/06/2020

Sustainability focused Impax Asset Management today announced its first half results to 31 March and recorded inflows of £1.8 billion during the reporting period, the highest on record.

Its assets under management increased over a billion to £15.8 billion a month after this year’s March horror show, which saw the worst impacts from COVID.

Revenue increased to £41.2 million, up from £33.8 million the previous year. Adjusted operating profits also rose by 36 percent to £10.3 million on a year-on-year basis.

Shareholder’s equity increased to £63.2 million up from £54.6 million the previous year. The firm has also hiked its interim dividend to 1.8p from 1.5p, a rarity in the current market.

Ian Simm, Chief Executive said in a statement: "Over the past six months, Impax's financial performance has been strong, with high levels of net inflows. Despite market volatility arising from the COVID-19 crisis, investor interest in our funds has remained robust as asset owners look for attractive investment returns, resilient portfolios and the prospect of positive environmental and social impact.

"In the current circumstances Impax continues to prioritise staff welfare and client communication. The full team has successfully worked from home for over two months and we are now considering plans to reopen our offices.

"As the global recession triggered by COVID-19 unfolds, there is mounting evidence that future consumer preferences and government regulation will align even more closely with the requirements of sustainable development."

House broker Peel Hunt was impressed by the firm’s performance, raising its target price to 400p (which the company was trading on recently). However, following the update, Impax’s share price dropped by over 3 percent to 383p.

Stuart Duncan, analyst at Peel Hunt, said: “Impax remains unusual in the sector, continuing to see positive momentum in flows as demand remains hgh for the asset class. Notably, there are continuing allocations from larger institutions (eg St James Place). The stock continues to trade at a premium to the sector.”

About PAM

PAM Insight is the world’s leading independent provider of essential specialist news, analysis and comparative data for the fast-evolving world of wealth management.

Read more about PAM

Subscribers

Dedicated to serve both investors and fund companies, fundeye.com aims at becoming the preferred publication platform for market professionals.

Read more