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Impax expects crisis to increase interest in sustainable investments

Snapshot

  • Invests in companies set to thrive in the sustainable economy
  • Expects benefits from the coronavirus crisis
  • Assets under management were £15.8bn as of end April
Money growing in jars

Quick facts: Impax Asset Management

Price: 440 GBX

AIM:IPX
Market: AIM
Market Cap: £573.83 m
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What it does

Impax Asset Management PLC (LON:IPX) manages or advises on both listed and real (ie physical) asset strategies. 

The company's investments are based on the strong conviction that population dynamics, resource scarcity, inadequate infrastructure and environmental constraints will profoundly shape global markets, creating investment risks and opportunities. 

Impax expects that these trends, reflecting the transition towards a more sustainable global economy, will drive earnings growth for well-positioned companies. 

 

How it's doing

Impax increased its interim dividend in June saying it is in good financial health while the performance of its funds saw a rebound in April.

Inflows into its funds were a record £1.8bn in the half-year to March 31, 2020, but assets under management were affected by coronavirus (COVID-19) volatility and dropped by 4% to £14.4bn.

In April, net inflows were almost £300mln and by the end of the month assets under management had rebounded to £15.8bn.

 

What the boss says: Ian Simm, chief executive (June) 

 "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."

 

What the broker says: Peel Hunt 

Peel Hunt raised its operating profit forecast after the strong recovery in net inflows in April.

The broker also noted Impax said operating profits were running at an annual rate of  £17.3m at the end of March and given the growth in assets had continued into May, the broker upgraded full-year expectations by just over 7% to £20.7mln.

Based on that, Peel Hunt also increased its share price target to 400p (from 350p).

 

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Impax Asset enjoys double digit growth across key metrics in 2019

Impax Asset Management Group PLC's (LON:IPX) Ian Simm tells Procactive London they expanded significantly in 2019, with double digit growth across its key performance indicators. He adds that Impax is ideally positioned to benefit as the big push behind the global economy's transition to a...

on 6/2/20

2 min read