RCS - Impax Asset Mgmnt - Acquisition of fixed income assets

Impax Asset ManagementAnnouncement

09/01/2024 07:45

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RNS Number : 0083Z  Impax Asset Management Group plc  09 January 2024

Impax Asset Management Group plc

("Impax" or the "Company")

 

Impax to acquire fixed income assets and expand portfolio management team in
agreement with Copenhagen-based Formuepleje

 

London, 9 January 2024 - Impax Asset Management Group plc, ("Impax"), the
specialist asset manager investing in the transition to a more sustainable
economy, announced today that its wholly owned subsidiary Impax Asset
Management Ireland Limited ("Impax Ireland") has entered into an agreement to
acquire the assets of Absalon Corporate Credit ("Absalon"), a fixed income
manager, the completion of which is subject to certain closing conditions.

Absalon, which is part of the Formuepleje Group, based in Copenhagen, Denmark,
serves European institutional investors and Danish high net worth individuals.
As of 31 December 2023, Absalon had approximately £351 million (€405
million) of assets under management.

The Absalon team manages two fixed income strategies in Global High Yield
(launched in 2006) and Emerging Market Corporate Debt (launched in 2010),
which are available as Luxembourg-based SICAV funds ("SICAV Funds") and as
Danish-based funds ("Danish Funds"). The team was established by Klaus
Blaabjerg, who, along with three portfolio management colleagues, is joining
Impax as part of the acquisition. Each member of the team has more than 15
years of experience and the team has worked together for more than 10 years.

Impax Ireland has entered into an asset purchase agreement with the
Formuepleje Group, an existing client and distribution partner of Impax, with
respect to the acquisition. The consideration is not disclosed.

Following completion of the acquisition, the Absalon portfolio managers will
become part of Impax's growing fixed income team, reporting to Ross Pamphilon,
who in October 2023 was appointed as Impax's Head of Fixed Income. The
existing Impax fixed income team, which is based in the United States,
currently runs US Investment Grade and US High Yield fixed income funds that
are distributed to investors in North America. Post the acquisition, the
combined global team will have pro forma fixed income assets under management
and advice of approximately £1.6 billion (€1.8 billion) as of 31 December
2023.

Upon completion of the acquisition, it is planned that Impax Ireland, acting
through a newly established Danish branch, will become the management company,
investment manager and distributor of the former Absalon SICAV Funds, which
are intended to become part of Impax's Ireland-based UCITS range. This is
subject to SICAV Funds Board, shareholder and regulatory approval. Upon
completion of the acquisition, and subject to fund shareholder and regulatory
approval, it is also planned that Impax Ireland, acting through a newly
established Danish branch, will become the sub-investment manager of the
Danish Funds, for which Formuepleje will continue to act as the management
company and distributor.

Ian Simm, Founder and Chief Executive, Impax, said: "This is an important step
in the continued enhancement of our fixed income offering, which we have
identified as a strategic priority as we aim to provide a wider range of
solutions to our clients who are seeking to allocate to the transition to a
more sustainable economy. The addition of this highly experienced team of
credit managers, with a successful track record, will complement our existing
fixed income capabilities, particularly in high yield. We value highly our
15-year relationship with Formuepleje, and we are delighted to use this
opportunity to expand the partnership."

Klaus Blaabjerg, Managing Director, Absalon Corporate Credit, said: "We are
excited by the opportunity to join the Impax team and leverage the firm's
extensive resources dedicated to investing in the transition to a more
sustainable economy.  This is particularly important given that our funds are
now categorized as Article 8 under SFDR. We believe that the credit markets
are inefficient, which leaves many attractive opportunities for disciplined
investors. We will continue to exploit these inefficiencies by actively
selecting undervalued credits with high spreads relative to credit quality and
default risk. We look forward to building on our successful track record and
continuing to maintain our successful relationship with the Formuepleje team."

Peter Kjærgaard, CEO at Formuepleje, commented: "We are pleased to continue
our close relationship with the Absalon Corporate Credit team through this
agreement with Impax. Absalon Corporate Credit has a distinctive investment
philosophy which is rooted in its academic research and the unique and
experienced investment team. We look forward to continuing to provide their
two strategies to our clients and as an integrated part of our funds."

Enquiries:

 Impax Asset Management Group plc

 Ian Simm, Chief Executive                              +44 (0)20 3912 3000

 Paul French, Head of Communications                    +44 (0)20 3912 3032

 Montfort Communications

 Gay Collins                                            +44 (0)77 9862 6282

 Jack Roddan                                            +44 (0)78 2567 0695

 impax@montfort.london (mailto:impax@montfort.london)

 Peel Hunt LLP, Nominated Adviser and Joint Broker

 John Welch                                             +44 (0)20 7418 8900

 Dan Webster

 Berenberg, Joint Broker                                +44 (0)20 3207 7800

 James Felix

 Dan Gee-Summons

 

About Absalon Corporate Credit

Absalon Corporate Credit is an investment management firm focused on credit,
serving European institutional investors and Danish high net worth
individuals. Based in Copenhagen, Denmark, it has approximately €405 million
of assets under management and advice (as of 31 December 2023) and is part of
the Formuepleje Group. Absalon Corporate Credit has an active bottom-up bond
selection philosophy. Looking beyond index weightings it instead focuses on
identifying undervalued bonds irrespective of their sector or geography. The
team manages two funds: Absalon Global High Yield and Absalon Emerging Markets
Corporate Debt.

About Formuepleje

Formuepleje is one of Denmark's largest independent asset managers with more
than 35 years of experience in developing optimal investment solutions. Our
investment concept focuses on risk-adjusted returns. This means that we invest
with the purpose to achieve the highest possible return with as little a risk
as possible. The total amount of assets under management is more than €9.1
billion and the customer base is around 18,000. Formuepleje employs more than
100 people in offices in Aarhus and Copenhagen.

About Impax

Founded in 1998, Impax is a specialist asset manager, with approximately
£39.1 billion as of 31 December 2023 in both listed and private markets
strategies, investing in the opportunities arising from the transition to a
more sustainable global economy.

Impax believes that capital markets will be shaped profoundly by global
sustainability challenges, including climate change, pollution and essential
investments in human capital, infrastructure and resource efficiency. These
trends will drive growth for well-positioned companies and create risks for
those unable or unwilling to adapt.

The company seeks to invest in higher quality companies with strong business
models that demonstrate sound management of risk. Impax offers a well-rounded
suite of investment solutions spanning multiple asset classes seeking superior
risk-adjusted returns over the medium to long term.

Impax has approximately 300 employees(1) across its offices in the United
Kingdom, the United States, Ireland, Hong Kong and Japan making it one of the
investment management sector's largest investment teams dedicated to
sustainable development.

www.impaxam.com (http://www.impaxam.com/)

 

(1) Full-time equivalent

 

Issued in the UK by Impax Asset Management Group plc, whose shares are quoted
on the Alternative Investment Market of the London Stock Exchange.  Impax
Asset Management Group plc is registered in England & Wales, number
03262305.  AUM relates to Impax Asset Management Limited, Impax Asset
Management (AIFM) Limited, Impax Asset Management Ireland Limited and Impax
Asset Management LLC.  Impax Asset Management Limited and Impax Asset
Management (AIFM) Limited are authorised and regulated by the Financial
Conduct Authority and are wholly owned subsidiaries of Impax Asset Management
Group plc.  Please note that the information provided on www.impaxam.com
(http://www.impaxam.com/) and links from it should not be relied upon for
investment purposes.

Impax is trademark of Impax Asset Management Group Plc. Impax is a registered
trademark in the EU, US, Hong Kong and Australia. © Impax Asset Management
LLC, Impax Asset Management Limited and/or Impax Asset Management (Ireland)
Limited. All rights reserved.

 

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