REG - Impax Asset Mgmnt - AGM Statement

Impax Asset ManagementAnnouncement

05/03/2025 07:00

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RNS Number : 3587Z  Impax Asset Management Group plc  05 March 2025

Impax Asset Management Group plc

("Impax" or the "Company")

February AUM and efficiency programme update

Ahead of its Annual General Meeting today, Impax, the AIM-listed specialist
investor focused on the transition to a more sustainable economy, provides an
update on the development of its assets under discretionary and advisory
management ("AUM") and the progress of its efficiency programme, which has
been underway since 1 October 2024.

On 28 February 2025, the Company's AUM totalled £28.5 billion, 1  compared
to £34.1 billion on 31 December 2024 at the end of the Company's first
quarter.

Ian Simm, Chief Executive, said:

"Since the start of the calendar year, the equity markets in which the
majority of Impax-managed funds and accounts invest have changed considerably,
with absolute returns no longer dominated by a handful of US-listed stocks.
Against this backdrop, Impax's investment performance relative to generic
indices has improved, with strategies representing 69% of our AUM
outperforming their benchmarks since the start of January.

"The fall in our assets under management in January and February was driven
primarily by the previously announced loss of the St. James's Place
Sustainable & Responsible Equity Fund mandate, which represented c. £5.1
billion and c. 8% of our annualised revenue as at the end of January.

"We expect to report net outflows for March, following a small number of
account closures within our institutional channel. With an average fee margin
of c. 30 basis points, these accounts are below our current average margin of
c. 49 basis points. Nevertheless, we continue to see material client interest
in our investment capabilities and offering, and the flows into our collective
funds have been improving. Looking ahead to the third and fourth quarters, we
are encouraged by our pipeline and by significant recent account wins.

"In light of the contraction of our assets under management, we have
accelerated our efficiency programme and removed over 30 roles (c. 10% of our
headcount) since 1 October 2024, reducing our run-rate annual costs by more
than £11 million but without materially reducing our capabilities or growth
prospects. This efficiency programme will broadly neutralise the loss of the
St. James's Place revenue.

"We remain focused on our strategic priorities, including further enhancing
our investment processes within listed equities and growing our fixed income
and private markets capabilities. Within fixed income, we expect to receive
German regulatory approval to acquire the European assets of SKY Harbor
Capital Management shortly and for this acquisition to close in the coming
weeks, meaningfully expanding our credit platform and further diversifying our
business.

"With successful recent experience of both seeding new products and making
acquisitions, we continue to reflect on how our capital allocation to these
areas and/or to dividends and share buybacks can optimise shareholder value.
We intend to provide an update on this topic in the Company's interim report.

"Asset owners continue to demonstrate their increasing interest in investing
in the transition to a more sustainable economy, which is driven by innovative
businesses with attractive business models and financial prospects. With
several of our competitors around the world deciding to vacate this space, we
believe that our position as a specialist presents us with a significant
opportunity to build our business."

The next AUM update will be in April 2025, covering the second financial
quarter ending on 31 March 2025.

LEI number: 213800AJDNW4S2B7E680

- Ends -

 

 Enquiries:

 Impax Asset Management Group plc
 Ian Simm, Chief Executive                                 +44 (0)20 3912 3000
 Paul French, Head of Corporate Communications             +44 (0)20 3912 3032

 p.french@impaxam.com (mailto:p.french@impaxam.com)

 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
 Andrew Buchanan                                           +44 (0)20 7418 8900

 Dan Webster

 Oliver Jackson

 Berenberg, Joint Broker
 James Felix                                               +44 (0)203 207 7800
 John Welch
 Dan Gee-Summons

 

About Impax Asset Management

 

Founded in 1998, Impax is a specialist asset manager, with approximately
£28.5 billion of assets under management as of 28 February 2025 in both
listed and private markets strategies, investing in 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.

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

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 UK, EU, US, Hong Kong, Canada, Japan and Australia. © Impax
Asset Management LLC, Impax Asset Management Limited and/or Impax Asset
Management (Ireland) Limited. All rights reserved.

 

 

 1  AUM estimate.

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