Impax assets under management narrow in fourth quarter

Investment firm Impax Asset Management reported a decrease in its assets under discretionary and advisory management (AUM) for the fourth quarter ended 30 September on Monday, while marking an annual increase.

The AIM-traded company said at the close of September, AUM totalled £37.4bn, which reflected a 5.8% decrease in the three months since 1 July.

Despite that quarterly dip, an annual perspective showed an uplift of 4.8% from 30 September 2022.

The quarter saw notable financial movements affecting AUM, with net outflows totalling £893m and market movements at £1.42bn.

As a result, while AUM stood at £39.72bn at the outset of the quarter, it was whittled down to the aforementioned £37.4bn by its conclusion.

Examining the full financial year ended 30 September, Impax opened with £35.68bn in AUM.

The year featured £92m in net outflows, counterbalanced by a positive market movement, foreign exchange rates, and performance, contributing £1.82bn.

“Investment conditions continued to remain challenging during the final quarter of our financial year, when moderate redemptions from several of our distribution partners compounded market-driven falls in net asset values,” said chief executive officer Ian Simm.

“Notwithstanding the sustained market volatility, Impax has continued to show its resilience with an uptick in our assets under management over the financial year, inclusive of overall net outflows of £92m.

“This is testament to our strong relationships with clients, our diversified revenue base and our long-term investment approach, which focuses on companies with robust business models that are well placed to benefit from the transition to a more sustainable economy.”

Simm added that although the macro environment was leading some clients to delay deploying capital, the company was confident in its pipeline's strength and ability to convert.

“Meanwhile, we continue to develop new investment capabilities while enhancing our operating model to ensure that the business is efficient and scalable.”

At 1245 BST, shares in Impax Asset Management were down 12.45% at 397.46p.

Reporting by Josh White for Sharecast.com.