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Market volatility hurts Impax assets

Market volatility hurts Impax assets

Sustainable investment management firm Impax received positive inflows in the three months to 31 December 2018 but turbulence in markets meant total assets under management (AUM) fell 8 per cent.

The company had total assets under management of £11.5bn, down from 12.5bn at the end of September 2018.

In an update released to the stock market this morning (7 January) Impax stated it had attracted net inflows during the three month period of £363m, but adverse market movements saw the total assets managed by the firm decline.

Funds focused on fixed income, smart beta and US equities all suffered net outflows in the three month period, but inflows of £540m into the firm’s thematic equity funds ensured that inflows were positive overall.

But it was also within those funds that the adverse market movements had the most impact, with more than £1bn drained from those products due to heightened volatility.

Ian Simm, chief executive of Impax Asset Management, said: "During a financial quarter of falling markets and high levels of redemption from investment funds, particularly by retail investors, Impax continued to record positive net inflows."

At the start of December Impax Asset Management reported that profits more than doubled to £20m, boosted by an acquisition and what it said was growing in sustainable investment products from the US and other overseas markets.

david.thorpe@ft.com