Investments  

Impax assets rise on market boost

Impax assets rise on market boost

Impax Asset Management was boosted by stock market movements that helped its assets under management rise by almost 10 per cent in the three months to the end of June.

The London-listed manager, which focuses on companies that have implemented sustainable business models, said its assets under management had reached £14.5bn – a rise of 9.7 per cent.

Impax was also buoyed by net inflows to its equity funds of £356m over the quarter, although its unit that invests in fixed income, smart beta and US equities, lost a net £55m in client money.

Ian Simm, chief executive of Impax, said the company had “again delivered strong growth”, citing both the new client money and positive market moves.

He said: “The transition to a more sustainable global economy is gaining pace and the specialist expertise that Impax has in this area is resonating with asset owners around the world.”

Data from Natixis in April found two thirds of fund buyers planned to increase their allocation to environmental, social and governance funds in 2019. These funds fall under the “sustainable investment” model operated by Impax.

Two thirds of the 200 allocators surveyed by Natixis said they expect consideration of ESG factors to be "standard practice" for fund buyers within five years, with 49 per cent saying it was already a consideration.

The announcement is the latest in a series of positive news for Impax, which bought Pax World Management less than a year ago to bolster client assets by £3bn.

In the calendar year 2018, it saw profits more than double, while picking up a mandate from St James’s Place.