Investors pump £220m a week into ESG manager

Investors pump £220m a week into ESG manager
Credit: Chris Ratcliffe/Bloomberg

Impax saw nearly £220m of net inflows every week in the final quarter of 2020 as its assets under management jumped 25 per cent to a record high.

The listed environmental, social and governance specialist investment house reported net inflows of £2.8bn over the three months to December, with listed equity funds accounting for £2bn of the investments.

Investors pumped a further £240m into its fixed income portfolios, but pulled £85m from private markets and its reconciliation range.

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The stock exchange filing out this morning (January 5) showed the company’s assets under management totalled £25.2bn as at December 31, an increase of 25 per cent over the quarter and a record high for the investment house.

Some £2.2bn of positive market movements had bolstered the firm’s assets alongside the hefty inflows.

Ian Simm, chief executive, said Impax had demonstrated its resilience and delivered another quarter of strong growth.

He added: “After a year dominated by the effects of Covid-19, there are strong reasons to believe that the business opportunities arising from the transition to a more sustainable global economy will be increasingly attractive to companies and the investors that back them. 

“Against this backdrop, Impax is well placed to extend its well-established franchise as a specialist investment manager."

The results published today have boosted shares in the AIM-listed asset manager by 7 per cent, to 54p. Over the past six months, shares are up 100 per cent.

Impax assets have been heading skywards over the past few years, bolstered by positive market movements and strong inflows from investors.

It has no doubt been helped by the growing trend of ESG, which takes into account environmental, social and governance factors as well as financial measures when investing.

Its Aum has more than doubled since the beginning of 2018, when it acquired sustainable asset management rival Pax World Management.

Nik Lysiuk, finnCap analyst, said: “What’s interesting? An astounding rise in the shares, which would otherwise make you want to trim or sell, but the momentum is backed by a strong business exposed to long term tailwinds that I don’t imagine will let up for some time. 

“It is difficult to suggest adding at this valuation, but tempting nonetheless.”

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