Impax Asset Management Group PLC (LONIPX) reported another strong increase in demand for and performance by its sustainable funds, with assets under management rising 71% since the start of the year.
AuM at 30 June stood at a record high of GBP34.4bn, up 15% over the past quarter, with GBP2.3bn of net inflow and help from GBP2.1bn of positive market movements.
Chief executive Ian Simm said: “Asset owner interest in the transition to a more sustainable economy continues to build. As an authentic, specialist investor with global reach, Impax has a strong foundation for further expansion.”
Broker Peel Hunt said AUM had pretty much reached its year-end assumptions with inflows believed to have been relatively broadly spread across both geographies and clients. Several key partners (including BNP/Nomura and SJP) continued to contribute good levels of new business and the US also saw good levels of demand.
Analysts said while the impact of stronger AuM growth on the full year profits is relatively modest at around 2% given the stage in the year, they were increasing their forecasts to GBP46.9mln in operating profits and earnings per share of 27.9p from GBP45.8mln and 27.2p previously.
“The increase for the following year, where forecasts are struck on a conservative basis, is a more substantive 5%. Although the stock continues to trade at a premium to the sector (a December 2022E EV/EBIT of circa 23x), this remains justified in our view by the prospect of the business being materially larger in the coming years.”