Covid-19 may have wrecked economies and hammered asset prices, but it will also help to harmonise consumer choice and government regulation with "the requirements of sustainable development". That’s the view from specialist fund manager Impax Asset Management (IPX), whose interim figures provide further evidence that the other critical requirement – investor capital – is on board too.
In the six months to March – during which time the stockpicker’s strategies were hit by £2.5bn-worth of negative movements – net inflows climbed to a record £1.8bn. Further waves of investor capital arrived in April, bringing total assets under management to a fresh high of £15.8bn.
At the fund level, performance was more mixed. While the Global Opportunities strategy outperformed the MSCI All Country Index by 510 basis points, the environmental markets strategies – which include both the specialists and sustainable foods mandates – lagged the international benchmark. Though its track record and branding are important differentiators, Impax will need to maintain its edge amid burgeoning ESG-themed competition from passive funds.
Undaunted, chief executive Ian Simm is confident that market nerves around re-inflated indices should herald a flight to active asset management and stockpicking abilities. To this end, shareholders will cheers news of progress with Impax’s investments into privately held renewable energy infrastructure businesses and related assets, which come with less volatile management fees.
Analysts at Peel Hunt expect adjusted earnings of 11.4p per share for the year to September 2020, rising to 13.3p in FY2021.
| IMPAX ASSET MANAGEMENT (IPX) | ||||
| ORD PRICE: | 380p | MARKET VALUE: | £ 496m | |
| TOUCH: | 380-383p | 12-MONTH HIGH: | 410p | LOW: 191p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 48.5p* | NET DEBT: | 3%** | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 33.8 | 9.32 | 6.2 | 1.5 |
| 2020 | 41.2 | 8.05 | 4.8 | 1.8 |
| % change | +22 | -14 | -23 | +20 |
| Ex-div: | 11 Jun | |||
| Payment: | 17 Jul | |||
| *Includes intangible assets of £35.7m, or 27.4p per share. **Includes £11.4m of lease liabilities. | ||||
