Highly valued equity markets, concerns about global growth, and rising awareness of corporate governance risk are driving demand for Impax’s (IPX) funds, says chief executive Ian Simm. The sustainable investment specialist gained £1bn in net inflows during the first half of the year, which together with the £2.9bn gained via its acquisition of US-based Pax World, took assets under management up by more than half to a £11bn, which had risen to a record £11.8bn by the end of May.
Its London-managed listed equity funds – which accounted for more than two-thirds of assets under management at the end of March – gained £1bn in net inflows during the six-month period, partially offset by £160m in negative market movements.
However, its real asset funds generated the biggest gains for shareholders. Its second renewable energy infrastructure fund had signed or closed on 95 per cent of the value of its portfolio by the period-end, resulting in £3.2m in carried interest payments, thereby enabling management to declare a 2.6p special dividend. Its third fund of this kind closed at the end of May, with £357m in assets. The fund has already made investments in Germany, France and Norway and expects to draw down capital over the next two to three years.
Analysts at Peel Hunt upgraded their forecasts for pre-tax profits and EPS for the year to September 2018 by 9 per cent to £18.9m and 11.1p, respectively.
| IMPAX ASSET MANAGEMENT (IPX) | ||||
| ORD PRICE: | 190p | MARKET VALUE: | £ 248m | |
| TOUCH: | 188-192p | 12-MONTH HIGH: | 213p | LOW: 92p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 38p* | NET CASH: | £5.4m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p)** |
| 2017 | 13.9 | 2.44 | 2.15 | 0.7 |
| 2018 | 25.7 | 5.52 | 3.56 | 1.1 |
| % change | +84 | +126 | +66 | +57 |
| Ex-div: | 14 Jun | |||
| Payment: | 20 Jul | |||
| *Includes intangible assets of £38m, or 29p a share **Excludes special dividend of 2.6p a share | ||||
