Impax Asset Management has seen its net outflows for its full financial year ending 30 September 2024 amount to £5.8bn, a 6,204% increase compared to £92m of outflows in 2023.
Assets under management remained largely unchanged at £37.2bn, compared to £37.4bn during the previous year. This represents a positive contribution of £5.3bn from investment performance, as well as £312m following the firm’s acquisition of Absalon Corporate Credit.
These positive contributions were offset by outflows during what CEO Ian Simm described as a “challenging year” for active asset managers; these predominantly came from Impax’s European wholesale channels during the first three financial quarters of the year.
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Impax’s aggregate AUM should increase by £1.3bn during the next set of results, with the business set to close on its acquisition of SKY Harbor Capital Management – another fixed income business – at the end of the calendar year.
From an operational perspective, revenue fell by 4.7% from £178.4m to £170.1m year-on-year, while adjusted operating profit shrank by 9.3% to £52.7m, compared to £58.1m in 2023.
Impax’s adjusted operating margin ticked down slightly from 32.6% to 31%, while cash reserves grew slightly from £87.7m to £90.8m.
CEO Simm (pictured) said: “This was a year of positioning the business for further growth, not least through the acquisition of further fixed income capability, diversification of our distribution channels, product development and through increased focus on client service, including additional reporting and thought leadership.”
He added that he is “encouraged by Impax’s prospects” and believes the macroeconomic environment is “supportive” for the business’s strategies.
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“Expectations of a ‘soft landing’ for the US economy should underpin improved investor confidence, while stable risk sentiment should lead investors to look beyond the narrow range of stocks (including those in artificial intelligence and obesity drugs) that have driven the performance of global indices for much of the past 18 months.
“Experience from the first Trump administration suggests that the next four years are likely to be positive for US-based businesses delivering innovative products and services and in which materials and energy efficiency are significant contributors. Against this backdrop, we are confident that our investment portfolios can deliver excellent returns for clients.”
