Impax Asset Management saw assets fall by almost a third in a “challenging” first half to its financial year where investors pulled £10.2bn from the group.
Reporting half-year results for the six-month period to 31 March 2025, the specialist sustainable investor said assets under management fell from £39.6bn at the start of the period to £25.3bn. The group noted the “highly unusual equity market circumstances”, that saw Trump announce trade tariffs and further geopolitical pressures, and said net outflows totalled £10.2bn. This was largely driven by St. James’s Place pulling two core equities accounts from the group.
Revenues dropped to £76.5 from £86.2m in the same period last year, and adjusted operating profit declined to £205m from £25.8m.
See also: Impax cuts 30 jobs to ‘neutralise loss’ of £5bn SJP mandate
CEO Ian Simm (pictured) commented: “Impax’s investment thesis is based on the insight that the transition to a more sustainable economy is both highly likely, as individuals and businesses prefer more efficient, less damaging goods and services, and also replete with investment opportunities, particularly due to the mispricing that often accompanies significant market developments in this area.
“Recently, this thesis has been challenged by the idea that there’s more money to be made in digital technology, particularly focused on artificial intelligence, and also by the impact of populist politics, especially in the United States.”
He noted however that although many of the investment strategies lagged generic benchmarks during 2023 and 2024, “there are strong signs this period is behind us and our investment focus can once again deliver attractive returns”.
Simm added the group made further progress on its strategic priorities, which include enhancing the listed equities proposition and expanding fixed income and private markets capabilities to help diversify the firm’s product offering.
“We also continue to focus on growing our direct channel distribution capabilities, deepening our partnerships with selected third parties and refining our agile and scalable operating model. After the Period end, we were pleased to close our acquisition of the European assets of SKY Harbor Capital Management, further extending our credit platform by adding ca. £1.1bn in AUM.”
Share buybacks
The group also announced £10m of capital will be returned to shareholders through a share buyback pregramme before the end of the calendar year, which “demonstrates the confidence in the company’s future success”.
The firm will also be mindful of ensuring sufficient capital is available “to fund future growth opportunities”.