Impax Asset Management’s managed assets fell 8.3% after the firm lost a mandate from St. James’s Place.
In the firm’s AUM update for its first quarter, which ran to 31 December, AUM fell to £34.1bn from £37.2bn.
The fall was mostly attributed to a £2.2bn net outflow in the firm’s listed equities strategies.
See also: 30-year gilt yields hit 27-year high
Ian Simm (pictured), Impax chief executive, said: “This quarter we saw relatively high outflows, notably the closure of our smaller mandate with St. James’s Place and redemptions driven by industry consolidation in our institutional channel in the Asia-Pacific region.
“More positively, we have continued to see a slow-down in outflows from our largest European distribution partner, BNP Paribas Asset Management, and from our US mutual funds.
“As previously announced, we expect the impact of the termination of the larger mandate with St. James’s Place to take effect in February 2025.”
The firm also suffered modest outflows of £38m and £83m in its fixed income and private markets divisions respectively.
Meanwhile, £660m was lost to performance, market movement and FX.
“Looking ahead, we believe that Impax’s focus on the transition to a more sustainable economy positions us well for investment outperformance,” Simm added.
“In executing our growth strategy, we intend to further diversify the business by asset class, investment product and distribution channel. In this context, we expect to close shortly the purchase of the European assets of SKY Harbor Capital Management, which will significantly expand our fixed income offering.
“In parallel, we continue to pay close attention to the efficiency of the business and the management of costs in the context of providing an excellent service to clients.”