Impax Asset Management has kicked of its financial year with £2bn of net inflows taking total assets under management above £40bn for the first time.
The sustainable investor now has AUM totalling to £41.4bn, for the period ended 31 December, representing 11.1% growth from the start of the quarter.
“Post the COP26 climate conference, the direction of travel towards a low-carbon economy is much clearer,” said chief executive Ian Simm (pictured).
“Identifying the corporate winners and losers will, however, continue to require expertise and investment discipline. Against this backdrop, we are confident that Impax’s focus on investing in the opportunities arising from this transition will remain attractive to asset owners and their advisers.”
In an analyst note, Peel Hunt said there was no slowdown in sight for Impax as it benefits from investor demand for sustainable investments “where active management remains key”.
Although the stock trades at a premium to its peers in the asset management sector, Peel Hunt said this was justified by the prospect of the business being materially larger in the coming years.
It has upgraded its year-end AUM forecast from £43bn to £46.2bn on estimated inflows of £5bn. It maintains its buy recommendation and increases its target price to 1,585p compared to 1,435p.