SJP and pension fund push Impax assets past £14bn

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08 July 2019

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Analyst Peel Hunt has maintained its ‘add’ recommendation for Impax Asset Management after its assets under management (AUM) hit £14.5bn.

In an update to the market, the Aim-listed asset manager said assets increased 10% during the third quarter of its financial year ending 30 June.

At the end of March, Impax’s AUM stood at £13.3bn, according to its interim results published on 5 June.

Peel Hunt analyst Stuart Duncan noted a £1bn boon from rising equity markets and a chunky pension fund mandate boosted the firm’s assets during the quarter.

Flows in Q3 included an estimated $200m (£160m) mandate from the California State Teachers’ Retirement System (Calstrs).

Peel Hunt’s note said: “Flows have remained positive and client engagement remains strong. The valuation remains high but we still see value and maintain our add recommendation.”

It added: “Impax is continuing to see positive momentum in flows with, significantly, the group now enjoying sustained demand from larger institutions, for example SJP and larger pension funds.”

Last year, Impax was appointed to run SJP’s £286m ethical fund after the wealth manager dropped Aberdeen Standard Investments following a sustained period of underperformance.

Peel Hunt also noted a strong pipeline of mandates. It highlighted the West Midlands Pension Fund which has named Impax as one of five managers set to receive part of £1bn it is allocating to sustainable investment strategies.

Impax chief executive Ian Simm (pictured) said: “Impax has again delivered strong growth, with significant net inflows and a rising market contributing to an AUM increase of 10% over the three months to 30 June 2019. The transition to a more sustainable global economy is gaining pace and the specialist expertise that Impax has in this area is resonating with asset owners around the world.”