Ian Simm, founder and CEO of Impax Asset Management, decided not to become a medical doctor while leading an expedition to cross the Sahara Desert by tandem bicycle.
“I was travelling with this Algerian guy, who was older and wiser than me. And, as a result of that conversation, I decided I would pursue a career in environmental matters, which I had always been passionate about,” he says.
“I had thought I wanted to be a doctor, but it was during this pivotal moment, when I was literally in the middle of the desert, having received a place at medical school, that I decided to reject the offer. So, I posted the letter and turned down my placement. This was in 1989, right at the start of my career.”
Simm tells Portfolio Adviser he had no personal connections, or any kind of background, within financial services. He received a first-class honours degree in physics from Cambridge University, although he chose the subject “mostly because I was intrigued as to how the world works. I didn’t particularly want to be a physicist, because that involved electronics and things”.
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“I spent nearly 10 years working out what to do in this area, because there was no obvious career path in terms of any kind of environmental improvement at the time,” he continues.
“I was a project manager at McKinsey & Company where I worked in their sustainable development team soon after it was launched. I completed a degree in environmental economics and tried to set up a business in South Africa within the solar energy sector.
“And, in 1998, I began the process of helping the World Bank design a solar energy fund. The World Bank then asked if I would help run the fund, and that’s how it all got going.
“The initial motivation was environmental improvement. What started as a World Bank contract ended up with me running a 12-year fund investing in solar energy companies.”
The story of Impax
From winning the mandate from the World Bank 26 years ago, Impax is now one of the largest investors focused on transitioning towards a more sustainable economy. Having first listed on the AIM market in 2001, the company now has assets under management of £37bn (as at end of September 2024).
Its suite of products includes the Impax Environmental Markets investment trust, the Ireland fund range, listed equity strategies across Asia, the US and global markets, private markets, multi-asset capabilities and, more recently, fixed-income strategies.
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“Right from the outset, I was very focused on the idea that environmental improvement would only work if it was financially stable, meaning the profits or investment returns had to be attractive to clients,” Simm explains.
“Frankly, in those days – and probably still today – there is very little money in the system which is philanthropic or concessionary, such that you don’t have to try to beat the market in order to survive.
“So, what we have done over the years is develop an investment philosophy, which is that there is an attractive rate of return to be made from investing in companies that are solving environmental problems, and which are advancing the transition to a more sustainable economy.”
Read the rest of this article in the October issue of Portfolio Adviser magazine
