IM­PAX AS­SET MAN­AGE­MENT

(IPX:AIM) 150.5p

Shares - - GREAT IDEAS UPDATES -

Gain to date: 18.9% Original en­try point: 126.6p, 21 Septem­ber 2017

OUR BULLISH STANCE on sus­tain­able in­vest­ment fo­cused as­set man­ager Im­pax As­set Man­age­ment (IPX:AIM) is pay­ing off. The com­pany’s re­cent ac­qui­si­tion of US peer Pax World Man­age­ment has clearly sparked re­newed in­ter­est in Im­pax.

The deal, ex­pected to close by Fe­bru­ary next year at the lat­est, will add an ex­tra 42% of as­sets un­der man­age­ment (AUM). This would bring the com­pany’s AUM to £10.3bn, and po­ten­tially at­tract more in­sti­tu­tional in­vestors to the firm’s prod­ucts.

In­vestor sen­ti­ment to­wards the as­set man­ager is ex­tremely pos­i­tive at the mo­ment de­spite tough reg­u­la­tions such as Mi­FID II com­ing in early next year. The com­pany was al­ready en­joy­ing a suc­cess­ful 2017 even be­fore the ac­qui­si­tion news broke.

Back in May, we flagged the com­pany due to the large amount of in­flows into its funds.

Stu­art Duncan, an­a­lyst at Peel Hunt, notes this pat­tern is con­tin­u­ing as Im­pax took in £402m in net new money in the three months to 30 Septem­ber. Duncan has up­graded his 2017 pre-tax profit and

earn­ings per share IM­PAX ASTMGMT.GROUP

fore­casts both by FTSE ALL SHARE

6%, to £8.4m and 5.1p re­spec­tively.

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