Impax Asset Management Investing in the transition to a more sustainable economy
Impax Asset Management’s
(IPX) investment philosophy is based on the premise that capital markets will be shaped profoundly by global sustainability challenges. These powerful drivers of global growth include climate change, pollution and essential investments in human capital, infrastructure and resource efficiency.
Impax is a holder of a Queen’s Award for Enterprise: Sustainable Development, and has been awarded numerous other prestigious investment industry accolades for innovation, thought leadership and fund performance.
With a scalable business model, Impax’s strong growth in assets under management (AUM) in recent years has driven significant enhancement in the Company’s financial performance.
In 2017, Impax saw its strongest growth since inception. AUM increased 61% following record inflows from new and existing clients, particularly from investors in North America and Continental Europe. Impax also reported excellent progress against all its key performance indicators, including increases in profitability and earnings per share.
The company is committed to a progressive dividend policy as a demonstration of its commitment to increasing shareholder value and has grown the dividend every year since 2008.
Impax was one of the first investment managers to identify the compelling opportunities arising from the transition to a more sustainable economy. Back in the late 1990s, environmental markets were relatively small and often represented quite risky investments. Two decades later, Impax’s investment expertise is yielding insights across large swathes of private sector activity.
The company’s long track record and large, experienced investment team have proved very attractive for asset owners seeking to gain exposure to these markets - which include companies that are helping to solve the world’s environmental challenges through their
products and services.
The company offers its clients around the world a broad range of funds spanning equities, bonds and private equity. By December 2017 all Impax’s major listed equity strategies out-performed the MSCI All Country World Index benchmark over one, three and five years.
In the UK Impax is perhaps best known as the manager of Impax Environmental
Markets (IEM). This was the first environmental investment trust at launch in 2002. Sixteen years on it has delivered strong returns for investors and grown to over £500m of total net assets.
The company also manages one of the largest water funds, a sustainable food and agriculture fund and a ‘women’s’ fund that invests in the highest-rated companies in the world for advancing women’s leadership.
Impax engages with the management of its investee companies and reports on stewardship activities to clients. Where possible, Impax also measures and reports on non-financial metrics in addition to investment performance. This reporting enables clients to understand the positive environmental impact of their investments and their alignment with the United Nation’s Sustainable Development Goals. RECENT US EXPANSION In January 2018 Impax acquired Pax World Management LLC (Pax), a specialist US investment manager with business values and objectives that are very closely aligned with those of Impax. Integration of the companies is designed to
preserve and enhance client service.
Impax and Pax have strong shared business cultures and formed a partnership in 2007 to launch and manage the Pax Global Environmental
Markets Fund (GEM). As a result of the successful longterm collaboration between the two companies, today GEM has AUM in excess of $600m.
This acquisition gives Impax a significantly expanded footprint in the US and will enable the company to offer clients a broader range of investment strategies. It is an exciting new chapter in a decade-long partnership and the acquisition is expected to make a significant earnings contribution to the business from 2018. PROSPECTS FOR CONTINUING GROWTH Impax sees intensifying interest in its funds from asset owners seeking exposure to the rapidly growing markets in which the company invests. There is strong demand for specialist investment managers offering clearly differentiated products and services and Impax is well placed to deliver long term growth in this environment.