In Q3 of Impax’s FY26 (1 Apr 26 – 30 Jun 26), AUM grew by £1.0bn (+4.4%) to £23.3bn. Investment performance was very strong, contributing +£2.7bn to AUM growth (+12% of opening AUM). The net flow outlook is improving, with £994m of net outflows in Q3 (excluding the impact of Impax Environmental Markets plc).
Impax has flagged an improving flow trend from its largest distribution partner (BNP Paribas) with increased interest in its thematic equities range, and positive net flows for its systematic equities strategies in the US. With strong demand for this strategy in Europe, Impax intends to launch its first UCITS systematic equities product later this year.
While we do not change our end-FY26 (30 Sep 26) AUM forecast from £22.8bn, the AUM increase in Q3 does nudge our FY26 average AUM, revenue, and adjusted operating profit (AOP) forecasts upwards: revenue from £110.3m to £111.6m; AOP from £14.9m to £15.7m
Our DCF valuation remains 250p / share, more than twice the share price despite a positive investor reaction to the latest AUM update, and we note that cash and on-balance sheet investments (seeding of funds) represent c. 43% of current market capitalisation.
