Environmental leadership driving growth

 

 

Impax is a market leading manager of both listed and private equity funds, which invest in ways that take advantage of more environmentally sustainable corporate and economic growth globally. Aggregate AUM at end September 2016 was £4.5bn. 

 

Investment decisions are based on proprietary and rigorous investment process, designed to take advantage of trends being driven by better resource efficiency and solutions to environmental problems. Long-term drivers remain compelling, and the group’s funds are diversified geographically and by environmental market sector. 

 

Significant FY16 AUM growth reflects benign equity markets as a whole but encouragingly for Impax we particularly note: (a) fund outperformance vs global benchmarks and (b) net fund inflows of £0.5bn during the last financial year.

 

Intriguingly, these encouraging growth prospects do not appear reflected in the historical valuation of Impax shares vs other quoted specialist fund management groups. Based upon consensus forecasts, the current rating is 8.1 x EV/NOPAT (EV c 1%. of AUM) with a 3.7% yield (2015-16), covered 1.5 times.

 

On 1st December the group will release results for the year ended 30 September 2016. This will not only bring an up to date report on financial and corporate progress, but also an insight as to how the company sees its own outlook. On 30th November Ian Simm, CEO, will present at the ED Investor Forum.