As expected, AUM fell 7% over Q1'26 (1 Oct 25 - 31 Dec 25) to £24.2bn. Investment performance was marginally negative at -£0.2bn with net outflows of £1.6bn. Impax’s FY25 results commentary in late-Nov 25 had said that net outflows were likely to persist in the first part of FY26, with net flows improving over the year.
Net flows reflect current global trends in sustainable investing. LSEG Lipper ‘responsible investing’ data shows equity funds suffering outflows for most of 2025 (equities make up 88% of Impax AUM), with robust inflows for bond funds (a strategic growth focus of Impax, currently 10% of AUM).
Encouragingly, there is widespread confidence in the future of sustainable investing. Morningstar/Sustainalytics recently wrote that : 'Recent investor surveys point to a bright future for sustainable investing… 86% of asset owners expect to increase allocations to sustainable investments in the next two years.'
Being so early in the financial year, and with positive markets so far in Jan 26, our forecasts remain unchanged - as does our fundamental valuation / share of 380p, more than twice the share price. This valuation disconnect is further reflected in Impax having a lowest-in-sector PER of 9.3x
