Impax is a market leading and multi award winning manager of both listed and private equity funds, which invest in ways that take advantage of more environmentally sustainable corporate and economic growth globally.
AUM grew by £4.1bn over Q1 of FY22 (1 Oct 21 – 30 Sep 22), reaching £41.4bn on 31 Dec 21, 11% up over the quarter and 64% up y-o-y (AUM on 31 Dec 20 £25.2bn). Particularly pleasing is the continuation of strong net AUM inflows, which totalled £2.0bn for the quarter. Growth from market movements and investment performance was also very strong, totalling £2.1bn.
Impax’s quarterly growth is ahead of our forecasted trajectory for FY22 (average quarterly AUM growth of just under £2bn, with AUM reaching around £45bn by 31 Oct 22). However, we highlight that it is still very early in the financial year, and that asset managers’ AUM can be volatile, particularly as a result of significant market movements. As such, we will not be revising our forecasts at this stage.
We also remind readers of the longer-term AUM assumptions which underpin our fundamental valuation of 1,450p per share. Over the next five years we have assumed that Impax attracts between £6bn and £8bn of net inflows per annum, and achieves an investment performance of around +5% per annum. Q1 22 AUM growth is clearly ahead of these assumptions.
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