Impax Asset Management shares fell 9.3% to 735p in early afternoon trading on Wednesday, despite a reported revenue growth to £88.6 million in HY1 2021 compared to £60.6 million in HY1 2022.
Impax Asset Management announced a pre-tax profit jump to £32.7 million from £14.4 million year-on-year, along with an adjusted operating profit climb to £34 million against £20.7 million.
The investment group confirmed an increase in assets under management (AUM) to £38 billion from £30 billion, driven by net inflows of £2.5 billion which were reportedly well diversified by channel and geography.
However, net inflows were offset by a decline of £1.7 billion as a result of market movements, investment performance and the impact of foreign exchange.
“Impax has delivered a solid first half to its financial year, with revenue up 46% and adjusted operating profit up 64% on the comparable period in 2021,” said Impax Asset Management CEO Ian Simm.
“We have benefitted from net inflows of £2.5 billion that were well diversified both geographically and across a wide range of sales channels.”
“Our investment approach, with its careful attention to risk and resilience, continues to attract asset owners that are seeking to build robust portfolios with attractive returns, focused on the transition to a more sustainable economy.”
Going green loses its sheen
Following a strong performance in the first three months of the term, the sustainable investment group suffered after value-oriented stocks which Impax lacked exposure to, such as fossil fuel energy companies, took off on the Ukraine war.
Meanwhile, Impax noted declining returns on its Water, Sustainable Food and Climate Strategy sectors, which all lagged behind the MSCI All Country World Index by 5.5%, 5.7% and 9.4%, respectively.
Its Sustainability Lens strategies saw its US Large Cap strategy trail the S&P 500 by 2.5%, with the US Small Cap strategy falling behind the Russell 2000 Index by 0.2% and Global Opportunities trailing the ACWI by 4.8%.
Positive Outlook
Impax commented that it had a positive outlook for the coming period, despite geopolitical market volatility.
The company noted that it believed green and sustainable investment opportunities remained attractive for investors, with the heightened awareness around energy security after the Intergovernmental Panel on Climate Change reinforcing the drivers behind several of the markets in which Impax invests.
The investment group said its outlook was optimistic based on the emergence of green taxonomies by governments, sparking attractiveness for investments linked to a sustainable economy.
“Amid considerable market volatility surrounding recent geopolitical events, we continue to be pleased with the long-term performance of our investment strategies,” said Simm.
The company reported a diluted EPS climb to 21.5p against 11.8p, along with an interim dividend per share growth to 4.7p compared to 3.6p the year before.
