6th Dec 2018 13:56
LONDON (Alliance News) - Impax Asset Management Group PLC on Thursday reported a sharp rise in assets under management in a "landmark year" for the company, as the asset manager hiked its payout to shareholders, boosted by a special dividend.
At September 30, Impax assets under management totalled GBP12.5 billion compared to GBP7.3 billion last year, a 71% increase.
The sharp rise in assets is mainly attributed to the asset manager's acquisition of Pax World Management LLC in January - renamed Impax Asset Management LLC after the acquisition - which added GBP3.64 billion in asset under management.
At November 30, Impax assets under management were down slightly at GBP12.2 billion.
The asset manager said the rise in assets also was the result of a "strong" rise in net flows. Impax recorded net inflows of GBP1.46 billion.
The asset manager's thematic equity funds - which are selected for their exposure to environmental markets - saw GBP1.72 billion in inflows but this was offset slightly by GBP27 million and GBP118 million outflows from the real asset funds and fixed income US equity funds, respectively.
Impax thematic equity funds made up GBP9.0 billion of its GBP12.5 billion of assets.
"2018 has been a particularly exciting year for Impax. The company has grown considerably, establishing Impax as one of the largest global investment managers focused on investing in the transition to a more sustainable economy," said Chief Executive Officer Ian Simm.
"Positive net inflows have underpinned our expansion as asset owners around the world increasingly seek investment exposure to Impax's area of expertise. This momentum opens up new opportunities that we are ideally positioned to benefit from. The solid foundations we've laid down over the last twenty years should support significant further growth for the company"
Impax proposed a final dividend of 3.0 pence per share, taking its total dividend to 6.7p, more than double last year's 2.9p dividend.
Impax's payout this year includes a 2.6p special dividend, which comes from the asset manager winding down its New Energy Investors II fund - with asset sell offs generating EUR109 million. The asset manager did not pay a special dividend last year.
Simm added: "Impax is well-positioned to continue to deliver long-term value to clients and shareholders. In the shorter-term we expect a somewhat softer global economy and steadily rising interest rates in many regions, a situation that may impact global equity markets."
Shares in Impax were down 2.6% Thursday at 212.40 pence each in London on Thursday.
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Impax Asset Management