1st Jun 2022 10:05
(Alliance News) - Shares dropped in Impax Asset Management PLC on Wednesday, in spite of a mostly positive interim performance, as its thematic Environmental Markets strategies underperformed their benchmarks in the latter half of the period.
Shares in the London-based investment trust were 13% lower at 709.40 pence on Wednesday morning.
Impax reported GBP2.5 billion of net inflows in the six months to the end of March, reflected in new mandates and increased investments into existing accounts in North America, Europe and Asia-Pacific.
Assets under management as at March 31 were GBP38.02 billion, up 2.2% from GBP37.21 billion at the end of September, and 27% higher from GBP30.00 billion the same date a year before.
Although most of Impax's strategies performed strongly over the first three months of the period, in the latter half the trust's first half, Environmental Markets strategies lagged behind their benchmarks - with Water underperforming the MSCI All Country World Index by 5.5%, Sustainable Food by 5.7%, Leaders by 7.9%; and Specialists by 9.2%.
For the six month period, pretax profit more than doubled to GBP32.7 million from GBP14.4 million, on revenue which grew 46% year-on-year to GBP88.6 million from GBP60.6 million, driven by positive net flows.
Impax declared an interim dividend of 4.7 pence per share, up 31% from 3.6p a year before.
Looking ahead, Impax said the global macroeconomic outlook has been complicated by the invasion of Ukraine, higher inflation data and supply chain disruptions. However, the company was encouraged by the adoption by governments of green taxonomies is likely to raise the attractiveness of investments consistent with the transition to a more sustainable economy.
"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. Amid considerable market volatility surrounding recent geopolitical events, we continue to be pleased with the long-term performance of our investment strategies," said Chief Executive Ian Simm.
By Dayo Laniyan; [email protected]
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