Impax Asset Management suffered net outflows over the last year, despite returning strong investment performance, the firm revealed in its annual results today (29 November).
In the year to 30 September, the firm saw £144m of outflows from listed equities, which was partially balanced by £2m of inflows into fixed income and £49m of inflows into private markets.
Following the popularity of the firm's fixed income offerings during the period, Impax said it had "identified a particular opportunity" in that space and as a result, had made "strategic hires" into that team.
"We are reviewing opportunities to source additional fixed income capabilities and will provide an update in due course," it said.
The firm's Environmental Markets strategies suffered large outflows, losing £1.7bn, largely due to redemptions from the firm's distribution partners, such as BNP Paribas Asset Management.
"Overall, the proportion of Impax's annual revenues from the BNPP AM range of SICAV mutual funds fell to 28%, compared to 30% in the previous financial year," Impax noted.
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In contrast, the firm's Sustainability Lens strategies saw net inflows of £1.6bn, while Global Opportunities received £1bn throughout the year, partially thanks to a large contribution from St James's Place.
"The US Large Cap strategy registered net inflows of £700 million, supported by subscriptions via Lombard Odier and a significant segregated mandate from a Japanese pension fund, awarded in October 2022," Impax added.
Meanwhile, the listed equities arm of the firm recorded strong growth from market movement, FX and performance, rising £1.9bn throughout the year, while fixed income fell £73m and private markets fell £6m.
However, profits for the firm took a dip, falling 13.8% from £67.4m last year to £58.1m. This was due to rising costs for the firm, which jumped from £108m to £120.3m, as it invested in its distribution and investment capabilities, technology and operations.
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Chair Sally Bridgeland said: "Despite the challenging macro environment that has faced the asset management community, Impax has continued to deliver for its clients over the financial year.
"The company has been recognised for its sector leadership and its commitment to investing in the transition to a more sustainable economy, winning several industry awards."
CEO Ian Simm added: "In a year where we have celebrated Impax's 25th anniversary, our conviction in our investment thesis focused on the transition to a more sustainable economy is stronger than ever.
"With valuations increasingly attractive, our investment teams have identified several compelling themes that we believe will play out over the medium to long term, for example the adoption of renewable energy, the provision of climate resilient water supply and infrastructure and the deployment of new technology to improve access to healthy food and financial services worldwide."
Board changes
The firm announced a range of changes to its board, with Bridgeland set to step down with chair of the renumeration committee Lindsey Brace Martinez in July 2024.
Simon O'Regan will succeed Bridgeland on 31 July, while Julia Bond has been appointed non-executive director at the firm from today, with the view to replacing Martinez as chair of the renumeration committee.
Bond is a former managing director at Credit Suisse, leading the firm's central bank and sovereign wealth fund teams globally, as well as co-heading non-Japan Asia fixed income sales.
Bridgeland said: "I am delighted to welcome Julia to the board. She brings deep expertise in financial services and her non-executive experience across a range of sectors will be invaluable as the company continues to build its global reach and increase its resilience."
Bond added: "I am excited by the prospect of joining the board of Impax Asset Management. The Impax offering and focus on the transition to a more sustainable economy is highly compelling. I look forward to supporting the company as it continues its growth trajectory."
