Now my biggest holding up >80% in < a year. Acquisition still to factor. Not sure it can continue so well? Holding for the ride but will be top slicing at some point methinks - watch for the levelling.
"The market is not moving in lock-step towards passive equities, says Impax Asset Management (IPX) chief executive Ian Simm. As he sees it, there is a bifurcation going on between passively managed equity funds and differentiated actively managed funds. Such a belief is required if you run or own Impax, of course, but it is supportable from the sustainable investment specialists full-year figures.
Record net inflows of £2.1bn in the year to September helped push assets under management up 61 per cent to £7.3bn at the period-end. Forecasting flows is a fickle business, but those assets had pushed on further to £7.6bn by the end of October, demonstrating that the beginning of the 2018 financial year saw the momentum sustained.
The acquisition of Pax World Management, announced in September, gives Impax a better global balance: currently, around 15 per cent of Impaxs clients, by assets, are in North America. The transaction will bring that proportion close to an equal split on each side of the Atlantic, says Mr Simm, as well as giving Impax a fixed income capability and a better platform to distribute stateside. The risks in such a deal are losing managers and assets, so it is actually reassuring that Impax is not feeding alienation through headcount counts or seeking large cost synergies, although there will be some operational savings in the back office.
Analysts at broker Peel Hunt kept its forecasts of EPS of 7.3p (from 5.1p in FY2017) for the year to September 2018, from £11.9m in adjusted pre-tax profit.
The share price has trebled in the past year, and values the company at 22 times its expected FY2018 earnings, falling to 19 times in respect of FY2019. Its tempting to call the top, but the organisational momentum is being sustained, and the US deal is promising. Buy.
It's a Q4/full-year update for this environmental asset manager.
AuM increased by another 9% in Q4 to £7.3 billion. That's pre-closure of the recently-announced US acquisition, which is set to take total group assets over £10 billion.
The movement can be broken down as 6% increase from flows and 3% increase from growth in the existing assets.
That's another fine result. The full-year result is 46% increase from flows and 15% increase from growth in existing assets.
I think it's worth adding a bit of caution that a small number of additional mandates can make a huge difference to the flow results. These are large and potentially one-off transactions.
The market cap to (pre-acquisition) AuM ratio is now 2.6% which is fairly average among asset managers as a whole, although arguably still inexpensive against active or specialist asset managers. Schroders (LON:SDR), for example, is trading at 2.3% of AuM. I would argue that Impax is a lot more specialised, although you could also argue that it's a lot riskier compared to its larger rival.
On balance, I'm still positive on Impax. I expect these quality ratios to improve in the years ahead, with increased scale.
I did not post the price 2013 . ( Maybe i purchased later in day for 34.45 )
Attention drawn to it buy Marksman ( i had not noticed large 23% rise )
But i was out last night and I am hung over, just as well i don't do that to often lol
Any reason for today's rise ?
Inflows of funds accelerating
Diversifying geographical distribution
Institutional money relatively stable
Double-digit earnings growth forecast
Lower margins on institutional funds
Lower dividend yield than rivals
Sustainable investment specialist Impax Asset Management (IPX) is small but looks like a mighty promising fund manager. It is gaining new business at an increasingly rapid rate, partly thanks to the growing popularity of so-called 'environmental, social and governance investing' among institutional investors. In fact, during the three months to June it gained more new business than during the its previous two financial years. As a result, City analysts forecast double-digit earnings growth during the next two years.
Broker Peel Hunt has already twice upgraded its estimates for 2016-17's earnings per share since Impax issued its latest first-half results in May. In addition, the broker reckons its 2018-19 forecasts could increase by a further 17 per cent if momentum in growing assets under management is maintained.
Impax invests predominately in listed equities via four strategies, which include what it labels 'resource efficiency markets' (mostly food, energy and water companies). It also invests in private equity infrastructure and 'sustainable' (ie, low energy consumption) property. The appetite from investors for its services is growing. During the first half of the year, its gained net inflows of £870m. Along with £339m in investment gains, this took total assets under management to £5.7bn. That was despite its strategies having little or no exposure to financial or energy stocks sectors that recorded the biggest gains during the period.
However, during its third quarter it added a further £871m in net new business compared with £573m during the two years to 31 March 2017. The good news is that the vast majority of the assets Impax manages are on behalf of institutional clients, which are less likely to withdraw funds due to short-term changes in market sentiment. Therefore, mandates are typically larger and longer-term, even if they come with lower profit margins than retail business. There is also increasing pressure being put on institutional investors to place greater importance on environmental issues. Take, for example, a task force on climate-related financial disclosures which was backed by the G20 group of wealthy and fast-growing nations. The task force recommended that asset managers, financial institutions and companies disclose information to enable stakeholders to assess and price climate-related risks and opportunities.
Impax is also benefiting from its distribution agreements, notably with BNP Paribas, an investment bank. BNP puts its own label on products based on Impaxs investment strategies. During the two years to 31 March BNP had raised 450m (£405m) for funds based on Impaxs food and agriculture strategy alone, particularly to investors in continental Europe. However, Impax is also gaining traction in North America. For example, it commenced a $100m (£76m) mandate for a segregated account based on its 'leaders' strategy, which targets companies that are resource efficient and environmental leaders.
Admittedly, flows can be particularly changeable for asset managers with a tightly-defined focus, such as Impax. The dividend yield offered with the current share price is also lower than some smaller asset managers, such as Liontrust (LIO).
However, the significant growth potential does not seem to be reflected in the share price. Earnings per share for that year are forecast to be 7.6p compared with underlying earnings of just 2.9p for 2015-16.
The shares are trading at 15 times forecast earnings for 2017-18 . However, after adjusting for the £13m in net cash on its balance sheet, the rating drops to about 13.5 times. With business momentum in full flow, that
We will be hosting an interim results webinar for Impax Asset Management Group. Ian Simm, Chief Executive, and Charlie Ridge, Chief Financial Officer, will give a presentation lasting approximately 30 mins and there will then be an opportunity for Q&A. If you would like to join please register now at:
If you would like to hear management present the results for Impax Asset Management we will be hosting a webinar on Monday 12th December at 1pm. Ian Simm, Chief Executive, and Charlie Ridge, Chief Financial Officer, will give a presentation lasting approximately 30 mins and there will then be an opportunity for Q&A.
To join please register at: https://attendee.gotowebinar.com/register/2019095153726794242
If you would like to submit any questions for management ahead of the meeting please send them to [email protected]
"Anyone who has ever spent Christmas Day morning searching for batteries for their children's new toys will be familiar with a problem that the global energy industry faces on a grand scale: the demand for electrical power is unpredictable, so ..."
Bookmark the links if you wish to 'pass the LINK/s on'.... or read later?
BE A PART OF IT
# The big problem with shorting is that THEY (the shorters) WOULD most likely lose most of their money IF they just 'bet' on the price going down without trying to 'help' it down?
So, there is the 'catch 22' scenario. No one would know of an RNS to be released that will contain BAD NEWS, if they did and then 'shorted' the stock, then they are guilty of 'insider trading'.
The only sure way to short a stock and WIN is to spread dis-information to defame the company with help from other posters that are in concert with them. To ENSURE that they don't lose the biggest part of their 'short', ironically, then, they must deramp with (seemingly) believable posts.
When the pro's do it, they simply get the media or well known 'crooked' tipsters, analysts or brokers to do it for them. (say no more). .They're all in cahoots with each other!
The campaign against shorting is for the benefit of the 'cheated' investors that cannot control their investments due to the dirty tricks played out by co-ordinated deramping in order to tank the sp to abnormally low levels.
When the campaign is complete, the results will be reviewed by Govt legislators re- further action! The branch of the FSA ie FCA will be asked by Davide Serra to conduct an investigation into short selling practices, with the view to either:- an outright ban on short selling, or at the very least to be better and more vigorously regulated !
The HMGovt epetition is a regulated and monitored site with legal authority that will NOT under any circumstances allow any auspicious individuals to prevent 'others' from casting their free votes. Discussions of which are freely entered into with individual viewpoints.
A wish in my life is to gain the wisdom to pick women as sucessfully as my share-holdings. At 62, don't think it'll happen but at least there's a decent divi announcement to look forward to next month IMO.
Fascinating that IPX provokes a page of comment in 5 years: GKP a page in a couple of minutes. Try a 1 year comparison chart and see that IPX easily matches the latest "wunderkind" and beats it to pieces until the last few days of mayhem. As I'm in both for the long term (2013 mortgage repayment), I'm relaxed about both but in different ways. GKP is the scatty hare: IPX the tortoise. Is it a race? Not for me: just a warm feeling towards both.
Bruce Jenkyn-Jones, managing director of Impax Asset Management Group, explains how climate change, environmental degradation and resource scarcity are underpinning a set of rapidly expanding environmental markets.
Can you tell us a bit about what makes Impax Environmental Markets different?
Impax is unique as an AIM-listed boutique fund manager focused only on the high growth environmental sectors of alternative energy and energy efficiency, water treatment and pollution control, and waste technologies and resource management.
These environmental markets are large ($500 billion annual revenues) with superior, sustained growth rates of 10-20% C.A.G.R. Companies operating in these markets are growing rapidly in a complex environment characterized by new technology, changing regulations and high levels of M&A activity. They are often difficult to research, and therefore undervalued.
Key investment team members have been working together at Impax for over a decade and have spent the majority of their careers in the environmental sector. This track record and in-depth expertise is critical in a sector defined by legislative developments and advancing technology.
Investors can gain exposure to the full breadth of Impax's offering by buying shares in Impax Asset Management Group plc, or full exposure to the environmental sector through Impax Environmental Markets (IEM), the UK's largest environmental markets fund or through Impax Asian Environmental Market, Impax's listed fund dedicated to the very high growth environmental markets sectors in the Asia-Pacific region (open ended (Irish) versions of these funds are also available).
What sort of companies do you focus on and why?
We focus on high growth, cleaner more efficient companies in the environmental sectors of alternative energy and energy efficiency, water treatment and pollution control, and waste technologies and resource management.
Within these six key sectors we focus on the 21 Impax/FTSE environmental subsectors. These include areas such as recycling, smart grids, and companies manufacturing products such as hybrid vehicles or LEDs.
What has contributed to your recent strong performance?
Climate change, environmental degradation and resource scarcity are underpinning a set of rapidly expanding environmental markets. These markets are large ($500 billion annual revenues) with superior, sustained growth rates of 10-20% C.A.G.R.
Impax believes that earnings of companies active in the environmental markets will continue to grow at superior rates (5-10% faster) to the overall economy. Impax expects this superior growth to be translated into share price performance over the next five years just as it has been over the last five years.
Recent strong performance has come from the Asian environmental markets sectors.
Continuous industrialisation and urbanisation in Asia is leading to as population pressure, rising coal and oil prices, water shortages, limited landfill space and air pollution. These problems are being addressed by new legislation and technology to increase environmental sustainability and ease the pressure on urban infrastructure. There are many exciting, undervalued companies in the region that are supplying local environmental markets as well as international demand, and the investment returns are increasingly attractive.
Can you explain how positive engagement works in practice at Impax?
ESG (Environmental, social, governance) analysis is an integral part of the Impax investment process. A thorough examination of company management, governance, ownership, risks and issues is a core part of Impax's detailed stock analysis. Each company must be approved by the investment committee on these criteria before it enters the Impax list of investable stocks. The investment committee continually monitors an ESG information database for companies in the list of investable stocks and the Impax investment team engages with the ma
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