Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (March 2022)
33 slides from Impax Asset Management's shareholder meeting presentation, Mar 29, 2022
Slide 1: Annual General Meeting
THIS IS NOT A FINANCIAL PROMOTION Annual General Meeting 29 March 2022 Ian Simm, Chief Executive
Slide 2: Investing in the transition to a more sustainable economy
Investing in the transition to a more sustainable economy Specialist manager - over 20 years’ experience 66 investment team members High-quality investment solutions – Listed equities, Private markets, Fixed income Global client base of institutional & intermediary investors (75% ex-UK) Scalable bus
Slide 3: 2021 highlights
2021 highlights AUM increased Highly Strong Strong platform 84% to £37.2bn attractive investment for further & record net market performance expansion inflows of context £10.7bn1 1As at 30 September 2021. Assets under advice represent ~2% of total AUM. 3
Slide 4: Financial performance
Financial performance1 Financial highlights Assets Under Management (£bn)² 143.1 2021 37.2 Revenues (£m) 87.5 Adjusted 2020 20.2 55.8 operating profit (£m) 3 23.3 Shareholders’ Equity (£m) Adjusted 54.0 profit before tax (£m) 22.2 2021 110.5 Adjusted 33.9 diluted earnings 2020 71.5 per share (pence)
Slide 5: Highly attractive market context
Highly attractive market context Macro drivers supporting transition to a Allocations by Expanding more sustainable asset owners investment economy accelerating opportunities Impax well positioned 5
Slide 6: Environmental Markets Strategies: performance versus benchmark
Environmental Markets Strategies: performance (%) versus benchmark1,2 Leaders3 – AUM £8,296m Specialists – AUM £4,060m Water – AUM £6,489m Leaders Specialists Water MSCI ACWI 94.0 MSCI ACWI 116.1 MSCI ACWI 106.2 79.0 79.0 74.8 79.0 54.9 62.7 38.0 40.5 38.0 38.0 33.4 24.2 22.2 22.2 22.2 1 year 3 year
Slide 7: Sustainability Lens Strategies: performance versus benchmark
Sustainability Lens Strategies: performance (%) versus benchmark Global Opportunities1 – AUM £6,480m2,3 US Large Cap – AUM US$1,400m4,5 US Small Cap – AUM US$657m5,6 Global Opportunities US Large Cap US Small Cap MSCI ACWI 121.5 S&P 500 Index 118.3 Russell 2000 Index 87.9 77.1 79.0 74.8 59.2 61.4 47
Slide 8: Well diversified AUM: by strategy
Well diversified AUM: by strategy… AUM BY STRATEGY1 Others, 9% Int’l Sustainable Economy, 2% Global Women'sLeadership, 2% Leaders, 22% US Large Cap, 3% Sustainable Food, 4% Asian Environmental, 5% Climate, 8% Water, 17% Specialists, 11% Global Opportunities, 17% All data as at 30 September 2021. ¹Da
Slide 9: Well diversified AUM: by client type
Well diversified AUM: by client type… AUM BY CLIENT TYPE Pax World funds, 16% Impax label funds, 11% Impax label PE funds, 1% Other mutual and advisory funds, 22% BNPP AM mutual funds, 41% Segregated accounts, 9% All data as at 30 September 2021. Data may not add up to 100% due to rounding 9
Slide 10: …and by region
…and by region AUM BY REGION North America, 25% UK/Ireland, 25% Asia Pacific, 2% EMEA, 48% All data as at 30 September 2021. Data may not add up to 100% due to rounding0 10
Slide 11: Investment strategies and products: scope for further growth
Investment strategies and products: scope for further growth 1 Expanding our current strategies 2 Developing new products 3 Potential for private markets 11
Slide 12: People, systems and infrastructure
People, systems and infrastructure Investing in our people • Post-Covid: office-based, but with greater flexibility • Employee survey: engagement score 88 • Team build-out in Dublin • Extending E,D&I work Systems and infrastructure • Global trading desk integrated • Further IT investment focused on
Slide 13: Outlook
Outlook
Slide 14: Invasion of Ukraine: investment impact
Invasion of Ukraine: investment impact No direct holdings Direct revenue Most equity Drivers of in Russian, exposure portfolios transition to a Ukrainian or among our moderately trailing more sustainable Belarusian investees v. markets CYTD economy securities limited remain strong 14
Slide 15: Invasion of Ukraine: corporate impact
Invasion of Ukraine: corporate impact AUM Positive Continuing to Robust cash and (28 Feb 2022) monthly net build our team capital position flat vs inflows but reducing rate 1 Oct 2021 through of hiring 28 Feb 2022 15
Slide 16: Outlook
Outlook Attractive Established, Authenticity investment diversified Experienced, and strong skills/ distribution resilient team brand strategies network Potential for Supportive Accelerating scaling and market allocations by developing drivers asset owners capabilities 16
Slide 17: Appendix
Appendix
Slide 18: Financial highlights: 64% revenue growth
Financial highlights: 64% revenue growth Revenue (£m) Weighted Average Fee Margin (bps) 51 2021 143.1 47 Performance 120.6 22.5 2020 2021 run rate: run rate: Net flows 87.5 33.1 48 bps 47 bps 2020 87.5 2020 2021 Net Flows & Annualised Net New Revenue (ANNR) Net flows ANNR 4.5 18.0 4 16.0 2020 3.5 14
Slide 19: Financial highlights: operating expenses – investment to support growth
Financial highlights: operating expenses – investment to support growth Adjusted1 Operating Expenses (£m) Total Staff (Average) Investment Staff Other Staff 2021 87.3 2021 62 133 195 Variable staff costs 68.9 18.4 2020 57 114 171 Fixed staff costs 65.6 3.3 September headcount: Non-staff costs 64.2 1
Slide 20: Financial highlights: 140% operating profit increase
Financial highlights: 140% operating profit increase, boosted by operational gearing Operating Profit (£m) Operating Margin 2021 55.8 2021 39.0% 2020 23.3 2020 26.6% Operational Gearing Trend Operating Profit Per Average Staff (£000) (£m) 160 45% 2021 286 140 40% 120 35% 100 30% 25% 2020 136 80 20%
Slide 21: Financial highlights: strong cash generation; 140% increase in total dividend
Financial highlights: strong cash generation; 140% increase in total dividend Dividend (p) Cash Movements1 (£m) Capital Resources (£m) 46.9 46.9 2021 70.1 2021 3.6 17.0 4 20.6 Other cash Capital (1.5) movements 18.1 buffer 2020 1.8 6.8 8.6 Pax Acquisition (0.7) 39.3 Net Net seeding of 2019 1.5 4.0 5
Slide 22: Global Opportunities: annual disclosure presentation – GBP
Global Opportunities: annual disclosure presentation – GBP Benchmark 3yr Total Firm Assets Composite Assets Number of Annual Gross Annual Benchmark Asset Weighted 3yr Annualized Std Annualized Std Year (Millions) (Millions) Portfolios Return Annual Net Return Return StdDev* Dev** Dev** 2020 24,154.2
Slide 23: Specialists: annual disclosure presentation – GBP
Specialists: annual disclosure presentation – GBP MSCI AC World 3yr FTSE ET 3yr Total Firm Assets Composite Assets Number of Annual Gross MSCI AC World Asset Weighted 3yr Annualized Std Annualized Std Annualized Std Year (Millions) (Millions) Portfolios¹ Return Annual Net Return Return FTSE ET Retur
Slide 24: Specialists: annual disclosure presentation cont. – 2021
Specialists: annual disclosure presentation cont. – 2021 Calculation Methodology performance returns was only applicable to Impax Asset Management, whilst since November 2018 the highest fee Returns are calculated using the asset-weighted method and individual portfolios are revalued daily or monthl
Slide 25: Leaders: annual disclosure presentation – GBP
Leaders: annual disclosure presentation – GBP Total Firm Assets Composite Assets Number of Annual Gross Annual Net MSCI AC World Asset Weighted 3yr Annualized MSCI AC World 3yr FTSE EOAS 3yr Year (Millions) (Millions) Portfolios Return Return Return FTSE EOAS Return StdDev* Std Dev** Annualized Std
Slide 26: Asian Environmental: annual disclosure presentation – GBP
Asian Environmental: annual disclosure presentation – GBP MSCI AC AP 3yr FTSE EO AP 3yr Total Firm Assets Composite Assets Number of Annual Gross Asset Weighted 3yr Annualized Std Annualized Std Annualized Std Year (Millions) (Millions) Portfolios Return Annual Net Return MSCI AC AP Return FTSE EO A
Slide 27: Water: annual disclosure presentation – GBP
Water: annual disclosure presentation – GBP FTSE EO Water 3yr MSCI AC World FTSE EO Water Total Firm Assets Composite Assets Number of Annual Gross MSCI AC World Technology Annual Asset Weighted Annualized 3yr Annualized Technology 3yr Year (Millions) (Millions) Portfolios¹ Return Annual Net Return
Slide 28: Sustainable Food: annual disclosure presentation – GBP
Sustainable Food: annual disclosure presentation – GBP Benchmark 3yr Total Firm Assets Composite Assets Number of Annual Gross Annual Benchmark Asset Weighted 3yr Annualized Std Annualized Std Year (Millions) (Millions) Portfolios Return Annual Net Return Return StdDev* Dev** Dev** 2020 24,154.28 82
Slide 29: Impax US Large Cap Strategy
Impax US Large Cap Strategy IMPAX US LARGE CAP STRATEGY as of 12/31/2020 ANNUAL PERFORMANCE TOTAL RETURN TOTAL RETURN TOTAL FIRM ASSETS COMPOSITE ASSETS S&P 500 INDEX ASSET WEIGHTED COMPOSITE 3 YEAR BENCHMARK 3 NUMBER OF YEAR (USD) (MILLIONS)* (USD)(MILLIONS) GROSS OF FEES (%) NET OF FEES (%) (%) ST
Slide 30: Impax US Small Cap Strategy
Impax US Small Cap Strategy IMPAX US SMALL CAP STRATEGY RUSSELL 2000 - NET ANNUAL RUSSELL RETURN 3YR TOTAL FIRM ASSETS COMPOSITE ASSETS NUMBER OF ANNUAL GROSS 2000 - NET RETURN ASSET WEIGHTED 3yr annualized std ANNUALIZED STD YEAR (MILLIONS)* (MILLIONS) PORTFOLIOS RETURN ANNUAL NET RETURN RETURN STD
Slide 31: Impax Core Bond Strategy Disclosures
Impax Core Bond Strategy Disclosures IMPAX CORE BOND STRATEGY as of 12/31/2020 ANNUAL PERFORMANCE ASSET COMPOSITE TOTAL FIRM ASSETS (USD) COMPOSITE ASSETS TOTAL RETURN TOTAL RETURN BLOOMBERG BARCLAYS US WEIGHTED 3 YEAR BENCHMARK NUMBER OF YEAR (MILLIONS)* (USD)(MILLIONS) GROSS OF FEES (%) NET OF FEE
Slide 32: Impax High Yield Bond Strategy disclosures
Impax High Yield Bond Strategy disclosures IMPAX HIGH YIELD BOND STRATEGY as of 12/31/2020 ANNUAL PERFORMANCE TOTAL FIRM ASSETS COMPOSITE ASSETS TOTAL RETURN TOTAL RETURN ICE BOFA MERRILL LYNCH US ASSET WEIGHTED COMPOSITE 3 BENCHMARK 3 YEAR NUMBER OF YEAR (USD) (MILLIONS)* (USD) (MILLIONS) GROSS OF
Slide 33: Important information
Important information NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION The information contained in this document (the “Presentation”) and any additi
Impax Asset Management Group — Shareholder Meeting (March 2022) on 6ix