Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (March 2024)
59 slides from Impax Asset Management's shareholder meeting presentation, Mar 12, 2024
Slide 1: Annual General Meeting
FOR INFORMATION ONLY. THIS IS NOT A MARKETING COMMUNICATION. NOT FOR FURTHER DISTRIBUTION Annual General Meeting 12 March 2024
Slide 2: Investing in the transition to a more sustainable economy
Investing in the transition to a more sustainable economy Investment manager – 25 years’ experience Expertise in highly attractive areas recognised worldwide Large investment team (c.80 members) – Listed equities, fixed income, private markets Global client base of institutional & intermediary inves
Slide 3: Impax's investment philosophy
Impax’s investment philosophy The transition to a more sustainable economy Secular Sectoral Attractive for “active” drivers transformation investment managers • Resource/environmental • Large-scale, affecting constraints most sectors • Regulation • High growth rates • Technology change • Uncertain i
Slide 4: Environmental Markets investment portfolios
Environmental Markets investment portfolios Investing in companies developing innovative solutions to resource challenges in environmental markets 4
Slide 5: Sustainability Lens investment portfolios
Sustainability Lens investment portfolios Investing in companies possessing sustainable competitive advantages 5
Slide 6: 2023 Results
2023 Results
Slide 7: FY 2023 highlights
FY 2023 highlights AUM1 up 4.8% Creditable Progressed to £37.4 billion performance, product driven by strong despite challenging development client retention and macroeconomic in listed equities investment returns. conditions Reuters “Responsible Investor of the Year” Building out Strengthened Incre
Slide 8: Supportive policy drivers amid challenging investment conditions
Supportive policy drivers amid challenging investment conditions • A headline rally in global equities markets… • …masked a more fragile sentiment in many areas of the global economy • These cyclical trends led to a derating of Impax’s major investment portfolios • Secular drivers of transition to a
Slide 9: AUM by range
AUM by range 59% Environmental Markets 64% 35% SustainabilityLens Sustainability Lens 30% FY 2023 FY 2022 FY 2023 6% FY 2022 Other Other 6% FY 2023 FY 2022 All data as at 30 September 2023. Data is shown using a "manufacturing view“. 9
Slide 10: AUM by strategy
AUM by strategy International Sustainable Economy, 2% Other, 8% Global Women's Leadership, 2% Leaders, 18% Core Bond, 2% US Large Cap, 5% Water, 16% Global Opportunities, 25% Specialists, 8% Sustainable Food, 3% Climate, 8% Asian Environmental, 3% All data as at 30 September 2023. Data is of largest
Slide 11: AUM by region
AUM by region 4% Asia-Pacific 2% 48% EMEA 50% 22% UK 20% FY 2023 26% FY 2022 North America 27% All data as at 30 September 2023. Regional data is by fund/account country of domicile. EMEA includes Impax Irish UCITS platform and SICAV funds sub-managed for BNP Paribas Asset Management and other distr
Slide 12: Revenue by client type
Revenue by client type 53% Own label & other mandates 53% 28% BNPP AM mutual funds 30% 19% FY 2023 Other mutual funds & advisory 17% FY 2022 All data as at 30 September 2023. 1”Own label” includes Irish UCITS platform in Europe, Impax Funds and Delaware Funds in US and Impax New Energy Funds; “other
Slide 13: Net inflows – breakdown by channel (£m)
Net inflows – breakdown by channel (£m) UK/Ireland North America 741 St James's Place Own-label funds1 (360) 1,123 683 (57) Other mutual & advisory (40) IEM plc 50 funds 319 (109) Segregated accounts (121) (106) Segregated accounts (64) 92 (59) Irish UCITS platform 150 FY 2023 FY 2022 All data as at
Slide 14: Net inflows – breakdown by channel (£m) continued
Net inflows – breakdown by channel (£m) continued Funds sub-managed for BNP Paribas Asset Management Other EMEA distributors/funds Asia-Pacific1 White label label and and other 217 Segregated 618 White (1037) other funds funds accounts 345 539 539 BNPP funds (518) 4 Segregated (23) Other 68 accounts
Slide 15: Expansion of both direct distribution and our partnership network
Expansion of both direct distribution and our partnership network Direct Canada: Nordics: Japan: appointed first client- dedicated business opened new office introducing representative development professional in Tokyo Partners US: Latin America: Australia: Impax funds now on many UCITS funds distri
Slide 16: Product development: listed equities and private markets
Product development: listed equities and private markets • New strategy launches ― Sustainable Infrastructure (Active) – Oct 2022 ― Global Social Leaders – Dec 2023 ― Global Emerging Markets – planned H1 2024 • Expanding existing strategies ― Europe & Asia-Pacific ― UCITS fund launch of US Environme
Slide 17: Product development: fixed income
Product development: fixed income • Announcement of acquisition of Absalon Corporate Credit’s assets and investment team • Higher interest rate environment attractive • Significant market opportunity to offer sustainability-integrated products • Impax well-positioned given our heritage • Scope to bu
Slide 18: Introducing: The Impax Sustainability Centre
Introducing: “The Impax Sustainability Centre” 1 2 • Draws on our deep heritage in this space Investment Sustainability Advocacy & outreach & Stewardship • Brings together Sustainability 20+ years’ experience of & Stewardship and Policy & sustainable taxonomies Advocacy teams Ranked 1 for proxy voti
Slide 19: Efficiency, risk and governance
Efficiency, risk and governance Technology & efficiency • Salesforce roll-out • New data management & AI strategy • Expanded use of cloud services Risk • New post: Chief Risk Officer • Established dedicated enterprise team Governance • Reviewed the firm's governance model • Introduced additional str
Slide 20: Equipping our people for success
Equipping our people for success Number of employees1 • Sharply reduced headcount expansion, up 10% (2022: 26%) 166 155 • Strong employee engagement score of 90%, Sep-23 Sep-22 97% aligned to Impax’s mission, culture and 115 values 102 Total: • Rolled out new remuneration framework, with 300 scoreca
Slide 21: Robust financial performance
Robust financial performance1 Past performance does not predict future returns. Financial highlights - KPIs Assets under management (£bn)² 178.4 Revenues (£m) 175.4 2023 37.4 143.1 2022 35.7 Adjusted 58.1 operating 67.4 2021 37.2 profit (£m) 3 55.80 Adjusted 60.0 profit before 68.4 Shareholders’ equ
Slide 22: Outlook
Outlook
Slide 23: 25 years on, Impax continues to be well positioned
25 years on, Impax continues to be well positioned • Compelling brand & investment philosophy • Diversified, expanding product suite • Global base of institutional and intermediary clients • Resilient, scalable platform 23
Slide 24: Appendices
Appendices
Slide 25: FY 2023: Breakdown of AUM increase (£bn)
FY 2023: Breakdown of AUM increase (£bn) 30-Sep-23 37.4 Outflows (4.2) Inflows 3.0 Market movement (1.5) 31-Mar-23 40.1 Outflows (3.4) Inflows 4.5 Market movement 3.3 30-Sep-22 35.7 As at 30 September 2023, assets under advice represent ~3% of total AUM. 25
Slide 26: Robust revenue performance
Robust revenue performance Revenue (£m) Average fee margin (bps) 46.3 47.1 45.2 2023 178.4 Performance (2.7) Net flows 5.7 2022 175.4 2021 143.1 2023 2022 2021 Sep-23 Sep-23 annualised run rate: run rate: 45.1 bps £168.8m 26
Slide 27: Resilient operating performance
Resilient operating performance Operating profit1 (£m) Operating margin 2023 58.1 2023 32.6% 2022 67.4 2022 38.4% 2021 55.8 2021 39.0% Operational gearing trend (£m) 200 45% 180 40% 160 35% 140 30% 120 25% 100 20% 80 60 15% 40 10% 20 5% 0 0% 2017 2018 2019 2020 2021 2022 2023 Revenue Operating profi
Slide 28: IPX shareholder register
IPX shareholder register IPX shares September 2023 (m) Share management • EBT purchased 2,074,454 shares in the period • Average weighted price paid £7.26 IPX shares in issue 132.6 • Continuation of EBT purchasing policy Shares held in EBT (4.3) Current ownership 30 September 2023 Net IPX shares 128
Slide 29: Continued revenue diversification
Continued revenue diversification Revenue by strategy1 Revenue by region Asia Pacific, 3% Outer circle: 2023 Middle circle: 2022 Inner circle: 2021 Others, 13% 2% International Sustainable Economy, EMEA2, 46% North 2% 1% Leaders, 21% 35% America, 34% 46% Global Women's Leadership, 35% 2% 46% Core Bo
Slide 30: Operating expenses: cost growth moderates
Operating expenses: cost growth moderates Adjusted operating expenses (£m) Total staff (average)1 Period Ave: End: 2023 120.3 2023 83 207 290 300 Variable staff costs (5.3) 2022 71 169 240 272 Fixed Staff costs 9.6 Non-staff costs 8.0 2021 62 133 195 216 2022 108.0 Investment Staff Other Staff Varia
Slide 31: Strong fundamentals, but mixed short-term investment performance
Strong fundamentals, but mixed short-term investment performance Past performance does not predict future returns. Specialists strategy Fundamentals (“NTM”)1, 2 • Cyclical derating of Impax’s major investment portfolios 18.0x Specialists Strategy MSCI ACWI 15.3x • Many of our strategies saw positive
Slide 32: Environmental Markets strategies: performance versus benchmark
Environmental Markets strategies: performance versus benchmark (cumulative, %)1 Past performance does not predict future returns. Leaders3 – AUM £6.7bn Specialists – AUM £3.1bn Water – AUM £6.1bn Leaders Specialists Water MSCI ACWI2 MSCI ACWI2 MSCI ACWI2 65.2 49.8 50.3 46.1 46.1 46.1 35.5 29.4 29.4
Slide 33: Sustainability Lens strategies: performance versus benchmark
Sustainability Lens strategies: performance versus benchmark (cumulative, %)1 Past performance does not predict future returns. Global Opportunities – AUM £9.2bn US Large Cap – AUM £1.9bn US Small Cap – AUM £0.5bn Global Opportunities US Large Cap US Small Cap MSCI ACWI2 S&P 500 Index3 Russell 2000
Slide 34: Strong track record of growth – assets under management (£m)
Strong track record of growth – assets under management (£m) 1998 15 1999 20 2000 39 2001 38 2002 55 2003 66 2004 69 2005 214 2006 429 2007 982 2008 1,099 2009 1,265 2010 1,823 2011 1,896 2012 1,828 2013 2,197 2014 2,755 2015 2,823 2016 4,502 2017 7,261 2018 12,515 2019 15,051 2020 20,183 2021 37,21
Slide 35: Additional information
Additional information
Slide 36: Leaders: GIPs report – USD
Leaders: GIPs report – USD Past performance does not predict future returns. MSCI AC MSCI AC FTSE EOAS Composite Description Total firm Composite Annual Annual World Asset 3yr World 3yr 3yr The Leaders Composite contains long only accounts, which assets assets Number of gross net annual FTSE EOAS we
Slide 37: Leaders: GIPs report – USD continued
Leaders: GIPs report – USD continued Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). These entitie
Slide 38: Climate: GIPs report – USD
Climate: GIPs report– USD Past performance does not predict future returns. Total firm Composite Annual Benchmark 3yr assets assets Number of Annual gross Annual net benchmark Asset weighted 3yr annualized annualized std Year (millions) (millions) portfolios return return return stddev1 std dev2 dev
Slide 39: Water: GIPs report – USD
Water: GIPs report – USD Past performance does not predict future returns. Composite Description FTSE EO The Water Composite contains long only accounts, which invest MSCI AC Water MSCI AC FTSE EO Water globally in companies active in the rapidly growing water value Total firm Composite Annual Annua
Slide 40: Water: GIPs report – USD (continued)
Water: GIPs report– USD (continued) Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). These entities
Slide 41: Asian Environmental: GIPs report – USD
Asian Environmental: GIPs report – USD Past performance does not predict future returns. MSCI AC FTSE EO Composite Description The Asian Environmental Composite contains long only accounts, Total firm Composite Annual Annual Asset 3yr AP 3yr AP 3yr which invest regionally in Asia-Pacific companies t
Slide 42: Asian Environmental: GIPs report – USD (continued)
Asian Environmental: GIPs report – USD (continued) Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”).
Slide 43: Global Opportunities: GIPs report – USD
Global Opportunities: GIPs report – USD Past performance does not predict future returns. Benchmark Composite Description Total Firm Composite Number Annual Annual Annual Asset 3yr 3yr The Global Opportunities Composite contains long only accounts, which invest in high quality companies in order Ass
Slide 44: Global Opportunities: GIPs report – USD (continued)
Global Opportunities: GIPs report – USD (continued) Firm Information the reinvestment of dividends, capital gains, and other From January 2002 to October 2018 the gross returns for the Impax Asset Management is defined as Impax Asset earnings when appropriate. Gross of fees returns are separate acco
Slide 45: Sustainable Food: GIPs report – USD
Sustainable Food: GIPs report – USD Past performance does not predict future returns. Benchmark Composite Description Total firm Composite Annual Annual Annual Asset 3yr 3yr The Sustainable Food Composite contains long only accounts, which assets assets Number of gross net benchmark weighted annuali
Slide 46: Sustainable Food: GIPs report – USD (continued)
Sustainable Food: GIPs report– USD (continued) Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). The
Slide 47: Specialists: GIPs report – USD
Specialists : GIPs report – USD Past performance does not predict future returns. MSCI AC FTSE Composite Description Total firm Composite Annual Annual Asset 3yr World 3yr ET 3yr The Specialists Composite contains long only accounts, which assets assets Number of gross net MSCI AC FTSE ET weighted a
Slide 48: Specialists: GIPs report – USD (continued)
Specialists: GIPs report – USD (continued) Firm Information displayed in USD. Components that constitute Custom FTSE ET Index are incurred by portfolios may vary. Impax Asset Management is defined as Impax Asset Management Ltd, available for prior periods upon request. From January 2002 to October 2
Slide 49: US Large Cap: GIPs report – USD
US Large Cap: GIPs report – USD Past performance does not predict future returns. Composite Description S&P 500 The US Large Cap Strategy is a core equities strategy that fully Total Firm Composite Annual S&P 500 Asset 3yr 3yr integrates analysis of sustainability risks and opportunities and Assets
Slide 50: US Large Cap: GIPs report – USD
US Large Cap: GIPs report – USD Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). These entities are
Slide 51: US Small Cap: GIPs report – USD
US Small Cap: GIPs report – USD Past performance does not predict future returns. Composite Description Russell Russell The US Small Cap Strategy a core equities strategy that Total firm Composite Annual Asset 3yr Number of Annual net 2000 2000 3yr Year assets assets gross weighted annualized fully
Slide 52: US Small Cap: GIPs report – USD (Continued)
US Small Cap: GIPs report – USD (Continued) Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). These
Slide 53: Core Bond: GIPs report – USD
Core Bond: GIPs report – USD Past performance does not predict future returns. Composite Description The Core Bond Strategy seeks competitive risk-adjusted returns while Bloomberg Bloomberg offering broad fixed income diversification and positive environmental Barclays US Barclays US and social impa
Slide 54: Core Bond: GIPs report – USD (continued)
Core Bond: GIPs report – USD (continued) Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). These ent
Slide 55: High Yield Bond: GIPS report – USD
High Yield Bond: GIPS report – USD Past performance does not predict future returns. Composite Description ICE BOFA US The High Yield Bond Strategy seeks to deliver high current income and cash pay strong risk-adjusted total returns through a process that employs rigorous credit analysis and a keen
Slide 56: High Yield Bond: GIPS report – USD (Continued)
High Yield Bond: GIPS report – USD (Continued) Firm Information Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong) Limited (together, “Impax”). The
Slide 57: NEF Performance notes
NEF Performance notes All calculations, valuations and investment performance figures within this document have contain errors, or that alternative assumptions would not be more appropriate or produce been calculated using the methodologies set out below. Past performance does not predict significan
Slide 58: NEF Performance notes, continued
NEF Performance notes, continued Important Notes Concerning Targeted and Estimated Returns and Prior Performance. All performance data regarding transactions owned by prior Impax investment vehicles contained herein is provided for informational purposes only. There can be no assurance that Impax ma
Slide 59: 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 confidential document (the “Presentation”) a
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