Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — H1 2025 Earnings Presentation
67 slides from Impax Asset Management's earnings presentation, May 22, 2025
Slide 1: Interim results for the six months to 31 March 2025
Interim results for the six months to 31 March 2025 22 May 2025 FOR INFORMATION ONLY. THIS IS NOT A MARKETING COMMUNICATION. NOT FOR FURTHER DISTRIBUTION.
Slide 2: Agenda
Agenda 1 Highlights and business update 2 Financial update 3 Outlook 4 Appendices 2
Slide 3: Investing in the transition to a more sustainable economy for 25+ years
Investing in the transition to a more sustainable economy for 25+ years Compelling Global player with Scalable investment weakening business opportunity competition model Established client bases in the EU, Scale in listed equities Economic transition: North America & Asia mispricing of growth & ris
Slide 4: Business highlights
Business highlights Improving Positive Tight control investment momentum After Period of cost: Impax end: closed Challenging performance towards remains first half to the SKY Harbor relative to strategic financially financial year benchmarks acquisition strong priorities 4
Slide 5: Key Performance Indicators
Key Performance Indicators Revenue Adjusted operating profit2,3 Capital allocation update: £76.5m £20.5m • Priority remains investment FY 2024: £170.1m FY2024: £52.7m H1 2024: £86.2m H1 2024: £25.8m H2 2024: £84.0m H2 2024: £26.9m • Dividend policy remains ≥55% of Adjusted operating Adjusted diluted
Slide 6: Breakdown of AUM movement (£bn)
Breakdown of AUM movement (£bn) 39.6 2.2 0.3 37.2 (0.3) (5.2) (6.2) 1.8 25.3 (5.8) (1.7) 31/03/2024 Outflows Inflows Acquired Market 30/09/2024 SJP Other Inflows Market 31/03/2025 assets1 movement outflows outflows movement 6 As at 31 March 2025, assets under advice represent ~4% of total AUM. 1 Acq
Slide 7: A marked shift in market dynamics since January 2025
A marked shift in market dynamics since January 2025 • Calendar 2024: exceptionally narrow markets dominated by mega-cap tech stocks • January 2025: US exceptionalism brought to abrupt end by AI news • Investor sentiment became more cautious as tariffs loomed 71% of AUM • On a relative basis, Impax
Slide 8: Equities strategies in line or ahead of benchmarks this calendar year
Equities strategies in line or ahead of benchmarks this calendar year Select strategy performance versus benchmark (GBP, annualised, %)1 Past performance does not predict future returns Leaders Global Opportunities AUM £6.1bn2 AUM £2.9bn Leaders MSCI ACWI³ Global Opportunities MSCI ACWI³ 21.8 19.6 1
Slide 9: Fixed income strategies: strong relative performance in recent years
Fixed income strategies: strong relative performance in recent years Select strategy performance versus benchmark (GBP, annualised, %)1 Past performance does not predict future returns Core Bond Global High Yield Bond AUM £0.6bn AUM £0.2bn 3 Core Bond Bloomberg US Aggregate² Global High Yield ICE Bo
Slide 10: Well-diversified AUM and revenue
Well-diversified AUM and revenue AUM by range AUM by region1 Revenue by client type2 70% 2% Thematic Asia- 58% Equities Own label Pacific 59% 5% & other mandates 57% 23% 56% Core EMEA Equities 36% 46% 24% BNPP AM mutual funds 6% 7% 24% Fixed Income UK 3% 22% 18% Other mutual 2% 36% funds & Private N
Slide 11: Movement in net inflows for the Period - by channel (£m)
Movement in net inflows for the Period - by channel (£m) Funds sub-managed for St. James’s Place BNP Paribas Asset Management North America (335) Own label (245) funds¹ (6,201) (1,200) St. James's BNP (121) Other mutual & Place (304) (2,073) (57) advisory funds (14) Segregated (59) accounts Other UK
Slide 12: Strategic priorities: increased diversification and focus on efficiency
Strategic priorities: increased diversification and focus on efficiency Deepen client Refine our Organically Build to Enhance Grow partnerships and efficient, agile grow listed scale in distribution private equity strengthen brand and scalable equities fixed income channels differentiation operating
Slide 13: Distribution diversification: Client Group
Distribution diversification: Client Group Growing direct distribution capabilities • Scandinavian institutional and UK wealth client inflows • Global Emerging Markets Opportunities (UCITS) fund launch • Four new fixed income funds & client bases (through acquisitions)1 Consolidating third-party rel
Slide 14: Response: cost reduction & improved efficiencies
Response: cost reduction & improved efficiencies • Rapid expansion during 2019-2022 created some inefficiencies…. • ….which we’ve addressed through reviews of performance & team structure • During the Period we removed ca. 30 roles (10% of total) from across the firm • No reduction in capabilities o
Slide 15: Product diversification: building scale in fixed income
Product diversification: building scale in fixed income • SKY Harbor acquisition closed1 Investment team AUM (£bn) Investment strategies headcount • £1.1bn not included in H1 AUM Impax 1.1 • US High Yield (HY) pre-acquisition • Core Bond 14 • Core Plus Bond • Global institutional-quality team Absalo
Slide 16: Product diversification: growth in private equity
Product diversification: growth in private equity • LP investors are increasing allocations to private markets1 • “Renewables” & “energy transition” are prioritised by major allocators1 • Impax’s 20 years’ experience in this space gives us considerable credibility • Fund III: 51% exited to date; enc
Slide 17: Financial update
Financial update 17
Slide 18: Financial performance
Financial performance Financial highlights • Adjusted Operating Profit of £20.5m (HY24 £25.8m) • Adjusted diluted EPS 12.6p (HY24 16.0p) 20.5 H1 2025 Adjusted operating 26.9 H2 2024 profit (£m)¹ • Revenue £76.5m with improved fee margin 25.8 H1 2024 • Costs £55.9m with continued strong focus on effi
Slide 19: Revenue performance
Revenue performance Revenue (£m) Average fee margin (bps) 47.3 86.2 84.0 1.1 1.2 76.5 44.9 44.9 (7.2) (2.5) Other Net Flows SJP H1 2024 H2 2024 Performance H1 2025 H1 2024 H2 2024 H1 2025 Mar-25 Annualised annualised run-rate run rate: margin of £126.3m 49.9 bp1 19 1Annualised run-rate fee margins a
Slide 20: Continued strong focus on operational efficiency and cost control
Continued strong focus on operational efficiency and cost control Adjusted operating expenses (£m) Total staff (average)1 Average Period end 60.3 57.1 1.1 0.8 55.9 H1 2025 18 82 99 111 310 296 (0.8) (2.3) H2 2024 16 83 102 112 313 315 H1 2024 13 78 103 113 307 306 Fixed Income Listed and Sustainabil
Slide 21: Operating profit & margin
Operating profit & margin Operating profit1 (£m) Operational gearing trend (£m) H1 2024 H2 2024 H1 2025 200 45% 180 40% Revenue 86.2 80.0 76.5 160 35% Costs (60.3) (57.1) (55.9) 140 30% Operating profit 25.8 26.9 20.5 120 25% 100 20% 80 Operating margin 15% 60 40 10% H1 2025 26.8% 20 5% H2 2024 32.0
Slide 22: Capital allocation updated and aligned to the Group strategy
Capital allocation updated and aligned to the Group strategy Profitable business, with surplus capital and excellent prospects for future expansion 1. Investment for Growth 2. Dividend 3. Share Buybacks • Adding new capabilities, • Policy unchanged: ≥ 55% of adjusted profit after tax • Use of excess
Slide 23: Sustainable dividend level
Sustainable dividend level Dividend (pence per share) Updated dividend approach Adj. Diluted EPS (pence per share) 2025 4.0 12.6 • Policy : ≥ 55% of adjusted profit after tax, in normal circumstances 2024 4.7 22.9 27.6 32.2 2023 4.7 22.9 27.6 35.2 • Sustainable payout level likely to be closer to th
Slide 24: Strong capital position supporting £10m buyback programme
Strong capital position supporting £10m buyback programme Shareholder equity (£m) £10m share buyback 131.1 117.9 116.6 • Capital surplus >£60m (incl. £16m of seed) 51.5 60.7 63.1 30.1 • £10m programme launched immediately 6.2 5.2 22.2 22.2 22.6 28.8 27.3 • Targeting completion by calendar year end 2
Slide 25: Outlook
Outlook 25
Slide 26: Outlook and summary
Outlook and summary • Investment thesis remains intact despite political headwinds • Our specialist positioning sets us apart from peers • Encouraged by the improvement in our relative investment performance • Optimistic re our flows outlook with new accounts due in Q3 / Q4 • Good progress to divers
Slide 27: Appendices
Appendices 27
Slide 28: Adjusted IFRS performance measures
Adjusted IFRS performance measures As a result of the acquisitions, certain financial IFRS PBT to adjusted PBT (£m) performance measures have been prepared on an adjusted basis. ‘Adjusted’ financial metrics Adjusted PBT 21.4 are shown after removing the effects of primarily: Foreign exchange 0.2 • F
Slide 29: Share awards and seed investments
Share awards and seed investments Share awards outstanding1 Awards Number outstanding Vesting date End of exercise period RSS (Purchased in EBT) 2,943,848 2025–2029 RSP (New scheme – not purchased) 940,059 2028 - 2030 LTOP 2,553,098 2028–2035 Total 6,437,005 Seed investments Theme Sep 2024 Seed Inve
Slide 30: IPX shareholder register
IPX shareholder register IPX shares – March 2025 (m) Share management 6.4 134.4 • Share buy-back programme of £10m 132.6 127.9 • Share purchases into EBT continue - 376k shares purchased in (4.7) H1 25 (290k in H2 24) • Weighted average price paid £2.15 • Target non-founder other employee share owne
Slide 31: Continued revenue diversification
Continued revenue diversification Revenue by range Revenue by strategy1 ■ Leaders 23% ■ Global 15% ■ Specialists 13% Opportunities Thematic Equities H1 2025: 62% ■ Water 13% ■ US Large Cap 5% H2 2024:: 60% ■ Climate 6% ■ Intl Sust 3% Core Equities H1 2025: 26% H2 2024: 28% Economy ■ Sustainable 2% H
Slide 32: Background to the Company
Background to the Company 32
Slide 33: Impax capabilities
Impax capabilities Investment platform aligned with the transition to a more sustainable economy Equities £5.7bn £17.6bn Fixed Income £1.4bn Core Thematic ENVIRONMENTAL SOCIAL Global All Cap Global All Cap Global All Cap Investment Grade High Yield Emerging Mkts Corp. Global Opportunities Leaders So
Slide 34: Assets under management growth since inception
Assets under management growth since inception 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
Slide 35: Investment performance
Investment performance 35
Slide 36: Thematic equities
Thematic equities Performance versus benchmark (cumulative, %)1 Past performance does not predict future returns Leaders AUM £6.1bn2 Water AUM £5.4bn Specialists AUM £2.3bn Leaders MSCI ACWI³ 94.7 Water MSCI ACWI³ 98.394.7 Specialists MSCI ACWI³ 94.7 83.0 64.2 24.7 24.7 17.124.7 4.9 13.9 1.5 1.5 4.9
Slide 37: Core equities
Core equities Performance versus benchmark (cumulative, %)1 Past performance does not predict future returns Global Opportunities AUM £2.9bn US Large Cap AUM £1bn Global Opportunities 94.7 US Large Cap 125.3 MSCI ACWI² 76.9 S&P 500 Index³ 102.7 Figures refer to the past and that past performance is
Slide 38: Fixed income
Fixed income Performance versus benchmark (cumulative, %)1 Past performance does not predict future returns Core Bond AUM £0.6bn High Yield AUM £0.4bn Figures refer to the past and that past performance is not a reliable indicator of future results. 1AUM is in GBP and Core Bond Bloomberg US Aggregat
Slide 39: Asian Environmental strategy: GIPS report– US$
Asian Environmental strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description The Asian Environmental Composite contains long only FTSE EO AP FTSE EO AP accounts, which invest regionally in Asia-Pacific companies Total Firm Composite Asset 3yr 3yr 3yr Assets
Slide 40: Asian Environmental strategy: GIPS report– US$ cont.
Asian Environmental strategy: GIPS report– US$ cont. Firm Information daily or monthly, depending on their structure. Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Composite performance Impax Asset Management is defined as Impax
Slide 41: Core Bond strategy: GIPS report– US$
Core Bond strategy: GIPS report– US$ Composite Description The Core Bond Composite seeks to generate income consistent Past performance does not predict future returns. with the preservation of capital while offering broad fixed income diversification and positive environmental and social impact. Th
Slide 42: Core Bond strategy: GIPS report– US$ cont.
Core Bond strategy: GIPS report– US$ cont. Firm Information Other Disclosures Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management The USD is the currency used to express performance, results are affected by currency (AIFM) Ltd., Impax Asset Management Ireland Ltd,
Slide 43: Climate strategy: GIPS report– US$
Climate strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description Annual Benchmark 3yr The Climate Composite contains long only accounts, which Total Firm Composite Number of Annual Gross Annual Net Benchmark Asset Weighted 3yr Annualized Annualized Std inves
Slide 44: Climate strategy: GIPS report– US$ cont.
Climate strategy: GIPS report– US$ cont. Firm Information management fee for the composite is 0.60%. Previously, the highest was 0.55% from May 2021 to January 2022, 0.54% from May 2020 to April 2021, 0.55% from May 2019 to April 2020, Impax Asset Management is defined as Impax Asset Management Ltd,
Slide 45: Core Plus Bond strategy: GIPS report– US$
Core Plus Bond strategy: GIPS report– US$ Composite Description The Core Plus Bond Composite primarily invests in impact bonds, Past performance does not predict future returns. investment grade and high yield corporate issues, asset backed securities and government related securities including agen
Slide 46: Core Plus Bond strategy: GIPS report– US$ cont.
Core Plus Bond strategy: GIPS report– US$ cont. Firm Information and 0.32% from April 2020 to April 2022. Actual investment advisory fees incurred by portfolios may vary. Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management (AIFM) Ltd., Impax Asset Management Irela
Slide 47: Emerging Markets Corporate Bond strategy: GIPS report– US$
Emerging Markets Corporate Bond strategy: GIPS report– US$ Past performance does not predict future returns. JP Morgan Composite Description JP Morgan CEMBI Broad CEMBI Broad Diversified The Emerging Markets Corporate Bond Strategy seeks to Diversified Index (USD generate long term capital growth an
Slide 48: Emerging Markets Corporate Bond strategy: GIPS report– US$ cont.
Emerging Markets Corporate Bond strategy: GIPS report– US$ cont. Firm Information of 1.00%. Actual investment advisory fees incurred by portfolios may vary. Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management Other Disclosures (AIFM) Ltd., Impax Asset Management I
Slide 49: Food strategy: GIPS report– US$
Food strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description Annual Benchmark 3yr The Sustainable Food Composite contains long only Total Firm Composite Number of Annual Gross Annual Net Benchmark Asset Weighted 3yr Annualized Annualized Std accounts, which
Slide 50: Food strategy: GIPS report– US$ cont.
Food strategy: GIPS report– US$ cont. Firm Information composite performance. Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management Fees and Expenses (AIFM) Ltd., Impax Asset Management Ireland Ltd, Impax Asset Management LLC, and Impax Asset Management (Hong Kong)
Slide 51: Global High Yield Bond strategy: GIPS report– US$
Global High Yield Bond strategy: GIPS report– US$ Past performance does not predict future returns. ICE BofA Global Composite Description ICE BofA Global High Yield Index Total Firm Annual Gross Annual Net High Yield Index (USD Hedged) The Global High Yield Bond Strategy seeks to generate Assets Com
Slide 52: Global High Yield Bond strategy: GIPS report– US$ cont.
Global High Yield Bond strategy: GIPS report– US$ cont. Firm Information Other Disclosures Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management The USD is the currency used to express performance, results are affected by currency (AIFM) Ltd., Impax Asset Management
Slide 53: Global Opportunities strategy: GIPS report– US$
Global Opportunities strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description Annual Benchmark 3yr The Global Opportunities Composite contains long only Total Firm Composite Number of Annual Gross Annual Net Benchmark Asset Weighted 3yr Annualized Annualized
Slide 54: Global Opportunities strategy: GIPS report– US$ cont.
Global Opportunities strategy: GIPS report– US$ cont. Firm Information to May 2021, net-of-fee returns were calculated net of actual investment management fees, actual incentive fees/carry and before custody fees. The composite return includes a Impax Asset Management is defined as Impax Asset Manag
Slide 55: High Yield Bond strategy: GIPS report– US$
High Yield Bond strategy: GIPS report– US$ Composite Description The US High Yield Bond Composite seeks to deliver high current Past performance does not predict future returns. income and competitive risk-adjusted total returns over a full ICE BofA US market cycle through a process that employs rig
Slide 56: High Yield Bond strategy: GIPS report– US$ cont.
High Yield Bond strategy: GIPS report– US$ cont. Firm Information Other Disclosures Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management The USD is the currency used to express performance, results are affected by currency (AIFM) Ltd., Impax Asset Management Irelan
Slide 57: Leaders strategy: GIPS report– US$
Leaders strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description The Leaders Composite contains long only accounts, which FTSE EOAS FTSE EOAS invest globally in companies that are developing innovative Total Firm Composite Asset 3yr 3yr 3yr Assets Assets Num
Slide 58: Leaders strategy: GIPS report– US$ cont.
Leaders strategy: GIPS report– US$ cont. Firm Information Environmental Opportunities All-Share performance is presented gross of foreign withholding taxes on dividends, interest income and capital gains, given the unavailability of net of Impax Asset Management is defined as Impax Asset Management
Slide 59: Specialists strategy: GIPS report– US$
Specialists strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description The Specialists Composite contains long only accounts, which invest globally in companies that are developing Total Firm Composite Asset 3yr FTSE ET 3yr FTSE ET 3yr Assets Assets Number of
Slide 60: Specialists strategy: GIPS report– US$ cont.
Specialists strategy: GIPS report– US$ cont. Firm Information particular securities held in composite accounts. Market conditions can vary widely over time and can result in a loss of portfolio value. MSCI All Country World is presented net of foreign Impax Asset Management is defined as Impax Asset
Slide 61: US Large Cap strategy: GIPS report– US$
US Large Cap strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description S&P 500 3yr The US Large Cap Composite is a core equities strategy Total Firm Composite Number of Annual Gross Annual Net S&P 500 Asset Weighted 3yr Annualized Annualized Std that fully in
Slide 62: US Large Cap strategy: GIPS report– US$ cont.
US Large Cap strategy: GIPS report– US$ cont. Firm Information Other Disclosures Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management The USD is the currency used to express performance, results are affected by currency (AIFM) Ltd., Impax Asset Management Ireland L
Slide 63: US Small Cap strategy: GIPS report– US$
US Small Cap strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description Total Firm Russell 2000 The US Small Cap Composite a core equities strategy that Assets Composite Number of Annual Gross Annual Net Russell 2000 Asset Weighted 3yr Annualized 3yr Annualize
Slide 64: US Small Cap strategy: GIPS report– US$ cont.
US Small Cap strategy: GIPS report– US$ cont. Firm Information calculated using a fee of 0.75%. Actual investment advisory fees incurred by portfolios may vary. Impax Asset Management is defined as Impax Asset Management Ltd, Impax Asset Management Other Disclosures (AIFM) Ltd., Impax Asset Manageme
Slide 65: Water strategy: GIPS report– US$
Water strategy: GIPS report– US$ Past performance does not predict future returns. Composite Description FTSE EO FTSE EO The Water Composite contains long only accounts, which FTSE EO Water Water invest globally in companies active in the rapidly growing Water Technology Technology water value chain
Slide 66: Water strategy: GIPS report– US$ cont.
Water strategy: GIPS report– US$ cont. Firm Information and can result in a loss of portfolio value. MSCI All Country World performance is presented net of foreign withholding taxes on dividends, interest income and capital gains while FTSE EO Water Impax Asset Management is defined as Impax Asset M
Slide 67: 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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