Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (February 2014)
27 slides from Impax Asset Management's shareholder meeting presentation, Feb 10, 2014
Slide 1: Annual General Meeting – 10 February 2014
Impax Asset Management Group plc Annual General Meeting – 10 February 2014 Year ended 30 September 2013
Slide 2: Our Goals
Our Goals • Be the leading specialist boutique investing in the rapidly expanding resource efficiency and environmental markets • Offer our clients differentiated products with superior, long-term, risk adjusted returns, and deliver a high level of customer service • Provide attractive and rising le
Slide 3: Our Business Model
Our Business Model Focused & Scalable Experienced Team • Attractive investment themes • 58 staff, 28 investment professionals • High capacity strategies • Specialist expertise • Proven rigorous investment process • Significant staff share ownership Well-established Distribution Strong Balance Sheet
Slide 4: Impax History: Building the Business Since 1998
Impax History: Building the Business Since 1998 AUM (£m) 1998 15 1998 1999 1999 22 Phase 1: Establishing the Business 2000 2000 36 2001 2001 39 2002 2002 55 2003 2003 68 2004 2004 93 2005 2005 281 Phase 2: Scale up to Critical Mass 2006 2006 503 2007 2007 1,157 2008 2008 1,016 2009 2009 1,516 Phase
Slide 5: Changing Investor Sentiment
Changing Investor Sentiment • Search for growth • Analysis of investment beliefs • Review of fiduciary duty • Concerns re climate risk and stranded assets 5
Slide 6: FT/IFC Sustainable Finance Awards 2013
FT/IFC SUSTAINABLE FINANCE AWARDS 2013 Impax Asset Management, UK Winner SUSTAINABLE INVESTOR OF THE YEAR IMPAX)\
Slide 7: Increasing Incidence of Extreme Weather Events
Increasing Incidence of Extreme Weather Events Sourced from Geo Risks Research, NatCatSERVICE, data as at January 2014. Cited in Munich RE America Webinar ‘2013 Natural Catastrophe Year in Review,. 7 January 2014. 7 http://www.munichreamerica.com/site/mram/get/documents_E1433556406/mram/assetpool.mr
Slide 8: Major Issues for Investors (1): Population dynamics
Major Issues for Investors (1): Population dynamics Population expansion skewed towards emerging markets1 1950 2bn Long term investment themes: • Higher living standards 2012 7bn • Urbanisation 2050 9bn • Health and ageing More developed regions Less developed regions • Education Rapid growth in wea
Slide 9: Major Issues for Investors (2): Resource scarcity
Major Issues for Investors (2): Resource scarcity Real commodity prices rising sharply Long term investment themes: • Oil supply • Water stress • Land availability • Materials shortages Source: McKinsey Global Institute, Sustainability and Resource Productivity Practice, ”Resource Revolution: Tracki
Slide 10: Major Issues for Investors (3): Inadequate infrastructure
Major Issues for Investors (3): Inadequate infrastructure Total projected cumulative infrastructure spending 2005- 2030: $41 trillion US/Canada Long term investment themes: Europe $9.1T $6.5T • Unavailable • Unreliable Asia/Oceania $15.8T • New disruptive solutions South America/ Latin America $7.4T
Slide 11: Major Issues for Investors (4): Environmental constraints
Major Issues for Investors (4): Environmental constraints People living in areas of severe water stress1 millions 3,000 2,500 2,000 Long term investment themes: 1,500 • Local air pollution 1,000 500 • Water quality 0 2000 2050 2000 2050 2000 2050 OECD BRIC ROW • Contaminated land Significant cost im
Slide 12: Investment Universe: Diverse
Investment Universe: Diverse Energy Water Energy Efficiency Alternative Energy Water Infrastructure Pollution Control - Power Network - Developers and IPPs & Technologies - Pollution Control - Industrials - Solar - Infrastructure Solutions - Buildings - Wind - Treatment - Testing & Gas - Transport -
Slide 13: Impax Investment Universe: Growing Rapidly
Impax Investment Universe: Growing Rapidly Number of companies 1,500 • Large universe of growing companies • $3.7 T in Market Cap • Diverse range of opportunities • Cyclical Higher Expected Earnings Growth • Defensive 15% forward EPS • Special Situations growth vs. 10% for MSCI AC World* Our markets
Slide 14: Investment Strategies
Investment Strategies Inception date AUM £m Small Cap Specialists Universe: 900 companies Mar 2002 819 Universe Size: $0.6 T market cap Leaders Universe: 1500 companies Mar 2008 409 Universe Size: $3 T market cap Water Universe: 300 companies Jan 2009 562 Universe Size: $0.5 T market cap All Cap Asi
Slide 15: Distribution Strategy: Institutional Quality Global Platform
Distribution Strategy: Institutional Quality Global Platform UK / Ireland • IEM plc - strong performance North America • Old Mutual Ethical Fund • Since 2007 • UCITS Platform • PaxWorld GEM • New mandate from US Private Bank • Promising pipeline Europe • BNP Paribas − Expansion of water fund beyond
Slide 16: Specialists: Strong Investment Performance
Specialists: Strong Investment Performance Performance in 2013 (%) 10 year performance annualised (%) 34.1 11.2 8.0 20.5 Specialists MSCI AC World Specialists MSCI AC World PE ratio* Forecast earnings growth %* 18.5 25.1 14.2 10.2 Specialists MSCI AC World Specialists MSCI AC World 16 Strategy perfo
Slide 17: Water Strategy: Rapid Expansion
Water Strategy: Rapid Expansion BNP Paribas Aqua Fund AUM (£m) Investment performance (%) 200 Water Strategy Nov 2008 8 180 MSCI AC World Sept 2012 68 160 140 Mar 2013 206 120 Sept 2013 364 100 Jan 2014 436 80 Source: FactSet, WM Reuters. Strategy performance is shown gross, MSCI index is net calcul
Slide 18: Food & Agriculture Strategy: Off to a Good Start
Food & Agriculture Strategy: Off to a Good Start 125 Food and Agriculture Fund Custom peer group 120 MSCI AC World Agricultural 115 Agricultural Machinery & Growers & logistics & Inputs equipment processors infrastructure 110 105 100 Distribution Packaged Packaging & & Basic foods food & Beverages f
Slide 19: Private Equity Update
Private Equity Update NEF I • Strong portfolio performance • Impact of Spanish regulation on solar projects NEF II • Investments and commitments now 60% • On-shore wind acquisitions in France, Poland first investment in Finland • Sale of first asset at attractive profit • Strong investment pipeline
Slide 20: Strong US Progress: Growth of Existing Mandates and New Business
Strong US Progress: Growth of Existing Mandates and New Business AUM (£m) Sept-08 3 Sept-09 9 Sept-10 16 Sept-11 19 Sept-12 37 Sept-13 77 Jan-14 135 20 Source: Impax Asset Management, as at 31 January 2014.
Slide 21: Continuing to Raise Impax Profile in North America
Continuing to Raise Impax Profile in North America 21
Slide 22: Fund Flows
Fund Flows “Impax label” funds (£m) Third party funds/accounts (£m) September 2013 503 September 2013 1,314 Market movement 122 Market movement 241 Inflows 15 Inflows 455 Outflows (271) Outflows (211) September 2012 637 September 2012 829 Note: the data above refers to Listed Equity funds and accoun
Slide 23: Financial Highlights (1)
Financial Highlights (1) Revenue (£m) Operating earnings (£m) Operating margin % 2013 18.5 2013 4.3 2013 23.5 2012 18.6 2012 4.6 2012 24.5 23 Source: Impax Asset Management, as at 30 September 2013.
Slide 24: Financial Highlights (2) – Balance Sheet
Financial Highlights (2) – Balance Sheet Investments (£m) Cash reserves (£m) Share buy-backs (m) 2013 8.9 2013 16.5 2013 10.3 2012 6.3 2012 19.3 2012 3.5 24 Source: Impax Asset Management, as at 30 September 2013.
Slide 25: Dividend Growth
Dividend Growth Dividend (p) 2013 0.90* 2012 0.75 2011 0.70 2010 0.60 2009 0.40 2008 0.35 *Proposed 25 Source: Impax Asset Management, as at 30 September 2013.
Slide 26: Outlook for Impax
Outlook for Impax Attractive prospects for target markets to Active investment management ideal for sustain “superior growth” exploiting inefficient prices • Major overhaul underway in energy policies • Rapidly changing market drivers worldwide • Expert team can interpret technology and • Demographi
Slide 27: Disclaimer
Disclaimer This document has been prepared by Impax Asset Management Group plc and approved by Impax Asset Management Limited (Impax, authorized and regulated by the Financial Conduct Authority). This document is solely for the use of professionals, defined as Eligible Counterparties or Professional
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