Impax Asset Management Group Plc · LSE:IPX
Impax Asset Management — Shareholder Meeting (March 2021)
38 slides from Impax Asset Management's shareholder meeting presentation, Mar 18, 2021
Slide 1: Annual General Meeting – 18 March 2021
Annual General Meeting – 18 March 2021 Ian Simm, Chief Executive THIS IS NOT A FINANCIAL PROMOTION
Slide 2: 2020 highlights
2020 highlights AUM increased Strong investment Resilience and performance and exceptional Solid platform for 34% year on year further expansion to £20.2bn1 record net inflows growth through of £3.5bn COVID-19 1As at 30 September 2020. Assets under advice represent ~2.6% of total AUM. 2
Slide 3: Financial performance
Financial performance1 FINANCIAL HIGHLIGHTS ASSETS UNDER MANAGEMENT (£bn)² 2020 20.2 87.5 Revenue (£m) 73.7 2019 15.1 Adjusted Adjusted 23.3 operating operating SHAREHOLDERS’ EQUITY (£m) profit (£m)³ 18.0 2020 71.5 Adjusted Adjusted 22.2 2019 63.2 profit/(loss) profit before before tax (£m) 18.1 DIV
Slide 4: Impax Asset Management - overview
Impax Asset Management - overview Real Assets Strategies Systematic Beta £0.4bn • Investing in the transition to a sustainable economy Strategies £0.8bn Sustainability Lens US Strategies Equities £4.3bn £1.0bn • Founded in 1998 Fixed • 57 investment team members Income £20.2bn Gender Lens Strategies
Slide 5: Strong track record of growth – assets under management at year end
Strong track record of growth – assets under management at year end (£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 20,18
Slide 6: Highly-attractive market context
Highly-attractive market context • Strengthening drivers ― Increased focus on climate change (ahead of COP26 conference in Nov 2021) ― Biden Presidency should restore/enhance policy momentum ― Evidence of broader societal support for sustainable development • Rapidly-expanding investment opportuniti
Slide 7: Investment performance
Investment performance¹ Major thematic strategies outperformed 'comparator' indices over 1, 3 and 5 years Environmental Markets Strategies • Asia-Pacific 19.3%, Leaders 14.8%; Specialists 13.9%; Water 9.6% Sustainable Food 3.3% • Benchmark: MSCI ACWI 5.3% Sustainable Lens Strategies • Global Opportu
Slide 8: Movement in AUM – breakdown by channel
Movement in AUM – breakdown by channel (£m) Funds sub-managed for Other European UK/Ireland BNP Paribas Asset Distributors/Funds Management 269 303 Formuepleje DK / /SE SEB / / NL 98 Irish UCITS platform Aqua Water ASN 38 116 279 184 64 North America IEM plc Global Environment Leaders 36 132 Pax Wor
Slide 9: Successful integration of Impax NH (formerly Pax World Management)
Successful integration of Impax NH (formerly Pax World Management) Finalisation of acquisition Pax World Fund AUM evolution from acquisition (US$bn) • Acquired remaining 16.7% of Pax World Management 6.0 from management in Feb 2021 4.9 • Total consideration US$7.8 million (settled in cash or shares)
Slide 10: Investment strategies and products: scope for further growth
Investment strategies and products: scope for further growth Expanding our existing strategies • Current distribution structure well positioned for further expansion • Significant capacity headroom in all products except Specialists Developing new products • Successful track record of seeding new st
Slide 11: Investing in our people
Investing in our people Developing our approach • High levels of staff engagement FY20: • "People" strategy focused on: Headcount grew ― Strengthening our culture 12% to 175 ― Standard management training permanent staff ― Career development & performance measurement ― HR infrastructure Equality, Di
Slide 12: Enhancing our client model: beyond investment returns
Enhancing our client model: beyond investment returns Advocacy, partners and global networks Thought leadership and insights Engagement and stewardship Impact reporting and analytics 12
Slide 13: Financial update
Financial update
Slide 14: Financial highlights
Financial highlights REVENUE (£m) REVENUE BY CLIENT DOMICILE Other Ireland 3% Netherlands 4% UK 87.5 3% 2020 65.1 22.5 17% Luxembourg Performance 22% 4.8 0.4 France North America Flows 9.4 0.8 11% 40% Sale Saleof of assets in assets WEIGHTED AVERAGE FEE MARGIN (bps) Private Equity in Private (1.5) 1
Slide 15: Financial highlights – operating expenses
Financial highlights – operating expenses IMPAX LN (adjusted¹) (£m) IMPAX NH (adjusted1) (£m) OPERATING MARGIN 2020 10.2 14.8 17.9 42.9 2020 9.5 8.7 3.1 21.4 2020 26.6% 2019 10.0 12.6 13.2 35.8 2019 9.5 8.1 2.3 19.9 2019 24.4% Non-staff costs Fixed staff costs Variable staff costs • Operating profit
Slide 16: Financial highlights - earnings and dividends
Financial highlights - earnings and dividends ADJUSTED DILUTED EPS (p) DIVIDEND (p) 2020 1.8 6.8 8.6 2020 14.5 2019 1.5 4.0 5.5 2018 1.1 3.0 4.1 2.6 Other effects 0.1 2017 0.7 2.2 2.9 2016 0.5 1.6 2.1 Tax (0.5) 2015 0.4 1.2 1.6 0.5 2014 0.1 1.1 1.2 2013 0.9 Operating profit 3.4 2012 0.75 Interim 201
Slide 17: Financial highlights - balance sheet
Financial highlights - balance sheet CASH MOVEMENTS¹ (£m) CASH RESERVE ANALYSIS1 (£m) 30 September 2020 37.4 30 September 2020 37.4 Other cash movements 0.3 Risk buffer (11.7) Net redemption from 1.0 "Available" cash 25.7 unconsolidated funds Acquisition of own shares (4.2) Net working capital (8.9)
Slide 18: Outlook
Outlook Acknowledged Attractive Established Build Back Better leading global investment distribution and the Biden brand skills/strategies network administration Potential for Scope to Building further develop/add shareholder scaling new capabilities value 18
Slide 19: Additional information
Additional information
Slide 20: Environmental Markets Strategies performance versus benchmark
Environmental Markets Strategies performance versus benchmark1,2 Leaders – AUM £3,956m Specialists – AUM £2,517m Water – AUM £4,372m 123.1 123.5 120.4 35.6 33.8 34.5 14.8 13.9 9.6 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year Asia-Pacific – AUM £607m Sustainable Food – AUM £762m MSC
Slide 21: Sustainable Lens Strategies performance versus benchmark
Sustainable Lens Strategies performance versus benchmark Global Opportunities – AUM £2,348m1,3 US Large Cap – AUM US$894m2,4 US Small Cap – AUM US$363m2,5 53.2 US Large Cap 47.0 133.3 Global Opportunites US Small Cap 41.6 S&P 500 Index MSCI ACWI 91.3 Russell 2000 Index 24.6 55.6 21.0 15.2 27.6 12.9
Slide 22: Gender Lens, Systematic Beta, and Multi Asset Strategies performance v benchmark
Gender Lens, Systematic Beta, and Multi Asset Strategies performance v benchmark Global Women’s Select – AUM US$3m1,3 Global Women’s Leadership – AUM US$607m1,3 17.3 70.1 64.6 Global Women's Leadership 10.4 Global Women's Select MSCI World MSCI World 27.7 25.1 8.2 10.4 N/A N/A 1 year 3 year 5 year 1
Slide 23: 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 YTD 19,2
Slide 24: 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 25: 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 26: Specialists: annual disclosure presentation cont. – 2020
Specialists: annual disclosure presentation cont. – 2020 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 27: Asia-Pacific: annual disclosure presentation – GBP
Asia-Pacific: 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 AP Retur
Slide 28: 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 MSCI AC World Technology Annual Asset Weighted Annualized 3yr Annualized Technology 3yr Year (Millions) (Millions) Portfolios¹ Gross Return Annual Net Return
Slide 29: Sustainable Food: annual disclosure presentation – GBP
Sustainable Food: annual disclosure presentation – GBP Benchmark 3yr Total Firm Assets Composite Assets Number of Annual Annual Benchmark Asset Weighted 3yr Annualized Std Annualized Std Year (Millions) (Millions) Portfolios Gross Return Annual Net Return Return StdDev* Dev** Dev** 2020 YTD 19,257.1
Slide 30: Large-Cap Strategy: annual disclosure presentation – USD
Large-Cap Strategy: annual disclosure presentation – USD Annual Annual Asset S&P 500 - Net Return Total Firm Assets Composite Assets Number of Gross Annual S&P 500 Weighted 3yr Annualized 3yr Annualized Std Year (Millions) (Millions) Portfolios Return Net Return Return StdDev* Std Dev** Dev** 2020 Y
Slide 31: Impax Core Bond Strategy disclosures - USD
Impax Core Bond Strategy disclosures - USD Total Firm Assets Composite Assets Number of Annual Gross Annual Net Annual Bloomberg Barclays US Asset Weighted 3yr Annualized Bloomberg Barclays US Aggregate Year (Millions) (Millions) Portfolios Return Return Aggregate Return StdDev* Std Dev** 3yr Annual
Slide 32: Impax High Yield Bond Strategy disclosures - USD
Impax High Yield Bond Strategy disclosures - USD ICE BofA US Cash Pay High Yield Annual ICE BofA US Cash Pay Constrained (BB-B) (USD Total Firm Assets Composite Assets Number of Annual Gross Annual Net High Yield Constrained (BB-B) Asset Weighted 3yr Annualized Unhedged) 3yr Annualized Std Year (Mil
Slide 33: Impax Ellevate Global Women’s Leadership Strategy - USD
Impax Ellevate Global Women’s Leadership Strategy - USD TOTAL FIRM IMPAX Global Composite Assets Gross of Fees Net of Fees MSCI World Composite 3 GWLI 3 YEAR MSCI WORLD 3 Number of Year ASSETS (USD) Women’s Leadership (USD) (millions) (%) (%) (NET) Index Year Std. Dev. STD. DEV. Year Std. Dev. Accou
Slide 34: Impax Global Women’s Select Strategy - USD
Impax Global Women’s Select Strategy - USD Composite 3 Year Benchmark 3 Year Total Firm Assets (USD) Composite Assets Number of Total Return Gross Total Return Net of Fee's MSCI World (Net) Asset Weighted Std Year Standard Standard (Millions) (USD) (Millions) Portfolios of Fee's (%) (%) Index ("Worl
Slide 35: Impax Sustainable Allocation Strategy disclosures - USD
Impax Sustainable Allocation Strategy disclosures - USD Year Total Firm Assets Composite Assets Number of Annual Gross Annual Net Annual 60% S&P 500 Index / Asset Weighted 3yr Annualized 60% S&P 500 Index / 40% (Millions) (Millions) Portfolios Return Return 40% Barclays US Aggregate StdDev* Std Dev*
Slide 36: Impax Sustainable Allocation Strategy disclosures cont. - USD
Impax Sustainable Allocation Strategy disclosures cont. - USD Custom Benchmark Description Custom Blended Index for the Balanced Fund is composed of 60% S&P 500 Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index, rebalanced monthly using the weighted average returns of S&P 500 Index and Bloo
Slide 37: Impax US Small Cap Strategy disclosures - USD
Impax US Small Cap Strategy disclosures - USD Total Firm Assets Composite Assets Number of Annual Gross Annual Net Annual Russell 2000 - Net Asset Weighted 3yr Annualized Russell 2000 - Net Return 3yr Year (Millions) (Millions) Portfolios Return Return Return Return StdDev* Std Dev** Annualized Std
Slide 38: Important information
Important information Disclaimer This document has been Issued in the UK by Impax Asset Management Group plc, whose shares are quoted on AIM. Impax Asset Management Group plc is registered in England & Wales, number 03262305. Impax Asset Management Group plc is the parent company of Impax Asset Mana
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