Valuation inceased on AUM inflow momentum
A step-change in client inflows is what Impax’s FY20 should be remembered for. The global structural shift towards sustainable investing continued at pace - most notably through the Feb-Mar 2020 market crash - and Impax once again proved to be a leader in this space.It ended FY20 (30 Sep) with £20.2bn AUM, 34% up year-on-year (end-FY19 £15.1bn) and 11% up in Q4 alone (£18.1bn on 30 Jun). We increase our valuation, mostly on higher AUM inflow expectations.
Momentum for sustainable investment continues. As CEO Ian Simm notes: “The pandemic has reinforced the imperative of a transition to a more sustainable economy, while society’s response has given us an indication of what will be needed to address climate change and other challenges of sustainable development.”
Looking forward, the repeatability of £3.5bn of inflows remains unproven, but we believe net inflows of £2.0 - £2.5bn per annum over the next few years is a realistic expectation.
We have updated our discounted cash flow model accordingly and increased our fundamental valuation to 495p / share.
Impax Asset Management Group is an investment firm, providing listed and private equity strategies primarily to institutional clients. As of Sep 30 2017, Co. has total assets under management and advice of £7.30 billion.
Polar Capital Holdings is an investment management company providing professional and institutional investors a range of geographical and sector funds. Co. manages 25 funds and four managed accounts across a range of long only and alternative products. Co. has one class of business, being the provision of investment management and advisory services. As of Mar 31 2017, Co. had total assets under management of £9.27 billion.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
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