Impax Asset Management lowers profit forecast amid asset decline
Impax Asset Management Group PLC on Tuesday said it now expects full-year profit to come in below market expectations, as its assets under management fell by over a quarter in the first three months of calendar 2025.
Shares in Impax Asset Management were down 17% to 125.60 pence each in London on Tuesday morning. The stock is down 72% over the past year.
The London-based investment manager is focused on sustainable ventures. It said AuM on March 31 was £25.3 billion, down 26% from £34.1 billion at December 31.
‘Since the start of the calendar year, relative to generic indices, our investment strategies have benefitted from the broadening of market performance away from the US-listed mega-cap stocks that had previously dominated global equity returns,’ said Chief Executive Officer Ian Simm.
‘Nevertheless, as we previously signalled ahead of our [annual general meeting] on 5 March, we experienced a challenging quarter in terms of net flows, with the winding-up of the £5.1 billion St James’s Place Sustainable & Responsible Equity Fund mandate and a small number of account closures within our institutional channel exacerbating the impact of negative market returns.’
Impax added it has now completed its acquisition of the European assets of Greenwich, US-based investor Sky Harbor Capital Management LLC, providing Impax with around £1.1 billion in further assets under management. This change will be reflected in the firm’s next AuM update in July.
CEO Simm continued: ‘Market conditions in the second half of FY25 remain highly uncertain. Given the fall in our AuM and the impact on global markets of an escalating trade war, we anticipate that full year profits will be below market expectations.’
Impax Asset Management’s financial year ends on September 30.
Analysts at Equity Development reduced their 2025 year-end AuM forecast for Impax by around 20% to £25.0 billion.
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