Impax Asset Management Group

Impax Asset Management Group plc (LSE: IPX) is a specialist asset manager based in London. It is listed on the London Stock Exchange and has been described by the Financial Times journalist and author, Alice Ross, as one of just three fund managers identified that has "consistently focussed on the environment".[2]

Impax Asset Management Group plc
TypePublic Company
LSE: IPX
IndustryInvestment Management
FoundedLondon, 1998
Headquarters
London
,
United Kingdom
Number of locations
London, New York, Portsmouth, Portland, Hong Kong
Key people
Chairman - Keith Falconer
Chief Executive - Ian Simm CFO - Charlie Ridge
AUM£20.2 billion (as of 30 September 2020)[1]
Websitewww.impaxam.com

History

The business was founded in 1998 investing in solutions to resource scarcity (in energy efficiency, alternative energy, water, waste, food and agriculture and related sectors) with support from the International Finance Corporation.[3]

In November 2013, the company's chief executive, Ian Simm, was called as an expert witness to give evidence to the House of Commons on some of the difficulties with the availability of Green Finance in the UK.[4]

In their review of the largest fund managers in the UK in 2014, KPMG noted that the company was one of the few not to reveal the remuneration of its chief executive officer.[5] The company was criticised again, this time by the Investment Association, over executive pay in December 2018.[6]

On 18 September 2017, Impax Asset Management Group plc announced that it had entered into agreements to acquire 100% of Pax World Management LLC. The acquisition was completed on 18 January 2018.[7]

In December 2018, the company announced that it would be opening an operation in Dublin to serve clients after Brexit (the withdrawal of the United Kingdom from the European Union).[8] After 23.7% of shareholders voted against the re-appointment of EY as the company's auditor in May 2018,[9] the company was criticised by the Investment Association, over an apparent lack of independence of EY as its auditor, in December 2018.[6]

In December 2019, Alex Newman in Investors Chronicle noted that in the context of "unprecedented concern globally about environmental issues", it was "hard to think of a UK-listed financial services group better placed to capitalise on this momentous, even exponential, shift."[10] In 2020, the Financial Times journalist and author, Alice Ross,[11] observed that, while many fund managers claim to be mindful of environmental issues, Impax Asset Management Group was one of just three fund managers identified that has "consistently focussed on the environment".[2] Writers in the Investors Chronicle also said that it was "hard to argue otherwise" but to agree that interest in the company was evidence of a "transition to a more sustainable economy".[12] The company's track record of leadership in this area was recognised with the selection by Financial News of the company's chief executive as the "Male Industry Leader of the Year" in 2020.[13]

Investments

The company manages environmentally focused equity investments such as renewable energy, water and waste management[14] through various funds including Impax Environmental Markets, which is focused on environmental companies in North America, Europe and Asia was launched in 2002.[15] Impax New Energy Investors is a €125 million fund which closed in August 2006[16] and Impax New Energy Investors II is a €330 million fund which closed in August 2011.[17] It also manages listed equity funds on behalf of third parties including BNP Paribas.[18]

The company had assets under management of £20.2 billion at 30 September 2020.[1] However, it remains exposed to the risks that have adversely affected developers in the solar and wind industries.[19] According to the New York Times research by Impax Asset Management Group has found that only one third of investors are sufficiently concerned about climate change to invest in clean energy implying that those investors are clearly failing to realise the risks of not doing so.[20] The company has therefore been lobbying the U.S. Securities and Exchange Commission to force companies to disclose the location of their assets so their exposure to environmental risks can be properly evaluated.[21]

The company has undertaken some pioneering work in the area of sustainability:[3][22] unusual investments supported by the company have included Royal DSM, a Dutch chemical company which had invented a food additive which reduces the methane released by cows burping.[23]

Significant shareholders

One of the largest institutional shareholders in the company, BNP Paribas, who had held a 28% stake in the business,[24] sold more than 40% of its shareholding in November 2020.[25]

References
  1. "Impax AUM jumps to record £20.2bn on 'high levels of net inflows'". Investment Week. 7 October 2020. Retrieved 26 November 2020.
  2. Ross, Alice (2020). Investing To Save The Planet: How Your Money Can Make a Difference. Penguin. ISBN 978-0241457238.
  3. "Impax Environmental Markets: A sustainable way to make money". The Times. 19 November 2019. Retrieved 26 November 2020.
  4. Environmental Audit Committee: Green Finance. 1. House of Commons. 2014. ISBN 9780215069320.
  5. "Financial Reporting by Investment Managers" (PDF). KPMG. 2014. p. 8. Retrieved 26 November 2020.
  6. "UK fund manager body warns corporate governance 'repeat offenders'". IPE. 5 December 2018. Retrieved 26 November 2020.
  7. "Pax World Management Agrees to be Acquired by IMPAX Asset Management Group PLC". Green Money. Retrieved 6 March 2020.
  8. "Asset management roundup: Impax joins the move to Dublin". IPE. 6 December 2018. Retrieved 26 November 2020.
  9. "Impax Environmental Markets to look for a new auditor". Proactive Investors. 30 January 2019. Retrieved 26 November 2020.
  10. "Impax's unprecedented tailwind". Investors Chronicle. 4 December 2019. Retrieved 23 December 2020.
  11. "Alice Ross, Deputy News Editor". Financial Times. Retrieved 26 November 2020.
  12. "Impax finance chief sells as group shows little sign of virus ill-effects". Financial Times. 17 July 2020. Retrieved 27 November 2020.
  13. "Industry Leader of the Year: Male – Ian Simm, Impax Asset Management". Financial News. 4 November 2020. Retrieved 26 November 2020.
  14. Stankovska, Simona (2011-09-26). "Investment Adviser: Company profile: Impax Asset Management". Investment Adviser. Financial Times. Archived from the original on 2020-12-14. Retrieved 2020-12-14.
  15. "Impax Environmental Markets". Investors Chronicle. Retrieved 26 November 2020.
  16. 23 August 2006 (2006-08-23). "Impax reaches €125m goal | People & Markets". PFIe. Retrieved 2017-07-06.
  17. "Impax targets wind with $450 million renewables, fund chief says". Archived from the original on 2014-09-15. Retrieved 2017-03-07.
  18. "Best performing funds of 2015: BNP Paribas Aqua Fund". Environmental Finance. Retrieved 6 July 2017.
  19. "Scientist drinks the Kool-Aid before launching green fund house". Financial Times. 8 March 2018. Retrieved 3 December 2020.
  20. "Climate Change and Choosing Where to Invest". New York Times. 4 December 2015. Retrieved 3 December 2020.
  21. "Climate Change Poses 'Systemic Threat' to the Economy, Big Investors Warn". New York Times. 21 July 2020. Retrieved 3 December 2020.
  22. "Green 50: Top business moves that helped the planet". Corporate Knights. 20 April 2020. Retrieved 23 December 2020. Pioneered investing in environmental solutions and helped bring the idea to scale
  23. "Agriculture Funds Aim to Harvest Profit, Along With Corn and Wheat". New York Times. 11 October 2019. Retrieved 3 December 2020.
  24. Rice, Nick (2010-04-19). "Investment Adviser: In the spotlight: Impax Asset Management". Investment Adviser. Financial Times. Archived from the original on 2020-12-14. Retrieved 2020-12-14.
  25. "Impax tumbles 10% as biggest backer sells major stake". City Wire South. 11 November 2020. Retrieved 23 December 2020.
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