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Sunday, January 29, 2023

Impax income bounce as sustainable fund home shrugs off turbulence

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Impax Asset Management has reported an enormous bounce in pre-tax income, even because the environmental, social and governance-focused investing sector comes beneath strain with accusations of greenwashing and up to date market volatility.

The sustainable funding specialist unveiled a 56 per cent rise in pre-tax revenue for the six months to March, to £32.7mn, in contrast with the identical interval a yr earlier, regardless of turbulence in international markets.

Impax, which was arrange greater than twenty years in the past and focuses on environmental investing, acquired web inflows of £2.5bn bringing its complete belongings beneath administration to £38bn.

“Our investment approach, with its careful attention to risk and resilience, continues to attract asset owners that are seeking to build robust portfolios with attractive returns, focused on the transition to a more sustainable economy,” stated chief government Ian Simm.

The majority of recent cash flowed into Impax’s fairness methods, although these posted a £1.6bn loss. Fixed-income methods acquired £48mn in web new cash.

“Amid considerable market volatility surrounding recent geopolitical events, we continue to be pleased with the long-term performance of our investment strategies,” Simm stated.

The robust exhibiting comes towards a background of market turbulence, which has hit many bigger ESG funds that are likely to have a heavy weighting in direction of expertise, one of many worst-hit sectors for the reason that begin of the yr.

Sustainable funds are also inclined to carry fewer power shares given issues concerning the sector’s contribution to emissions. However, these firms have been among the many huge winners this yr with an increase in power costs following Russia’s invasion of Ukraine.

The Aim-listed fund supervisor stated: “Recent geopolitical events underscore the importance of energy security and tackling climate change, both key areas for Impax’s investments.”

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The sustainable funding sector can be coming beneath wider scrutiny over its advertising efforts. The chief government of Germany’s high asset administration firm DWS Group on Wednesday resigned hours after the corporate’s workplaces in Frankfurt had been raided by police over allegations of greenwashing.

Revenues at Impax rose 46 per cent to £88.6mn within the interval. The firm’s dividend additionally elevated to 4.7p a share from 3.6p in the identical interval a yr in the past.

However, the rises weren’t sufficient to spice up Impax’s share worth. The inventory fell 9.6 per cent on Wednesday, rising its fall to date this yr to greater than 48 per cent.

Source: www.ft.com

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