Impax Asset Management Share Discussion Threads

[tole] 10/4/2024 05:55

https://citywire.com/funds-insider/news/expert-view-imperial-brands-accrol-cyanconnode-johnson-matthey-impax-am/Buy' Impax for the rerating, says Peel HuntImpax Asset Management (IPX) has been the victim of downbeat sentiment towards the investment industry, but a rerating remains in reach, says Peel Hunt.Analyst Stuart Duncan retained his 'buy' recommendation and target price of 700p on the Citywire Elite Companies plus-rated asset manager, which added 2.6% to 454p on Tuesday.A second-quarter update showed assets under management edged 1% higher to £39.6bn over the three months, but the group also suffered further outflows 'as intermediated clients continued to make allocation decisions from equities', with net outflows amounting to £1.7bn.'AUM continues to progress towards our closing assumption, therefore forecasts remain unchanged at present,' said Duncan.The shares have fallen 40% over the past 12 months and the stock is now trading on a December 2024 embedded value to pre-tax earnings multiple of 10 times 'as in general, the sector has continued to modestly derate'.'We remain convinced that when sentiment recovers – perhaps falling interest rates will be the catalyst – Impax will benefit and we therefore retain our "buy" rating,' Duncan said.Previou

[robsy2] 09/4/2024 08:15

Yes- 6% dividend while we wait for more progress.

[edmonda] 09/4/2024 07:52

Driven by very strong investment performance AUM rose nicely by £2.2bn or 6% over H1, reaching £39.6bn

New research note out from Equity Dev with fair value/share still seen at 800p, well above current levels, as you can read here with free access:

[ben gunn] 08/2/2024 11:10

Ex div. Thanks for the heads up.

[albert arthur] 08/2/2024 10:20

Traded this until yesterday to the day before Exdivi... that was a cheeky BOD sale the day before exdivi... looks like a great profit making fund to invest in... but this was an ex divi trade for me.. hope this one does well for all.

[melody9999] 08/2/2024 09:58

Correct Orange - apologies I did not read that corrcetly - genuine mistake

[orange1] 07/2/2024 11:10

Er, not quite. It was a sale following the vesting of shares.

[melody9999] 06/2/2024 23:43

Ian Simm buying

[albert arthur] 02/2/2024 14:50

Doubled down on that gap fill!

[albert arthur] 26/1/2024 16:39

Added some here today. Exdivi 8th Feb, yield just over 5%

[swiss paul] 17/1/2024 18:33

Impax Asset Management Group plc (the "Company") announces that it has received notification of the following transaction in ordinary shares in the Company ("Ordinary Shares") by persons discharging managerial responsibilities.

Julia Bond, Non-Executive Director of the Company, has purchased 6,500 Ordinary Shares.

[edmonda] 09/1/2024 09:00

"AUM up 4.6% in Q1 and fixed income acquisition"

Impax recorded a solid Q1 of FY24, with AUM growing by £1.7bn (+4.6%) to £39.1bn on 31 Dec 23 (30 Sep 23: £37.4bn). This is above the trajectory required to meet our FY24 AUM forecast of £41.1bn (+10% annual AUM growth), but as it is very early in the financial year and markets remain volatile, we have taken a conservative approach and not yet adjusted our forecasts.

It has also announced an acquisition in the fixed income segment. While not huge in the context of the group (£351m or just under 1% of group AUM), fixed income is seen as strategically important and a significant growth opportunity, particularly in the US. Impax Asset Management Ireland Limited has entered into an agreement (subject to closing conditions) to acquire the assets of Absalon Corporate Credit, a fixed income manager of two strategies.

We remain bullish about the prospects of the sustainable investing market generally, and of Impax specifically. The positive AUM update for Q1-24 and the Absalon acquisition reinforce this view and our fundamental valuation remains at 800p per share, 50% above the current share price.

New report with audio here:

[swiss paul] 01/12/2023 21:38

Yep just in and looking - v good presentation - as always. Time for a top up

[varies] 29/11/2023 18:30

It is certainly a relief to see the dividend maintained.
This comes to about 77% of earnings which is near the top of the 55-80% range mentioned by the directors.
It seems unlikely that this will be increased next year unless there is a big increase in earnings but a yield of 6% at the current share price looks attractive.

[swiss paul] 29/11/2023 10:08

Ed, will be recorded as am out then.b/w Swiss

[edmonda] 23/11/2023 08:32

FY results out next Wed 29th , and you can hear from the CEO and CFO on the same day: Webinar open to all investors at 1.15pm, simply register here to attend:

[thelongandtheshortandthetall] 06/11/2023 10:05

I think it just indicates that the whole fund management sector is cheap at the moment.

[varies] 06/11/2023 08:53

At 422p mkt cap of IPX is £583 million whereas mkt cap of Liontrust at 586p is only £381 million. So we care most unlikely to see a bid for IPX from LIO.

[varies] 06/11/2023 08:46

Does Liontrust's recent acquisition of a 10% stake indicate that a combination of the two companies might be under consideration ?

[melody9999] 03/11/2023 09:15

But sharp increase in outflows not specific to IPX. From Q4 AUM update 091023.

On 30 September 2023, the Company's AUM totalled £37.4 billion, representing a decrease of 5.8% over the three-month period since 1 July 2023 and an increase of 4.8% over the financial year since 30 September 2022.

At this point in the cycle, this seems an ideal time to enter IPX which is what I have done this morning. Not expecting the next monthly AUM to be great as it will reflect position at 300923, but if you believe there is a lot of money sitting on the sidlines ready to invest, good to be nimble at this point and get ahead of the crowd.

[wjccghcc] 02/11/2023 13:30

I think it depends on whether the recent sharp increase in outflows is a blip or a fundamental shift in the attraction of ESG investing.

[robsy2] 02/11/2023 12:23

I am now fully reinvested here.
It's been interesting getting reacquainted with the company after selling out back in 2020. There are some bear points

BEAR POINTS

1. Margins are under pressure in the wealth management sector so that is a bear point, but, IPX defends itself against margin erosion because they focus on B2B distribution and direct sales.
2. While passive investing with ETF’s have forced fees down , as a highly experienced , well-resourced and expert investment house, IPX argues that they add value and are worth the fees they charge because they offer superior performance. Their track record supports this stance.
3. Inflation and increased investment in people and a new office have eroded operating margins at IPX over the last 12 months as they gear up the business for expansion.
4. Markets may continue to slide, valuations may fall further and as such income may come under further pressure.
5. What will happen when company founder and CEO,Ian Simm (age57) leaves? I don’t see that as an immediate problem because he seems as enthusiastic as ever and is by character a driven man , a highly motivated, self-declared nerd, who is on record as being happy to continue and take the company to the next stage, thereby securing his legacy and improving the value of his significant holding of stock.
6. The only negative in the past has been the high price of the shares. The share price is much more attractive now and there is stock available. Earnings may have flat lined fro the time being and they could continue to stagnate, but the risk return looks favourable again with a safe 7% divided to be received while we wait for the cycle to change.

..but more bull points .

BULL POINTS

1. Solid balance sheet ,highly profitable , highly cash generative, lots of cash, high margins, very scale-able business, modest rating, high and sustainable dividend, capable management, strong market position.
2. This is an investment in the growing transition to a more sustainable economy. We are putting our money behind the trend but at arms length. By buying into IPX as one of the global specialists in this area, we can profit from IPX’s ability to attract investors to their products. IPX’s range of product strategies almost overwhelmingly outperform their competitors over 1, 3 and 5 years.
3. IPX sees a big runway of opportunity , estimating that they can expand from 50b USD of AuM to 80-100b AuM just with their the existing strategies.
4. They continue seeding new strategies to continue expanding into other closely related thematic areas. To date, they have been adept at staying ahead of the pack in this sense.
5. IPX does something useful to investors and indeed humanity and they do it well.
6. IPX has been very mindful of developing their brand and ensuring that they are high profile thought leaders in and around sustainability. The Impax brand has no balance sheet value attributed to it but it is a powerful name that when combined with the investment performance adds considerable value to the business.
7. Impax has a very stable, experienced and settled team. It is a good place to work, indeed Ian Simm said that they have only ever had to sack one person in the entire history of the company!
8. Markets will recover and when they do, IPX is well positioned. We should see profits spike- up nicely. While we wait for this to happen, we can take a 7% dividend.

I just think it has gone from super expensive to super cheap.

So much for the idea that markets price things correctky . To have held since the peak at 1500p and see the value half in 2021 and then half again in 2022 to end up trading at 375p is terrifying. Seems like you can't just buy a quality company and hold forever either.

Anyway , things look pretty positive here I feel. If they can get the Aum up 80-100% as they think they can then all will be well.
I see an share price at an all time high again in maybe 5 years time. If that happens then we're talking an annual compound return dividends included, of around 25% a year.That will do it for me.

[bighairyspider] 09/10/2023 14:52

This is getting hammered. Down to £4 on a 5.8% reduction to £37bn on todays RNS.

The RNS on 7 April last year IPX reported a reduction of 10% in AUM again to +/- £37bn. The share price then dropped from a tenner to just over a fiver when it started to climb again in September 2022.

Looking to add but am just going to wait abit for the share price to settle.