The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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impax asset management plc (aim: ipx), leaders at investing in companies helping the transition to a more sustainable global economy, is pleased to announce that ian simm (ceo) and karen ****burn (cfo) will conduct a live presentation reviewing their interim results for the six-month period ended 31 march 2024.
the online event will take place at 3.00pm on wednesday 29th may, and is open to all existing and potential shareholders.
questions can be submitted during the presentation to be addressed at the end.
link to register: https://www.equitydevelopment.co.uk/news-and-events/ipx-investor-presentation-29may2024
Driven by very strong investment performance AUM rose nicely by £2.2bn or 6% over H1, reaching £39.6bn
New research out from Equity Dev with fair value/share still seen at 800p, well above current levels, as you can read here with free access:
https://www.equitydevelopment.co.uk/research/investment-performance-drives-6-h1-aum-growth
Simon O'Regan (NED) has spent £58,586.84 on buying 13,000 shares at around 451p. I hope he makes money !
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: https://www.equitydevelopment.co.uk/research/aum-up-4.6-in-q1-and-fixed-income-acquisition
The shares have now risen over 50% since the low in mid October. Your faith "petrencf" has been rewarded and I hope you stayed with it "Jeffrey1979". AUM at the year end will have risen since the last announcement which will give revenues a lift. The holding (in my SIPP) is just in profit although it did fall further than I expected. Some price consolidation would be reasonable after such rise but I shall be sticking with IPX
ian simm (ceo) and karen ****burn (cfo) of impax am held an investor presentation covering full year results. they highlighted the growth in assets under management over the period (+4.8%) and high client retention despite challenging markets.
they provided a detailed financial update, discussed targeted investment to support growth, an increased product pipeline and strengthened distribution capabilities. the team also then answered a wide range of questions from viewers.
the full video is available below, divided into chapters:
0:00:03 introduction to impax am
0:02:01 fy23 highlights and business update
0:15:06 financial update
0:28:16 outlook
0:29:00 questions & answers
link to full video here: https://www.equitydevelopment.co.uk/research/impax-asset-management-investor-presentation-full-year-results-29-november-2023
Results very much as I expected. Revenue was up on the year as were the Assets Under Management (AUM) but only marginally, net inflow of funds was marginally negative but asset appreciation made up for it. Profits were significantly down due largely to a rise in costs. For the last two years they have been cranking up their back office, their investment management staff, IT systems and sales function so average fee margins are down over that period.
This is a deliberate decision to scale up for what they believe will be a growth in AUM through new mandates and rising market. You have to share this view and that their specialist niche in the market is going to grow if you choose to be invested here. Although the expansion programme is now nearly complete many of the new costs are fixed and the full year's impact will be felt in YE 24. Cash balances are down over the year but the balance sheet is still strong; they could sustain another difficult year but IMHO the dividend (which was maintained this year) would have to be cut. They are at the top end of their 55 - 80% pay-out ratio.
Ian Simm still wants more even after 25 years, don't be surprised if they extend their fund coverage to Germany and the Iberian Peninsular having added japan this year. As to the value, I'm not sure how Equity Development (ED) justify their view of 800p fundamental value; that's more than the joint broker Berenberg sees. ED still do not declare their commercial relationship with IMPX so I take them with a pinch of salt (although I would like them to be right !).
Resilient FY results despite tough market conditions. AUM rose 4.8% to £37.4bn with several new institutional mandates won. Adj. diluted EPS fell to 35.2p, and FY total div held at 27.6p
Read detailed (20 page) analysis of results and outlook here, free access: https://www.equitydevelopment.co.uk/research/a-tough-year-but-clear-fundamental-value
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:
https://www.equitydevelopment.co.uk/news-and-events/ipx-fyinvestor-presentation-29november2023
Has given a "Buy" rating in the October 20th Issue
I keep the faith. I invest on my ISA so I have to stick to the UK market mainly. And 777 is a a good sign anyway.
Thanks for your kind words however I do genuinely belive the UK is on a downward slope with no upside..... I am looking to move into bonds and global as stockpicking ain't my thing or it is and I dont get out at the right time
Jeffrey, this market can be very cruel. Unjustified drop on low volumes today imo. The UK market is in freefall or has been stagnating for 2 years now. Covid, war, inflation and high interest rates kill the shares. But tide should turn eventually. Considering the macro the company is doing well. The AUM is the same as 18 month ago when the SP was around 8-10. The sentiment and liquidity are horrible though.
LTH here..... Total shocker.... 50% down on my investment. Head in hands. No signs of green shoots, looking to cut losses.... Awful ongoing comms from the leadership here
Impax Asset Management issued a Q4 AUM update this morning. 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. There wasn’t any additional financial information, but performance was decent given the weakening market backdrop, although there were some moderate redemptions from several of the Group’s distribution partners. Share price has dopped nearly 10%, however, and is extending its longer run correction. AUM are the base from which revenues are earned, if they shrink it is negative for profits. Valuation is average with forward PE ratio around 11.3x, the balance sheet is strong. But the fragile macro environment and the risks it poses to asset markets suggest it remains too soon to buy again. One to monitor for the time being...
...from WealthOracle
wealthoracle.co.uk/detailed-result-full/IPX/808
What a joke edging in £4, EquityDevelopment - you need to declare your realtionship -complete ramper
EquityDevelopmen I still think you ought to disclose your relationship with IPX. Do you receive any income from them?
The simple truth is that they had redemptions in their equity funds and stock markets declined over the quarter. That's not good if you are an asset manager particularly if, like IPX you have invested in additional capacity (both people and systems). Ceteris paribus: Higher fixed costs and lower revenue equals less profit.
Those investors in IPX who are themselves asset managers (and there are several) probably had an inkling of the redemptions through general market gossip which is why the shares have been declining since early August. For example, IPX has fallen 16% relative to M&G over the last three months. Continuing to hold is an act of faith that the team can renew its magic of attracting new briefs for its unique investment style. (Oh....and it works) Not nearly as confident about this holding of mine as I was.
The relative growth rate of IPX has been impressive, as has its net flow rate. After the Q4 AUM report Equity Dev's fundamental value/share falls to 800p, still well above a 454p close.
Read full new research note, hear summary at below, free access:
https://www.equitydevelopment.co.uk/research/sector-leading-growth-but-3rd-quartile-valuation
Y/E AUM figures should be released soon. Let's hope the market has got this one wrong.
Becoming worried now this is utter carnage and nothing from the mgt team
The shares stayed above 550p for the second half of July and I didn't think I would get my final tranche at 500p or less. However the shares have been drifting since August and I completed my purchase at 488p this morning.
I am not sure why the shares have under performed the market but there will be other asset management groups who will know (or have a feel for) what mandates IPX is winning or loosing. I have to believe that the story is intact; there is certainly no concern about their finances in the short term but they have geared up for growth. I will know whether my faith is justified at the next RNS.
Still here and not happy
Hi Stargate,
IPX ended today comfortably above your indicated level of 575p. Where do you see them going from here, please?
Jeffrey1979, I hope you did not loose your nerve and cut your position at the lower levels.
Sp, failed to break above pivot at 575, despite rise today. Rise in sp, was supported by positive divergence in the relative strength indicator (RSI). Before sp, rise, price was heading down towards the previous major bottom at 500. The suspicion is that the current rally is a bear rally, with the sp, destined to fall further until it reaches 500, the previous bottom. If sp, can break above 575, expect further increase.