Impax reports fall in AUM, acquires SKY Harbor's Europe assets

10th Jul 2024 11:27

(Sharecast News) - Impax Asset Management reported a 6.8% decrease in assets under management (AUM) for its third quarter on Wednesday, and announced the acquisition of SKY Harbor Capital Management.

The AIM-traded company said its assets under management fell from £39.62bn at the end of March to £36.93bn on 30 June.

It said it was impacted by net outflows of £1.89bn and a negative market movement, including foreign exchange and performance, amounting to £805m.

"Aggregate net flows for the quarter to 30 June remained negative and dominated by our wholesale channel, despite a notable easing of outflows from key parts of our European distribution structure," said chief executive officer Ian Simm.

"Following a busy period for our direct sales team, our pipeline of potential new business is healthy."

In a strategic move to bolster its fixed income business, Impax also announced the acquisition of the European assets of SKY Harbor Capital Management.

SKY Harbor, a fixed income manager specialising in high yield securities and leveraged loans, manages around $4.2bn in assets.

The board said the acquisition included the management and distribution rights to SKY Harbor's Europe-based funds and mandates, which collectively manage around £1.6bn in assets.

Those funds are distributed under the Luxembourg-based SKY Harbor UCITS Fund, which complies with the EU's Sustainable Finance Disclosures Regulation and had received the French SRI Label.

The acquisition would also see eight SKY Harbor team members, including senior executives, join Impax, enhancing its expertise in high yield and fixed income strategies.

Post-acquisition, Impax's pro-forma fixed income assets under management would total around £3.1bn, with a fixed income team of around 20 professionals.

"This transaction marks an important milestone in our strategy to expand Impax's fixed income capabilities globally," Ian Simm added.

"Both founder-led specialist asset managers, SKY Harbor and Impax share a strong business culture and a complementary investment approach.

"The addition of SKY Harbor's deep expertise and track record in high yield investing and its team's experience in client service fit well with those brought by the Absalon team and will be a significant asset as we broaden our fixed income offering."

At 1107 BST, shares in Impax Asset Management Group were down 9.61% at 376.94p.

Reporting by Josh White for Sharecast.com.