Impax

UK-listed, sustainability-focused boutique Impax stands out for its strong investment culture, solid stewardship practices, and a well-regarded listed equity team, supporting an Above Average Parent Pillar rating, despite operating in more challenging conditions in recent years. Founded in 1998, the firm expanded steadily over two decades, with growth accelerating following the 2018 acquisition of Pax World Management and rising demand for sustainable strategies. Since 2022, sustained environmental, social, and governance headwinds have driven net outflows, with assets under management declining to about GBP 22.0 billion as of March 2026 from GBP 39.6 billion in March 2024. In response, the firm implemented two rounds of cost-containment measures in 2025 and 2026, reducing overall headcount by roughly one-fourth. These measures have largely spared the investment teams so far, but continued outflows could eventually strain resources and therefore remain a key risk to monitor. The listed equities team, responsible for more than 80% of AUM, remains well-resourced and continues to combine experienced investors with emerging talent. However, turnover has increased since 2023 because of retirements, product rationalization, and selective performance-related changes. Leadership transitions have been well handled. The planned retirements of Bruce Jenkyn-Jones and Hubert Aarts culminated in Charles French becoming the sole CIO in October 2025. Under his leadership, the organization has become more structured, and he strengthened the investment processes, changes we view as broadly positive. The firm remains financially sound and profitable. This should allow Impax to execute its strategic plans, which include diversifying its platform. Impax has taken meaningful steps to build out its fixed-income capabilities, notably through the acquisitions of Absalon in 2024 and Sky Harbor in 2025. Impax has also continued to evolve its distribution model. Historically reliant on external partnerships, most notably BNP Paribas, which remains both a major shareholder and distributor, the firm has been steadily building its own direct distribution capabilities and reducing reliance on third parties.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Impax (Branding Name ID: BN0000093K), is covered by Morningstar Manager Research.