Impax Asset Management (AIM:IPX) shares dropped 15% after it warned that full-year profits are likely to fall below market expectations due to the decline in assets under management and wider market uncertainty.
The company reported that assets under discretionary and advisory management stood at £25.3 billion at 31 March 2025, down 26% from the end of the previous quarter.
The fall was driven by net outflows of £7.8 billion and negative market performance, with the winding-up of the £5.1 billion St James’s Place Sustainable & Responsible Equity Fund mandate and several institutional account closures contributing to the outflows.
"Since the start of the calendar year, relative to generic indices, our investment strategies have benefitted from the broadening of market performance away from the US-listed mega-cap stocks that had previously dominated global equity returns," said chief executive Ian Simm.
He said market conditions in the second half of "remain highly uncertain" and, given the fall in AUM and the impact on global markets of an escalating trade war, "we anticipate that full year profits will be below market expectations".
The company completed its acquisition of the European assets of SKY Harbor Capital Management during the quarter, which added £1.1 billion in AUM and expanded Impax’s fixed income capability, which will be included in the July update.