The question behind the strategy

Impax Asset Management has made broadening its product range one of its stated priorities, alongside improving listed Equity performance and running the Business more efficiently. (LSE:IPX) The company published no regulatory announcement on 3 November 2026, so this article uses its fourth-quarter Assets under management update of 13 October 2026 and its interim results of 20 May 2026 to test how far that Diversification has progressed.

Impax is a London-based specialist investor, founded in 1998, that focuses on companies and issuers positioned for the transition to a more sustainable economy. (LSE:IPX) It manages money across listed equities, fixed income and private markets.

What the asset mix shows

At 30 September 2026, listed equities accounted for £17.4bn of assets, fixed income £2.1bn and private markets £595m. (LSE:IPX) On our calculation, that leaves listed equities at about 87% of the total, fixed income at about 10% and private markets at about 3%. A year earlier, listed equities were roughly 88%, so the shift in the mix has been modest and has come mainly because equity assets shrank rather than because other areas grew.

Within listed equities there is a further split. (LSE:IPX) In the October update, chief executive Ian Simm said actively managed listed equities make up around 75% of assets. The interim report identified systematic listed equities as 10.2% of assets at 31 March 2026 and said client interest in lower tracking error and systematic portfolios was increasing. A senior business development hire has been tasked with growing that systematic range, and the group launched its first US exchange-traded fund during the first half.

Flows outside listed equities

The newer areas have not been immune from redemptions. Over the year to 30 September 2026, fixed income recorded net outflows of £308m and private markets £26m, against £7.4bn from listed equities. The quarterly detail is less encouraging than the annual picture: fixed income lost £116m in the first half but £188m in the fourth quarter alone, by our reading of the two announcements, while private markets moved from small net inflows in the first half to £32m of net outflows in the final quarter.

Management continues to describe fixed income performance as solid and says the private markets team is seeking more Capital for European opportunities. Those are qualitative statements; the flow data so far do not show the diversification engine offsetting equity redemptions.

Why the mix matters for earnings

Revenue at an asset manager follows assets and fee rates. In the six months to 31 March 2026 Impax reported Revenue of £58.8m, adjusted operating profit of £11.3m and an adjusted Operating Margin of 19.2%. It declared an Interim Dividend of 2.0p, paid on 17 July 2026, down from 4.0p, under a policy of paying out at least 55% of adjusted profit after tax. Cash reserves were £46.0m at 31 March. Greater weight in fixed income or systematic products could make revenue less dependent on one style of investing, though such products may carry different fee levels, which the material we read did not quantify.

Risks and limitations

The central risk is that improved performance since January takes longer to turn into flows than management hopes; Mr Simm described recent outflows as a lagged response to earlier weak returns. The diversification products are still relatively small, so even strong growth there would take time to move the overall mix. Market falls would also reduce assets and fee income regardless of client flows.

Next disclosures

Impax said in October that management expectations for the financial year to 30 September 2026 were unchanged. Full-year results are the next major disclosure, although we have not verified a date. The shares closed the 3 November session at 91.0p, according to LSE delayed data.