The £90bn AUM London-based wealth management firm St. James’s Place has mandated Impax Asset Management to manage its sustainable and responsible equity fund that had £286m in assets as of 30 June 2018.
Subject to the required regulatory approvals, St. James’s Place will invest into Impax’s Global Opportunities strategy while the existing St. James’s Place Ethical fund will be renamed as the Sustainable and Responsible Equity fund and will be managed by Impax’s portfolio managers Kirsteen Morrison and David Winborne.
Impax’s Global Opportunities has been chosen as the strategy that will represent St. James’s Place’s Sustainable and Responsible Equity fund.
It consists of a concentrated portfolio of 35 to 45 companies and invests over a five-year horizon with a low turnover. Furthermore, the strategy is available through an Ireland-domiciled Ucits fund and the Pax Global Opportunities Fund launched in July 2018, which is Impax’s first collaboration with Pax World Management since it acquired the US firm in September 2017.
Ian Simm, CEO of Impax, said: “Being selected by St. James’s Place to run their sustainable strategy for their clients is a great honour and testament to Impax’s approach and the team’s track record. The strategy for the Sustainable and Responsible Equity fund will move beyond merely applying a negative ethical screen to taking a positive approach, which is the hallmark of our successful investment style of the past twenty years.
“This reflects the changing needs of the private client market who want to invest with managers who are proactively supporting the development of a more sustainable economy. As demand from clients for more oversight on how their money is invested increases, the potential for the strategy to grow as it becomes St. James’s Place’s core sustainable strategy is obvious.
“At Impax we believe that demographic change, resource scarcity, inadequate infrastructure and environmental constraints will disrupt private sectors markets quite profoundly in the coming years, and that the expected transition will lead to out-performance for well positioned companies.”
Kirsteen Morrison, co-portfolio manager for the Impax Global Opportunities Strategy, highlighted: “The foundations of this strategy are rooted in the same investment process of investing in high quality companies and the same framework that Impax has pioneered over the last twenty years. It is an evolution of our thematic environmental strategies and broadens the investment universe to encompass an unconstrained global equity approach and wider set of opportunities arising from a lower carbon intensive economy.”