Excellent AUM growth for the three months to end March 2019 comprised net inflows of £0.5bn into its funds plus £1.2bn of market performance gains.
For now, at least, we have held our forecasts. A slightly cautious approach reflecting recent volatile global equity markets: the latter make us reluctant to read too much into one, albeit very encouraging, quarter. Q1 was relatively weak and total AUM growth for the first six months was 6%. The US operation reported a small £15m net inflow in Q2 19 vs a £227m outflow in Q1. We shall revisit projections on the back of AUM updates over the next few months.
Nonetheless, the sheer scale of a 14.7% increase in Q2 AUM was impressive. We anticipate further inflows into equity funds in the second half, which supports our £14.4bn September 2019 AUM forecast i.e. assumes c 9% net AUM growth in H2 2019.
That provides considerable underpinning for our current year forecast and reinforces the longer-term attractions of both the sustainable segment that Impax leads, and of value in its own shares.