Impax Asset Management Group Plc (IPX) Earnings Call Transcript & Summary

Right. We seem to have most people on now. So I'll just give 1 or 2 reminders. I'm sure most of you have done this before. [Operator Instructions] Charlie and Ian will be referring and using to us a slide deck, and you can find that on the Impax Asset Management website under the Investor Relations section. And this interview is being recorded. So I shall now welcome back Charlie Ridge, the CFO; and Ian Simm, the founder and the CEO, who has spoken to investors with regularity for many years. And they have, again, a very encouraging message, which is to discuss the results that they've reported today for the financial year that ended the 30th of September. So I will now, without further ado, pass over to Ian, who will take you through the deck.

So hello, everybody. Welcome to the annual results presentation for Impax Asset Management Group plc. And so if I can have the first slide, please. These are the numbers for the 12 months to the end of September 2021. So over that 12-month period, we were able to grow our assets under management by 84% to a record high of GBP 37.2 billion, and that included GBP 10.7 billion of net inflows, which is also a record. Looking to the future, the market context in which we're operating is highly attractive. We've got really strong investment performance to demonstrate to prospective clients our capabilities, and we have a robust platform for further growth. During the 12 months, we've also won a number of awards from very strong and reputable brands in the media space. So lots of accolades coming Impax's way during that period. The financial performance is summarized here. So GBP 143 million of revenue for the year, which was a record, and that's, of course, led to strong increases in profit in various measures. And in the bottom right, you can see that we've also announced a 17p final dividend, a record high for the dividend, taking total dividend for the year to 20.6p per share. In the blue box at the bottom, you can see the end of October assets under management number that we've posted on our website, GBP 38.9 billion, which is also a record, of course. On the next slide, you can see a little bit of color around the company. So for those of you that don't know us, we're a specialist investment manager targeting this idea that the transition to a more sustainable global economy is set to create investment outperformance through market growth and pricing imperfections throughout listed and private markets for the foreseeable future. And that's allowed us to build a business in the equities, fixed income and private market space with a global footprint. On the next slide, our distribution arrangements are international. So 75% of our client base is overseas from the U.K. We have strong investments -- sorry, strong distribution teams in the U.K. and the U.S., where we do direct selling. And then we have investment and distribution partners all around the world. So the distribution through BNP Paribas Asset Management covers much of continental Europe and places like Japan, but then we have partners for distribution in places like Canada, Australia and the Middle East. The funds and accounts that we run are based on a number of strategies that are shown here. If you'd like more details then please go onto our website, but essentially, we're running thematic funds in the environmental market space and sustainability lens funds in the broadly based equity space. And we have a few other specialist products as well. Then just on the next slide, turning to the market context. Well, I think it's fair to say that it's never been a more attractive time to be investing in the transition to a more sustainable economy. The policy environment is really very strong, not just the COP26 Climate Conference and the policy arising from that, but also spending linked, for example, to the U.S. infrastructure bill, which has been now passed through Congress. And we're also seeing through the Build Back Better mantra around fiscal stimulus and fiscal support post COVID, that there'll be a lot of money supporting the clean economy over the next infrastructure cycle. Along that direction of travel. I'll let you know when the slide change would happen, if that's okay. So along that direction of travel, the number of investment opportunities is continuing to expand, so we're seeing demand growing for goods and services linked to energy efficiency for our pollution control, for water treatment and for many other products and services, for example, in the renewable energy or food and agriculture sector. Large companies are pivoting to this space, complementing the more challenging and providing competition for the small and midsized companies, which have been there already and Impax is investing in all types of companies in terms of size. It's not surprising that in the context of that market backdrop and that activity, there's lots of asset owners around the world who are considering changing their portfolios to give them more exposure to these trends. So alignment of portfolios with net-zero and a lot more sort of impact on values-based investing, that's all helping Impax's promotion. And of course, we are really well positioned for expansion to exploit these opportunities and to serve these asset owners wanting to increase exposure. So we're seen as an authentic brand with more than 20 years of experience. We have a large stable team that's well aligned with the business management, maybe 20% of the company. And we've got proven capabilities, particularly in distribution. On the next slide, then the results for the year just gone, show really strong progress in all geographies. So in the U.K., we've seen our partnership with St James's Place expand very considerably. We've seen our investment trust Impax Environmental Markets grow quite rapidly. And we've seen our Irish UCITS fund range expand considerably to record levels. Across continental Europe and Asia Pacific, then we've seen a really strong uptick in the level of business we've got with BNP Paribas Asset Management. Our direct sales is also picking up in product ranges and channels that are not covered by BNP Paribas. Significant expansion of Australia with our relatively new partnership with Fidante building on an established base. So some new segregated accounts and flows into mutual funds in Australia and a big step-up in business in Japan, particularly from Nomura in the context of the work that we're doing through BNP Paribas, which is acting as an intermediary for that Japanese business. But probably the most exciting area for growth, certainly looking forward is North America, where we have been well established for more than a decade. And the Pax World Fund range that we picked up when we bought Pax World Management in 2018 has seen accelerated growth and record levels of assets under management. We've had quite a significant number of new wins around segregated mandates and new distribution partnerships, including our first collective investment trust for Arista client, which is a particular type of pension fund clients in the U.S., where the barriers to entry for managers are quite high, and we finally got over those barriers. And in the context of more opportunity than we have just brought on board an experienced new Head of Distribution, who'll be adding some leadership and further direction and focus to our sales team. On the next slide, you can see the breakdown of the growth in AUM over the 2 halves of the year. The key message from this slide is the strong flows in both the first half and the second half in the context of rising markets. And we're encouraged by the start of the new financial year, as I mentioned, GBP 38.9 billion by the end of October. The next 2 pages show investment performance, first of all, for our thematic or environmental market strategies where the blue bars show the performance of individual funds against the gray bars, which are the benchmarks. So by and large, we've got significant outperformance over 1, 3 and 5 years. The only fund that's not outperforming against the All Country World Index is our food fund, which is deliberately positioned as a value strategy -- value-oriented strategy and, therefore, offering diversification within portfolios. And then on the next slide, the sustainability lens strategies, which are less thematic and more broadly based and including other areas. Could you change the slide, please? Thank you. These have also performed very well. So our award winning global opportunity strategy on the top left has been demonstrating on delivering very good outperformance, and we've seen good performance from our U.S. products, which we run out of New Hampshire. On the next slide, then this is an update to the customary slide that we put in our Pax chain, first of all, in the top left, the breakdown of our assets under management according to the different investment strategies. So nicely diversified. We don't have one fund that is sort of dominating. On the bottom left, our distribution arrangements are also nicely diversified as well with a mixture of partnerships and Impax label and Impax label funds. And then on the top right, you can see that as I mentioned earlier, 75% of our business is from non-U.K. clients. I just think it's a real differentiator for a U.K.-based boutique. So we've done, I think, quite a good job in promoting our services around the world. On the next slide, also an update. This is to the inflows for the period and this compares to the previous year. So the current year or year in question in the dark blue and the previous year in the brighter blue. So clearly, very positive flows across the board and accelerating flows so the darker bars are longer than the more royal blue bars showing acceleration of inflows in the U.K. on the left-hand side, you can see the magnitude of the flows into the St James's Place mandate, for example, flows with the BNP Paribas strategies in the middle. And I think the most dramatic is probably the Pax World Funds acceleration on the right-hand side, where we've really benefited from well-established relationships on a more focused distribution and sales approach. On the next slide, then the conclusion of the acquisition of Pax World Management happened in January this year, the third anniversary, at which point we completed the purchase of the remaining shares in that company held by management for a total consideration of $3 million. We also paid some contingent consideration or earn-out based on the formula which resulted in a very small payment to the selling shareholders. The way that, that payment was structured meant that we've ended up paying a relatively small money, even though momentum in the business is continued way past the business plan. So quite appropriate structuring, should we say, and I think quite fortunate in the way that the numbers actually landed, so we haven't had to pay very much for that additional growth. What that does do, of course, is further strengthen our platform for expansion in North America. So we now have around 100 employees in the United States. We've got well-established relationships with consultants. We've got a fund platform in the mutual fund space, which is at scale and well regarded in much of the intermediary community, and we've got a sizable team able to promote our offering to an increasingly attractive and attentive marketplaces. U.S. investors of all complexions are starting to wake up to the new industrial revolution around this low carbon transition. On the next slide, then the plans for the future really are around organic growth, making the most of expanding our existing strategies. So there's still plenty of capacity headroom across the board, which we'll be exploiting with more and more distribution, hopefully, more success -- even more success with direct distribution. We are, of course, at the same time, looking at getting new products off the ground. So we've got a good track record for developing new ideas from scratch. Right now, we've got a couple of ideas that are seeded, our gender strategy out of the U.S. and our Asian opportunity strategy run out of Hong Kong and London, which are building track records. We've recently pivoted one of our systematic equity funds in the U.S. to infrastructure flavor and there's also work underway to try and develop new ideas, which we're keeping under the wraps at the moment, but the machine is wearing. Finally, we have continued to be successful in the private market space where we've been concluding the investment phase for Fund III and raising the first tranche of capital for our fourth fund which is now starting to deploy capital into relevant assets, particularly in the clean energy space, mainly in Europe. Longer term, there is scope to add to those capabilities and do more work in the private markets, fixed income and potentially long-only space -- long-only equity space as well. And then on the delivery of services to our clients, of course, people are right at the heart of our operations. And we've been investing further in the HR and team capabilities at the firm. So one of the common themes across the whole economy, of course, is what's happening to office life post COVID. So we are still working that through, but if return to a part-time hybrid sort of working model temporarily and looking to put in place more robust policies once the COVID situation settles down in our core geographies. So particularly in London and in New England. Our employee survey conducted every 2 years. We did one in April, and that produced a very high engagement score. So we have a -- seemingly a very engaged and motivated workforce, and that's right at the heart of our philosophy to try and ensure that Impax remains an attractive place to work. Our headcount has grown considerably, by nearly 1/4 to 216 people by the end of September. So that has involved a lot of work to identify and onboard talented people and to make sure that they feel properly integrated. We built out a team in Dublin from scratch as our post-Brexit EU office. And we've been doing quite a lot of work on the equality, diversity and inclusion to make sure that we are appropriately structured as a firm with good representation from all corners of society and that work will continue. With regard to the operations and corporate services of the firm, then we recognize that with a scalable business we're going to have to continue to ensure that the processes, policies and IT are fit for purpose, and we are -- we're continuing to build out our capabilities organically in light of prospects for further growth. That does mean that we will have additional headcount coming into the space and some additional IT spend, but we don't expect anything in the way of major disruptions or major cost items. We are able to build that organically and successfully. Wrapping this whole systems -- sorry, can you just stay on that slide, wrapping this whole system plan is our Impact 2025 project, which is designed to ensure that we have detailed plans for expanding the firm in different divisions over the next 3 to 4 years, and that work is underway at the moment, just to make sure that we have everybody pulling in the same direction, putting together a growth plan linked to 3- to 4-year objectives. So Charlie is now going to run through the financials, and I'll come back at the end. Thank you.

Thank you. Yes, I'm delighted to present these very strong results, which reflect the substantial growth that Ian has just been through, over the past year. So if we go to the first slide, which shows revenue, we can see the very strong growth in revenue, 64% up on the prior period, driven by both flows and market performance, but in particular, by flows. Delighted to see that. We're showing for the first time a new graph on this page at the bottom, which splits out the flows over the course of the year by quarter. So we can see how we were very strongly positive throughout the period with a seasonal dip in the summer, which you'd expect. The other thing that shows is the fee margin, extremely stable in the sense that new money is coming in at broadly similar levels to existing money. And you can see that on the top right where we're showing the run rate basis point charge, there's a little change from the prior year. And I think the final thing to note, which is as compared to the revenue for the year of GBP 143 million, the run rate, which is put simply the end of September AUM multiplied by the fee -- by the rate for each future count is GBP 174 million, so substantially higher than that captured during the year. If we can move on please. Next slide. This slide, you might recognize, it looks very similar to the one that Ian just talked to a few moments ago, and it segments all of the client business through a number of different ways. There's by strategy, by domicile and client type. The key point here is that the revenue base that I just talked you through is extremely well diversified, no matter how you slice and dice the business. So very strong underpinning of the business. Can you move on, please. Coming to costs. Costs have grown over the year as we've been supporting the firm's growth, as Ian has mentioned. The main one, of course, is staff. We are a people business and in that context we brought on 41 new positions, many of which of those were in the second half of the period. And at the end of the year, had 20 positions open seeking to be filled as well. And the intention is to continue to carefully hire into the various teams as the business grows. And clearly, we can't predict exactly what's going to happen over the coming couple of years. But assuming -- broadly speaking, sensible market conditions and inflows, then we are assuming that we will be adding to most of the teams. I think a key point, however, is that our scalability is very much built around the investment team that manufactures all of our products. And you can see on the bottom right of this chart that the amount of business, the assets under management per investment team member has grown dramatically by over 50%, showing just how scalable that core part of the business is. And even overall, the overall headcount, that 41 or 25% increase in headcount is considerably behind the revenue growth. Other things to note that in terms of variable staff costs, we take -- we have a policy of targeting 45% of the pre-bonus operating profit, i.e., the revenue less the fixed costs and targeting 45% as a variable remuneration pool that covers cash bonuses, the cost of equity awards and any national insurance. As the profitability has gone up, then clearly, that component has gone up as well. And finally, I'd note that the run rate for expenditure is also higher than the costs incurred in the year, as you would expect. And as shown here GBP 106 million, i.e., taking the costs in place at the end of September and annualizing them. Great. And if we then move on to the next slide. If we combine the revenue and costs, we then turn to profitability. And here, we see the 140% rise in operating profit, so significantly ahead of the simple revenue increase due to that higher increase in revenue as compared to cost. And in addition, the operating margin, which you can see on the top right is at 39%, a significant increase from the prior year, continuing the trend we've seen for a number of years, which you'll see on the bottom left, the gray line is that operating margin. You can see it's been trending upwards throughout, dipped slightly a couple of years ago as we were integrating the Pax business in. And we're now at 39%. Even if you adjust for the open hires that I mentioned at the end of the period, based on a run rate basis, we're still at 39%, so very similar. So strongly positioned. If we can move on to next slide. So what this means for cash flow generation is unsurprisingly very positive. So the profitability has fed through to strong cash flow. And on the back of that, the Board is recommending a 140% increase in the full year dividend for the year, which you recall matches the level of profitability increase. This represents 60% payout consistent with our policy of paying between 55% and 80% adjusted profits after tax. I feel that will be well received by the market. Even allowing for that dividend, the balance sheet remains very strong. We have plenty of cash on the balance sheet and even allowing for regulatory capital, which were required to earmark as part of being a financial services firm. We have GBP 18 million in addition to that, that's available for other purposes. So there's plenty for us to nimbly run the business, be that on seeding new capabilities, be it on purchasing shares into our Employee Benefit Trust, which we do from time to time, if we think gets a good use of shareholders' funds, the purpose being to mitigate dilution in respect to staff share schemes and other business development or M&A activity. So a strong balance sheet. I think that might be -- that's the final slide. Back to Ian.

So just to conclude before handing back to Andy, for questions. I think Impax is incredibly well positioned in the context of a really attractive set of opportunities linked to the idea of a transition to a more sustainable economy, producing great investment returns. We're seen as an authentic manager in that area with a strong brand. We've got a compelling set of investment strategies and capabilities, which are institutional quality. We have a distribution network, which is well diversified internationally and with a high degree of independence between different allocators. Our team is resilient on our capabilities for delivering strong and robust services for clients, so well proven. And so as the market grows for clean energy, for energy efficiency, for resource efficiency and for associated industries and sectors linked to this idea of sustainable development, then we are really well placed to meet inbound inquiries from asset owners and asset allocators around the world looking for opportunities and managers to hire. And therefore, if we put all that together, it impacts us really well placed for further growth. So we are pleased with the results and the great team efforts that have led to the results for the financial year we just reported on, but we also believe that the opportunities for the company will continue to be very attractive in the future.

Great. Very thorough, as always, and quite a lot of questions to deal with. So perhaps we can start in, I suppose, a nice problem to have. We've got a couple of questions about the size of your fixed interest and your private markets business in the context of just how aggressively equities have grown. So summarizing the most, is there a great opportunity with fixed interest being only 3% of total assets under management? And another question was whether you could accelerate private market scale by perhaps buying in another firm or another team? Even though this is a happy shareholder who says your record of organic growth is outstanding.

I think, yes, we do see that there is opportunity to make money for clients in fixed income and the track record so far in our products is suggestive that we're able to do that. So yes, we're looking to expand that over time, looking at different options at the moment, but without any -- without giving any clear guidance about the exact rate we're going to follow. With private markets, then yes, again, there's more we could do. Our team is very successful, built flat out delivering value in the current fund, Fund III and also the new fund, Fund IV. So in theory, yes, we could buy a team or another boutique to add more capabilities. But right now, the distribution is focused on getting our fourth fund up to scale and make the most of that. So once again, it's a note that we continue to be interested in but without a commitment to exactly how we're going to grow.

And then in terms of fee rates that you're able to charge clients, which appear to be very healthy and stable from these numbers. We have a question. Is there any regional variation in North America, Europe, Asia? Or are you finding reasonable consistency in what you are able to charge?

I think we are seeing some regional variations, generally speaking, in North America, fees can be higher. The clients generally are happy to pay for performance, but they have a huge amount of choice, and they're not afraid to cut ties with managers, as those managers are not performing. So if you're performing well and in favor, then you can generally attract a high fee rate. Where areas or areas that is much more fee pressure would include Scandinavia and Australia where one needs to, particularly in Australia, I think can decide whether ones is going to pursue the institutional market where the fee pressure is really acute or more the intermediary market. So Fidante, our partner is working in both areas, but I think we're likely to see more growth in the intermediary market in Australia.

Okay. And maybe one for you, Charlie. Just you outlined the proportions that we're going into staff bonuses, retention has been extremely good through the years. Are you able to say a little bit more about how employees are rewarded in a ratio of cash and shares in a typical year?

Sure. We don't have a specific target range to pay in any 1 year to either to an aggregate or for individuals. So we do look at it case-by-case in terms of the particular circumstances of the compensation around the profitability of the achievements. We look at existing awards that people are holding. You see it very much as incentivization and retention tool. So it is more sort of case by case, say, rather than policy led. In terms of what that means, overall, the majority tends to be in cash. But clearly, with the potential that comes with equity for significant appreciation then actually with hindsight, people can do very, very well from the equity.

Okay. Perhaps for you, Ian. Could you give a little more detail about the duration of the BNP distribution agreement?

The distribution agreement with BNP has been running now since 2007 and is rock solid in the sense of there being a high degree of interconnections between our business and theirs with the 5 major mandates and quite a few other accounts where they've been helpful with introductions. We also have them as a shareholder of maybe 14% of our shares, the largest shareholder in the firm. There is, as of last year, an updated agreement which provides for continuing this strategic partnership, it does have a minimum term, which was a 4-year term, so 3 more years to run on that. But that's very much sort of one of the clauses in the agreement that is not intended to be a sort of drop-dead date. It's just a sort of sensible get out clause if either party needs it.

And regulation, you can't go anywhere without regulation, but there is much more regulation and disclosure creeping into sustainability activity within corporates. Can you give our readers a little more perspective of how you will -- how you think you can benefit from this and indeed how you might well be an [indiscernible].

And then when you say regulation, do you mean regulation around, for example, energy markets or infrastructure or do you mean regulation around the financial sector and asset management, in particular?

I think it's the former. I think it is the activities in which you're investing.

Yes. Well, I think it's fair to say that many of the sectors that we're investing in, do you have a regulatory or policy component around them. So for example, the mandates around renewable energy or clean energy in the European Union or regulations to govern the supply and quality of water in most countries around the world. So as the problems around climate change and pollution more generally grow and as there's more and more pressure on scarce land resources, it's likely that policy and regulation will continue to shape market opportunities. So we have seen the Biden infrastructure bill. We've seen a slew of regulations in Europe linked to climate change. And we've seen countries far field as Japan, Australia and Canada, all wrestle with how they're going to adopt more clean energy. So that's definitely a rising tide of intervention or market design, which Impax is able to gain investment edge on by interpreting how the policy is likely to evolve. So we do have a team of policy specialists who are providing expertise to help the investment teams. But at the same time, we're also doing some advocacy work usually alongside other investors or investment groups just to help design or help regulators design and shape policies that are going to lead to optimal markets and optimal conditions for capital allocators.

Okay. 2 or 3 questions relating to capacity in different meanings. I think, first of all, we have a question, you have significantly more money to invest into businesses. Does that mean you are investing in a dramatically higher number of companies? Or is it a case that the average amount that you are putting into an investment has gone materially higher or a combination of both?

Well, I think the first thing to say is that markets have continued to rise this year, and that's meant that many -- not most of the companies we're investing in are larger and, therefore, more liquid. And so we are able to deploy more money into those companies because of their larger scale and larger liquidity. At the same time, the rapid expansion of the underlying markets, which we're investing has meant that there is -- there's more companies, newer companies to invest in either because they've just gone public or because they are large companies that are sort of pivoting into the areas that we would like to invest. So it's probably sort of all of the above response.

Yes. And you've alluded to the capacity that you have within your teams and your infrastructure. It has managed significantly more money. It sounds from that you're very comfortable that the investable market is still large enough to accommodate not only your growth in asset management and sums, but others in the sector who are also accumulating assets.

Well, we're looking at the equation from our own vantage point because we need to look after our own clients' money. And so right now, if we run our standard capacity methodologies over the funds that we're running, all the investment strategies that we're running, then we're confident that we can manage between $80 billion and $100 billion of total assets compared to today's $50 billion under management. And so in that context, there's plenty of room for a firm to expand. If markets continue to rise, then those numbers headline -- those limitations should rise as well as market liquidity improves and the capacity numbers sum rise accordingly. So still plenty of headroom. What others are doing, obviously, is for them to govern. But there are some areas where it's clear that there's a lot of money sort of coming in and pushing out valuations, for example, in renewable energy utilities where we're typically avoiding the gold rush and selling into strength and looking and committing to opportunities elsewhere?

We have a question about COP26, at which you and Impax were represented. And did you regard it as a positive outcome from the week? Well, for the world, not for Impax, I think, is the big purpose of the question.

Yes. Well, I think COP26 had enormous amount of pressure -- there's enormous amount of pressure on those running the conference to succeed. I think, generally speaking, it was a success in this context of advancing the discussion around commitments to decarbonize but crucially to establish some platforms and partnerships in specific areas to reduce damage, so the commitments to reduce and halt deforestation, the commitments to reduce methane leakage and emissions, commitments to phase down coal power use, were all really powerful and groundbreaking. However, there's still a lot more work to be done and in the context of the next conference, the so-called COP27 conference, which will take place at the end of next year in Egypt. There's likely to be more pressure around the international community to further strengthen commitments to reduce climate change. And ahead of that conference, there's like to be a lot more news flow and policy announcements. So those developments should all be positive sentiment around what impacts target markets and for corporate commitments to deploy more capital in this area.

Right. And I think talking about target markets will end with -- I can roll a couple of questions here together. There's interest in exactly what you are investing in that has led to such a good performance in the climate strategy. And we've also had a couple of people asking if you could just clarify what you mean by the next industrial revolution and the sectors, the energy providers that you found interesting looking forward to invest in.

Well, I think, let me take those in reverse order. So the next industrial revolution is really going to take place across the board. So today, more than 80% of energy across the world comes from fossil fuels and more than 25% of energy comes from coal. And the idea of a net-zero economy, which we need to get to about 2050 is that we get rid of fossil fuels completely, and we need to get rid of coal in the 2030s, if not, by 2030. So by itself, or just that fact alone means that we're going to have a complete revolution in how energy is supplied. The knock-on effects of that, of course, will affect areas like mobility. So we're in the very early stages of a complete replanning of how we get around. So from the U.K. from 2030, it will be not possible to sell cars with internal combustion engines. So diesel and petrol cars for passenger vehicles will disappear in the forecourts by the end of the current decade, which is quite extraordinary to think about. So we're in a context of industrial revolution in transportation and in areas like shipping, airlines and then in basic materials areas such as steel and cement, we need to see complete transformation of those industries as well. So I think this is correctly and appropriately described as an industrial revolution, and it's enormously exciting for those companies that are able to provide solutions that do work in a sort of zero carbon or net-zero world where the -- to which the sort of developed economies are trying to head over the next couple of decades. Where are we investing? Well, we're sort of investing in all of the above. So the Climate Impax strategy is investing in those small and mid-cap stocks that are supplying renewable electrons. So wind turbine manufacturers, solar power manufacturers, those companies that are providing installation and services around renewable energy. We're investing in energy efficiency in the building space in industrial energy efficiency and in power electronics efficiency, investing in water supply, water treatment, water conservation and the sensing and control technologies that are required by that area. We're investing in low-carbon food and, in particular, to try and reduce the 30% of food waste that happens between the field and point of consumption as well as in meat substitutes and in areas such as smart packaging. So that's particularly what Climate Impax is doing. And then across the other Impax strategies we're investing in a broader array of sectors as well, including in the global opportunity strategy, for example, in health care companies linked to personalized medicine and in financial services companies linked to opportunities in emerging markets for savings and pensions products.

Keeping you busy. All right. Well, I'd like to thank our audience for some very interesting questions. And a number of these questions were prefaced by people saying they are extremely happy and grateful shareholders, and they also very much appreciate the work that Impax is doing for sustainability on a global basis. So thank you very much, gentlemen. Your time and commitment to shareholders is always appreciated as well. And we wish you all the best to carry on doing the good work.

Thank you.

Thank you very much, gentlemen. We're still live. So I'll [indiscernible] message, too, shortly, if that's all right?

Great. Thanks, Andy.

Thank you, both, very much.

Appreciate it. Thank you. Bye-bye.