ESG demand pushes Gresham House assets higher
Gresham House has reported stellar growth over the past year as interest in ESG pushed its assets under management higher.
The asset manager reported a 42 per cent rise in AUM to £4bn over the year with organic growth of £1bn across housing, forestry and sustainable infrastructure.
It was largely driven by £437m of positive performance in forestry, which saw value increase 29 per cent over the year. Strategic public equity rose 15 per cent while the remaining asset classes remained stable.
Gresham’s net core income increased 29 per cent to £40.8m while it reported adjusted operating profit of £12.1m, a 17 per cent increase.
Analysts predict Gresham House is well positioned to capitalise on the increased demand for ESG.
“The company sits at the right end of the asset management industry managing long duration alternative assets, many of which are exposed to ESG trends,” Panmure Gordon analysts said.
Shares in the company are up 1.5 per cent this morning.
The asset manager has expanded its range of sustainability focused investment strategies with new opportunities in carbon credit and affordable housing.
“The growth within each of the asset classes at Gresham House reflects the quality of our investment teams and client demand for these specialist areas,” chief executive Tony Dalwood said. “We start the second year of the GH25 plan with positive momentum despite the ongoing macroeconomic and social challenges, and we continue to invest alongside our growth ambitions in order to deliver client targets and generate shareholder value from AUM growth.”
After a strong year of growth the investment company is upping its final dividend 33 per cent to six pence, more than 20 per cent ahead of analysts’ expectations.
Chairman Anthony Townsend said the board was “cognisant of striking a balance between continuing to invest in the business for growth and providing a progressive dividend policy.”