Impax Asset Management subsidiary agrees update to distribution agreement with
The asset manager said there have been no material changes in the fees set out in the distribution agreement compared with those set out in a previous MoU
Group PLC () announced that its subsidiary, Limited (IAM) and BNP Paribas Asset Management Holding (BNPP) have agreed to update the arrangements under which BNPP and its affiliated companies provide marketing, introduction and other distribution services for IAM.
The new arrangements are described in a distribution agreement, which will have a minimum term of four years, and which supersedes a previous Memorandum of Understanding (MoU) between the parties that has been in place since 2007, with subsequent modifications.
Impax Asset Management said there have been no material changes in the fees set out in the distribution agreement compared with those set out in the MoU.
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The distribution agreement specifies that, with respect to non-institutional clients only, BNPP AM will benefit from exclusivity in Japan, China and certain countries in continental Europe regarding some or all of the five thematic, listed equity strategies that IAM manages, in some countries subject to minimum performance conditions related to the aggregate level of assets raised.
With respect to some wholesale clients, IAM and BNPP have agreed a modus operandi with a view to collaborate to deliver a high level of service to clients.
As BNPP is a substantial shareholder of the company as defined under the AIM Rules, the entry into the distribution agreement constitutes a related party transaction under Rule 13 of the AIM Rules.
The group said its independent directors, having consulted with Peel Hunt, the company’s nominated adviser, consider the terms of the transaction to be fair and reasonable insofar as the company’s shareholders are concerned.
Read More: Impax Asset Management subsidiary agrees update to distribution agreement with