Performance at Month End

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 28 February 2009 (unless otherwise stated) and
unaudited.

DATA AND PERFORMANCE


  Data                                 Pricing and Performance
                                                          IEM   MSCI
                                                          Net   World
                                                         Asset  Small
  Share price (pence)            72.25                   Value  Cap*
  Warrants (pence)                17.8
  Total fund size (m)        GBP 258.6       Diluted NAV  84.7   n/a
                                                 (pence)
  Market capitalisation      GBP 220.6  Premium/discount -14.7
(m)                                                  (%)
  Management fee (%)               1.0     Undiluted NAV  84.7
                                                 (pence)
  Established              22 February     Performance**
                                  2002
  Fund structure            Investment       1 month (%) -10.6  -9.7
                                 Trust
  Number of holdings                91      3 months (%)  -3.8  -5.9
  (including unlisted)
  Exchange                      London        1 year (%) -29.8  -28.0
  Currency                         GBP       3 years (%) -20.6  -34.2
  ISIN number             GB0031232498       5 years (%) +24.0  +1.6
  Sedol                        3123249
  Reuters RIC code               IEM.L * Performance data is in Total
                                       Return.
                                       ** Performance data is for
                                       undiluted NAV.
  Bloomberg code                IEM LN


TOP TEN HOLDINGS


Company        Holding %   Description                     Country
Pall Corp            2.7   Filtration                      US
Regal Beloit         2.7   High efficiency electric motors US
LKQ Corp             2.6   Recycled automotive parts       US
Ormat                2.6   Geothermal                      Israel/US
Clean Harbors        2.5   Hazardous waste                 US
Pentair              2.4   Water treatment                 US
EDP Renovaveis       2.4   Renewable energy utility        Portugal
Mayr-Melnhof         2.2   Cartonboard                     Austria
Chloride Group       2.0   UPS systems                     UK
Stericycle           2.0   Hazardous waste management      US

TOTAL               24.1



PORTFOLIO ANALYSIS*



  Geographical            Company Size
  US and Canada      39%  >$2bn        21%
  EU and EFTA        42%  $200-2bn     59%
  Rest of the World  14%  <$200m       15%
  Cash                5%  Cash         5%

  Sectoral                PE ratios
  Energy             41%  PER >20x     15%
  Water              23%  PER  15-20x  14%
  Waste              31%  PER <15x     63%
Cash                  5%  Unprofitable 3%
                          Cash         5%
* of funds invested as of 28 February 2009

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (February 2009)


During January the Company NAV decreased by -10.6% compared to the
MSCI World Small Cap which decreased by 9.7%.

In the US, the long-awaited economic stimulus package was signed into
law by President Obama. Around $65 billion was allocated to renewable
energy, transmission and energy efficiency tax and spending
provisions, plus circa $18 billion on water and environmental
infrastructure projects. Globally, 'green' measures within economic
stimulus legislation total over $300 billion to date; representing
approx. 15% of the total committed spend worldwide. In the Water
Treatment and Pollution Control sector, Obama announced plans to
allocate an extra $4 billion in water infrastructure funding above
that committed in the economic stimulus bill. Obama also committed to
implementing an economy-wide cap-and-trade scheme for greenhouse gas
emissions from 2012, with full auctioning of permits from the
beginning. In Europe, a directive incorporating aviation into the
Emissions Trading Scheme entered into force obliging member states to
put in place appropriate legislation within a year. All flights
landing or taking off from EU airports will have to buy CO2
allowances from 2012. In China, the government announced that a 2010
target of reducing greenhouse gas emissions output by 10% over the
five year period from 2006 may be met sooner due to a policy of
aggressively targeting polluting industries. In the waste sector, the
European Commission issued a policy paper setting out a framework for
supporting the auto industry. Part of the paper provides guidance on
the design of scrappage schemes that encourage the swapping of old
vehicles for newer, more fuel-efficient replacements. Such schemes
have been proposed or implemented by nine member states, the most
generous being Germany's where the government offers a ¤2,500 bonus.
Across the Atlantic the US Congress is also debating a 'cash for
clunkers' vehicle scrappage incentive scheme. Also in the US, three
separate bills are being drafted to address electronic waste
disposal. There are currently no federal laws regulating the disposal
of consumer electronics, though 18 states and New York City have
passed laws regulating its disposal.

In the Alternative Energy & Energy Efficiency sector Epistar (LEDs,
Taiwan) outperformed, up 45% as early cycle markets showed signs of
finding a bottom. Both Vacon (variable speed drives, Finland) and
Nibe (efficient heat pumps, Sweden) performed well following strong
results, up 21% and 11% respectively. In the Water Technologies &
Pollution Control sector Horiba benefited from a weakening in
Japanese currency and continued positive sentiment on global auto
emissions legislation, up 12%. Badger Meter (advanced metering, US)
was up 6% following strong 2008 results, and a positive 2009 outlook
in part due to water spending in the US stimulus bill. In Waste
Technologies & Resource Management, LKQ Corp rose 17% following
strong results demonstrating the resilience of company earnings.
Companies with high debt, including Itron (advanced metering, US) and
Mueller Water (water infrastructure, US) continued to suffer, as did
companies issuing a more negative outlook for 2009, for example Spice
(utility services, UK) and Kurita Water (water purification, Japan).








Latest information available at:


http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/

18 March 2009

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