Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 July 2009 (unless otherwise stated) and
unaudited.

DATA AND PERFORMANCE


  Data                                 Pricing and Performance
                                                          IEM   MSCI
                                                          Net   World
                                                         Asset  Small
  Share price (pence)           105.05                   Value  Cap*
  Warrants (pence)            GBP 13.5
  Total fund size (m)        GBP 332.1       Diluted NAV 108.09  n/a
                                                 (pence)
  Market capitalisation      GBP 332.1  Premium/discount -3.47
(m)                                                  (%)
  Management fee (%)               1.0     Undiluted NAV 108.83
                                                 (pence)
  Established              22 February     Performance**
                                  2002
  Fund structure            Investment       1 month (%)  +6.2  +7.3
                                 Trust
  Number of holdings                91      3 months (%)  +8.7  +6.0
  (including unlisted)
  Exchange                      London        1 year (%) -10.8  -3.2
  Currency                         GBP       3 years (%) +10.1  -6.2
  ISIN number             GB0031232498       5 years (%) +65.5  +31.5
  Sedol                        3123249
  Reuters RIC code              IMPX.L * Performance data is in Total
                                       Return.
                                       ** Performance data is for
                                       undiluted NAV.
  Bloomberg code                IEM LN























TOP TEN HOLDINGS


Company          Holding %   Description                    Country
Ormat                  2.3   Geothermal                     Israel/US
Gamesa                 2.3   Wind turbine manufacturer      Spain
Sims Group             2.1   Metals recycling               Australia
Clean Harbors          2.1   Hazardous waste                US
LKQ                    2.1   Recycled auto parts            US
Telvent                2.0   Utility software               Spain
Vacon                  2.0   Power electronics              Finland
Pentair                2.0   Water treatment                US
                             High efficiency electric
Regal Beloit           2.0   motors                         US
China Everbright       2.0   Water infrastructure           Hong Kong

TOTAL                 20.9



PORTFOLIO ANALYSIS*



  Geographical          Company Size
  US and Canada     37% >$2bn        27%
  EU and EFTA       43% $200-2bn     58%
  Rest of the World 16% <$200m       11%
  Cash              4%  Cash         4%

  Sectoral              PE ratios
  Energy            42% PER >20x     40%
  Water             23% PER  15-20x  30%
  Waste             31% PER <15x     23%
Cash                4%  Unprofitable 3%
                        Cash         4%
* of funds invested as of 31 July 2009

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (July 2009)


During July the Company NAV increased by 6.2% compared to the MSCI
World Small Cap which increased by 7.3%.

In energy policy news the US Energy and Treasury Departments
published rules for two key programmes passed as part of the economic
stimulus package. The first will allow renewable energy developers to
receive cash grant subsidies worth up to 30% of their project costs
in lieu of tax credits, and the second will provide up to USD 30bn in
loan guarantees to renewable energy and energy efficiency projects,
plus several billion dollars more in support of new transmission
capacity. In solar, the Japanese government announced a doubling of
the rate at which utilities will buy excess solar power generated by
households, expected to start at the end of 2009; and in China
project 'Golden Sun' was announced providing a subsidy of  50% of
upfront costs for grid connected solar systems and 70% for off grid.
In water treatment and pollution control news, the US Senate
allocated USD 5.4bn for hundreds of water projects being undertaken
by the Army Corps of Engineers. In China, the central planning agency
announced that water prices will be adjusted because the treatment of
sewage is now too cheap and water resources should be used more
efficiently. In the waste sector, a USD 1bn federal "Cash for
Clunkers" program that pays consumers $3,500 or $4,500 in credit to
swap aging vehicles for new, more fuel efficient models came into
effect.

In Alternative Energy & Energy Efficiency, Canadian Hydro (renewable
IPP, Canada) was up 35% following the announcement of a takeover bid,
and Power Integrations (power management, US) rose 23% after good
results. Kingspan (Ireland) rose 18% as construction-related,
cyclical stocks continued to perform well. In Water Treatment &
Pollution Control, China Everbright (water infrastructure, Hong Kong)
rose 35% on strong Chinese macro-economic data and news of new
project contracts. In Waste Technologies & Resource Management, Lee &
Man (cartonboard recycling, Hong Kong) was up 60% also benefiting
from strong macro Chinese data. LKQ (end-of-life vehicle recycling,
US) rose 9% during the period, seeing aftermarket parts sales growth.
Itron and Badger Meter (both automated meter reading, US)
underperformed due to increasing competition in the sector and
project delays, as did Clean Harbors (hazardous waste, US), suffering
from analyst downgrades.



Latest information available at:


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

21 August 2009

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