Performance at month end
IMPAX ENVIRONMENTAL MARKETS plc
All information is at 28 February 2011 (unless otherwise stated) and unaudited.
DATA AND PERFORMANCE
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Pricing |
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NAV (pence) |
136.18 |
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Share price (pence) |
119.00 |
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Premium/(discount) (%) |
(12.6) |
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Data |
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Total fund size (NAV) ( m) |
431.9 |
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Market capitalisation (m) |
377.4 |
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Management fee (%) |
1.0 |
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Established |
22nd February 2002 |
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Fund structure |
Investment Trust |
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Number of holdings (including unlisted) |
80 |
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Exchange |
London |
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Currency |
GBP |
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ISIN Number |
GB0031232498 |
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Sedol |
3123249 |
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Reuters RIC code |
IMPX.L |
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Bloomberg code |
IEM LN |
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Performance |
IEM Net Asset Value* |
MSCI World Global Small Cap** |
FTSE ET50** |
|
1 month % |
-0.9 |
+2.5 |
-1.2 |
|
3 months % |
+5.5 |
+10.0 |
+5.2 |
|
1 year % |
+8.8 |
+24.1 |
+0.8 |
|
3 year % |
+14.4 |
+46.2 |
-14.5 |
|
5 year % |
+29.5 |
+32.2 |
+17.2 |
* Performance data incorporates undiluted NAV until exercise of warrants on 25 June 2010
** Total return
TOP TEN HOLDINGS
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Company |
Holding % |
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Description |
Country |
|
Regal-Beloit |
2.9 |
|
Electric motors |
US |
|
Nibe |
2.6 |
|
Ground source heat pumps |
Sweden |
|
Clean Harbors |
2.6 |
|
Hazardous waste treatment |
US |
|
Pall Corp |
2.5 |
|
Filtration |
US |
|
Nalco |
2.5 |
|
Water treatment chemicals |
US |
|
Telvent |
2.5 |
|
Automated meter reading |
Spain |
|
LKQ |
2.4 |
|
Automotive recycling |
US |
|
Horiba |
2.4 |
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Environmental & engine testing |
Japan |
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Itron |
2.0 |
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Meters & utility data |
US |
|
Vacon |
2.0 |
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Power electronics |
Finland |
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TOTAL |
24.4 |
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PORTFOLIO ANALYSIS
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IMPAX ENVIRONMENTAL MARKETS plc
MANAGER'S COMMENTARY (February 2011)
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The Company NAV fell 0.9% during the month compared to the MSCI World Small Cap which rose 2.5% and the FTSE ET50 which dropped 1.2%.
In Renewable Energy & Energy Efficiency, renewable energy stocks (particularly solar) continued to perform well due to the strong short term demand in the wake of imminent tariff cuts. Sunpower (solar energy generator, US) and 5N Plus (solar energy generation equipment, China) both rose on positive outlook for the US solar market, and strong Q4 results and a complimentary acquisition respectively. Energy efficiency stocks Regal-Beloit (electric motors, US) and Vacon (power electronics, Finland) rose following a good Q4 and strong guidance. Sector weakness came from Asian companies, due to weak macro data across the region and emerging market outflows, impacting stocks such as China High Speed (wind turbine gearboxes, China) and SemiLEDs (LED manufacturer, Taiwan). A negative reaction to the surging oil price further impacted the Taiwanese market's volatility, effecting Epistar (buildings energy efficiency (LEDs)).
In Water Infrastructure and Technologies & Pollution Control, strength came from Horiba (environmental testing & gas sensing, Japan) following results exceeding expectation, an ambitious medium term plan and exposure to the recovering semi conductor testing market. M&A activity continued to drive the sector, with Watts Water Technologies (water infrastructure, US) acquiring valve maker Danfoss Socla. Macro conditions in the Asia-Pacific region again weighed on performance, impacting China Everbright (water and waste treatment, China) and IVRCL Infrastructure (water infrastructure, India). Rising raw material costs and a conservative outlook statement weighed on performance for Nalco (water treatment equipment, US).
In Waste Management & Environmental Support Services, Clean Harbors (hazardous waste treatment, US) rose on strong Q4 results following a recovery in industrial activity that drove up both volumes and prices. The Asia macro theme again impacted performance, with Lee and Man (paper recycling, Hong Kong) particularly affected. Transpacific Industries (hazardous waste disposal, Australia) fell on the company's lacklustre pricing ability and low waste volumes as a result of market competition.
In the US, Obama proposed boosting funds for clean energy research and deployment in his 2012 budget by slashing subsidies for fossil fuels such as oil, gas and coal. The EU's Climate Commissioner plans to tighten the carbon market in Phase 3 by deletion of between 500-800 million permits resulting in a more robust carbon price through the next decade. In Australia, the Labour-led government introduced plans for a fixed carbon price from 1 July 2012. A transition to an emissions trading scheme will follow around 2015-2016. In China, energy saving and environmental protection industries received new tax exemptions as part of the seven strategic emerging industries outlined in the 12th Five Year Plan. China also announced aims to cut the amount of energy and carbon dioxide emissions needed for every unit of economic growth by 16 to 17 per cent from this year to the end of 2015, a step toward the government's pledge to cut carbon intensity by 40 to 45 per cent by 2020, relative to 2005 levels. The Indian budget was released with the following areas announced to receive funding from the National Clean Energy Fund: protection and regeneration of forests, environmental pollution management and the cleaning of rivers and lakes.
In renewables, India's central bank has introduced a subsidised rate of 5 per cent (normal lending rate 7.25-9.5%) for lending on off-grid solar projects due to be connected under India's National Solar Mission. Japan plans to make the power sector buy electricity from a wider range of renewable energy sources than it does currently using a feed-in tariff incentive scheme from the year starting April 2012. In Europe, the German cabinet approved a change in solar tariff cuts that would see up to a 15 per cent reduction in tariffs for rooftop installations from 1 July and up to 15 per cent reduction for ground-mounted projects from 1 September. France, Spain and Italy are due to announce final solar policies in March.
In the water sector, China aims to double water conservancy investments, use 10% of land-transfer fees to fund water projects in rural areas, implement water tariff reforms, and hold local government officials liable for meeting water conservation and water quality targets.
In the waste sector, the EU proposed stricter rules on electronic waste as lawmakers said they wanted member states to collect at least 85 per cent of discarded electronics by 2016, compared with only 33 per cent today.
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Latest information available at: http://www.impax.co.uk/funds/listed-equity-funds/impax-environmental-markets-plc
Impax Asset Management is supportive of the UK Stewardship Code. Our full Stewardship Code statement, ESG and Proxy Voting policies and the quarterly summaries of our proxy voting activities can be viewed on:
http://www.impax.co.uk/en/investor-relations/governance-csr
16 March 2011
This information is provided by RNS