Performance at month end

RNS Number : 6695I

Impax Environmental Markets PLC

16 March 2010

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 28 February 2010 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Data		Pricing and Performance
Share price (pence)	114.25		IEM Net Asset Value	MSCI World Small Cap*
Warrants (pence)	17.5
Total fund size (m)	GBP 386.3	Diluted NAV (pence)	125.14	n/a
Market capitalisation (m)	GBP 347.7	Premium/discount (%)	-9.98
Management fee (%)	1.0	Undiluted NAV (pence)	126.92
Established	22 February 2002	Performance**
Fund structure	Investment Trust	1 month (%)	+2.0	+7.6
Number of holdings    (including unlisted)	93	3 months (%)	+5.3	+12.5
Exchange	London	1 year (%)	+49.9	+64.5
Currency	GBP	3 years (%)	+9.7	+7.1
ISIN number	GB0031232498	5 years (%)	+63.7	+44.3
Sedol	3123249
Reuters RIC code	IMPX.L	* Performance data is in Total Return. ** Performance data is for undiluted NAV ex income
Bloomberg code	IEM LN

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Clean Harbors	2.4		Hazardous waste	US
Pall Corp	2.4		Water treatment equipment	US
Itron	2.3		Automated meter reading	US
China Everbright	2.2		Value added waste processing	China
LKQ Corp	2.1		Value added waste processing	US
Chloride	2.0		Power network efficiency	UK
Horiba	2.0		Environmental testing	Japan
Nibe	2.0		Buildings energy efficiency	Sweden
Transpacific	2.0		General waste management	Australia
Regal Beloit	2.0		Industrial energy efficiency	US
TOTAL	21.4

PORTFOLIO ANALYSIS*

Geographical		Company Size
US and Canada	39%	>$2bn	18%
EU and EFTA	41%	$200-2bn	69%
Rest of the World	19%	<$200m	12%
Cash	1%	Cash	1%
Sectoral		PE ratios
Energy	47%	PER >20x	37%
Water	19%	PER  15-20x	34%
Waste	33%	PER <15x	18%
Cash	1%	Unprofitable	10%
		Cash	1%
* of funds invested as of 28 February  2010

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (February 2010)

During the month the Company NAV increased by 2.0% compared to the MSCI World Small Cap which increased by 7.6%. Global markets extended their declines in early February on continued concerns about US employment, a 25bp hike in the US discount rate and a shortening in the maturity from 28 days to overnight, on-going European sovereign risk fears and a further 50bp increase in the Reserve Rate Requirement in China. Markets, with the exception of Japan, recovered their losses to close the month marginally higher in local currency terms as the EU pledged support for Greece, US durable goods orders were revised higher and Bernanke reaffirmed that interest rates would stay exceptionally low for an extended period of time. Sterling weakened nearly 5% against the US$ during February as investors began to anticipate a hung parliament in the May UK elections. In Alternative Energy news, more details emerged on Germany's proposed solar cuts, expected to be confirmed in early March. The cuts are likely to be implemented from July 2010, a later date than originally anticipated, and are broadly in-line with expectations. In Europe, the Commission created two new departments responsible for climate change and energy, and Commission president Barroso stated that de-carbonising the transport sector would be a priority for his second term. In Water Treatment & Pollution Control, the US EPA plans to start targeting large facilities (such as power plants) in 2011 for GHG regulation, but won't target small emitters (e.g. hospitals) before 2016. The announcement makes it clear that the administration will move ahead with curbing emissions unless Congress acts. Prospects for a comprehensive climate change bill remain low; however a compromise in Congress is possible in order to pass an energy bill supporting renewables and energy efficiency. Also in the US, new standards to reduce toxic air pollutants from stationary diesel engines at industrial, agricultural and other facilities were announced. The EPA estimates that more than 900,000 will need to meet the standards by 2013. In China, the first trades were conducted in a municipal-based emissions trading programme in Tianjin. In Waste, an industry report forecast that the worldwide market for electronic scrap recovery could reach nearly USD 15bn by 2014, from USD 5.7bn in 2008. This represents a 20.8% CAGR over the forecast period. In Alternative Energy & Energy Efficiency, underperformance was again driven by renewable energy stocks: wind turbine manufacturers Vestas (Denmark) and Gamesa (Spain) continued to suffer due to delayed recovery. Sunpower (solar equipment, US) was weak on overcapacity concerns and regulatory uncertainty in Europe. Sovereign risk concerns impacted upon Abengoa (biofuels, Spain) and Telvent (utility software, US) due to their exposure to Spain. Strong Q4 results drove good performance for Regal Beloit (efficient motors, US), up 19%. In Water Treatment & Pollution Control, M&A speculation drove performance for Pall Corp (filtration, US) up 15%. Kurita (water treatment, Japan) was weak following indications that the ultrapure water business will weaken in 2010. In Waste Technologies & Resource Management, robust results and suggestions that end markets are stabilising benefitted Transpacific Industries (integrated waste management, Australia), up 10% over the month. Covanta (waste to energy, US) was weak during the period, unable to evidence catalysts for growth against a backdrop of historically low gas prices in the US market.  Daiseki (hazardous waste management, Japan) fell as a major shareholder sold stock.

Latest information available at: http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/

Impax Asset Management Limited

16 March 2010

 

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