Performance at month end

RNS Number : 6516V

Impax Environmental Markets PLC

16 January 2012

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 December 2011 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	115.91
Share price (pence)	95.83
Premium/(discount) (%)	(17.32)
Data
Total fund size (NAV) ( m)		GBP 341.6
Market capitalisation (m)		GBP 282.4
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		76
Exchange		London
Currency		GBP
ISIN Number		GB0031232498
Sedol		3123249
Reuters RIC code		IMPX.L
Bloomberg code		IEM LN

Performance	IEM Net Asset Value*	MSCI World Global Small Cap**	FTSE ET50**
1 month %	-2.6	+0.4	-2.9
3 months %	+4.2	+8.5	-3.4
YTD %	-18.3	-8.4	-27.4
1 year %	-18.3	-8.4	-27.4
3 year %	+18.9	+52.9	-18.2
5 year %	+5.1	+22.0	-12.8
7 year %	+53.6	+62.2	+29.9

* Performance data incorporates undiluted NAV until exercise of warrants on 25 June 2010

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Nibe	3.6		Ground source heat pumps	Sweden
Pall Corp	3.5		Filtration	US
LKQ	3.4		Automotive recycling	US
Clean Harbors	3.1		Hazardous waste treatment	US
Regal-Beloit	2.9		Electric motors	US
EDP Renovaveis	2.8		Renewable IPP	Spain
Clarcor	2.7		Air pollution control	US
Horiba	2.3		Environmental & engine testing	Japan
Kingspan	2.3		Insulation products	Ireland
Spirax-Sarco	2.2		Steam based energy efficiency	UK
TOTAL	28.8

PORTFOLIO ANALYSIS

Geographical US and Canada 41% Europe 38% Japan 5% Asia ex Japan 12% Australia 3% Cash 1%		Company Size >$2bn 36% $500m-2bn 44% <$500m 15% Private 4% Cash 1%
Sectoral Energy efficiency 26% Renewable energy 17% Environmental support services 5% Waste management 27% Pollution control 8% Water infrastructure 16% Cash 1%		PE Ratios >20x 13% 15-20x 24% <15% 56% Private and other 6% Cash 1% Average 13.1x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (Q4 2011)

Market Review
An improving US employment outlook, better than expected housing market data and encouraging retail data led to strong performance from a number of US stocks. European markets trailed the US as on-going sovereign debt concerns impacted industrial growth expectations. However, the European Central Bank's move in late December to make substantial short term liquidity available to the banking system generated strong performance from selected energy efficiency companies. Asian markets trailed the US due to concerns about reduced growth expectations.

Performance Summary
US stocks supported by a healthier macro-environment performed well, particularly holdings with strong Q3 earnings and positive news flow. Pall (filtration, US) beat earnings expectations as the new CEO clarified restructuring and cost-cutting plans; LKQ (automotive recycling, US) rose on strong Q3 earnings, and confidence about the company's plans for international expansion; and Clean Harbors (hazardous waste treatment, US) benefitted from strong numbers and the successful integration of an earlier acquisition.

Renewables stocks such as Vestas (wind turbines, Denmark) continued to suffer from on-going overcapacity and financing challenges. Asian stocks detracted from performance as a result of on-going macro concerns. Japanese stocks, including Daiseki (hazardous waste management, Japan) fell due to the effect of the strong Yen, auto sector supply chain disruption following the Thai floods, and market downgrades.

Policy Update
Delegates at the COP-17 climate summit in Durban agreed a global climate deal (to be finalised in 2015 and to come into force by 2020) to reduce greenhouse gases in all countries. The Kyoto Protocol was extended to 2017 and a new $100bn Green Climate Fund to assist developing countries in climate change adaptation was approved.

US president Obama launched a $4bn project (combining investment and efforts of both government agencies and the private sector) to improve energy efficiency in commercial buildings. The US EPA signed the "Utility MACT" regulation that limits emissions of mercury, acid gases and particulate matter of coal-fired power plants, with the compliance period ending in January 2015. This regulation is expected to lead to roughly 50GW of old coal plant retirements by 2015 and significant pollution control installations.

China announced it is looking to implement a renewable energy quota system in the first half of 2012 that will require grid operators and power generation companies to carry and produce a certain amount of renewable energy. China also further revised its solar power development target for 2015 by 50%, to reach 15GW.

The EU published an Energy Roadmap 2050 depicting renewables rising to at least 55% of gross final energy consumption by 2050, compared to about 10% today.

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 January 2012

 

END

 

 

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