Performance at month end

RNS Number : 2483R

Impax Environmental Markets PLC

15 November 2012

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 October 2012 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	119.98
Share price (pence)	98.38
Premium/(discount) (%)	(18.00)
PE Ratio1	14.8x
Data
Total fund size (NAV) ( m)		GBP 328.2
Market capitalisation (m)		GBP 269.1
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (excluding unlisted)		75
Exchange		London
Currency		GBP
ISIN Number		GB0031232498
Sedol		3123249
Bloomberg code		IEM LN

¹Forward 12 months

Performance2	IEM Net Asset Value	FTSE ET50	MSCI World
1 month %	0.5	0.4	-0.4
3 months %	3.7	2.1	1.8
YTD %	3.5	-3.7	8.3
1 year %	1.0	-6.0	9.7
3 year %	3.8	-24.9	28.5
5 year %	-8.3	-45.9	11.5
10 year %	120.5	51.8	94.6
Since inception	24.1	-5.9	50.6

²Performance data incorporates undiluted NAV until exercise of warrants on 25 June 2010. FTSE index is total return, MSCI index is net total return. FTSE ET50 launched January 2008. Data has been back tested by FTSE

Contribution to Performance (%)
Sector		Stock3
Recycling & Value added waste processing	0.8	Clean Harbors	0.5
Water treatment equipment	0.4	Woongjin Coway	0.3
Hazardous waste management	0.4	Lee & Man	0.3
Renewable energy developers & IPPs	0.2	LKQ	0.3
Biofuels	0.2	Badger Meter	0.2
Environmental testing & gas sensing	-0.1	Daiseki	-0.2
Waste technology equipment	-0.2	Spirax-Sarco	-0.2
Environmental consultancies	-0.2	Regal-Beloit	-0.2
Industrial energy efficiency	-0.3	Nibe	-0.3
Buildings energy efficiency	-0.7	Epistar	-0.4

³Excludes unlisted investments as valuations are confidential

TOP TEN HOLDINGS

Company	Holding %	Description	Country
Clean Harbors	3.1	Hazardous waste management	US
Watts Water	2.8	Water infrastructure	US
Nibe	2.8	Buildings energy efficiency	Sweden
Kingspan	2.8	Buildings energy efficiency	Ireland
Vacon	2.5	Industrial energy efficiency	Finland
Ensyn	2.5	Second generation biofuels	Canada
Spirax-Sarco	2.5	Industrial energy efficiency	UK
LKQ	2.4	Recycling & value added waste processing	US
Regal-Beloit	2.4	Industrial energy efficiency	US
Pentair	2.3	Water infrastructure	US
TOTAL	26.1

PORTFOLIO ANALYSIS

Geographical % US and Canada 41 Europe 40 Japan 5 Asia ex Japan 12 Cash 2

Sectoral % Energy efficiency 30 Alternative energy 13 Environmental support services 5 Waste management 23 Pollution control 8 Water infrastructure 19 Cash 2

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (October 2012)

Positive momentum continued during the beginning of October, following improved economic data and better than expected third quarter corporate results. However poor visibility on fourth quarter results, the US elections and the Spanish government failing to request a short term bank bail-out all triggered profit taking in the strongest performing regions US and Europe; whilst net fund flows into emerging markets continued. Cyclical sectors again fared better than defensive sectors during the month.

October delivered solid performance.  Companies reporting strong Q3 earnings drove performance, with recycling and value added waste processing companies Lee & Man Paper Manufacturing (Hong Kong) and LKQ (US) performing particularly well. Lee & Man benefitted from broker upgrades on signs of better pricing power and margin improvements in 2013 and support from Chinese government stimulus, while LKQ rose on a positive outlook statement despite reporting numbers which fell slightly short of expectations, following strong growth in its European business. M&A activity also provided positive contributions with Clean Harbors (hazardous waste management, US) announcing the acquisition of Safety-Kleen - a substantial acquisition with a good strategic fit and at an attractive valuation. The company will also contribute to the clean-up effort in the wake of hurricane Sandy.

Energy efficiency companies saw profit taking following strong performance in Q2 and reflecting data points suggesting weakening European construction markets during Q3, impacting Nibe (buildings energy efficiency, Sweden).  Regal Beloit (industrial energy efficiency, US) underperformed following disappointing Q3 results and guidance on weaker than expected sales. 

Positioning & Outlook

The current portfolio reflects a focus on quality.  Energy efficiency remains a key positive sub-sector bias and we also continue to favour water treatment and pollution control.  We remain cautious on renewables given current uncertainties although we continue to monitor the long-term prospects for this sub-sector. The Q3 earnings season is underway and is delivering mixed results but in line with broader markets.  We see several positive catalysts ahead, including the transition of the Chinese Government, recovery in US construction markets and the Japanese and German closure of nuclear capacity.

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 

15 November 2012

 

END

 

 

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