Performance at month end

RNS Number : 7316T

Impax Environmental Markets PLC

17 December 2012

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 November 2012 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	122.24
Share price (pence)	99.13
Premium/(discount) (%)	(18.91)
PE Ratio1	14.8x
Data
Total fund size (NAV) ( m)		GBP 332.9
Market capitalisation (m)		GBP 270.0
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 %	1.9	2.9	1.8
3 months %	2.4	2.6	2.4
YTD %	5.5	-0.9	10.2
1 year %	2.7	-3.8	11.5
3 year %	2.8	-26.0	25.1
5 year %	0.0	-44.5	17.1
10 year %	109.1	44.9	87.0
Since inception	26.5	-3.2	53.3

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
Industrial energy efficiency	1.0	Pentair	0.3
Water infrastructure	0.6	Spirax-Sarco	0.3
Recycling & value added waste processing	0.4	Lee & Man	0.3
Pollution control solutions	0.2	Regal-Beloit	0.2
Power network efficiency	0.2	5N Plus	0.2
Waste technology equipment	-0.1	Pall	-0.1
Wind power generation equipment	-0.1	Nibe	-0.2
Solar energy generation equipment	-0.1	RPS Group	-0.2
Buildings energy efficiency	-0.2	Trina Solar	-0.3
Biofuels	-0.3	Abengoa	-0.3

³Excludes unlisted investments as valuations are confidential

TOP TEN HOLDINGS

Company	Holding %	Description	Country
Vacon	2.8	Industrial energy efficiency	Finland
Kingspan	2.7	Buildings energy efficiency	Ireland
Clean Harbors	2.7	Hazardous waste management	US
Spirax-Sarco	2.6	Industrial energy efficiency	UK
Nibe	2.6	Buildings energy efficiency	Sweden
Regal-Beloit	2.6	Industrial energy efficiency	US
Watts Water	2.6	Water infrastructure	US
LKQ	2.5	Recycling & value added waste processing	US
Ensyn	2.5	Second generation biofuels	Canada
Clarcor	2.3	Pollution control solutions	US
TOTAL	25.9

PORTFOLIO ANALYSIS

Geographical % US and Canada 42 Europe 40 Japan 5 Asia ex Japan 11 Cash 2

Sectoral % Energy efficiency 32 Alternative energy 12 Environmental support services 5 Waste management 22 Pollution control 9 Water infrastructure 18 Cash 2

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (November 2012)

The political transition in China, positive sentiment about the next rescue package for Greece, and reiteration of commitments to accommodating monetary policies, improved risk appetite and drove global markets higher. Financial and cyclical sectors again fared better than defensive sectors during the month. Year to date returns for many stock markets are now above cycle averages, which is notably positive in such a volatile year.

Outperformance came from cyclical companies with industrial, construction or commodity exposure, and from US holdings. Lee and Man (recycling and value added waste processing, Hong Kong) rose following strong results showing improved margins and an improved outlook as growth in China recovers.  Spirax-Sarco (industrial energy efficiency, UK) rose following an interim management statement that showed Q3 growth had accelerated following a difficult Q2.  Pentair (water infrastructure, US) performed well following solid results and completion of the merger with Tyco's flow control business, which is seen as a good strategic fit with strong cost and cross selling synergies.

The alternative energy sector continued to underperform due to overcapacity, pricing pressure and poor results, impacting Trina Solar (solar energy generation equipment, China).  Other underperformance was company specific following Q3 results or interim management statements highlighting incremental challenges since Q2.  Nibe (buildings energy efficiency, Sweden) released disappointing Q3 results, mostly due to weak Swedish residential construction and consumer goods markets.  RPS (environmental consultancies, UK) fell after a cautious statement signalling a slowdown in its Australian business.

Positioning and 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.  Regionally, we are overweight EU and underweight US compared to global indices and remain positive on the outlook in Asia.  The Q3 earnings season was positive overall and 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 

17 December 2012

 

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