Performance at month end

RNS Number : 0649A

Impax Environmental Markets PLC

14 March 2013

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 28 February 2013 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	142.31
Share price (pence)	118.25
Premium/(discount) (%)	(16.91)
PE Ratio2	16.3x
Data1
Total fund size (NAV) ( m)		GBP 384.2
Market capitalisation (m)		GBP 319.2
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (excluding unlisted)		73
Exchange		London
Currency		GBP
ISIN Number		GB0031232498
Sedol		3123249
Bloomberg code		IEM LN

Performance3	IEM Net Asset Value	FTSE ET50	MSCI World
1 month %	5.7%	5.3%	4.6%
3 months %	16.4%	15.4%	13.2%
YTD %	13.8%	13.0%	12.7%
1 year %	10.4%	6.3%	16.5%
3 year %	13.7%	-14.3%	32.8%
5 year %	19.6%	-27.4%	41.6%
10 year %	196.7%	106.9%	136.5%
Since inception4	46.9%	-1.7%	68.6%

¹The company has no gearing at the present time

²Forward 12 months

³Performance 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

⁴Since inception performance is shown from the first day of the month following the fund's inception on 22 February 2002

Top/Bottom Contributors to Performance (%)
Sector		Stock5
Industrial energy efficiency	0.8	Vacon	0.4
Buildings energy efficiency	0.7	Power integrations	0.4
Water infrastructure	0.7	Tomra Systems	0.3
Waste technology equipment	0.6	Nibe	0.3
Pollution control solutions	0.5	Lee & Man	0.3
Other renewables equipment	0.0	Clean Harbors	-0.1
Transport energy efficiency	0.0	EDP Renovaveis	-0.1
Renewable energy developers & IPPs	-0.1	Newalta	-0.1
Power network efficiency	-0.1	Itron	-0.1
General waste management	-0.1	Shanks	-0.1

⁵Excludes 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
Regal-Beloit	2.7	Industrial energy efficiency	US
Clean Harbors	2.6	Hazardous waste management	US
Pall	2.5	Water treatment equipment	US
Nibe	2.5	Buildings energy efficiency	Sweden
Watts Water	2.4	Water infrastructure	US
Clarcor	2.3	Polution control solutions	US
Ensyn	2.3	Biofuels	Canada
Itron	2.2	Power network efficiency	US
TOTAL	25.0

PORTFOLIO ANALYSIS

Geographical % Europe 41 North America 40 Asia ex Japan 13 Japan 4 Cash 2

Sectoral % Energy efficiency 32 Waste mgmt. tech 22 Water infra & tech 19 Alternative energy 11 Pollution control 9 Env support srvs 5 Cash 2

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (February 2013)

We were encouraged by the company's continued outperformance of global markets in February and by the breadth and depth of performance across environmental sub-sectors and regions. The Q4 earnings season is now well underway and was a key driver of performance in the month.  Many of our larger holdings reported strong results, including Vacon (industrial energy efficiency, Finland), Power Integrations (consumer energy efficiency, US) and Tomra (waste technology equipment, Norway). Regionally, we were pleased to note positive performance from our Asia-Pacific holdings, driven by a solid macro outlook, a smooth leadership transition, improving fundamentals and improving valuations.  Lee and Man Paper Manufacturing (recycling and value added waste processing, Hong Kong) benefitted from these trends, reporting strong results driven in particular by improved pricing in its markets.

Companies missing earnings expectations underperformed. Shanks (general waste management, UK) issued a profit warning reflecting ongoing challenges in its Benelux waste business, while Itron (power network efficiency, US) suffered downgrades to its 2013 forecasts as it invests ahead of new smart grid projects in the coming years. Reduced drilling activity in North America and increasing pressure on commodity prices impacted on our waste companies with exposure to the oil and gas sector, impacting Clean Harbors (US) and Newalta (Canada).

Positioning & Outlook

We remain well diversified by sub-sector and region, with an unchanged positive bias towards energy efficiency, water infrastructure and treatment and pollution control.  We continue to closely monitor the alternative energy sector and are encouraged by signs of rationalization of overcapacity and stabilization of pricing, but maintain a low exposure pending confirmation of the sustainability of these trends.  We maintain a barbell strategy combining defensive and cyclical holdings.

We remain constructive on the outlook for the fund based on an improving macro outlook, including the US construction recovery and acceleration of Chinese infrastructure spending; improving micro status of our sub-sectors, including stabilisation of pricing in key markets; positive policy momentum in multiple regions and sub-sectors; relatively cheap valuations and reasonable growth expectations, which troughed in Q3/Q4 last year.  We also see scope for M&A to contribute to performance in 2013.

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 

14 March 2013

 

END

 

 

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