Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 March 2003 and unaudited

DATA AND PERFORMANCE

Data                   
Price (pence)                         40
Total Fund Size (m)             GBP 23.7
Management fee                      1.0%
Established             22 February 2002
Fund structure          Investment Trust
Number of stocks held                 52
Exchange                          London
Currency                             GBP
ISIN Number                 GB0031232498
Sedol                            3123249
Reuters RIC Code                   IEM.L
Bloomberg Code                    IEM LN

Pricing & Performance
                        IEM          MSCI    Impax
                  Net Asset Value    World   ET50
 Pence (31/03/03)       47.4          n/a     n/a
                                            
      Performance                              
      1 month (%)      -2.5%         -1.0%   -0.7%
     3 Months (%)      -13.3%        -3.8%   -9.8%
       1 year (%)      -54.9%       -32.8%  -53.3%
 Year to date (%)      -13.3%        -3.8%   -9.8%
                                            
                                            
TOP TEN HOLDINGS

Company               Holding %     Description                 Country
Vivendi                     5.2     Water & Waste               France
Environnement
RPS Group                   4.8     Environmental Consulting    UK
Wedeco                      4.7     Water                       Germany
Casella Waste               4.0     Waste Disposal & Recycling  US
Vestas Wind Systems         3.6     Wind                        Denmark
Kurita Water                3.6     Water                       Japan
Ionics                      3.3     Water                       US
Waste Recycling             3.2     Waste Management            UK
Group
Insituform                  3.0     Sewer repair                US
BWT                         2.9     Water Treatment             Austria
               Total       38.3                                 

PORTFOLIO ANALYSIS*

Geographical             Company Size
North America      46%   >£500m          18%
Europe             49%   £100-500m       57%
Rest of the World   5%   <£100m          25%
                                              
Sectoral                 Profitability
Energy             27%   Profitable      88%
Water              37%   Pre-Profitable  12%
Waste              34%                        
Cash                2%                        
* of funds invested as of 31 March 2003

MANAGER'S COMMENTARY

The  Company NAV fell 2.5% during the month compared with the MSCI World
Index which fell 1.0% and a decline of 0.7% in the Impax ET50. This  was
a busy month with a number of companies reporting their results for 2002
amidst further volatility in global equity markets. The key developments
in Environmental Markets during the month are shown below.

In  the  alternative energy sector, Evergreen Solar (solar  developer  &
manufacturer,  US)  announced that it has successfully  placed  US$29.5m
through  a Private Investment in Public Equity (PIPE) deal with existing
and  new  institutional  shareholders, including IEM.  The  announcement
comes  in  spite  of  the  poor  environment  for  raising  capital  and
demonstrates investor confidence in the commercial viability of  reduced
silicon  solar  technologies.  In Canada,  Westport  Innovations  (clean
engines, Canada) announced that it has been awarded a strategic  project
investment  of  C$18.9  million from Technology Partnerships  Canada  to
support  the development of high-performance low-emissions engines.  The
investment  should cover one third of the projected  R&D  costs  of  the
company's  vehicle  programs over the next 2-3 years.  There  were  more
developments  in  Europe  during the month as  the  European  Parliament
approved measures to increase the proportion of biofuels used for public
transport. The target has been set to 2% by 2005, increasing to 5.75% by
2010  and could benefit companies involved in the biofuel industry  such
as  Abengoa  (biofuels,  Spain) and Novozymes  (enzymes,  Denmark).  The
European  Commission  also published an action  plan  for  environmental
technology.  The  document sets out the barriers to the  development  of
environmental technologies which currently supply around €183 billion of
goods  and services per year throughout the EU. Meanwhile Nordex  (wind,
Germany)  announced its first orders since last month's profits warnings
and  has since been the subject of takeover speculation as large volumes
of shares were acquired towards the end of the month.

In  the  water  sector  last  month, Wedeco (water  treatment,  Germany)
announced that it has acquired Trailigaz Ozone - the third largest ozone
water treatment technology company in the world from Vivendi Water, part
of  Vivendi Environnement (water & waste, France). With Wedeco reporting
good growth in the ozone part of its business this year, the acquisition
will add further capabilities to this business segment going forward. In
the  US,  the  San Diego Regional Water Quality Control Board  has  been
given  until  September  to devise a plan to decontaminate  the  400,000
gallons  per  day  of ground water it pumps from beneath  the  city  and
discharges into San Diego Bay. Activated carbon filters are already used
to remove organic pollutants; however alternative technologies will also
be  required to monitor and remove dissolved metals and other  inorganic
toxins  such  as the fuel additive methyl tertiary butyl  ether  (MTBE).
Companies  such  as  Calgon  Carbon  (water  technologies,  US),   Zenon
Environmental (membranes, Canada) and Trojan Technologies  (UV,  Canada)
are  all  developing  technologies  for  the  decontamination  of  water
polluted  with  inorganic toxins. In an example of such an  application,
Calgon  Carbon announced last month that it has been awarded a  contract
for a system to remove perchlorate from well water in California.

In  the waste sector, the Japanese Government launched a plan last month
to halve the amount of waste it sends to landfill by 2010. The aim is to
reduce  the amount of waste from 56 million tonnes in 2002 to 28 million
tonnes  by  2010 by reducing packaging volumes and increasing recycling.
In  the  UK,  Kelda  Group plc announced that it  has  entered  into  an
exclusive  agreement with venture capital group Terra Firma  Investments
with  respect to its 45.5% holding in Waste Recycling Group (waste, UK).
Terra Firma has until 5 June 2003 to make an offer to acquire its shares
in  the company at a price of not less than 285p. Meanwhile Shanks Group
plc  (waste,  UK) announced that its landfill gas division  has  entered
into  a long-term contract to sell all its non-NFFO renewable energy  to
Cinergy   Renewable   Trading   Limited.  Shanks   currently   generates
electricity from 11 landfill sites in the UK.

Latest information available at: www.impax.co.uk/asset/iemdown.htm

7 April 2003