Performance at month end

RNS Number : 2319E

Impax Environmental Markets PLC

16 December 2009

IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 November 2009 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Data		Pricing and Performance
Share price (pence)	108.3		IEM Net Asset Value	MSCI World Small Cap*
Warrants (pence)	GBP 23.5
Total fund size (m)	GBP 367.6	Diluted NAV (pence)	119.13	n/a
Market capitalisation (m)	GBP 330.2	Premium/discount (%)	-10.2
Management fee (%)	1.0	Undiluted NAV (pence)	120.54
Established	22 February 2002	Performance**
Fund structure	Investment Trust	1 month (%)	+2.9	+2.7
Number of holdings (including unlisted)	90	3 months (%)	+5.9	+3.5
Exchange	London	1 year (%)	+37.0	+37.7
Currency	GBP	3 years (%)	+13.3	-0.3
ISIN number	GB0031232498	5 years (%)	+62.1	+35.2
Sedol	3123249
Reuters RIC code	IMPX.L	* Performance data is in Total Return. ** Performance data is for undiluted NAV.
Bloomberg code	IEM LN

TOP TEN HOLDINGS

Company	Holding %	Description	Country
China Everbright	2.7	Water infrastructure	Hong Kong
Ormat	2.4	Geothermal	US
Telvent	2.3	Industrial energy efficiency	US
Itron	2.2	Automated meter reading	US
Vestas	2.1	Wind power generation equipment	Denmark
Pentair	2.1	Water treatment	US
Vacon	2.0	Industrial energy effiency	Finland
Transpacific Industries	2.0	Waste management & recycling	Australia
Abengoa	2.0	Biofuels	Spain
Nibe	2.0	Ground source heat pumps	Sweden
TOTAL	21.8

PORTFOLIO ANALYSIS*

Geographical		Company Size
US and Canada	35%	>$2bn	33%
EU and EFTA	43%	$200-2bn	57%
Rest of the World	20%	<$200m	8%
Cash	2%	Cash	2%

Sectoral		PE ratios
Energy	48%	PER >20x	24%
Water	19%	PER 15-20x	35%
Waste	31%	PER <15x	34%
Cash	2%	Unprofitable	5%
		Cash	2%
* of funds invested as of 30 November 2009

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (November 2009)

During the month the Company NAV increased by 2.9% compared to the MSCI World Small Cap which increased by 2.7%.

In the run-up to the UN climate change conference in Copenhagen, a series of high profile announcements were made. US President Obama confirmed that he will attend the talks after weeks of speculation, and stated that he is prepared to commit to cut domestic emissions by c17% from 2005 levels by 2020, in line with legislation being discussed in Congress. China announced plans to reduce CO2 emissions per unit of GDP by 40-45% by 2020, from 2005 levels, meaning that emissions will continue to grow but at a lower rate than GDP. Prospects for a legal treaty to replace the Kyoto Protocol have diminished, but it is widely expected that a 'politically binding' agreement is possible laying down emissions targets, with a timeline for further negotiations in 2010. Meanwhile, the IEA published its annual 'World Energy Outlook'. The report found that global recession may cause up to a 3% drop in CO2 emissions in 2009, but that in order to combat climate change investment of $10.5trn will be needed through to 2030, the majority in energy efficiency measures. In water news, California lawmakers reached an agreement to address the state's vulnerable water supply, requiring residents to cut water use by an average of 20% over the next decade. In waste, to mark the 20th anniversary of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes, the Basel Waste Solutions Circle was launched to promote protection of human health and livelihood.

In Alternative Energy & Energy Efficiency, strong Q3 results or positive company specific news resulted in strong performance. Vacon (power electronics, Finland) was up 14% on stabilisation of order intake, Telvent (utility software, US) rose 11% on solid results and improved liquidity following a secondary placement of shares. Ormat (geothermal Israel/US) rose 9% following strong Q3 results. In Water & Pollution Control, Nalco rose 16%, following strong management delivery on cost reduction and cashflow. China Everbright (water and waste treatment projects, Hong Kong) was up 4% on Q3 results. In Waste Technologies & Resource Management, commodity price exposed stocks outperformed on improving macro economic outlook, benefitting Lee & Man (recycled cartonboard, Hong Kong), up 27%, Abengoa (diversified incl. metals recycling, Spain) up 7%, and Daiseki (oil and solvent recycling, Japan) up 7%. Underperformance came from Sunpower (solar equipment, US) following news of an accounting irregularity, and Horiba (testing and monitoring, Japan) due to the continued strength of the domestic currency. Transpacific Industries (integrated waste management, Australia) underperformed on profit-taking and on weaker growth prospects.