Performance at month end

RNS Number : 9951X

Impax Environmental Markets PLC

15 February 2013

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 January 2013 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	134.69
Share price (pence)	114.38
Premium/(discount) (%)	(15.08)
PE Ratio2	15.9x
Data1
Total fund size (NAV) ( m)		GBP 364.5
Market capitalisation (m)		GBP 309.6
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 %	7.7%	7.3%	7.7%
3 months %	12.3%	12.7%	10.2%
YTD %	7.7%	7.3%	7.7%
1 year %	9.2%	3.5%	15.4%
3 year %	9.7%	-16.6%	35.5%
5 year %	19.7%	-30.2%	34.5%
10 year %	164.3%	91.9%	131.8%
Since inception	39.4%	6.0%	65.9%

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

Top/Bottom Contributors to Performance (%)
Sector		Stock4
Industrial energy efficiency	1.2	Vacon	0.4
Buildings energy efficiency	1.1	Pall	0.4
Recycling & value added waste processing	0.9	Regenersis	0.3
Water treatment equipment	0.8	Nibe	0.3
Water infrastructure	0.7	Novozymes	0.3
Waste technology equipment	0.1	Tomra Systems	-0.1
Environmental testing & gas sensing	0.1	Hydro International	-0.1
Wind power generation equipment	0.0	5N Plus	-0.1
Other renewables equipment	0.0	Greenko	-0.1
Solar energy generation equipment	-0.1	Abengoa	-0.1

⁴Excludes unlisted investments as valuations are confidential

TOP TEN HOLDINGS

Company	Holding %	Description	Country
Kingspan	2.8	Buildings energy efficiency	Ireland
Regal-Beloit	2.7	Industrial energy efficiency	US
Vacon	2.6	Industrial energy efficiency	Finland
Pall	2.5	Water treatment equipment	US
Nibe	2.5	Buildings energy efficiency	Sweden
Watts Water	2.4	Water infrastructure	US
Clean Harbors	2.4	Hazardous waste management	US
Clarcor	2.3	Polution control solutions	US
Ensyn	2.3	Biofuels	Canada
Itron	2.2	Power network efficiency	US
TOTAL	24.7

PORTFOLIO ANALYSIS

Geographical % Europe 41 North America 40 Asia ex Japan 12 Japan 4 Cash 3

Sectoral % Energy efficiency 32 Waste mgmt. tech 22 Water infra & tech 18 Alternative energy 11 Pollution control 9 Env support srvs 5 Cash 3

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (January 2013)

Markets continued their upward trend in January and we were pleased to note widespread positive performance from across the environmental sub-sectors. In particular, our holdings in the energy efficiency sector outperformed, benefitting from improving fundamentals in end markets such as construction. Vacon (industrial energy efficiency, Finland) and Nibe (buildings energy efficiency, Sweden) were two such beneficiaries, rising on anticipation of market recovery. We were also pleased to note improving industrial manufacturing sentiment, particularly in the US, and this fed through to portfolio holdings such as Pall (water treatment equipment, US). Novozymes (biofuels, Denmark) rose on strong results and positive long-term guidance.

Portfolio holdings with exposure to the weak European automotive market suffered over the month, including Johnson Matthey (pollution control solutions, UK). Stock specific detractors included Abengoa (biofuels, Spain), which fell after a Spanish shorting ban was lifted; it has a complicated structure and we believe this is causing the market to misprice the value of its equity. Tomra (waste technology equipment, Norway) suffered from moderated 2013 broker forecasts based on softening order intake. Our holdings in the Asia-Pacific region lagged behind the US and Europe over the month.

Positioning & Outlook

We continue to favour the energy efficiency, pollution control and water infrastructure/treatment sectors. We remain cautious on alternative energy in the near term due to on-going overcapacity but continue to challenge our views here following a long period of weakness. We are comfortable with our relative overweight Europe and underweight US exposures versus global indices due to relative valuations.

We see several positive catalysts ahead, including continuing improvement in US construction markets, accelerated infrastructure spending from China's 12th 5 Year Plan, and positive policy developments both in Asia and the US. We are positive on the prospects for the portfolio.

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 February 2013

 

END

 

 

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