Performance at month end

RNS Number : 5908X

Impax Environmental Markets PLC

16 February 2012

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 January 2012 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	123.31
Share price (pence)	97.45
Premium/(discount) (%)	(20.97)
Data
Total fund size (NAV) ( m)		GBP 360.5
Market capitalisation (m)		GBP 284.9
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		77
Exchange		London
Currency		GBP
ISIN Number		GB0031232498
Sedol		3123249
Reuters RIC code		IMPX.L
Bloomberg code		IEM LN

Performance	IEM Net Asset Value*	MSCI World Global Small Cap**	FTSE ET50**
1 month %	+6.4	+5.9	+4.9
3 months %	+3.8	+6.5	+2.3
YTD %	+6.4	+5.9	+4.9
1 year %	-10.3	-1.6	-23.0
3 year %	+32.1	+75.9	-8.1
5 year %	+9.3	+26.9	-11.9
7 year %	+64.1	+71.0	+35.5

* Performance data incorporates undiluted NAV until exercise of warrants on 25 June 2010

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Nibe	3.4		Ground source heat pumps	Sweden
Regal-Beloit	3.0		Electric motors	US
LKQ	3.0		Automotive recycling	US
Pall Corp	3.0		Filtration	US
Clean Harbors	2.6		Hazardous waste treatment	US
Clarcor	2.6		Air pollution control	US
Kingspan	2.5		Insulation products	Ireland
Spirax-Sarco	2.3		Steam based energy efficiency	UK
EDP Renovaveis	2.2		Renewable IPP	Spain
Vacon	2.2		Power Electronics	Finland
TOTAL	26.8

PORTFOLIO ANALYSIS

Geographical US and Canada 39% Europe 38% Japan 4% Asia ex Japan 13% Australia 4% Cash 2%		Company Size >$2bn 36% $500m-2bn 45% <$500m 13% Private 4% Cash 2%
Sectoral Energy efficiency 28% Renewable energy 16% Environmental support services 5% Waste management 26% Pollution control 6% Water infrastructure 17% Cash 2%		PE Ratios >20x 19% 15-20x 21% <15% 53% Private and other 5% Cash 2% Average 14.0x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (January 2012)

Market Review

News flow has been mixed thus far in 2012, with strengthening US economic data, receding Asian inflationary pressures, and positive earnings momentum set against a backdrop of continued sovereign debt concerns in Europe. Further market volatility is likely; therefore we have started the year by maintaining a careful balance between stocks with varying levels of sensitivity to economic cycles. In addition, we favour Asia and US market exposure over Europe. The portfolio is composed of high quality companies with proven track records, successful management teams and solid balance sheets that are exposed to long term secular growth themes.

Performance Summary
Asian stocks such as Lee and Man (paper recycling, Hong Kong), which were weak in 2011, recovered due to an improving macroeconomic outlook and more accommodative lending in China. Companies exposed to rising commodity prices, such as Sims Metal Management (metal recycling, Australia) performed well in January following previous weakness, as did beneficiaries of improved construction data in the Europe and the US, such as Zumtobel (high efficiency lighting, Austria).

Underperformance was company specific. Ormat (geothermal, US) fell due to a profit warning and downgrades on existing projects, while Clean Harbors (hazardous waste treatment, US) suffered from profit taking. EDP Renovaveis (renewable IPP, Spain) declined based on cooling M&A speculation and fears of adverse regulatory change in Spain.

Policy Update
As EU President for H1 2012, Denmark has applied renewed pressure for an EU-level 2030 emissions goal and for a stronger EU Energy Efficiency Directive to be introduced in the first half this year. Germany will introduce new grid-expansion legislation in June, to enable faster grid development to support increased renewable energy installation, as the country is exiting nuclear generation.

China increased subsidies for building integrated solar PV projects, reflecting the increased 2015 solar target of 15GW. China has also published its 5^th revision of the China Foreign Investment Catalogue, which will give foreign companies operating within environmental areas beneficial income tax treatment and access to a large growing market, in exchange for technology transfer.

In India, a government panel has recommended that a target of 26.6GW of grid-connected renewable power is set for the 12^th Five Year Plan (2012-2016), more than doubling the previous five-year plan target of 12.2GW.

California approved new aggressive regulations requiring a large proportion of cars to be zero-emission vehicles (ZEVs) from 2017, which should cut GHG emission by 34% and smog and soot pollutants by 75% by 2025. Several other US states are expected to adopt the regulation.

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 

16 February 2012

 

END

 

 

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