Performance at month end

IMPAX ENVIRONMENTAL MARKETS plc
 
All information is at 31 March 2008 (unless otherwise stated) and
unaudited.
 
DATA AND PERFORMANCE
 

Data                         Pricing & Performance
                                                   IEM   MSCI   FTSE
                                                   Net   World  ET50
Share price                                       Asset
(pence)                119.4                      Value
Warrants                40.5                                      
(pence)
Total fund size    GBP 365.5  Diluted NAV (pence) 119.2   n/a   n/a
(m)
Market             GBP 361.4 Premium/discount (%)  +0.2           
capitalisation
(m)
Management fee           1.0        Undiluted NAV 120.7         
(%)                                       (pence)
Established      22 February         Performance*                 
                        2002
Fund structure    Investment          1 month (%)  0.0   -1.2   +2.9
                       Trust
Number of                 97         3 months (%)  -7.2  -9.4  -16.7
stocks held
Exchange              London           1 year (%)  +2.3  -6.3  +26.7
Currency                 GBP          3 years (%) +58.2  +18.7 +107.8
ISIN number     GB0031232498          5 years (%) +154.8 +52.7 +182.9
Sedol                3123249         Since launch +22.9  +9.3  +48.3
                                 (22/02/2002) (%)                 
Reuters RIC            IEM.L  
code                         * Performance data is for undiluted NAV.
Bloomberg code        IEM LN

 
TOP TEN HOLDINGS
 

Company             Holding %   Description                 Country
Clean Harbors             2.3   Hazardous waste             US
Itron                     2.3   Meters & software           US
Abengoa                   2.2   Bioethanol & recycling      Spain
Ormat                     2.2   Geothermal                  Israel/US
                                High efficiency electric
Regal Beloit              2.2   motors                      US
Gamesa                    2.1   Wind                        Spain
Kurita Water              2.1   Water treatment             Japan
Chloride Group            2.1   UPS systems                 UK
Vestas Wind Systems       2.1   Wind                        Denmark
Tomra                     2.1   Reverse vending machines    Norway
                                                             
Total                    21.7                                

 
PORTFOLIO ANALYSIS*
 

Geographical          Company Size
North America     43% >£1bn          27%
Europe            48% £100-1bn       66%
Rest of the World 9%  <£100m         7%
                                       
Sectoral              Profitability
Energy            43% Profitable     96%
Water             27% Pre-Profitable 4%
Waste             30%                  
* of funds invested as of 31 March 2008

 
MANAGER'S COMMENTARY (March 2008)
 

Amid continuing turmoil in financial markets, March saw the Federal
Reserve cut interest rates again, this time by 75bps.  Against this
backdrop, the Company NAV was flat over the month compared with the
MSCI World, which declined by 1.2%, and the Impax ET50 which rose by
2.9% over the same period.
 
In the Alternative Energy & Energy Efficiency sector, during the
month the US EPA released an impact assessment of proposed greenhouse
gas emission legislation currently before the Senate.  The report
concluded that the proposal could be implemented without
significantly harming the US's economic growth over the next two
decades.  Specifically it identified a 1% hit to GDP between 2010 and
2030 - in line with the UK Treasury's Stern Review estimate of the
cost of tackling climate change.  In China, the government announced
that a total of US$5.9bn will be allocated in 2008 to saving energy
and reducing the country's emissions.  In addition targets for wind
power were revised from 5GW to 10GW by 2010.  In the UK, the budget
included several 'green' measures such as a restructuring of Vehicle
Excise Duty to reward drivers of the cleanest cars, an increase in
aviation tax, a possible plastic bag levy, and a commitment for all
new non-domestic buildings to be zero carbon from 2019.
 
In the Water Treatment & Pollution Control sector, the Saudi Arabian
government announced plans to invest up to US$60bn over the next 20
years to expand water infrastructure and meet the requirements of a
growing population. The demand for water is growing at 6% annually,
and developments in Saudi Arabia are indicative of the rising need
for water in the Middle East as a whole. In an effort to improve
public health, the US EPA announced a tightening of air quality
standards, lowering the amount of ground-level ozone permitted in the
atmosphere for the first time in over 10 years.
 
In the Waste Technology & Resource Management sector, the Danish
environment ministry announced a wide-ranging reform of regulations
to recover used batteries. The proposal would ban nickel-cadmium
batteries for most uses, and would result in collection rates
exceeding EU targets. It emerged last year that 90% of used batteries
returned to collection points in Denmark actually ended up in
landfill.
 
Stocks that contributed to performance included Canadian Hydro
(renewables project developer, Canada), up 15% following positive
project news flow and inclusion in an index, and Shanks (waste
management, UK), which gained 13% following robust first quarter
results.  Automated meter reading companies Esco Technologies (US)
and Badger Meter (US) rose 20% and 13% respectively, driven by
ongoing concerns regarding water scarcity and increased project
activity.  Weakest performances came from Pall Corp (filtration, US)
on tax concerns and Mueller Water (water infrastructure, US), due to
residential construction exposure.

 
Latest information available at:


http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/
 
31 March 2008

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