Performance at month end

RNS Number : 1338S

Impax Environmental Markets PLC

15 November 2011

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 October 2011 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	118.80
Share price (pence)	93.05
Premium/(discount) (%)	(21.68)
Data
Total fund size (NAV) ( m)		GBP 365.1
Market capitalisation (m)		GBP 286.0
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		79
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 %	+6.8	+7.9	+6.0
3 months %	-8.8	-7.4	-15.3
YTD %	-16.2	-8.9	-25.6
1 year %	-7.3	+2.3	-20.2
3 year %	+36.0	+65.9	-3.9
5 year %	+15.5	+24.4	-4.1
7 year %	+69.9	+73.1	+43.3

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

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Pall Corp	3.4		Filtration	US
Nibe	3.3		Ground source heat pumps	Sweden
LKQ	3.2		Automotive recycling	US
Horiba	2.8		Environmental & engine testing	Japan
Regal-Beloit	2.7		Electric motors	US
Clean Harbors	2.6		Hazardous waste treatment	US
EDP Renovaveis	2.5		Renewable IPP	Spain
Clarcor	2.3		Air pollution control	US
Vacon	2.3		Power electronics	Finland
Kingspan	2.3		Insulation products	Ireland
TOTAL	27.4

PORTFOLIO ANALYSIS

Geographical US and Canada 39% Europe 37% Japan 6% Asia ex Japan 11% Australia 3% Cash 4%		Company Size >$2bn 34% $500m-2bn 41% <$500m 17% Private 4% Cash 4%
Sectoral Energy efficiency 26% Renewable energy 17% Environmental support services 5% Waste management 26% Pollution control 6% Water infrastructure 16% Cash 4%		PE Ratios >20x 15% 15-20x 26% <15% 51% Private and other 4% Cash 4% Average 13x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (October 2011)

Market Review

A partial solution to the European debt crisis (with the European Financial Stability Facility) drove strong performance from cyclical stocks with industrial exposure that had previously been sold-off during the September market de-rating.

Performance Summary
The anticipated resolution to macro problems (particularly to the European debt crisis) drove strong performance from cyclical stocks with industrial exposure (such as Pall (filtration, US)), recycling companies and environmental consultancies. LKQ (automotive recycling, US) rose on a well-received announcement of an acquisition in the UK, and Transpacific Industries (waste management, Australia) performed well on the completion of a refinancing.

Defensive stocks (such as Daiseki (hazardous waste management, Japan)) lagged the cyclical-led recovery, and renewable energy stocks were weak on overcapacity concerns and regulatory uncertainty. Jain Irrigation (micro-irrigation systems, India) fell on lackluster results and FX challenges.

Policy Update
As a result of the Fukushima nuclear disaster, both Switzerland and Belgium announced they will phase-out nuclear power and increase the proportion of renewables in the energy mix. The EU passed draft legislation to promote the development of natural gas and promote renewable energy through a €40bn fund. In the UK, the new Renewable Obligation Certificate bands were released, with increased support for off-shore wind, wave and tidal stream technologies, and biomass for enhanced co-firing.

China published its "National Roadmap" for wind power development 2050, with targets for 17% of total electricity by 2050, and an installed capacity of 1,000GW. China is expected to require investments of RMB3.1trn in environmental protection (treatment of wastewater, sludge and desulphurization) from 2011-15. South Africa announced plans to establish carbon emission budgets, and Californian regulators approved final regulations for a carbon market.

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 November 2011

 

END

 

 

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