Performance at month end

RNS Number : 0518F

Impax Environmental Markets PLC

15 April 2011

 



IMPAX ENVIRONMENTAL MARKETS plc

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

DATA AND PERFORMANCE

Pricing
NAV (pence)	142.89
Share price (pence)	125.00
Premium/(discount) (%)	(12.52)
Data
Total fund size (NAV) ( m)		452.3
Market capitalisation (m)		395.7
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		81
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 %	+4.9	+2.7	+8.9
3 months %	+0.8	+3.8	+6.6
1 year %	+8.6	+17.9	+1.8
3 year %	+20.0	+51.5	-9.6
5 year %	+29.2	+28.5	+20.8

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

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Regal-Beloit	2.8		Electric motors	US
Nibe	2.8		Ground source heat pumps	Sweden
Nalco	2.6		Water treatment chemicals	US
Pall Corp	2.6		Filtration	US
Telvent	2.4		Automated meter reading	Spain
LKQ	2.3		Automotive recycling	US
Clean Harbors	2.3		Hazardous waste treatment	US
Horiba	2.3		Environmental & engine testing	Japan
EDP Renovaveis	2.1		Renewable IPP	Spain
Vacon	2.0		Power electronics	Finland
TOTAL	24.2

PORTFOLIO ANALYSIS

Geographical US and Canada 37% Europe 37% Japan 5% Asia ex Japan 14% Australia 4% Cash 3%		Company Size >$2bn 39% $200m-2bn 51% <$200m 4% Private 3% Cash 3%
Sectoral Energy efficiency 27% Renewable energy 18% Environmental support services 4% Waste management 25% Pollution control 5% Water infrastructure 18% Cash 3%		PE Ratios >20x 14% 15-20x 44% <15% 34% Unprofitable and private 5% Cash 3% Average 16x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (Q1 2011)

During the quarter the Company NAV rose 0.8% compared to the MSCI World Small Cap which rose 3.8% and the FTSE ET50 which rose 6.6%. During March he Company NAV rose 4.9% during the month compared to the MSCI World Small Cap which rose 2.7% and the FTSE ET50 which rose 8.9%. In Renewable Energy and Energy Efficiency, renewable stocks performed well on increased gas and oil prices and speculation over an increased role for renewables with the nuclear concerns that followed damage to the Fukushima plant in Japan. Vestas (wind turbine supplier, Denmark), Sunpower (solar cells and modules, US) and EDP Renovaises (independent power producer, Portugal)   outperformed. Abengoa (various environmental markets, Spain) was a further beneficiary of this trend, and also outperformed after a strong Q4 and improved market communication about the company's strategic goals. Buildings energy efficiency stocks also contributed to performance in March due to favourable German energy efficiency policy. In Water Infrastructure and Technologies & Pollution Control, commodity price pressures impacted on performance with Nalco (water treatment equipment, US) affected by raw material cost pressure and disappointing Q4 results and guidance.  The January and February emerging market to developed market rotation also weighed on performance, while Indian financing concerns impacted IVRCL (water infrastructure, India). In Waste Technologies and Environmental Support Services, Clean Harbors (hazardous waste, US) performed well following strong results while Sims Metal Management (metal recycling, Australia) fell due to profit taking after a strong Q4. The problems caused at Fukushima, the Japanese nuclear plant, as result of the earthquake and subsequent tsunami, have triggered global debate about the safety measures on nuclear plants      elsewhere in the world. Germany announced a 3 month suspension to the law to extend the life of the nuclear plants as the safety of the plants are assessed. Any plants due to end their life (pre   consideration of life extension) in the next 3 months will now be permanently shut. This makes 7 of the country's 17 nuclear plants idle, and there has been discussion of shutting these plants        permanently. The EU called for nuclear 'stress testing' across all EU countries. The approval of nuclear power projects is temporarily suspended in China with a call for a safety assessment of all nuclear plants under construction. Continued unrest in the Middle East has resulted in a global focus on energy security and alternatives to oil. Obama laid out four areas to help reach his target of curbing U.S. dependence on foreign oil: lifting domestic energy production, fostering the use of more natural gas in vehicles like city buses, making cars and trucks more efficient, and boosting alternative energy by encouraging biofuels. In China the annual session of the National People's congress concluded the approval of the 12th five year plan which included the following energy targets: energy consumption per unit of GDP to be cut by 16% and carbon dioxide emissions per unit of GDP to be cut by 17%. The plan includes substantial investment in new energy vehicles and a plan to add 70 GW of wind and 5 GW of solar. In the UK the release of the budget set a carbon floor price to be implemented from 2013 and scheduled the Green Investment Bank to be operational from 2012 with £3bn of initial funding. In Germany the Green Party made substantial gains in the state elections and are likely to be part of a coalition government with the Social Democratic party. The UK government also announced incentives worth £860m ($1.4bn) for heating installations that tap into renewable energy, covering biomass boilers, geothermal and solar thermal power, to be in place by October 2012. An announcement in Germany of tightening of energy efficiency standards for buildings and the introduction of tax incentives for building (energy efficiency) modernisation, as well as a €2bn pool p.a. for building renovation and investments in energy efficiency. In the US the EPA proposed a strict first draft of the Utility MACT (maximum achievable control technology) calling for 91% reduction of pollutants which will lead to the closure of 9.9GW coal plants by 2015.

Latest information available at: http://www.impax.co.uk/funds/listed-equity-funds/impax-environmental-markets-plc

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 April 2011

 

END

 

 

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