Performance at month end

RNS Number : 3258M

Impax Environmental Markets PLC

12 August 2011

 



IMPAX ENVIRONMENTAL MARKETS plc

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

DATA AND PERFORMANCE

Pricing
NAV (pence)	130.23
Share price (pence)	116.50
Premium/(discount) (%)	(10.54)
Data
Total fund size (NAV) ( m)		GBP 404.2
Market capitalisation (m)		GBP 361.6
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		82
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 %	-5.2	-4.5	-6.8
3 months %	-6.9	-4.9	-13.0
YTD %	-8.2	-1.6	-12.1
1 year %	+6.2	+19.7	-6.9
3 year %	+8.2	+47.2	-27.2
5 year %	+33.6	+41.5	+22.0
7 year %	+100.9	+97.6	+75.2

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

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Nalco	3.7		Water treatment chemicals	US
Telvent	3.0		Automated meter reading	Spain
Horiba	3.0		Environmental & engine testing	Japan
Nibe	3.0		Ground source heat pumps	Sweden
Regal-Beloit	2.7		Electric motors	US
LKQ	2.7		Automotive recycling	US
Pall Corp	2.4		Filtration	US
Clean Harbors	2.3		Hazardous waste treatment	US
EDP Renovaveis	2.2		Renewable IPP	Spain
Kingspan	2.2		Insulation products	Ireland
TOTAL	27.2

PORTFOLIO ANALYSIS

Geographical US and Canada 38% Europe 40% Japan 6% Asia ex Japan 11% Australia 3% Cash 2%		Company Size >$2bn 36% $200m-2bn 54% <$200m 5% Private 3% Cash 2%
Sectoral Energy efficiency 27% Renewable energy 17% Environmental support services 5% Waste management 25% Pollution control 6% Water infrastructure 18% Cash 2%		PE Ratios >20x 12% 15-20x 34% <15% 47% Unprofitable and private 5% Cash 2% Average 15x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (July 2011)

Market Review
Global equities rallied towards the end of June and continued into July. However, the second quarter earnings season began with mixed results, and this, together with US debt ceiling discussions and sovereign debt risk in Europe resulted in risk reduction for investors and markets overall fell over the month. Environmental markets sectors that were exposed to rising earnings expectations and could not pass on raw material cost pressures saw earnings downgrades. In addition, the tightening cycle in emerging markets moderated order-book growth for many companies with high emerging market exposure. Signs of falling unemployment and improving spending must precede any further corporate top-line growth.

Performance Summary
M&A activity continued to drive performance in July, with Nalco (water treatment chemicals, US) subject to a takeover bid from Ecolab (a global leader in cleaning, sanitizing, food safety and infection prevention products and services). Another portfolio holding, Hansen Transmissions, rose following a takeover bid from German gearbox manufacturer ZF Friedrichshafen. Transpacific Industries (waste management, Australia) rose as a pre-release of full year results showed the strength of the company's core business.

Stocks with exposure to the sell-off in industrials, such as Pall Corp (filtration, US), weighed on performance. Weakness in Asia continued, with deteriorating fundamentals in the Chinese rail sector impacting Hollysys (industrial and rail automation, China), whilst Lee and Man (paper recycling, Hong Kong) suffered on a cautious outlook for consumer spending in China.

Policy Update
Germany signed a new energy package to close down all nuclear by 2022 and expand renewables to 35% of the energy mix by 2020. The UK government published its white paper on electricity market reform, with a target for 18GW of offshore wind by 2020.

The Japanese Prime Minister encouraged the country to gradually eliminate reliance on nuclear, and China announced plans for 30GW of offshore wind farms by 2020. The high speed rail crash in China led to the withdrawal of investment in regional rail. Water remains a key focus in Chinese policy with the government planning a special fund to support municipal water treatment.

Australia's government put together an AU$3 billion ($3.2 billion) package as part of a carbon price scheme to promote clean energy and pay for closure of brown coal-fired power stations.

Debt worries and budget cuts hindered the development of US policy; however DOE offered nearly $4.5 billion in conditional loan guarantees for three solar power plant projects.

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 

12 August 2011

 

END

 

 

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