Performance at month end

RNS Number : 0420U

Impax Environmental Markets PLC

15 December 2011

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 30 November 2011 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	119.06
Share price (pence)	96.45
Premium/(discount) (%)	(18.99)
Data
Total fund size (NAV) ( m)		GBP 351.8
Market capitalisation (m)		GBP 285.0
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		78
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 %	+0.2	+0.2	+5.0
3 months %	-2.6	+0.3	-8.7
YTD %	-16.0	-8.7	-25.2
1 year %	-7.8	-0.7	-19.5
3 year %	+37.2	+72.4	-1.3
5 year %	+13.5	+24.2	-7.3
7 year %	+62.4	+67.5	+39.3

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

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Pall Corp	3.6		Filtration	US
Nibe	3.6		Ground source heat pumps	Sweden
LKQ	3.4		Automotive recycling	US
Regal-Beloit	2.9		Electric motors	US
Clean Harbors	2.8		Hazardous waste treatment	US
EDP Renovaveis	2.5		Renewable IPP	Spain
Horiba	2.5		Environmental & engine testing	Japan
Clarcor	2.5		Air pollution control	US
Vacon	2.4		Power electronics	Finland
Watts Water	2.4		Water control products	US
TOTAL	28.6

PORTFOLIO ANALYSIS

Geographical US and Canada 41% Europe 38% Japan 6% Asia ex Japan 12% Australia 3%		Company Size >$2bn 36% $500m-2bn 47% <$500m 13% Private 4%
Sectoral Energy efficiency 27% Renewable energy 17% Environmental support services 6% Waste management 27% Pollution control 6% Water infrastructure 17%		PE Ratios >20x 15% 15-20x 24% <15% 56% Private and other 5% Average 13.5x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (November 2011)

Market Review

During the month, fears spread that the Eurozone debt crisis could lead to peripheral nations leaving the Euro. However, these fears were tempered by improved consumer confidence data in the US, expectations that the IMF and the ECB can construct a rescue package, good Thanksgiving's holiday retail sales in the US, and co-ordinated central bank intervention to lower USD swap rates.

Performance Summary
Market volatility caused by the European debt crisis resulted in a de-rating of global stock markets in the early part of the month, followed by a strong recovery in the final week of November, with cyclical stocks (energy efficiency and infrastructure stocks in particular) performing well. Pall (filtration, US) rallied, benefitting from positive sentiment following the new CEO's announced cost-cutting measures. Watts Water (water control products, US) rallied along with other cyclical stocks, beat Q3 margin expectations and benefited from positive investor meetings at a regional US investor conference. LKQ (automotive recycling, US) rose on strong Q3 results and healthy sales.

Companies reporting disappointing earnings and slowing end markets lagged the cyclical and industrials recovery.  Grontmij (environmental consulting, Netherlands) and Landi Renzo (natural gas engines, Italy) issued profit warnings while Zumtobel (high efficiency lighting, Austria) fell due to anticipated downgrades due to challenging construction markets.

Policy Update

Australia's upper house of parliament passed a carbon tax legislation, under which ca. 500 companies will be charged AU$23 a ton for their emissions starting in July 2012, before a so-called cap-and-trade system is introduced three years later. Australia also plans an AU$10.3bn Clean Energy Finance Corporation (CEFC) and AU$3.2 billion Australian Renewable Energy Agency to support large solar power stations, geothermal, wave power and energy efficiency projects.

South Koreawill invest US$9 billion to develop a 2.5-gigawatt offshore wind farm by 2019, and India's Government is considering adding up to 20GW of new wind capacity as part of the country's 12th Five-Year Plan. China's State Council approved a plan to reduce the nation's greenhouse gas emissions in terms of carbon dioxide output per unit of gross domestic product by 17% by 2015, and the 12th Five-Year Plan for Renewable Energy Development will raise the solar target to 15GW by 2015, up from the previous 10GW.

The Danish government proposed sourcing just over half of its electricity from wind turbines by 2020, and all of its energy from renewable sources by 2050, while Spain proposed to increase wind subsidies for new projects built from 2013 onwards, from Eur 55/MWh to 60/MWh. France adopted feed-in tariffs for biogas producers and a bonus tariff for biogas based on agricultural and household waste.

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 December 2011

 

END

 

 

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