Performance at month end

RNS Number : 4110K

Impax Environmental Markets PLC

19 April 2010

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at 31 March 2010 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
Diluted NAV (pence)	131.20
Undiluted NAV (pence)	133.36
Share price (pence)	119.25
Premium/(discount) (%)	-10.58
Warrants (pence)	21
Data
Total fund size (NAV) ( m)		405.9
Market capitalisation (m)		362.6
Management fee (%)		1.0
Established		22nd February 2002
Fund structure		Investment Trust
Number of holdings (including unlisted)		96
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**
1 month %	+5.2	+8.1
3 months %	+4.0	+14.4
1 year %	+52.9	+63.6
3 year %	+13.0	+13.3
5 year %	+76.4	+56.7

* Performance data is for undiluted NAV ex income

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Clean Harbors	2.3		Hazardous waste	US
Itron	2.2		Automated meter reading	US
Chloride	2.2		Power network efficiency	UK
Nibe	2.2		Buildings energy efficiency	Sweden
China Everbright	2.2		Value added waste processing	China
LKQ Corp	2.1		Value added waste processing	US
Horiba	2.1		Environmental testing	Japan
Pall Corp	2.1		Water treatment equipment	US
Abengoa	1.9		Biofuels	Spain
Vestas	1.9		Wind Power Generation Equipment	Denmark
TOTAL	21.2

PORTFOLIO ANALYSIS*

Geographical		Company Size
US and Canada	36%	>$2bn	20%
EU and EFTA	40%	$200-2bn	64%
Rest of the World	20%	<$200m	12%
Cash	4%	Cash	4%
Sectoral		PE ratios
Energy	45%	PER >20x	44%
Water	21%	PER  15-20x	26%
Waste	30%	PER <15x	17%
Cash	4%	Unprofitable	9%
		Cash	4%
* of funds invested as of 31 March  2010

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (March 2010)

During the month the Company NAV increased by 5.2% compared to the MSCI World Small Cap which increased by 8.1%. In Alternative Energy & Energy Efficiency, renewable energy utilities continued to underperform due to low power prices, affecting EDP Renovaveis (wind IPP, Portugal).  However, wind turbine manufacturers Vestas (Denmark) and Gamesa (Spain) recovered some of their previous underperformance, both up 11% as order flow showed signs of recovery.  Kingspan (buildings energy efficiency, Ireland) rose 28% on improving construction stats and positive comments in the annual report. Chloride (uninterruptible power supplies, UK) rose 14% benefitting from a weak domestic currency boosting competitiveness in overseas markets. In Water Treatment & Pollution Control, the testing and monitoring sector performed well. Horiba (testing and monitoring, Japan) was up 12% on management upgrades due to signs of recovery in their end markets aided by a weak domestic currency. Small cap names suffered over the period, for example, Spice (utility services, UK) following a profit warning and management change. In Waste Technologies & Resource Management, Lee & Man (paper recycling, Hong Kong) outperformed based on increasing margins and strong growth outlook, rising 18%. Abengoa (diversified environmental services, Spain) was up 15% recovering from underperformance due to sovereign risk concerns in the Spanish market. Shanks (waste management, UK) was weak following withdrawal by the VC fund, Carlisle Group, from their bid process. In alternative energy news, it was widely reported that the Chinese government has drafted a ten year plan to boost the generation of clean energy and ensure it accounts for 15% of the country's total consumption mix by 2020. In the US, more information emerged on a bill that aims to cut emissions of GHGs by 17% by 2020. The bill would abandon a broad 'cap-and-trade' approach to cutting carbon emissions, and would apply different controls on a sectoral basis. In energy efficiency, the Obama administration proposed a $6bn programme that has become known as 'cash for caulkers', to provide financial incentives to encourage homeowners to install insulation, and other improvements. The programme is modelled on the successful 'cash for clunkers'. In climate change policy developments, China and India formally agreed to join the international climate change agreement reached in December in Copenhagen, the last two major economies to sign up. Also during the month, the EU's climate commissioner said that nations should now aim to reach an agreement in 2011 at the UN conference in South Africa, rather than this year in Mexico. Japan announced details on a proposed climate bill, set to be enacted in Parliament by mid-June. Also in Japan, the government announced that FiTs for wind, hydro and geothermal will be extended in order to meet the target of 10% primary energy from renewables by 2020. In water news, the US EPA announced the addition of nine new contaminants to its database profiling chemicals of concern for drinking water and wastewater systems. Later in the month, the EPA stated that it will conduct a comprehensive research study to investigate the potential adverse impact that hydraulic fracturing for natural gas extraction may have on water quality and public health. In waste, the US state of Utah approved an electronics recycling bill requiring proper disposal of outdated TVs and computers. The bill awaits final approval, but if passed Utah will join 20 other states which already have similar measures in place, and 8 states that have legislation under consideration. In the UK budget for 2010 landfill tax will be increased meaning that it will hit £80 per tonne in 2014/15, up from £48 today. The government says this will divert 600,000 tonnes per year of waste from landfill. A global report for environmental services company, Veolia, found that the world market for waste is worth around $410bn per year.

Latest information available at: http://www.impax.co.uk/impax/funds/listed_funds/environmental_plc/

Impax Asset Management Limited

19 April 2010

 

END

 

 

PFUKKCDQNBKDCQD