Performance at month end

RNS Number : 7872G

Impax Environmental Markets PLC

17 May 2011

 



IMPAX ENVIRONMENTAL MARKETS plc

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

DATA AND PERFORMANCE

Pricing
NAV (pence)	139.86
Share price (pence)	123.95
Premium/(discount) (%)	(11.38)
Data
Total fund size (NAV) ( m)		441.9
Market capitalisation (m)		391.6
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 %	-2.1	-0.3	-5.1
3 months %	+1.7	+4.9	+2.1
1 year %	+3.2	+14.2	-4.5
3 year %	+13.1	+44.7	-20.2
5 year %	+23.3	+30.9	+14.3
7 year %	+108.5	+101.5	+92.5

* 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	2.7		Ground source heat pumps	Sweden
Nalco	2.7		Water treatment chemicals	US
Pall Corp	2.6		Filtration	US
Horiba	2.4		Environmental & engine testing	Japan
LKQ	2.4		Automotive recycling	US
Telvent	2.3		Automated meter reading	Spain
Clean Harbors	2.2		Hazardous waste treatment	US
Vacon	2.2		Power electronics	Finland
EDP Renovaveis	2.2		Renewable IPP	Spain
TOTAL	24.5

PORTFOLIO ANALYSIS

Geographical US and Canada 37% Europe 38% Japan 5% Asia ex Japan 13% Australia 4% Cash 3%		Company Size >$2bn 39% $200m-2bn 51% <$200m 4% Private 3% Cash 3%
Sectoral Energy efficiency 26% Renewable energy 18% Environmental support services 5% Waste management 25% Pollution control 5% Water infrastructure 18% Cash 3%		PE Ratios >20x 18% 15-20x 43% <15% 32% Unprofitable and private 4% Cash 3% Average 16x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (April 2011)

Market Review:

The majority of companies beat expectations at the start of the Q1 results season. Renewable energy companies gave back the gains made in March induced by the Fukushima disaster. The Asian LED market was weak due to short term challenging fundamentals.

Portfolio Review:

M&A sentiment contributed to positive performance as TOTAL bid for 60% of Sunpower (solar cells and modules, US). Strong performance also came from environmental consultancies RPS Group (UK) and ICF International (US), as previous market concerns about government spending cut backs were somewhat alleviated, and ICF announced a major contract win from the US Agency for International Development.

Weak performance came from wind OEMs, such as Vestas (wind turbine supplier, Denmark), which gave back March gains due to ongoing challenging industry fundamentals. High inventory levels and low order momentum for TV backlighting led to LED price weakness (especially in Asia) and impacted companies such as Seoul Semiconductor (LED packager, South Korea) and Epistar (LED manufacturer, Taiwan).

Key Environmental Policy:

Attempts to stabilise the Fukushima plant in Japan continued during April and nuclear remained a key topic. Several EU countries announced delays or moratoriums on new nuclear build out. This resulted in increased attention on alternative energy sources and energy saving techniques. The German government introduced a plan focusing on increased energy efficiency, grid expansion and quicker up-take of renewables and the China Solar Energy Association proposed a tripling of 2015 goals for installed solar PV capacity.

In the US, a last minute deal on the 2011 budget resulted in a $1.6 billion cut in EPA funding for the fiscal year ending 30 September.  However, existing Department of Energy renewable loan guarantees are protected from cuts.

The Chinese government will fund up to 1.5bn yuan in order that 20 provinces can build regional recycling bases and 10 more cities can pilot an advanced technology recycling system.

The Department of Energy and Climate Change in the UK published its plans for a national smart metering programme. This will include the installation of 53 million smart meters in 30 million homes. Ofwat in the UK called for an increased focus on efficiency, higher water quality standards and moves to encourage competition between water companies.

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 

17 May 2011

 

END

 

 

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