Performance at month end

RNS Number : 1652Q

Impax Environmental Markets PLC

13 October 2011

 



IMPAX ENVIRONMENTAL MARKETS plc

All information is at Q3 2011 - 30 September 2011 (unless otherwise stated) and unaudited.

DATA AND PERFORMANCE

Pricing
NAV (pence)	111.20
Share price (pence)	92.28
Premium/(discount) (%)	(17.01)
Data
Total fund size (NAV) ( m)		GBP 343.0
Market capitalisation (m)		GBP 284.6
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 %	-9.0	-7.2	-14.3
3 months %	-19.0	-18.0	-25.6
YTD %	-21.6	-15.5	-29.8
1 year %	-12.4	-2.9	-26.5
3 year %	+1.2	+31.2	-33.6
5 year %	+11.6	+17.9	-6.9
7 year %	+64.7	+63.0	+35.5

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

** Total return

TOP TEN HOLDINGS

Company	Holding %		Description	Country
Nibe	3.3		Ground source heat pumps	Sweden
LKQ	3.2		Automotive recycling	US
Pall Corp	3.1		Filtration	US
Horiba	3.0		Environmental & engine testing	Japan
Regal-Beloit	2.5		Electric motors	US
Clean Harbors	2.5		Hazardous waste treatment	US
EDP Renovaveis	2.4		Renewable IPP	Spain
Vacon	2.3		Power electronics	Finland
Kingspan	2.3		Insulation products	Ireland
Daiseki	2.3		Hazardous waste management	Japan
TOTAL	26.9

PORTFOLIO ANALYSIS

Geographical US and Canada 37% Europe 40% Japan 6% Asia ex Japan 11% Australia 3% Cash 3%		Company Size >$2bn 30% $500m-2bn 46% <$500m 17% Private 4% Cash 3%
Sectoral Energy efficiency 25% Renewable energy 19% Environmental support services 5% Waste management 26% Pollution control 6% Water infrastructure 16% Cash 3%		PE Ratios >20x 14% 15-20x 16% <15% 62% Private and other 5% Cash 3% Average 12x

IMPAX ENVIRONMENTAL MARKETS plc

MANAGER'S COMMENTARY (Q3 2011)

Market Review

A delayed decision on a solution to the US debt ceiling put significant negative pressure on global markets and concerns over a potential sovereign bail-out of Greece resulted in additional uncertainty in Europe. Largely negative industrial data added further to concerns over slowing growth and a potential return to global recession. 

Performance Summary
Strong performance came from defensive stocks with resilient earnings such as LKQ (automotive recycling, US) and Daiseki (hazardous waste management, Japan). M&A was also a positive contributor to performance with Nalco (water treatment chemicals, US) acquired by Ecolab and Hansen Transmissions (wind turbine gearboxes, Belgium) by ZF Friedrichshafen. A weak macro-outlook and declining commodity prices drove underperformance from Lee and Man (paper recycling, Hong Kong) and Sims Metal Management (metals recycling, Australia). Trina Solar (wafers, cells & modules, China) was weak as the solar market failed to recover.

Policy Update
Germany signed a package to close down all nuclear by 2022, expand renewables to 35% of the energy mix by 2020, and increase investment in clean-energy technology research by ca. 75% over the next three years. France announced it will install smart power meters in 35 million homes and the UK published a white paper on electricity market reform, with a target for 18GW of offshore wind by 2020.

China announced plans to recycle >20% of wastewater in urban areas by 2015 (up from 8.5% at the end of 2010), a national feed-in-tariff for solar projects, 30GW of offshore wind farms by 2020, and to eliminate incandescent bulbs by 2016. The Japanese Prime Minister encouraged the country to gradually eliminate reliance on nuclear with plans for a 200 billion yen ($2.6 billion) fund to support energy efficiency initiatives. Japan also approved a bill to subsidize electricity from renewable sources, targeting 28 GW of solar by 2020.

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 

13 October 2011

 

END

 

 

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