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Impax Asian Env Mkt (IAEM)

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Friday 16 July, 2010

Impax Asian Env Mkt

Performance at month end

RNS Number : 4857P
Impax Asian Environmental Mkts Plc
16 July 2010
 



IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

All information is at 30 June 2010 (unless otherwise stated) and unaudited.

 

DATA AND PERFORMANCE

Pricing


 

Diluted NAV (pence)

108.4

 

Undiluted NAV (pence)

109.9

 

Share price (pence)

112.8

 

Premium/(discount) (%)

2.57

 

Data


Total fund size (NAV) ( m)

126.4

Market capitalisation (m)

129.6

Management fee (%)

1.0

Established

23rd October 2009

Fund structure

Investment Trust

Exchange

London

Currency

GBP

ISIN Number

GB00B4M5KX38

Sedol

B4M5KX3

Bloomberg code

IAEM LN

 

 

Performance (£)

IAEM Net Asset Value*

MSCI AC Asia Pacific (ex Japan) **

FTSE EO Asia Pacific (ex Japan)**

FTSE EO  Japan**

1 month %

-2.4

-2.4

-0.9

-4.6

3 months %

-5.6

-8.3

-8.2

-9.4

Since launch

+12.2

+1.1

+5.5

+4.8

* Performance data is for undiluted NAV ex income

** Total return

 

TOP FIVE HOLDINGS

Company

Description

Country

Holding %

Xinyi Glass

General environmental

China

3.3

 

Thermax

Industrial energy efficiency

India

3.1

 

Lee & Man

Value added waste processing

Hong Kong

3.0

 

China Longyuan

Renewable energy developer

China

2.9

 

OCI

Solar energy generation equipment

South Korea

2.9

 

TOTAL



15.2

 

 

PORTFOLIO ANALYSIS*

Country exposure

Instruments

  Japan

18%

ADR/GDR

5%

  China & Hong Kong

36%

Equity Common

84%

  Taiwan

6%

P-notes

10%

Korea

10%

Cash

1%

India

9%



Singapore

5%



Philippines

6%



Thailand

4%



Australia

6%



 

  Sector

Company size

  Energy efficiency

34%

>$2bn

23%

  Renewable energy

17%

$200m-2bn

70%

  Waste

20%

<$200m

7%

Water

29%




* of funds invested as of 30 June 2010


 



IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

MANAGER'S COMMENTARY (June 2010)

 

The Company NAV fell 2.4% in June, whilst the MSCI AC Asia Pacific ex Japan index (£) fell 2.4%, the FTSE Environmental opportunities Asia Pacific ex Japan Index (EOAX) (£) fell 0.9% and the FTSE Environmental Opportunities Japan Index (EOJP) (£) lost 4.6%. The cash level at the end of the month was 1%.

 

Global equity markets staged a minor recovery in the early part of June but declined again in the latter half of the month. This was on the back of concerns over a double dip in the US triggered by FOMC chatter about deflation and the release of weak consumer data. Sovereign credit risk in the Eurozone also spread to the banking sector. Macro tightening in China started to result in slower growth as manifested in weaker PMI and deceleration in FAI. The Chinese government announced the return of a more flexible RMB ahead of the G20, although the appreciation trend is expected to be moderate and controlled within a narrow trading band. In the Environmental sector, Pollution Control and Water Infrastructure outperformed whilst the Waste Management sector underperformed.

 

In Environmental policy developments the Spanish Government continued to debate cutting feed-in tariffs (FITs) for solar projects while the Italian government proposed cutting FITs by 18% in 2011 down from the initially proposed 25% level. In the USA the Deepwater Horizon disaster resulted in the Obama administration ordering a six-month moratorium on offshore drilling. The disaster has pushed forward hope for a clean energy bill, however Obama's speech from the Oval office on June 16th offered little in the way of a solid clean energy movement. The Chinese government announced the intention to increase natural gas consumption from 4% of the energy mix to 8% during the 12th Five-year Plan (2011-2015). During this period the government also plans to install 5GW of offshore wind capacity. India is to add about 30GW of renewable energy capacity in the next five years to meet its target of generating 10% of its electricity from renewable energy by 2015 and has announced a floor price of INR 1.2 per kwh for solar compared with INR 1.5 per kwh for non-solar renewable energy certificates.

 

In Alternative Energy - OCI (polysilicon, South Korea) advanced as polysilicon prices stabilised and the company announced a 5,000 tonne capacity addition for 2011 through debottlenecking.  Aboitiz Power (hydro IPP, Philippines) continued to move higher over the month as electricity prices remained firm. Enthusiasm in the wind sector waned, as the planned HK dual-listing of A-share listed Goldwind (wind turbines, China) was delayed and impacted sentiment toward China Longyuan (wind farms, China) and China High Speed (wind turbine gearbox, China). Solar names continued to be volatile driven by movements in the Euro whilst underlying business fundamentals are strong.

 

In Energy Efficiency - The strong JPY continue to hurt Daikin (efficient air-conditioners, Japan) and Stanley Electric (efficient lighting, Japan). In contrast, the weaker KRW and shortages in electronic components supported out performance at SEMCO (power electronics and LEDs, Korea) and LG Chem (chemicals and batteries, Korea). Concerns over LED chip oversupply by 2011 and in-sourcing from Samsung caused further weakness in Epistar (LEDs, Taiwan). Delta Electronics Thailand (efficient power supplies, Thailand) rose on the rising demand for solar inverters.

 

In Waste - generally softer commodity prices resulted in weak performances for Sims (value added waste, Australia) and TPI (diversified waste management, Australia). TPI's internal restructuring is also taking longer than expected. This was offset by a good performance by Goodpack (waste technology equipment, Singapore) as the company penetrates into new market verticals. During the month the fund added Fook Woo (paper recycling, China) and China Metal Recycling (metal recycling, China).

 

In Water - Manila Water (water utility, Philippines) and Thai Tap (water utility, Thailand) continued to outperform  due to their defensive business models. Hyflux (Singapore), China Everbright (China), and IVRCL Infrastructure (India) all recovered most of their May declines in June and outperformed due to market refocus on new and potential contract wins. In Pollution Control, Xinao Gas (energy, China) was hit by allegations of corruption, although management rigorously denied such allegations and the stock recovered strongly. 

 

 

Impax Asset Management Limited

16 July 2010


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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