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Impax Asian Env Mkt (IAEM)

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Monday 16 August, 2010

Impax Asian Env Mkt

Performance at month end

RNS Number : 1595R
Impax Asian Environmental Mkts Plc
16 August 2010
 



IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

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

 

DATA AND PERFORMANCE

Pricing


 

Diluted NAV (pence)

110.7

 

Undiluted NAV (pence)

112.7

 

Share price (pence)

115.8

 

Premium/(discount) (%)

2.74

 

Data


Total fund size (NAV) ( m)

129.7

Market capitalisation (m)

133.1

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 %

+2.5

+2.1

+1.2

-0.6

3 months %

-6.4

-5.7

-8.0

-9.8

Since launch

+15.0

+3.3

+6.8

+4.2

  

* Performance data is for undiluted NAV ex income

** Total return

 

TOP FIVE HOLDINGS

Company

Description

Country

Holding %

Xinyi Glass

General environmental

China

3.5

 

China Longyuan

Renewable energy developer

China

3.3

 

Jain Irrigation

Irrigation

India

3.2

 

Lee & Man

Value added waste processing

Hong Kong

2.8

 

Thermax

Industrial energy efficiency

India

2.8

 

TOTAL



15.6

 

 

PORTFOLIO ANALYSIS*

Country exposure

Instruments

  Japan

18%

ADR/GDR

6%

  China & Hong Kong

40%

Equity Common

85%

  Taiwan

5%

P-notes

8%

Korea

8%

Cash

1%

India

9%



Singapore

5%



Philippines

5%



Thailand

4%



Australia

6%



 

  Sector

Company size

  Energy efficiency

34%

>$2bn

4%

  Renewable energy

15%

$200-2bn

36%

  Waste

23%

<$200m

60%

Water

28%




* of funds invested as of 31 July 2010


 



IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

MANAGER'S COMMENTARY (July 2010)

 

The Company NAV rose 2.5% in July, whilst the MSCI AC Asia Pacific ex Japan Index (£) rose 2.1%, the FTSE Environmental opportunities Asia Pacific ex Japan Index (EOAX) (£) rose 1.2% and the FTSE Environmental Opportunities Japan Index (EOJP) (£) lost 0.6%. The cash level at the end of the month was 1%.

 

Global equity markets rallied in July, recovering their June losses as the earnings season progressed positively and double dip concerns in the US eased.  The US economy growth rate has softened and employment is disappointing but the investors are now anticipating a period of slower but stable growth. The moderation in the rate of growth in the US has resulted in a strong Yen which has negative implications for Japanese exports. The Euro rallied as more than 90% of banks passed the European bank Stress test and European economic data was better than expected. The Spanish debt auction in Europe proved better than expected which resulted in credit spreads falling and equity risk appetite returning.

 

Within the Asian region, China softened its tightening rhetoric stating that the current monetary policy was appropriate. The rate of growth has begun to moderate removing the need for higher interest rates. Elsewhere in Asia, growth rates continue to be strong and India, Korea and Thailand raised interest rates during the month.

 

In Alternative Energy and Energy Efficiency, Renesola (solar, China) bounced strongly as the Euro recovered from lows and inverter manufacturer SMA Solar indicated that solar installations could reach 14GW in 2010, ahead of market expectations. Korean polysilicon manufacturer OCI rallied on strong Q2 numbers and Chinese wind IPP China Longyuan staged a recovery on expectations that the tightening in China is reaching an end. Zhuzhou CSR (efficient rail equipment, China) rallied as the company announced a positive profit warning that results would beat guidance. SEMCO (LEDs and efficient electronic components, Korea) weakened after a period of strong performance on profit taking and concerns of LED price declines in 2H 2010 due to an inventory build of LED TVs in China. Japanese company V Technology, which produces high efficiency LCD equipment, fell as the Yen strengthened.

 

In Water Treatment and Pollution Control, Jain Irrigation (irrigation, India) contributed to positive performance as the share price rose in anticipation of strong Q1 earnings. Indian water infrastructure company IVRCL Infrastructure was weak ahead of Q1 results on anticipation of subdued revenue growth due to the timing of order wins in 2H FY 2010.

 

In Waste Technologies and Resource Management Xinyi Glass (diversified environmental, China) performed well over the month, recovering lost ground ahead of results as investors began to anticipate that China may be approaching the end of the tightening cycle. Chinese value added waste processing company Lee & Man contributed to negative performance as the Hong Kong dollar weakened against the pound. Daiseki (hazardous waste, Japan) also lost ground as its subsidiaries reported weaker than expected results.

 

In the US, Senate Leader Harry Reid unveiled the "Clean Energy Jobs and Oil Spill Accountability Plan" which contains no provision for increasing renewable energy or carbon pricing. In renewable energy news Obama announced $2 billion in US loan guarantees to solar companies resulting in the creation of as many as 5,000 green jobs. The US Senate approved a $2 billion program that aims to put 400,000 electric cars on the road in three years. In Europe, ministers from Germany, France and the UK called for the EU to slash emissions by 30% by 2020, instead of the current 20% target. China is drafting a research and development plan through 2015 to include smart grid technology to develop transmission and connection of wind and solar power to the grid. The Indian government issued new guidelines for the National Solar Mission requiring modules used in solar PV projects to be made domestically while also requiring solar thermal project developers to ensure domestic content accounted for at least 30% of each plant. In Japan utility firms will be required to buy fixed rate electricity generated from renewable sources of energy from as early as 2012.

 

 

Impax Asset Management Limited

16 August 2010

 


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