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Impax Asian Env Mkt (IAEM)

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Friday 12 November, 2010

Impax Asian Env Mkt

Interim Management Statement

RNS Number : 0942W
Impax Asian Environmental Mkts Plc
12 November 2010

Impax Asian Environmental Markets Plc (the 'Company')

Interim Management Statement

For the three months ended 30 September 2010


This interim management statement covers the period from the 1 July 2010 to 30 September 2010 (the "Period"), and is prepared in accordance with the UK Listing Authority's Disclosure and Transparency Rule 4.3.


Investment objective


The Company's investment objective is to generate long-term capital growth through investment in a diverse portfolio of companies in the markets for cleaner or more efficient delivery of basic services of energy, water and waste in the Asia Pacific Region. To be eligible for investment, such companies must have at least 20% of their turnover, profits or invested capital in these markets.




During the Period, the Company's diluted Net Asset Value ("NAV") per Ordinary Share (excluding current year net revenue) rose by 10.2% from 108.4p to 119.5p. The Company's undiluted NAV per Ordinary Share (excluding current year net revenue) rose by 11.9% from 110.0p to 123.1p. Performance over the Period is ahead of the MSCI AC Asia Pacific ex Japan Index which rose 11.3% (priced in pounds sterling).


The Period was characterised by strength in the energy efficiency, renewable energy and waste management & technologies sectors, whilst the water and pollution control sectors lagged behind. The solar stocks and Xinyi Glass were stand out performers. The Company underperformed the FTSE Environmental Opportunities Asia ex Japan Index ("EOAX") which was up 14.6% (priced in pounds sterling) during the Period as a couple of large weight index stocks (not owned by the Company) performed strongly and the Japanese stocks contributed negatively to performance as the Yen strength hurt the prospects for exporters.


Portfolio activity


Impax Asset Management Limited (the "Manager") continues to focus on bottom-up stock picking.  The Company increased its exposure to the light emitting diode (LED) general lighting theme following a period of underperformance. Profits were taken by the Company in a number of companies across a broad range of sectors following strong performance. During the Period, the Company added three new holdings to its portfolio, participated in an IPO, and sold out of two positions.


The five largest holdings as at 30 September 2010 are set out below. Four are Chinese companies listed in Hong Kong and one is a Thai company.





Portfolio weighting

Xinyi Glass

Glass manufacturing


China Longyuan Power

Wind power producer


Lee & Man Paper

Paper recycling


ENN Energy

Natural gas distribution


Delta Electronics Thai

Efficient power supplies



The five largest holdings list illustrates the preference for a diversified sector portfolio. The Company is overweight in Greater China compared to the EOAX due to the attractive bottom-up opportunities available in the region.


C Share issue


On 23 July 2010 the Company announced that, in light of continuing demand for the Company's Ordinary Shares from both existing shareholders and potential new investors, it was considering the possibility of raising new monies through an issue of C Shares. Subsequently on 1 October 2010, a circular was sent to shareholders detailing proposals for such an issue.  Following approval of the proposals by shareholders at a general meeting held on 26 October 2010, the Company issued 131,000,000 C shares at a price of £1 each.  The C shares commence trading on the London Stock Exchange on 27 October 2010.




The Directors and the Manager remain positive on the outlook for the Company. In particular, the momentum of environmental policy and legislation in the Asia Pacific region remains strong and many environmental markets are set for strong growth.


Significant events from 30 September 2010 to the date of this announcement


The C Share issue is described above.  The Company paid a dividend of 0.4p per Ordinary Share on 22 October 2010 to Ordinary Shareholders on the register at the close of business on 8 October 2010.  The diluted NAV per Ordinary Share (excluding current year net revenue) as at 10 November 2010 was 123.7p. 


The interim management statement will be made available on the Manager's website


12 November 2010

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