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Impax Asian Env Mkt (IAEM)

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Thursday 14 July, 2011

Impax Asian Env Mkt

Performance at month end

RNS Number : 4453K
Impax Asian Environmental Mkts Plc
14 July 2011
 



IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

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

 

DATA AND PERFORMANCE

Pricing


 

Diluted NAV (pence)

115.63

 

Undiluted NAV (pence)

118.47

 

Share price (pence)

106.38

 

Premium/ (discount) (%)

(10.21)

 

Data


Total fund size (NAV) ( m)

270.30

Market capitalisation (m)

228.70

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 %

-0.1

+0.5

-0.5

+5.6

3 months %

-6.3

-0.3

-5.1

+2.1

1 year

+7.8

+20.7

+18.9

+14.8

Since launch

+20.9

+27.6

+29.3

+22.5

 

 

 

 

 

* Performance data is for undiluted NAV ex income (unaudited)

The Company is geared via a bank facility (amount drawn down since initial drawdown on 6 May 2011: US$25m)

** Total return. Source: FactSet, WM Reuters

 

TOP TEN HOLDINGS

Company

Description

Country

Holding %

ENN Energy

Natural gas distribution

China

4.0

 

Yingde Gases

Industrial gases

Hong Kong

3.8

 

China Longyuan

Renewable IPP

China

3.5

 

Horiba

Environmental & engine testing

Japan

3.3

 

Hollysys

Industrial and rail automation

China

2.9

 

Campbell Brothers

Environmental testing

Australia

2.8

 

Lee & Man

Paper recycling

Hong Kong

2.8

 

Xinyi Glass

Energy efficient glass

Hong Kong

    2.7

 

China ITS

Transportation management solution

China

2.6

 

Delta Electronics

Power electronics

Taiwan

2.6

 

TOTAL



31.0

 

 

PORTFOLIO ANALYSIS*

Country exposure

Company size

  Japan

18%

>$10bn

   4%

  China & Hong Kong

41%

$2bn-$10bn

        38%

  Taiwan

9%

<$2bn

        56%

South Korea

7%

Cash

  2%

India

7%



Singapore

2%



Philippines

5%



Thailand

3%



Australia

Cash

6%

2%

 



 

  Sector

PE ratio**

  Energy efficiency

38%

>20x

1%

  Renewable energy

9%

15-20x

30%

  Diversified environmental

11%

<15x

67%

  Waste management

14%

Cash

Average P/E ratio

2%

12.2x

  Pollution control

  Water infrastructure

  Cash

14%

  12%

2%

 

 

 

 

 

* of funds invested as of 30 June 2011

**Forward 12 months. Where analyst estimate not available historic figure used.

 

IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

MANAGER'S COMMENTARY (Q2 2011)

 

Market Review

Investor concerns over the end of quantitative easing and its effect on liquidity and Asian inflation, and the consequences of monetary policy trends in the Euro zone peripherals, persisted throughout the second quarter.

Global events such as the Fukushima disaster, political instability in the Middle East, and regional droughts and flooding have again increased government and investor attention on the environmental sector.  The renewable energy sector remains weak; reinforcing the importance of the fund's diversified environmental investment strategy.

Asian equities are likely to remain volatile in the near term, although concern over inflation is likely to have peaked and credit conditions are unlikely to further tighten. The long term investment story for Asian environmental markets remains compelling. 

Performance Review

Japanese stocks, including NSK (bearings) and Horiba (environmental & engine testing) performed well on recovering auto production. Late cyclical energy efficiency companies also performed well, with Daikin (energy efficient air conditioners, Japan) rising on solid company guidance. Yingde Gases (industrial gases, Hong Kong) gained on analyst upgrades.

Renewable energy companies China Longyuan (renewable IPP, China) and China High Speed (wind turbine gearboxes, Hong Kong) were weak as a result of ongoing regulatory uncertainty and overcapacity in both the wind and solar sectors (despite a sentiment rally following the Fukushima disaster in Japan). Selected building energy efficiency companies, principally LED related companies such as Seoul Semiconductor (LED packager, South Korea) and Epistar (LED manufacturer, Taiwan), suffered due to profitability erosion because of high inventory levels.

Policy Update

The aftermath of the Fukushima disaster persisted on the energy agenda, with positive implications for the renewable energy and energy efficiency sectors. For example, Japan cancelled plans to expand nuclear from 30 to 50% of the energy mix and Germany decided to close all nuclear plants by 2022. The long term outlook for renewable energy was additionally strengthened due to rising power prices and a renewed focus on energy security and oil alternatives with continued Middle East unrest.

Following the finalisation of the Chinese 12th Five Year Plan, which includes targets for investments of up to USD300mn in water conservation, a cut in energy consumption per unit of GDP by 16% and an additional 70GW of wind and 5GW of solar, China announced an additional investment of over 200bn Yuan in rural power grid upgrades and plans for new wastewater treatment and metal recycling plants.

Latest information available at: http://www.impax.co.uk/funds/listed-equity-funds/impax-asian-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

Q2 2011 - 14 July 2011


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