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Impax Asian Env Mkt (IAEM)

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Thursday 15 September, 2011

Impax Asian Env Mkt

Performance at month end

RNS Number : 3364O
Impax Asian Environmental Mkts Plc
15 September 2011
 



IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

 

All information is at 31 August 2011 (unless otherwise stated) and unaudited.

 

DATA AND PERFORMANCE

Pricing


 

Diluted NAV (pence)

98.89

 

Undiluted NAV (pence)

98.89

 

Share price (pence)

89.13

 

Premium/ (discount) (%)

(9.87)

 

Data


Total fund size (NAV) ( m)

228.0

Market capitalisation (m)

191.62

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 %

-11.9

-7.7

-14.7

-10.5

3 months %

-16.6

-9.1

-16.6

-4.9

YTD

-26.3

-10.1

-20.6

-11.0

1 year

-13.5

+6.2

-4.2

+8.1

Since launch

+0.9

+15.5

+8.4

+10.3

 

 

 

 

 

 

 

 

 

 

 

* 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

4.1

 

Yingde Gases

Industrial gases

Hong Kong

3.8

 

China Longyuan

Renewable IPP

China

3.8

 

Horiba

Environmental & engine testing

Japan

3.8

 

SFA Engineering

OLED equipment manufacturer

South Korea

3.7

 

Campbell Brothers

Environmental testing

Australia

3.6

 

China Metal Recycling

Metal recycling

Hong Kong

3.4

 

Daiseki

Hazardous waste management

Japan

3.2

 

Rinnai Corp

Efficiency water heaters

Japan

2.8

 

Manila Water

Water supply utility

Philippines

2.6

 

TOTAL



34.8

 

 

PORTFOLIO ANALYSIS*

Country exposure

Company size

  Japan

19%

>$5bn

14%

  China & Hong Kong

39%

$1-5bn

52%

  Taiwan

8%

<$1bn

31%

South Korea

7%

Cash

3%

India

7%



Singapore

2%



Philippines

6%



Thailand

3%



Australia

Cash

6%

3%

 



 

  Sector

PE ratio**

  Energy efficiency

33%

>20x

2%

  Renewable energy

11%

15-20x

23%

  Diversified environmental

10%

<15x

72%

  Waste management

15%

Cash

Average P/E ratio

3%

10.3x

Pollution control

  Water infrastructure

  Cash

15%

  13%

3%

 

 

 

 

 

* of funds invested as of 31 August 2011

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

 

IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

MANAGER'S COMMENTARY (31 August 2011)

Market Review:

Following a difficult July, the equity markets saw their slide steepen sharply in August before stabilising towards the end of the period. The main reasons lying behind this performance were continued doubts about the state of European public finances and the fears of a recession in the United States, both of which may give rise to a slowdown in global growth. This has been reflected in our more defensive approach to portfolio management, with an increased exposure to business models with better earnings visibility and companies with long term contract businesses. We have continued to reduce our holdings in companies with high earnings sensitivity to economic growth, those with exposure to uncertainties in global construction markets, and those with high levels of indebtedness.

Performance:

Further clarification of the details of the Chinese 12th Five Year Plan provided positive sentiment in relation to offshore wind and solar. Companies announcing good results, notably China Longyuan (renewable IPP, China) and ENN Energy (natural gas distribution, China) were amongst the best performers.  Daiseki (hazardous waste management, Japan) rose due to its defensive characteristics and immunity from the impact of a strong Yen.


Weak performance came from China Automation Group (industrial and rail automation) and China ITS (transportation management solution) following weak H1 results due to a slow-down in the rail sector. Falling margins as a result of weaker than expected glass pricing impacted Xinyi Glass (energy efficient glass, Hong Kong), while Boer Power (electrical distribution systems, China) fell as increased competition caused the exit of a business division and subsequent poor H1 results.

Policy Update:

China continued its support for renewables by announcing a national feed-in-tariff for solar projects, and plans to eliminate incandescent bulbs from general lighting by 2016 in order to push forward the implementation of energy efficiency lighting. China also announced spending targets of US$70m for waste water and municipal solid waste treatment during the 12th Five Year Plan, with the expectation of investment from the central government, local government and private sector.

 

Japan approved a bill to subsidize electricity from renewable sources, targeting 28 gigawatts of solar by 2020. Effective from 1 July 2012, the bill continues Japan's shift away from nuclear power following the Fukushima disaster.

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

15 September 2011


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