Performance at month end (6520V)

TIDMIAEM TIDMIAES

RNS Number : 6520V

Impax Asian Environmental Mkts Plc

16 January 2012

IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

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

DATA AND PERFORMANCE

 
 Pricing 
 Diluted NAV (pence)        n/a 
 Undiluted NAV (pence)      87.47 
 Share price (pence)        73.63 
 Premium/ (discount) (%)    (15.82) 
 Gross gearing ratio        1.137 
 Net gearing ratio          1.127 
 Data 
 Total fund size (NAV) 
  ( m)                                 212.2 
 Market capitalisation 
  (m)                                  156.9 
 Management fee (%)                      1.0 
 Established                  23(rd) October 
                                        2009 
 Fund structure                   Investment 
                                       Trust 
 Exchange                             London 
 Currency                                GBP 
 ISIN Number                GB00B4M5KX38 
 Sedol                               B4M5KX3 
 Bloomberg code                      IAEM LN 
 
 
 
 Performance     IAEM Net        MSCI AC         FTSE EO         FTSE EO 
  (GBP)           Asset Value*    Asia Pacific    Asia Pacific    Japan** 
                                  (ex Japan)      (ex Japan)** 
                                  ** 
 1 month %       -1.8            +1.2            +2.2            -1.5 
 3 months %      +0.8            +4.6            +4.5            -2.7 
 YTD             -34.8           -15.0           -28.3           -13.5 
 1 year          -34.8           -15.0           -28.3           -13.5 
 Since launch    -10.7           +9.1            -3.6            +4.7 
 

* 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$40m)

** Total return. Source: FactSet, WM Reuters

TOP TEN HOLDINGS

 
 Company                  Description                    Country        Holding 
                                                                         % 
 Yingde Gases             Industrial gases               Hong Kong          3.9 
 ENN Energy               Natural gas distribution       China              3.8 
 SFA Engineering          OLED equipment manufacturer    South Korea        3.8 
 China Longyuan           Renewable IPP                  China              3.7 
 Campbell Brothers        Environmental testing          Australia          3.3 
 Rinnai Corp              Efficient water heaters        Japan              3.3 
 China Metal Recycling    Metal recycling                Hong Kong          3.1 
 Manila Water             Water supply utility           Philippines        2.8 
                          Environmental and 
 Horiba                    engine testing                Japan              2.8 
 Delta Electronics        Power electronics              Taiwan             2.8 
 TOTAL                                                                     33.3 
 

PORTFOLIO ANALYSIS*

 
 Country exposure       Company size 
  Japan           19%   >$5bn      17% 
  China & Hong 
   Kong           40%   $1-5bn     46% 
  Taiwan          9%    <$1bn      34% 
 South Korea      7%    Cash       3% 
 India            6% 
 Singapore        1% 
 Philippines      7% 
 Thailand         3% 
 Australia        5% 
  Cash             3% 
 
 
  Sector                               PE ratio** 
  Renewable energy              13%    >20x             3% 
  Energy efficiency             36%    15-20x           5% 
  Diversified environmental     6%     <15x            88% 
  Waste management              14%    Cash             3% 
 Pollution control             15%     Other            1% 
                                        Average P/E 
   Water infrastructure          13%     ratio         10.1x 
   Cash                         3% 
 
  * of funds invested as of 31 December 2011 
 **Forward 12 months. Where analyst estimate 
  not available historic figure used. 
 

IMPAX ASIAN ENVIRONMENTAL MARKETS PLC

MANAGER'S COMMENTARY (Q4 2011)

Market Review Peaking Asian inflation and positive policy momentum drove positive areas of performance, with areas of weakness resulting from on-going concerns about reduced growth expectations. Inconsistent, but generally positive macroeconomic data in the US, including an improving employment outlook, better than expected housing market data and encouraging retail data led a number of names, particularly higher beta, industrial and power network efficiency companies, to outperform. Performance Summary Stocks reporting good results, including Campbell Brothers (environmental testing, Australia), and China Metal Recycling (Hong Kong) performed well. China Metal Recycling and Xinyi Glass (energy efficient glass, Hong Kong) additionally benefitted from a stabilisation in commodity prices. The lingering EU sovereign debt crisis, weakness in technology and electronics demand, and oversupply in wind and solar equipment detracted from performance. Daiseki (hazardous waste management, Japan) lost ground as the strong Yen, global slowdown and auto sector supply chain disruption (following the floods in Thailand) eroded positive Japanese industrial production momentum. Rinnai (efficient water heaters, Japan) narrowly missed earnings expectations due to earthquake related supply chain disruptions and weakness in a US subsidiary. Policy Update Delegates at the COP-17 climate summit in Durban agreed a global climate deal (to be finalised in 2015 and to come into force by 2020) to reduce greenhouse gases in all countries. The Kyoto Protocol was extended to 2017 and a new $100bn Green Climate Fund to assist developing countries in climate change adaptation was approved. China announced it is looking to implement a renewable energy quota system in the first half of 2012 that will require grid operators and power generation companies to carry and produce a certain amount of renewable energy. China also further revised its solar power development target for 2015 by 50%, to reach 15GW.

 
 Latest information available at: 
 http://www.impaxam.com/listed-equity/listed-equity-investment-strategies/asia-pacific 
 
 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.impaxam.com/investor-relations/environmental-social-governance-issues 
 

16 January 2012

This information is provided by RNS

The company news service from the London Stock Exchange

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