Impax Environmental Markets Trust Plc

Specialist

Rated Fund 2013-19. Benefits from global move to environmental protection

This trust’s objective is to enable investors to benefit from growth in the markets for cleaner and more efficient energy, water and waste services. Launched in 2002, it is run by Jon Forster and Bruce Jenkyn-Jones of specialist environmental markets manager Impax, a recognised expert in this field. When seeking investments, the managers look for companies with superior earnings growth trading at a reasonable valuation.

Most of their investments are in North America (44% at the end of 2018), but Europe (33%) and Asia (18%) are other areas of focus for their portfolio of 61 holdings. They point to rapid increases in population, an expanding middle class, increasing urbanisation and substantial infrastructure requirements driving strong growth opportunities in environmental companies in emerging markets, often at attractive valuations versus developed countries.

The duo has been seeking new opportunities and find India particularly interesting. In 2018 prime minister Narendra Modi indicated that India will remove all single-use plastics by 2022, in the boldest move yet to tackle plastic pollution.

With awareness of climate change and other environmental issues increasing, the managers have seen their investment universe expand – to around 1,100 companies compared to 250 in 1999. At the same time, they say that investor appetite for new technologies and companies that provide solutions to environmental challenges continues to rise.

Rowan Dartington, the wealth manager, uses this fund strategy amid what it sees as a global move to environmental protection. It seems other investors are catching on: the trust’s shares moved from a near 10% discount to a small single-digit premium during 2018.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Impax Environmental Markets Trust Plc
Manager
Impax Asset Management Group PLC
Type
Closed Ended Investment Company
ISIN
GB0031232498
Sector
Sector Specialist: Environmental
Launched
22/02/2002
OCF
1.04 %
Risk Rating
4
3 Year Sharpe
1.50
3 Year Alpha
4.90
Yield
1.1 %
Benchmark
FTSE ET100 NR USD
Fund Size
£ 557.22 million
NAV
299
Gearing
104
Discount Premium
1
The Company enables investors to benefit from rapid and sustained growth anticipated by the Directors in the markets for cleaner or more efficient delivery of basic services of energy, water and waste. Investments are predominantly in quoted companies which provide, utilise, implement or advise upon technology-based systems, products or services in environmental markets, particularly those of alternative energy and energy efficiency, water treatment and pollution control, and waste technology and resource management.
Holding %
Brambles Ltd 3.21 %
American Water Works Co Inc 2.42 %
Coway Co Ltd 2.40 %
EDP Renovaveis SA 2.40 %
PTC Inc 2.37 %
Ormat Technologies Inc 2.36 %
Advantech Co Ltd 2.31 %
Franklin Electric Co Inc 2.27 %
Trimble Inc 2.24 %
Smith (DS) PLC 2.19 %
Region %
United States 39.48 %
Eurozone 19.51 %
Asia - Emerging 11.97 %
United Kingdom 8.37 %
Europe - ex Euro 7.08 %
Sector %
Industrials 43.88 %
Technology 23.60 %
Utilities 13.41 %
Basic materials 10.97 %
Name
Impax Asset Management Group PLC
Address
SW1Y 4JR, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Bruce Jenkyn-Jones
Joined 02/22/2002

Mr. Jenkyn-Jones is the Managing Director of the Listed Equity team and oversees Impax's long-only investment strategies. Bruce is responsible for the development of the investment process, research and team development. He also has an active role in the day to day management of all Impax listed equity portfolios. Bruce joined Impax in 1999 where he worked initially on venture capital investments before developing the listed equity business.Before joining Impax, Mr. Jenkyn-Jones worked as a utilities analyst at Bankers Trust and as an environmental consultant.

Jon Forster
Joined 02/22/2002

Jon has worked at Impax since August 2000. He co-manages the Specialists strategy, which includes Impax's flagship fund, Impax Environmental Markets plc, alongside Bruce Jenkyn-Jones. Following graduation from Leeds University in Management Studies, Jon began his career in 1994, spending four years working on acquisitions at HSBC Investment Bank. Subsequently, he spent two years consulting venture capital investor Alchemy Partners, focusing on manufacturing and resource management companies.

Data provided by Morningstar.

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