Impax Environmental Markets Trust Plc

Specialist

Rated Fund 2013-20 Benefits from global move to environmental protection

This investment trust is a constituent of interactive investor’s ACE 30 list of rated ethical funds. It aims to enable investors to benefit from global demand for cleaner and more efficient energy, water and waste services. Launched in 2002, it is run by Jon Forster and Bruce Jenkyn-Jones at Impax Asset Management, a recognised expert in this field. When seeking investments, the managers look for companies with superior earnings growth trading at a reasonable valuations.

Most of their investments are in North America (41% at the end of 2019), but Europe (38%) and Asia (14%) are other areas of focus for the portfolio of around 60 holdings. The managers point to rapid increases in populations, the expansion of the middle class, increasing urbanisation and substantial infrastructure requirements as driving strong growth opportunities for environmental companies in emerging markets, which often trade at attractive valuations versus developed countries.

With awareness of climate change and other environmental issues increasing, the managers have seen their investment universe expand to around 1,100 companies, compared with 250 in 1999.

Canaccord Genuity Wealth Management sees this fund getting more publicity in 2020 as the world becomes increasingly focused on environmental risk.

Patrick Thomas, head of ESG investing, says: “The attraction with this fund is that it genuinely unearths smaller companies that are making business more environmentally friendly, and these companies tend to be heavily underrepresented in traditional benchmarks.”

The trust’s shares moved from a 10% discount in 2017 to a small premium in October 2018 and have almost always traded at a premium since.

Narrative and ratings content all as of 01 January 2020.

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
1.02 %
Risk Rating
5
3 Year Sharpe
0.67
3 Year Alpha
3.01
Yield
1 %
Benchmark
FTSE ET100 NR USD
Fund Size
£ 746.9 million
NAV
304
Gearing
102
Discount Premium
3
To enable investors to benefit from growth in the markets for cleaner or more efficient delivery of basic services of energy, water and waste. Investments are made 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 %
Rayonier Inc 2.79 %
PTC Inc 2.50 %
Spirax-Sarco Engineering PLC 2.40 %
Smith (DS) PLC 2.35 %
EDP Renovaveis SA 2.22 %
Pentair PLC 2.18 %
Advantech Co Ltd 2.18 %
Brambles Ltd 2.18 %
Clean Harbors Inc 2.16 %
Indraprastha Gas Ltd 2.12 %
Region %
United States 41.35 %
Eurozone 17.43 %
Europe - ex Euro 11.65 %
United Kingdom 9.92 %
Asia - Emerging 8.99 %
Sector %
Industrials 45.96 %
Technology 19.99 %
Utilities 13.10 %
Basic materials 8.32 %
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. Bruce Jenkyn-Jones is a Co-Portfolio Manager for the NEI Environmental Leaders Fund and is a Managing Director and Head of the Listed Equity team overseeing Impax's listed equity strategies. Mr. Jenkyn-Jones 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 and serves as co-Portfolio Manager for Impax's Specialists, Leaders, Water and Global Opportunities strategies. He joined Impax in 1999 where he worked initially on venture capital investments.

Jon Forster
Joined 02/22/2002

Jon co-manages the Specialists strategy with Bruce Jenkyn-Jones. He specialises in New Energy, Water and Waste Support Services. Jon researches stocks globally with a focus on the Industrials and Utilities sectors. Jon joined Impax in August 2000. He began his career working with both private and quoted companies in 1994. Following his graduation from university Jon spent four years working on acquisitions at HSBC Investment Bank. Subsequently, he spent two years as a consultant to venture capital investor Alchemy Partners with particular focus on manufacturing and resource management companies. Jon has a BSc in Management Studies from Leeds University.

Data provided by Morningstar.

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