Impax launches Environmental Leaders Fund
March 20 2008
Retail OEIC will focus on companies with solutions to global environmental problems
Impax Asset Management, the highly respected specialist
environmental fund manager, is launching a new OEIC focused on
'Environmental Leaders'.
The new IFSL Impax Environmental Leaders Fund, approved, authorised
and regulated by the FSA, is due to be launched on March 3rd 2008.
It will be available on Cofunds, the UK's largest independent
investment platform. Investment Fund Services Ltd (IFSL) will be
the fund's authorised corporate director.
It will draw on the success, experience and expertise of the Impax
team to provide superior long-term capital growth and income by
investing in companies developing products and services to mitigate
and solve some of the world's most pressing environmental
problems.
In particular the fund will focus on three key environmental
sub-sectors where Impax Asset Management has built up extensive
specialist knowledge and experience. These are:
• Alternative Energy and Energy Efficiency
• Water Treatment and Pollution Control
• Waste Technologies and Resource Management
Unlike current Impax funds which are predominantly focused on
the small cap sector, the new IFSL Impax Environmental Leaders Fund
will invest globally in quoted companies which have a market
capitalisation of at least US$500 million.
Ian Simm, CEO of Impax Asset Management said: "Environmental
investment is the most compelling secular growth story of the 21st
Century. It has moved firmly into the mainstream over the past few
years. The investment universe, previously the domain of small
technology start-ups, is now a rapidly developing area of the
global economy with spectacular growth prospects.
The new Environmental Leaders fund will invest in companies focused
on developing and offering products and services in the
environmental sector, including those establishing leading
environmental divisions to position themselves as major players in
the sector. Given the current volatility of markets, a greater
focus on larger companies is timely as it enables us to manage a
fund which is more flexible in its investment approach."
Russell Lancaster, Director of Fund Manager Relations at Cofunds
said: "We are delighted to welcome the IFSL Impax Environmental
Leaders fund to Cofunds. We have seen increased interest in the
environmental markets from our investors and this will give them
the best opportunity to take advantage of such a rapidly growing
sector."
Since the start of 2008, there has been a significant market
correction and concerns about economic slowdown. However, there
have also been several positive developments in the environmental
market, particularly:
• EU legislation proposals aimed at achieving 20% of
energy production from renewable sources, a 20% cut in greenhouse
gas emissions, and 20% increase in energy efficiency by 2020
• In the US, environmental issues are a prominent
battleground in the presidential campaign as key candidates from
both sides express their support for climate change policies and
support for renewable energy
• At the World Economic Forum in Davos, water issues
featured heavily, with a series of discussions aimed at addressing
the immense strain water resources are under as the world economy
continues to grow
The new IFSL Impax Environmental Leaders fund is designed to
capture the value in companies responding to these developments. It
will benefit from Impax's 10 year track record of managing funds
focused exclusively on the environmental sector, and the robust
Impax investment process, with its strong emphasis on
valuation.
About IFSL Impax Environmental Leaders
Fund:
Who will Manage the Fund?
The highly successful Impax
team, including Ian Simm, Bruce Jenkyn-Jones and Simon Gottelier
will manage the fund. The team has a strong 10 year track record of
managing funds focused exclusively on the environmental
sector.
Investment Fund Services Ltd (IFSL) will be the Fund's Authorised
Corporate Director. Therefore, the Fund will be listed as the IFSL
Impax Environmental Leaders Fund, but Impax Asset Management Ltd
will manage the underlying assets of the Fund in their role as
appointed Investment Adviser.
Fund Criteria:
The IFSL Impax Environmental
Leaders Fund will invest globally in companies quoted on recognised
stock exchanges which have a market capitalisation of at least
US$500 million. These companies must derive at least 20% of their
revenues or profits from, or have at least 20% of their capital
invested in, the environmental sector. However, many of the
companies in the portfolio will have a much larger proportion of
their revenue derived from the environmental sector.
For Investors:
The Fund is available via Cofunds
with a minimum investment of £1,000 and carries a 5% initial
charge and a 1.5% annual management charge.
Please see
www.cofunds.co.uk
For more information please see the Impax website:
www.impax.co.uk
About IFSL:
IFSL is a wholly owned subsidiary of BNP Paribas, one of the
world's largest banks by market capitalisation with a global reach
spanning 85 countries.
IFSL fund hosting service was launched by BNP Paribas in October
2007. IFSL enables advisors, wealth managers and asset managers to
launch their own UK-based funds quickly and efficiently by
leveraging BNP Paribas' experience in fund administration, retail
product administration and investor servicing through a
comprehensive range of existing services. IFSL provides the
infrastructure and staffing to ensure the regulatory,
administrative and oversight functions required under the European
directive (UCITS III) are covered.
The IFSL service supports asset managers who want to outsource
non-core investment activities in order to reduce their
administrative overheads. A fully outsourced model is available
that can lift out middle office and back office administration thus
allowing both smaller and larger managers to focus their businesses
on their clients and key competencies.
For further information, please email BNP Paribas Securities
Services at:
fundhost@bnpparibas.com
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