IFSL Impax Environmental Leaders Fund celebrates first anniversary
March 11 2009
Impax Asset Management ("Impax"), the investment manager focused exclusively on the environmental markets sector, has announced that its All Cap fund, the IFSL Impax Environmental Leaders Fund ("IEL"), has published its first full year performance results today.
Since launch, the IEL has outperformed the MSCI World Index by 1.2% and the FTSE Environmental Opportunities All Share Index, the definitive benchmark for the environmental industries sector, by 3.2%. Some of the greatest points of outperformance were during the most volatile periods experienced. In December 2008 IEL outperformed the MSCI World Index by 4.05% and in January 2009 by 4.5%. This was helped by the larger, more liquid names in the IEL portfolio.
IEL, a UK Open Ended Investment Company ("OEIC"), designed for retail and institutional investors was launched in March 2008. It focuses on three key environmental sub-sectors: alternative energy and energy efficiency; water treatment and pollution control and waste technologies and resource management. IEL invests in medium to large cap companies focused on developing products and services in the environmental sector, including those establishing environmental divisions.
Ian Simm, CEO of Impax said: "IEL was launched last year to reflect the changing nature of environmental markets. Big business has woken up to the potential of this sector and we have seen a surge in the number of companies developing environmental divisions, products and services. The size of these companies means they can achieve economies of scale, apply relatively low cost of capital and deliver strong earnings growth. This isn't a passing trend but long term thinking as companies react to a combination of strengthening environmental policy, increasing scarcity of fossil fuels and heightened climate change awareness."
"Historically, Impax has focused on the small cap sector because that was where the high growth prospects were. With IEL, we have broadened our scope to include larger companies, as they become significant investors in, and developers of, new environmental businesses. This wider perspective allows us to manage a fund that is well diversified, flexible in its investment approach and offers excellent growth potential for investors."
IEL invests globally in quoted companies 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.
To support investors and provide a credible benchmark for the environmental sector the FTSE Group ("FTSE"), (the global index company) and Impax launched the FTSE Environmental Opportunities All Share Index in June 2008.
The index measures more than 450 companies and covers alternative energy and energy efficiency, water treatment and pollution control and waste technologies and resource management companies. It provides an investible and transparent measure of the performance of the global environmental technology sector and is available for investors to use as the basis of structured products, ETFs and index funds.
During the last 12 months there has been a series of positive developments in the environmental sector:
- In the UK the Government passed the Climate Change Act ("CCA") and the Energy Act and established a dedicated Department of Energy and Climate Change (DECC). The CCA has committed to reduce greenhouse gas ("GHG") emissions by at least 80% by 2050.
- The European Council reached an agreement on the EU Commission's climate change package and has committed to a 20% reduction in GHG by 2020 and 20% of electricity to come from renewables by the same date.
- In the US, President Obama signed the American Recovery and Reinvestment Act, allocating circa $80 billion to green initiatives including the introduction of $20 billion in green tax incentives. Obama's "New Green Deal" also committed to invest $150 billion over ten years into environmental products and services and to reduce greenhouse gas emissions to 1990 levels by 2020 and then by an additional 80% by 2050.
About IFSL Impax Environmental Leaders Fund:
Who manages the Fund?
Ian Simm, CEO at Impax; Bruce Jenkyn Jones, Managing Director of Listed Equities and Simon Gottelier, Investment Manager manage the fund. The Impax team has a strong 11 year track record of managing funds focused exclusively on the environmental sector.
What is the Fund Criteria?
The Fund invests 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.
How can I invest in the Fund?
Individual investors: Via an advisor or through the Hargreaves Lansdown Vantage fund supermarket.
Independent financial advisors: Via Co-funds and Transact.
Institutional investors: Via the Fund's Authorised Corporate Director, IFSL.
What is the minimum investment?
£1,000 minimum investment for individual investors £50,000 minimum investment for institutional investors
What are the charges?
There is no initial charge to invest through Co-funds or Hargreaves Lansdown. The Fund carries a 1.5% annual management charge.
About Impax Group plc:
Impax Group plc ("Impax"), is quoted on the Alternative Investment Market of the London Stock Exchange and was founded in 1994 as a specialist finance house focusing on the markets for cleaner or more efficient delivery of basic services of energy, water and waste.
Impax's dedicated team of professionals, with many years of experience in the financial and environmental sectors, is ideally placed to understand and take advantage of the investment opportunities arising from the fast growing environmental markets. Impax Asset Management (the trading entity of Impax Group) manages assets for institutional and private investors, across a range of listed and private equity funds.
For further information please visit: www.impax.co.uk
About IFSL:
Investment Fund Services Ltd ("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 enables advisors, wealth managers and asset managers to launch their own UK-based funds quickly and efficiently by leveraging BNP Paribas' experience through a comprehensive range of existing services.
IFSL is the Fund's Authorised Corporate Director. Therefore, the Fund is listed as the IFSL Impax Environmental Leaders Fund, but Impax Asset Management Ltd manages the underlying assets of the Fund in their role as appointed Investment Adviser.
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Carbon International Samantha Hill samantha.hill@carboninternational.com +44 (0)20 7483 7205 |
Carbon International David Hopkins david.hopkins@carboninternational.com +44 (0)20 7483 7202 |
