Impax Asian Environmental Mkts Plc Interim Management Statement (9897E)
17 Maggio 2013 - 10:23AM
UK Regulatory
TIDMIAEM TIDMIAES
RNS Number : 9897E
Impax Asian Environmental Mkts Plc
17 May 2013
Impax Asian Environmental Markets Plc (the "Company")
Interim Management Statement
For the three months ended 31 March 2013
This interim management statement covers the period from 1
January 2013 to 31 March 2013 (the "Period"), and is prepared in
accordance with the UK Listing Authority's Disclosure and
Transparency Rule 4.3.
Investment Objective
The Company's investment objective is to generate long-term
capital growth through investment in a diverse portfolio of
companies in the markets for cleaner or more efficient delivery of
basic services of energy, water and waste in the Asia-Pacific
Region.
Performance
During the Period, the Company outperformed all its comparative
indices. The Company's undiluted NAV per Ordinary Share (excluding
current year net revenue) rose by 15.9% from 94.1p to 109.1p while
the MSCI AC Asia Pacific ex-Japan Index and the FTSE Environmental
Opportunities Asia Pacific ex-Japan Index rose by 9.2% and 12.6%
respectively and the FTSE Environmental Opportunities Japan Index
and the Composite Index(1) rose by 15.7% and 13.2% respectively
(total returns in pounds sterling).
Asian equity markets rallied in the Period, supported by
anticipation of further growth following the smooth leadership
transition in China. Global markets were encouraged by the
continued recovery in the US, particularly the increase in
construction activity. In Japan the Yen continued to weaken
following the change in Government in December and the subsequent
announcement of a 2% inflation target.
Many environmental sectors gained favour with investors during
the Period with a recovery in performance from renewable energy,
Light Emitting Diodes ("LEDs") and industrial automation. The water
and pollution control sectors continued to re-rate, driven by
strong underlying growth and new project wins, underpinned by
government support. During the Period, Japan launched its generous
solar Feed-in-Tariff and announced plans to increase the renewable
energy target to 10% by 2030 from the current level of 1%.
As at 15 May 2013the Company's undiluted NAV per Ordinary Share
(excluding current year net revenue) was 111.3p.
(1) Calculated by Impax Asset Management Limited and consisting
of 80% FTSE Environmental Opportunities Asia Pacific (ex-Japan) and
20% FTSE Environmental Opportunities Japan Indices
Gearing
During the Period, the Company continued to operate with a loan
of US$40m. On 17 April 2013, the Company announced that it would
not be renewing its loan facility which was due to expire on 28
April 2013. The US$40m loan was repaid in full on 26 April
2013.
Discount
Over the Period, the IAEM Ordinary Share price traded at an
average discount to net asset value of 14% and stood at 10% at the
Period end. The Board bought back 1,330,000 Ordinary Shares in the
Period to be held in treasury. The discount to net asset value as
at 15 May 2013 was 7%.
Portfolio Activity
During the Period, the Company added two new holdings to its
portfolio and sold out of one position. The five largest holdings
as at 31 March 2013 are set out below.
Company Activity Country of listing Portfolio
weighting
ENN Energy Natural gas distribution China 4.2%
Solar and energy efficient
Xinyi Glass glass China 3.7%
Efficient electronic
Murata components Japan 3.3%
Manila Water Water Utility Philippines 3.2%
Delta Electronics Efficient Power electronics Taiwan 3.1%
Strategy Outlook
Economic data has stabilised across the region and there are
early indications of a modest rise in earnings expectations.
Monetary policy is generally supportive and inflationary pressures
are acceptable. In China the leadership and government transition
has been smooth and early developments are encouraging with
increased commitments to infrastructure development and
urbanisation. The pollution issues in China are also highlighting
the urgency of environmental policy development and more stringent
targets. In Japan the government has announced significant
quantitative easing, targeting 2% inflation, rising asset prices
and weakening Yen. We expect this to be positive, particularly for
export-oriented energy efficiency companies.
It is encouraging to see strong earnings growth and we believe
that Asian environmental markets should continue to re-rate over
the next 12 months as earnings deliver against expectations.
Reconstruction Proposals
On 28 March 2013, the Company announced that the Board had been
informed by its brokers, Canaccord Genuity, that shareholders
representing in aggregate almost half of the Company's issued share
capital were potential sellers of their stakes in the current
market and that given the quantum of shares involved, the Board
would be considering the most appropriate course of action for the
Company to take to address this situation.
Following a subsequent change in ownership of nearly half of its
Ordinary Shares, on 1 May 2013 the Company announced that having
canvassed the opinions of its largest Ordinary Shareholders, and
following a review of all the options available, the Board had
determined that the most appropriate course of action would be to
wind up the Company and offer Ordinary Shareholders the choice of
rolling over all or part of their investment into Impax Asian
Environmental Markets (Ireland) Fund, a sub-fund of an open-ended
investment entity managed by Impax Asset Management with a broadly
identical investment policy to that of the Company, or realising
all or part of their investment for cash.
A circular setting out full terms of the proposals will be sent
to shareholders in due course.
It is anticipated that at least half of the Company's assets
will be held in cash or near cash assets by the time of the first
general meeting of Shareholders to be convened in connection with
the proposals (expected to be in early July). The Board has also
asked the Company's Investment Manager to begin to realize the less
liquid stocks in the Company's portfolio in an orderly fashion.
The interim management statement will be made available on the
Manager's website www.impaxam.com
17 May 2013
This information is provided by RNS
The company news service from the London Stock Exchange
END
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