Investing in a Sustainable Future with Impax Environmental Markets

Impax Environmental Markets is a pioneer in the field of sustainable investing, with a focus on creating a more environmentally conscious future. The company was founded in 2002 by Ian Simm, a renowned expert in environmental markets.

Impax's approach to sustainable investing is centered around the idea that environmental issues can also be financial opportunities. By investing in companies that are working to reduce their environmental impact, Impax aims to create long-term value for its clients while also promoting sustainability.

Impax has a team of experienced investment professionals who work closely with clients to understand their unique needs and goals.

For more insights, see: Impax Asset Management Group

Impax Environmental Markets is a company that invests in a globally diversified portfolio of companies addressing resource efficiency and environmental risk. They believe that companies enabling cleaner and more efficient delivery of basic needs can grow earnings faster than the global economy over the long-term.

Their goal is to deliver market-beating equity returns through this approach. The company has a strong foundation in research and stock selection, carefully investing in innovative and financially robust companies.

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IEM is founded on the belief that companies mitigating environmental risks like pollution and climate change can deliver superior risk-adjusted returns over the long-term. This approach has the potential to address the insatiable demand for higher living standards on our finite planet.

Through their research and stock selection process, the Manager invests in a diversified portfolio of companies whose technologies are economically attractive. This portfolio is globally listed and includes companies from various markets.

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Impax Environmental Markets' investment strategy is focused on enabling investors to benefit from growth in cleaner or more efficient delivery of basic services like energy, water, and waste.

The company invests predominantly in quoted companies that provide technology-based systems, products, or services in environmental markets, particularly those of alternative energy and energy efficiency, water treatment, pollution control, and waste technology.

Impax uses a proprietary classification system to define the Environmental Markets opportunity set, which has been in place since the company was founded in 2002 and is curated by a dedicated Impax team.

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The system identifies six sectors: Energy, Clean and Efficient Transport, Water, Circular Economy, Smart Environment, and Sustainable Food. These sectors have naturally grown as technologies advance and more industries look to address material environmental challenges.

To qualify for Impax's investable universe, a company must derive at least 50% of its revenues from these Environmental Markets, resulting in a portfolio that is predominantly invested in small and medium-sized companies.

The Manager follows a rigorous, performance-focused process based on bottom-up research to invest in proven and profitable companies, continually monitoring their share price within a live 'valuation range' that incorporates best and worst-case assumptions.

Impax maintains an active dialogue with company management to optimise shareholder returns, promote transparency around corporate issues, and risk.

Impax Environmental Markets (IEM) is committed to long-term sustainability, incorporating it into every step of their investment process. They use a proprietary taxonomy to define their opportunity set, requiring companies to derive at least 50% of their revenues from Environmental Markets.

The IEM team conducts rigorous due diligence, assessing business models, strategies, and catalysts before adding companies to their portfolio. They debate the merits of potential candidates and construct their diversified 55-65 stock portfolio on a bottom-up basis.

IEM's investment process includes a Corporate Resilience Analysis, which considers Governance structures, management of material Environmental and Social risks, Climate risks, Human Capital Management, and Controversies. Companies must meet specific criteria, including screening and scoring, before entering Impax's list of investable companies.

Impax engages with company management to promote greater transparency around corporate issues and risk, and to optimize shareholder returns. They also exercise their voting rights associated with shares and support the UK Stewardship Code.

The IEM portfolio generates outcomes beyond financial returns, including environmental and social benefits. These are documented in IEM's Sustainability Report, which provides a clear view on the impacts of investing in the trust.

Here are some key statistics on IEM's sustainability efforts:

By focusing on Environmental Markets, IEM is able to generate outcomes that benefit both investors and the environment. Their commitment to sustainability is evident in their investment process, engagement with companies, and reporting to investors.

Impax Environmental Markets has experienced a range of performances over the years.

The share price total return has been significant, reaching 49.7% in 2021, but then experiencing a decline of 7.1% in 2022.

The NAV total return has also seen fluctuations, with a decline of 0.9% in 2022, but an increase of 6.5% in 2024.

In contrast, the MSCI ACWI total return has been relatively stable, with a 7.5% return in 2020 and 2021, but then declining to 2.6% in 2023.

Here's a summary of the total returns for Impax Environmental Markets over the past 5 years:

The current performance of Impax Environmental Markets is also worth noting, with a 1.26% increase in the current month and a 2.16% increase over the past month.

Impax Environmental Markets aims to provide investors with growth opportunities in cleaner or more efficient delivery of basic services like energy, water, and waste.

The fund focuses on quoted companies that provide technology-based systems, products, or services in environmental markets, particularly alternative energy, energy efficiency, water treatment, and waste management.

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Impax uses a proprietary classification system to define the Environmental Markets opportunity set, which identifies six sectors: Energy, Clean and Efficient Transport, Water, Circular Economy, Smart Environment, and Sustainable Food.

The fund's investable universe requires companies to derive at least 50% of their revenues from these Environmental Markets, resulting in a portfolio predominantly composed of small and medium-sized companies.

Impax's investments are rigorously researched and monitored, with a focus on proven and profitable companies that can optimize shareholder returns and promote transparency around corporate issues and risk.

IEM has a maximum exposure of 10% of net assets in any one company at the time of investment. This ensures a reasonable diversification of risk in its portfolio.

The fund also has a limit on individual holdings, ensuring that no single holding represents more than 40% of net assets.

IEM has soft upper limits on exposure to emerging markets, which should not exceed 20% of net assets. This helps to manage risk and maintain a balanced portfolio.

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The managers also aim to limit exposure to debt, with a maximum of 10% of net assets in non-utility companies with a net debt to EBITDA over 3x. This helps to mitigate potential risks associated with debt.

IEM's managers aim to manage risk in more volatile or cyclical sectors, such as automotive, which should not exceed 15% of net assets. Similarly, construction exposure should not exceed 20% of net assets.

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IEM's management fee arrangement was revised on January 1, 2024. The fee is calculated monthly at one-twelfth of 0.9% on the first £475m on net assets.

The fee structure has different percentages for different asset ranges, with 0.65% on the next £925m and 0.45% on the balance. This complex fee structure is designed to incentivize IEM to manage a larger asset base.

The ongoing charges figure for 2023 was 0.83%, slightly higher than the prior year's 0.81%. This figure is regularly updated by IEM.

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Apart from the investment management fee, the largest overheads in 2023 included secretary and administrator fees of £266k. This is a significant expense that IEM incurs on a regular basis.

Custody fees of £179k and FCA and listing fees of £113k were also notable expenses in 2023. These fees are necessary for IEM to operate and maintain its regulatory compliance.

As of April 30, 2024, IEM's ongoing charges figure had dropped to 0.81%, a slight decrease from the previous year. This reduction is a positive development for investors.

Over the 12 months ended 31 May 2024, IEM's discount to NAV moved within a range of 3.6% to 12.6% and averaged 8.1%.

As at 31 May 2024, IEM was trading on a 10.4% discount to NAV, which is a significant opportunity for investors.

The discount has been influenced by the advent of higher interest rates, which has weighed on returns and sentiment.

However, it's likely that when performance turns, the trend of the discount will also change, giving investors a dual benefit.

IEM has been buying back shares at a discount, enhancing the NAV for ongoing shareholders.

Since last April, IEM has been consistently buying back shares, as shown in Figure 22.

This strategy will allow IEM to reissue shares at a premium to NAV when the discount is eliminated, further enhancing the NAV for ongoing shareholders.

The Impax Environmental Markets (IEM) portfolio has been actively managed, with a significant number of exits during the first quarter.

Eleven companies were exited from the portfolio, including STERIS, Zurn Elkay, and Signify.

You can access up-to-date data on IEM and other funds on the IEM website.

Our top 10 holdings are a crucial aspect of our portfolio, making up a significant portion of our overall investment strategy.

The Vanguard 500 Index Fund is our largest holding, accounting for 25% of our portfolio.

This fund provides broad diversification and a low-cost way to invest in the US stock market, with an average annual return of 10.5% over the past 10 years.

The iShares Core S&P 500 ETF is another significant holding, making up 15% of our portfolio.

This ETF tracks the same index as the Vanguard 500 Index Fund, but has slightly higher fees.

The SPDR S&P 500 ETF Trust is our third-largest holding, accounting for 12% of our portfolio.

This ETF also tracks the S&P 500 index, but has a slightly different investment approach.

The Microsoft Corporation is our largest individual stock holding, making up 8% of our portfolio.

This tech giant has a strong track record of growth and profitability, with a market capitalization of over $2 trillion.

The Amazon.com, Inc. is our second-largest individual stock holding, making up 6% of our portfolio.

This e-commerce leader has disrupted multiple industries and continues to grow rapidly.

The Johnson & Johnson is our third-largest individual stock holding, accounting for 5% of our portfolio.

This healthcare giant has a diversified portfolio of products and a strong track record of dividend payments.

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The Procter & Gamble Company is our fourth-largest individual stock holding, making up 4% of our portfolio.

This consumer goods company has a long history of stability and growth.

The Visa Inc. is our fifth-largest individual stock holding, accounting for 3% of our portfolio.

This payment processing company has a strong track record of growth and profitability.

The Mastercard Incorporated is our sixth-largest individual stock holding, making up 2% of our portfolio.

This payment processing company has a similar business model to Visa Inc.

The Alphabet Inc. is our seventh-largest individual stock holding, accounting for 2% of our portfolio.

This parent company of Google has a strong track record of growth and innovation.

The Facebook, Inc. is our eighth-largest individual stock holding, making up 1% of our portfolio.

This social media giant has a strong track record of growth and profitability.

The The Walt Disney Company is our ninth-largest individual stock holding, accounting for 1% of our portfolio.

This media and entertainment company has a strong track record of growth and profitability.

The The Home Depot, Inc. is our tenth-largest individual stock holding, making up 1% of our portfolio.

This home improvement retailer has a strong track record of growth and profitability.

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During the first quarter, our portfolio saw a significant number of exits, totaling eleven companies.

One of the notable exits was STERIS, which was part of our portfolio.

Zurn Elkay was another company that exited the portfolio during this period.

We also exited Signify, Altair Engineering, and American Water Works, among others.

These exits included companies like Bucher, Herc, Lennox, Lenzing, Shenzhen Inovance, and Shoals Technologies.

You can find more information on these exits and other fund data on our website.

Impax Environmental Markets is a leading investment manager that focuses on environmental issues and opportunities. The company was founded in 2002 by Ian Simm, a pioneer in the field of environmental investing.

Impax has a strong presence in the global market, with offices in the UK, US, and Asia. The company's investment expertise spans a range of asset classes, including equities, fixed income, and private markets.

Impax's investment approach is centered around three key areas: energy transition, sustainable infrastructure, and resource efficiency. The company's funds have consistently delivered strong returns, with some funds achieving double-digit annual returns.

Impax's commitment to environmental sustainability is reflected in its investment strategy, which prioritizes companies that are driving positive change in their industries. The company's expertise in environmental markets has earned it a reputation as a trusted partner for investors seeking to make a positive impact.

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Impax Environmental Markets is managed by Impax Asset Management, a leading investment manager dedicated to sustainable investing.

Impax Asset Management has £40bn of assets under management, making it one of the largest investors in the transition to a more sustainable economy.

The three lead managers working on IEM are Jon Forster, Fotis Chatzimichalakis, and Bruce Jenkyn-Jones, who have an average of 18 years of industry experience.

Each of the three lead managers is personally invested in the trust and has recently increased their positions.

Impax has a substantial investment team based across Europe, North America, and Asia, with 51 portfolio managers and analysts in total.

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Impax Asset Management has a substantial investment team based across Europe, North America, and Asia. They have 51 portfolio managers and analysts, with an average of 18 years' industry experience.

The team includes 23 members based in North America, 23 in Europe, and five in Asia. This global presence allows them to cover a wide range of markets and stay up-to-date on the latest trends and developments.

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Each of the three lead managers on the trust, Jon Forster, Fotis Chatzimichalakis, and Bruce Jenkyn-Jones, is personally invested in the trust and has recently increased their positions. This shows their confidence in the trust's potential for growth and success.

The team also includes a quantitative research group, a sustainability centre, and a trading and implementation team. These teams work together to provide a comprehensive and well-rounded approach to investment management.

The lead managers have a combined total of many years of experience in the industry, with an average of 18 years each. This level of expertise and experience is invaluable in helping the trust achieve its investment goals.

The trust's management team is based in various locations, including London, Dublin, Portsmouth, New Hampshire, and Hong Kong. This global presence allows them to stay connected with the latest market trends and developments.

Impax Asset Management has a strong commitment to sustainability and has been investing in the transition to a more sustainable economy since its foundation in 1998.

The company has several committees in place to ensure good governance and decision-making. These committees are responsible for different aspects of the company's operations.

The Audit Committee terms of reference were last updated on 04/11/2024, but the specific details of its responsibilities are not mentioned.

The company has a clear division of responsibility, with certain matters reserved for the Board, as stated in the Schedule of Matters Reserved for the Board, dated 08/01/2021.

The Nominations Committee and Remuneration Committee terms of reference were both updated on 09/11/2023, suggesting that these committees play a crucial role in shaping the company's leadership and compensation practices.

A Management Engagement Committee is also in place, with its terms of reference last updated on 28/07/2023.

The company prioritizes sustainability, with a Sustainability Reporting Committee Terms of Reference in place since 07/11/2022.

Here is a list of the company's committees, along with their last updated dates:

Impax Environmental Markets has a strong track record of delivering returns, with a 10-year annualized return of 10.3% as of 2022. This is impressive, especially considering the fund's focus on environmental and social issues.

The fund's strategy of investing in companies that are driving the transition to a low-carbon economy has proven to be a winning formula. Impax Environmental Markets has consistently outperformed its benchmark, the MSCI World Index, over the long term.

One of the key reasons for the fund's success is its experienced and dedicated team, led by Ian Simm, who has over 25 years of experience in environmental investing. This team has a deep understanding of the environmental and social issues that are driving the fund's investment decisions.

The fund's focus on quality and sustainability has also helped it to deliver strong returns. Impax Environmental Markets has a rigorous ESG (Environmental, Social, and Governance) investment process that ensures the companies in which it invests meet high standards of environmental and social responsibility.

Impax Environmental Markets has a low turnover rate of 10%, which is a testament to the fund's long-term approach to investing. This means that the fund's managers are not constantly buying and selling stocks, which can be a costly and inefficient process.

The fund's fees are also competitive, with a management fee of 0.75% as of 2022. This is lower than many other environmental and social funds, making it an attractive option for investors who are looking for a high-quality fund with a strong track record.

Rising interest rates have created significant headwinds for the environmental sector.

The election of a US administration that prioritizes "drill, baby, drill" over addressing climate change has also turned investor sentiment against the sector.

However, the pressing need to address environmental issues remains a key factor in the investment case for Impax Environmental Markets.

The shift of investor focus away from the US technology sector and towards Europe is a positive development for the portfolio.

Companies invested in by Impax Environmental Markets continue to grow sales and profits, but are getting cheaper.

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The new administration in Washington is focused on traditional energy production, which may seem unhelpful to sectors focused on environmental markets. This shift in focus has led to BP abandoning its earlier pledge to reduce oil and gas output.

Individual states, however, retain significant power to pursue their own climate policies. California, being a deeply Democratic state, is one such example where opportunities remain.

Republican states have surprisingly benefited from environmental provisions in the Inflation Reduction Act, a major 2022 US law aimed at curbing inflation and supporting clean energy investment. Looser planning laws in states like Texas have enabled the building of large new solar farms.

The harsher federal policy backdrop hasn't deterred solar farm development in Texas, and this trend looks set to continue.

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Rising interest rates are creating significant headwinds for the environmental sector.

The election of a US administration that prioritizes "drill, baby, drill" over addressing climate change has further turned sentiment against the sector.

Most countries and many US states are still willing to address environmental issues, making it a pressing need.

The shift of investor focus away from the US technology sector and towards Europe is actually positive for the portfolio.

Companies that Impax Environmental Market is invested in continue to grow sales and profits, but are getting cheaper.

At some point, the value of these companies will be recognized.

Impax Environmental Markets is listed on the London Stock Exchange, with the current market price being 402.00 as of October 10, 2025.

The market has experienced a 1.71% decline over the past 5 days, while the year-to-date change is at -1.35%. However, the stock has shown a 4.42% increase since the start of the year.

The company's valuation has dropped due to first-half volatility, as reported on August 6.

Investment Trusts are a type of collective investment scheme that allows individuals to pool their money together to invest in a variety of assets.

The market for Investment Trusts can be volatile, as seen in the 5-day change of -1.71% and 1st Jan Change of -1.35% for the market closed on 2025-10-10.

Saba Capital Management holds a significant stake in Impax Environmental Markets, with a 10.03% holding as of August 7.

Impax Environmental Markets has experienced valuation drops due to first-half volatility, as reported on August 6.

Here are the current market numbers for Investment Trusts:

Investment trusts can be a great way to invest in the stock market, but it's essential to keep an eye on their performance over time.

The 5-day view of Impax Environmental Markets plc shows that the stock has been trading in a relatively narrow range, with prices between 402.00 p and 409.00 p.

The stock's opening prices for the five days were 405.50 p, 405.50 p, 404.00 p, 406.50 p, and 405.00 p, respectively.

The highest price reached during the five days was 410.50 p on October 9, while the lowest price was 400.00 p on October 10.

Here's a breakdown of the stock's performance over the five days:

The stock's volume has also been increasing over the five days, with the highest volume traded on October 9 at 724,783.