Impax Environmental Markets

IEM’s portfolio is cheap, and its shares trade on a wide discount…

Impax Environmental Markets

The drivers for IEM’s portfolio have been reinforced by changing government, business and consumer support… PUBLIC EXCERPT

Impax Environmental Markets

IEM’s underlying drivers have been reinforced, yet its premium valuation has crumbled, offering a compelling opportunity...

You say tomato...

Do it yourself or put it into a global fund and leave it to the experts - our analyst debate the merits of each approach

Impax Environmental Markets

IEM’s very high premium has eroded, offering a potentially attractive entry point for long term investors

Holding back the tears

Was COP26 a success or failure? In many ways it is irrelevant. Alok Sharma may have been upset at the last-minute watering down of the final text of COP26. However, its success cannot be attributed to the choice of words settled on at the end. The COP26 conference final agreement is clearly important, but its legacy is likely to be so much more.

Gone with the wind

Over the course of the last 18 months the world has been battling a crippling pandemic, but thanks to the remarkably fast development of vaccines, the recovery is very much under way. However, a potential threat to this recovery is the alarming rise in energy costs which is being experienced by a number of countries. We would argue that this highlights that there will still be investment opportunities in fossil fuels over the next few years, as well as in the technologies allowing them to be use

Impax Environmental Markets - Overview

Impax Environmental Markets (IEM) is the standard bearer for sustainability-focussed trusts. For nearly two decades, it has offered exposure to mid- and small-cap companies exposed to the transition to a more sustainable economy. The last few years have seen what has historically been a niche area of investment finally become mainstream. IEM has ridden this wave of investor enthusiasm, reflected in both strong NAV performance relative to world equities, but also a discount giving way to a premiu

Green is good!

Policymakers have arguably kept their heads in the sand over the threat from global warming, but 2021 seemingly marked a watershed moment. Looking for ways to stimulate economies in the wake of the COVID-19 pandemic, policymakers have responded with the promise of an unprecedented influx of fiscal stimulus, one of the focuses of which is the sustainability of the infrastructure of developed economies. One of the largest investment opportunities appears to be in renewable energy, both via the con

Impax Environmental Markets - Overview

Impax Environmental Markets (IEM) offers exposure to mid- and small-cap companies the managers expect to profit from the transition to a more sustainable economy. The trust has performed very well relative to wider equity markets over the past five years – especially in share price terms. The managers have a disciplined investment process which they believe has helped them cope with the huge shifts in equity markets seen over the past 12 months. Impax are growth investors but have a strong valu

Eurovision 2021

Europe, despite its intention to put past crises to rest, may end up being a major economic flashpoint in 2021. With sudden developments in Italian politics, battles over vaccinations and bonds that guarantee a loss, investors may be forgiven for expecting the once benign region to be the next big source of volatility. Yet there is an equal argument for a European renaissance with pan-European stimulus, attractively valued equities and increasing demand for sustainable investing; the argument is

This time next year Rodney...

I once sat through a three-hour performance of Samuel Beckett’s Waiting for Godot at the Theatre Royal which, despite the best efforts of Ian McKellen and Patrick Stewart – both of whom I like very much – to this day remains one of the dreariest experiences of my life. It is on that note that we welcome 2021, with all the promise it holds, and return to our ‘top picks’ for 2020, a year which is probably best summarised (for those of us lucky enough to have been not directly impacted by the virus

My haven’t you grown!

Like childbirth, we think 2020 will be remembered for what it produced rather than the agony of the experience. Events have conspired that, rather than the sickly and unpopular child it once was, sustainability as an investment theme has become a thriving, healthy teenager which seems destined for great things (note the torturous lack of gender specifics in this sentence, another thing we can thank 2020 for). As with many trends that were already in progress at the start of 2020, the speed at w

Impax Environmental Markets - Overview

Having been one of the forerunners of the sustainable investment theme, Impax Environmental Markets (IEM) now finds itself in the epicentre of what we believe is strengthened secular growth post-COVID-19. The trust seeks to invest in companies which will profit from the transition to a more sustainable economy. An investment theme that seems likely to run for many years yet. As we discuss in Portfolio, IEM offers a specialist exposure to mid and small-cap companies around the world within four b

Nice guys finish first

ESG investing, Environmental, Social, and Governance respectively, is much in vogue and has ended up weaving its way into almost every manager’s investment thesis, though with varying degrees of genuine integration. In this article we shine light on where ESG originated from, how Kepler Trust Intelligence goes about analysing ESG, and examples of trusts which demonstrate both good ESG credentials but also the nuances of assessing ESG.

Morning Note – 22 April 2024

Benefits of scale set to materialise

Frenkel Topping - Resilient with strong growth potential

FY 2023 was a challenging year for Frenkel with higher interest rates encouraging clients to place money into lower margin money market funds. Despite this, sales grew +32% (supported by recurring revenue +9% and +51% in non-recurring), EBIT margins remained strong at 22% and adj. EPS grew +17% (taking into account the higher number of shares). FY 2024 has seen a solid start to transactional business and there is a strong pipeline of new FUM opportunities both of which support further growth. Wi

S&U - PBT ahead, encouraging volume trends

S&U reported FY24 PBT of £33.6m, down from £41.4m in FY23 on higher funding and regulatory costs and higher impairments in Advantage in H2. PBT was 2% ahead of our forecast as stronger revenues – up 12% to £115.4m – and better costs offset higher-than-expected impairments. Net receivables grew to a record at both Advantage and Aspen and management noted particular strength in Q4 and a good trading environment in the current year. Having absorbed a significant rise in funding cost as well as addi

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Foresight Solar Fund - Termination of coverage

Edison Investment Research is terminating coverage on ABC Arbitrage (ABCA), paragon (PGN), Foresight Solar Fund (FSFL), Kendrion (KENDR), Lithium Power International (LPI), Triple Point Energy Transition (TENT), 4iG (4IG), e-therapeutics (ETX), Pharnext (ALPHA) and Shield Therapeutics (STX). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant. Previously published reports can still be accessed via our web

LIBERUM: PayPoint: On track for £100m of EBITDA in FY 26

LIBERUM: Speedy Hire: Weakness in FY 24 but recovery in FY 25

Hybridan Small Cap Feast - 22 April 2024

22nd April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

Foxtons Group (FOXT LN) - 1Q24 IMS shows real momentum

Foxtons Group plc first quarter revenue rose 9% to £35.7m (1Q23: £32.9m) with growth delivered across all business segments. Trading is in line with management's expectations.

Morning Note – 29 February 2024

Jupiter Green

Hardman & Co Insight - Asset managers had a poor 2022

Asset managers had a poor 2022: the S&P Composite 1500 Asset Management Index was down 22% and, according to the Investment Company Institute (ICI), worldwide mutual funds fell by 20%, from $76tr to $60tr. When bond and equity markets fall, the results are unlikely to be pretty: with revenues trending down and multiples contracting, there is a double whammy to contend with. So how do valuations shape up now, after a bullish start to the new year? The first chart is my favourite chart of asset m