About
Investment Objective
The investment objective of Impax Environmental Markets plc is to enable investors to benefit from growth in the markets for cleaner or more efficient delivery of basic services of energy, water and waste.
Investments are made predominantly in quoted companies which provide, utilise, implement or advise upon technology-based systems, products or services in environmental markets, particularly those of alternative energy and energy efficiency, water treatment and pollution control, and waste technology and resource management (which includes sustainable food, agriculture and forestry).
Investment Approach
The portfolio managers use a proprietary classification system to define the Environmental Markets opportunity set. This approach has been in place since IEM was founded in 2002 and is curated by a dedicated Impax team.
As of today, the system identifies six sectors: Energy, Clean and Efficient Transport, Water, Circular Economy, Smart Environment and Sustainable Food. The range of activities and companies included included has naturally grown as technologies advance and more industries look to address material environmental challenges.
To qualify for IEM’s investable universe, a company must derive at least 50% of its revenues from these Environmental Markets. As a result, IEM’s investments are predominantly in small and medium-sized companies, which tend to focus their business models on fewer activities.
The Manager then follows a rigorous, performance-focused process based on bottom-up research to invest in proven and profitable companies. The breadth of the Environmental Markets opportunity set enables Impax to create a diversified portfolio spanning traditional sectors. Once a company is purchased, its share price is continually monitored within the context of a live ‘valuation range’ which incorporates best and worst-case assumptions.
The Manager also maintains an active dialogue with company management. Doing so is central to optimising shareholder returns, helping to promote greater transparency around corporate issues and risk. Engagement outcomes, company valuations, as well as portfolio risk metrics and the macro-outlook, all inform buy and sell decisions.
Sustainability
IEM is focused on the long-term sustainability of its investee companies. This consideration is incorporated into every step of the Manager’s investment process.
Idea Generation: Impax, as Manager, uses a proprietary taxonomy to define its opportunity set and requires companies to derive at least 50% of its revenues from Environmental Markets.The range of activities and companies included has naturally grown as technologies advance and more industries look to address material environmental challenges. This approach has been in place since IEM was founded in 2002 and is curated by a dedicated Impax team.
Fundamental Analysis: Corporate Resilience Analysis is fully integrated into the Manager’s investment process, and is the responsibility of the investment team. This considers Governance structures, the management of material Environmental and Social risks, Climate risks (Physical and Transition), Human Capital Management, and Controversies. All companies must meet specific criteria (including screening and scoring) before entering Impax’s list of investable companies.
Portfolio Construction: Insights gained from Corporate Resilience Analysis help establish priorities for company engagement. An active dialogue with company management is central to optimising shareholder returns, helping to promote greater transparency around corporate issues and risk. Engagement outcomes, company valuations, as well as portfolio risk metrics and the macro-outlook, all inform buy and sell decisions. Impax views proxy voting as a key activity in this ongoing dialogue. Impax is committed to ensuring the consistent exercise of voting rights associated with shares and supports the UK Stewardship Code.
Portfolio Management: By focusing on Environmental Markets, the portfolio generates outcomes beyond financial returns. These are documented in IEM’s Sustainability Report.
In addition, IEM holds the “Sustainability Impact” label, within the FCA’s Sustainability Disclosure Requirements. The label reflects the fact that the Manager applies an investment process which derives, as a function of its workings, a range of clear impacts. Shareholders should not doubt that the business of investment for long term financial returns is IEM’s clear priority . However, the Sustainability Impact label offers shareholders a clear view on what they are supporting when they invest.
Team
Sanjeev Lakhani
Portfolio Manager
Sanjeev Lakhani
Portfolio Manager
Sanjeev Lakhani is a co-Portfolio Manager of the Impax Climate and Specialists strategies. He is also responsible for ideas generation, fundamental research and thought leadership for Impax’s Thematic and Lens strategies with a primary focus on Industrials.
Before joining Impax in 2023, Sanjeev was previously an assistant portfolio manager at Highclere International Investors, where he also worked as an investment analyst covering Industrials and Utilities. Before that, Sanjeev was an Investment Manager at Janus Henderson Investors.. Sanjeev started his career at PwC where he worked in corporate finance and qualified as a chartered accountant (ACA).
Sanjeev holds a BSc in Economics from the London School of Economics. He is a CFA Charterholder and a member of the ICAEW.
Fotis Chatzimichalakis
Portfolio Manager
Fotis Chatzimichalakis
Portfolio Manager
Fotis is a member of Impax Asset Management’s portfolio management team, where he researches stocks globally, focusing on the information technology and industrials sectors.
Fotis originally joined Impax as an intern in 2015, initially working in the listed equities team. He has held his current role since 2021. Prior to joining the firm, he had an internship at Barchester Green Investment.
A CFA Charterholder, Fotis also holds the Investment Management Certificate. He has master’s degree in Civil Engineering from the National Technical University of Athens and a master’s degree in Sustainable Energy Systems from the University of Edinburgh.
Matt Carter
Head of UK Intermediary Distribution, Client Group
Matt Carter
Head of UK Intermediary Distribution, Client Group
Matt leads the UK Intermediary Distribution team at Impax Asset Management, responsible for asset raising across the UK Wholesale channel.
He joined Impax from Sarasin & Partners, where he was responsible for the distribution of thematic funds and outsourced investment solutions to financial intermediaries. He started his career at EY and spent the majority of his early years at UBS Asset Management.
Matt studied BSc International Business at Loughborough University and holds the Investment Management Certificate and Sustainable Investing Certificate with the CFA institute.
Thomas Morris Brown
Portfolio Specialist
Thomas Morris Brown
Portfolio Specialist
Thomas Morris Brown serves as a Portfolio Specialist for the Europe and APAC distribution team, working closely with the portfolio managers and analysts on covered strategies. This includes Impax’s Specialist strategy and investment trust, Impax Environmental Markets plc. Tom joined Impax in 2023.
Tom has over eleven years’ experience, having previously worked at Allianz Global Investors. There he covered the company’s flagship SRI equity strategy, its largest fundamental equity strategy, UK equity products, as well as the Brunner and Merchants investment trusts.
Tom started his career at the communications agency Fishburn Hedges, where he was part of the Financial and Corporate team. Specialising in media strategy, Tom worked with clients across the financial industry before joining the Global Communications team at AllianzGI in 2015. Tom has a degree in English Language and Literature, an MA in Broadcast Journalism and a Post Graduate Diploma in Finance. He also holds the IMC designation and is fluent in Italian and Spanish.
Advisor Information
Corporate Broker
Company Secretary
Auditor
150 Aldersgate Street
London
EC1A 4AB
Depositary
10 Harewood Avenue
London
EC2R 6PA
Registrar
Committees
Managed by Impax
IEM plc is managed by Impax Asset Management, a leading investment manager wholly dedicated to investing in the transition to a more sustainable economy.
IMPORTANT INFORMATION – IEM plc Risks
This marketing communication does not include sufficient detail to enable the recipient to make an informed decision. Please refer to the KID and latest Annual Report which set out the investment objective, policy, maximum leverage and principal risk factors faced by the Company.
The value of an investment in the Company, and any income derived from it, may fluctuate and can go down as well as up depending on a number of factors.
The main factors likely to affect future returns from an investment in the Company include:
Changes in general economic and market conditions such as currency exchange rates, interest rates, rates of inflation, industry conditions, tax laws, political events, policy development, technological change and any other factors that may cause price movements, volatility or illiquidity in the market generally.
Fluctuations in the value of the Company’s underlying investments, particularly those investments in companies with small capitalisations and/or unlisted securities, which are likely to be subject to higher valuation uncertainties and liquidity risks than companies with larger capitalisations and other securities listed or traded on a regulated market.
Events or conditions impacting the Company’s investments in companies operating in environmental markets, such as governments altering the regulatory and financial support for environmental improvement, costs of technology not falling or increasing, reduced or deferred capital spending by customers or products or services not being adopted. Increased risks arising from borrowing by the Company. If investment markets fall in value, any borrowing will enhance the level of loss.
Shares of the Company may trade at a discount or a premium to Net Asset Value for variety of reasons including market sentiment and market conditions. On a sale you could realise less than the Net Asset Value and less than you initially invested.
Other risks arising from events which are outside of the Company’s control, such as the Covid-19 pandemic and the conflict in Ukraine.