environmental markets trust aims to raise £100m by investing in alternative energy concerns
Impax Asset Management is launching an investment trust aiming to take advantage of the rapid growth in environmental markets.
The Impax Environmental Markets Trust is to invest in alternative energy, energy efficiency, water treatment, pollution control, waste technologies and resource management.
The trust is aiming to pull in assets of £100m through an institutional placing beginning in early February. The group expects trading in the company's shares to begin on 8 February.
The trust is not being aimed at the retail market. However, it will carry a 1.5% annual management fee, a level associated with retail distribution, and an up-front fee of 1.5%.
The portfolio is to be run by Ian Simm and Bruce Jenkyn-Jones, managing director and investment director of Impax Asset Management respectively.
The trust has been formed to enable investors to benefit from rapid and sustained growth anticipated by the directors in the markets for cleaner or more efficient delivery of basic services, particularly energy, water and waste management.
This growth has been the result of three factors, according to Simm and Jenkyn-Jones.
These are market liberalisation, the falling costs of the technology-enabling companies in the sector and environmental policy, particularly at government and local authority levels.
So far, the group has identified more than 200 companies whose activities are wholly or mainly in environmental markets and whose shares are quoted on stock markets worldwide.
At 31 December 2001, these had an aggregate market cap in excess of $50bn. The majority are established, profitable and growth-orientated companies, according to Simm and Jenkyn-Jones.
Simm said: 'We believe environmental markets are set to be a key area of growth in the future. The company should benefit from the attractive valuations in the sector.'
Both managers have more than 20 years experience in environmental markets. They will employ a strict investment methodology to manage the portfolio.
Impax Asset Management is a subsidiary of the Aim-quoted Impax Group, which has provided financial advisory services to companies operating in environmental markets since 1994, giving the group an inside line on the sector.
Impax already advises an unnamed Danish bank on a similar fund that has outperformed the MSI World Index by 33% in the past two years, according to the group.
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