| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 180.77 | -56 |
| Intrinsic value (DCF) | 147.59 | -64 |
| Graham-Dodd Method | 2.82 | -99 |
| Graham Formula | 8.91 | -98 |
Impax Environmental Markets plc (IEM.L) is a UK-based closed-ended equity mutual fund managed by Impax Asset Management (AIFM) Limited, focusing on global environmental markets. The fund invests in public equities of companies engaged in technology-driven solutions for alternative energy, energy efficiency, water treatment, pollution control, waste technology, and resource management. With a diversified portfolio across market capitalizations, IEM.L employs fundamental analysis and benchmarks against the MSCI AC World Index and FTSE ET100 Index. Founded in 2002, the fund targets long-term growth by capitalizing on the increasing global demand for sustainable and environmentally friendly technologies. As part of the financial services sector, IEM.L plays a pivotal role in channeling investments toward companies driving the transition to a low-carbon economy, making it a key player in the ESG (Environmental, Social, and Governance) investment space.
Impax Environmental Markets plc offers exposure to the rapidly growing environmental technology sector, aligning with global sustainability trends. However, the fund reported a net loss of £20.6 million in its latest fiscal year, with negative revenue and diluted EPS of -7.92p, signaling potential volatility. The fund’s beta of 0.91 suggests moderate market correlation, but its niche focus on environmental markets may introduce sector-specific risks. A dividend of 5p per share provides some income appeal, but investors should weigh this against the fund’s recent financial performance. The absence of debt and a cash position of £13.4 million offer financial stability, but the fund’s success hinges on the growth trajectory of its underlying investments in the environmental sector.
Impax Environmental Markets plc differentiates itself by specializing in environmental technology and sustainability-focused equities, a niche within the broader asset management industry. Its competitive advantage lies in its targeted investment strategy, which capitalizes on regulatory tailwinds and increasing demand for green technologies. The fund’s benchmarking against the MSCI AC World Index and FTSE ET100 Index ensures a disciplined approach to portfolio construction. However, its narrow focus may limit diversification benefits compared to broader ESG or thematic funds. The fund’s performance is closely tied to the success of its underlying holdings, which operate in capital-intensive and sometimes volatile sectors like renewable energy and waste management. While its specialized expertise in environmental markets is a strength, it also exposes the fund to sector-specific risks, including policy changes and technological disruptions. Competitors with broader ESG mandates may offer more balanced risk-return profiles, but IEM.L’s concentrated strategy appeals to investors seeking pure-play exposure to environmental solutions.