3rd Apr 2025 09:57
(Alliance News) - Impax Environmental Markets PLC on Thursday urged shareholders to back the continuation of the company as it hiked its dividend but reported underperformance against its benchmarks in 2024.
The London-based environmental markets investment trust said its net asset value total return per ordinary share was negative 0.4% in 2024, compared to a 4.5% gain in 2023. The benchmark MSCI AC World index climbed 20% in 2024 while the benchmark FTSE ET100 index gained 17%.
IEM said its net asset value per share at the end of December 2024 was 427.6 pence, down 1.5% from 434.3p at the end of 2023.
The total dividend per share for 2024 was 5.0p, up 8.7% on the 4.6p paid out for 2023.
IEM shareholders will be able to vote on the continuation of the company as an investment trust at the annual general meeting in May, as they do every three years.
"The directors strongly recommend that shareholders vote in favour of the continuation resolution," said Chair Glen Suarez.
Net assets at the end of 2024 were GBP1.03 billion, down 16% from GBP1.22 billion at the end of 2023, which IEM said was due to the sale of positions to fund share buybacks.
IEM noted that 2024 brought "well-documented geopolitical and macroeconomic challenges, as well as a highly concentrated equity market".
"Nevertheless, the long-term investment case for environmental markets remains intact, irrespective of short-term policy development and political rhetoric," said Chair Glen Suarez.
"The board acknowledges IEM's short-term share price performance over the period, but we are encouraged that the underlying earnings of companies in our portfolio are growing faster than the benchmark and there is every reason to think that this trend will accelerate over the next decade and the current low valuation levels of companies in the environmental markets represent a huge investment opportunity and differentiated proposition from the MSCI ACWI."
IEM said a recent review of its "investment proposition and strategy" found that "the manager has a unique investment approach with substantial research depth and skill in this area of the market and, put simply, continues to be the right manager for the company".
Looking ahead, Suarez said: "I remain assured that the transition to a more sustainable economy, catalysed by climate change, will drive stock market returns in the years to come. Your company represents the ideal way to capitalise on one of the most significant and enduring themes of this century."
Shares in Impax Environmental Markets were down 2.3% to 345.80 pence in London on Thursday morning.
By Michael Hennessey, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Impax Asset Management