Impax Environmental Market PLC’s (LON:IEM) 18-year strong experience has helped the trust's team to hold their nerve in the volatile coronavirus pandemic conditions allowing it to rebound more strongly than the market, according to research house Kepler.
The investment trust, managed by Impax Asset Management PLC (LON:IPX), has benefited from market volatility to initiate positions in several new companies, which previously had valuations its team considered too rich, Kepler's analysts said in a research note.
However, the trust still suffered from the impact of the crisis, with underperformance due to small and mid-cap exposure as well as its presence in cyclical industries such as the automotive, underweight healthcare and the US dollar.
The FTSE 250-listed fund invests in ‘pure-play’ companies which derive at least half of their revenue from environmental products or services in green markets.
Over five years, its net asset value has delivered total returns of 82%, compared to 70.7% achieved by the MSCI All Country World Index.
“Performance has been strong both relative to both the wider equity market and the Global Investment Trust sector,” the analysts commented.
“The fundamental drivers which have underpinned this performance show no signs of slowing down, and this trust may appeal to long-term investors looking to add specialist expertise to their portfolios,” they concluded.
Impax Environmental shares were 1% higher at 325.25p on Friday at noon.