Impax offers green fund share class for institutions

The IFSL Impax Environmental Leaders fund (IEL), which launched in March to invest globally in green businesses, is now open to institutional investors seeking exposure to the ‘long-term secular growth characteristics’ of the environmental sector.

Ian Simm (pictured), chief executive of Impax Asset Management, said the new share class had been created to meet growing demand from institutional investors.

‘In the past few years we have seen an overwhelming increase in investor interest in companies developing environmental technologies and products, which continue to offer excellent growth prospects,’ he said.

The fund aims to provide long-term capital growth and income from investments in the three sub-sectors of alternative energy and energy efficiency, water treatment and pollution control, and waste technologies and resource management.

Both ‘pure play’ green businesses and larger companies with environmental divisions are eligible for inclusion, provided they are quoted on recognised stock exchanges. At least 20% of revenues or profits must come from, or 20% of capital must be invested in, the environmental sector, though Impax said many holdings will far exceed this requirement.

Simm jointly manages the fund with a team including Bruce Jenkyn-Jones and Simon Gottelier. Impax was founded to specialise in investing in cleaner energy, water and waste, and currently manages £1.2 billion of assets.

Investment Fund Services Limited (IFSL), a subsidiary of BNP Paribas, is a fund hosting service which enables asset managers to outsource administration and Ucits III compliance.

The institutional share class has an annual management charge of 1% with an initial charge of 5%. Minimum investment is £500,000.