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LONDON (Alliance News) - Impax Environment Markets PLC Friday said its net asset value per share fell in line with expectations during the last quarter, but says it will remains cautious on the medium-term prospects for equity markets.
During the three months ended September 30, the company's net asset value fell by 4.5% per share. This is line with the FTSE Environmental Technology 100 Index of environmental sub-sector stocks, which fell 4.4% during the period, said Impax.
At the end of the period, the net gearing of the company amounted to 7.1% of net asset value.
During the period, Impax added a new US water utility company to its portfolio and exited from three others.
"Equity markets saw increased volatility during the period, with pronounced weakness in September. Concerns about the resilience of global growth were the main driver, fed by deteriorating macroeconomic data globally, reduced confidence in the size and shape of European Central Bank intervention and a more cautious tone from the Federal Open Market Committee in the United States," it said in a statement.
Ongoing military and political tension in Russia, Ukraine and the Middle East also reduced risk appetite, it added.
Looking forward, Impax believes the global economy will continue to expand, but remains cautious on the medium-term prospects for equity markets.
"Despite recent negative sentiment, the manager [Impax] believes that central banks have the tools necessary to avert another financial crisis and that the global economy will continue to expand... Instability in Ukraine and the Middle East keeps energy security high on the political agenda, while the momentum behind international climate change policy negotiations continues to build," it said.
Impax shares were up 0.5% to 146.50 pence per share Friday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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