Retail OEIC will focus on companies with solutions to global environmental problems

Impax Asset Management, the highly respected specialist environmental fund manager, is launching a new OEIC focused on 'Environmental Leaders'.

The new IFSL Impax Environmental Leaders Fund, approved, authorised and regulated by the FSA, is due to be launched on March 3rd 2008. It will be available on Cofunds, the UK's largest independent investment platform. Investment Fund Services Ltd (IFSL) will be the fund's authorised corporate director.

It will draw on the success, experience and expertise of the Impax team to provide superior long-term capital growth and income by investing in companies developing products and services to mitigate and solve some of the world's most pressing environmental problems.

In particular the fund will focus on three key environmental sub-sectors where Impax Asset Management has built up extensive specialist knowledge and experience. These are:

• Alternative Energy and Energy Efficiency
• Water Treatment and Pollution Control
• Waste Technologies and Resource Management

Unlike current Impax funds which are predominantly focused on the small cap sector, the new IFSL Impax Environmental Leaders Fund will invest globally in quoted companies which have a market capitalisation of at least US$500 million.

Ian Simm, CEO of Impax Asset Management said: "Environmental investment is the most compelling secular growth story of the 21st Century. It has moved firmly into the mainstream over the past few years. The investment universe, previously the domain of small technology start-ups, is now a rapidly developing area of the global economy with spectacular growth prospects.

The new Environmental Leaders fund will invest in companies focused on developing and offering products and services in the environmental sector, including those establishing leading environmental divisions to position themselves as major players in the sector. Given the current volatility of markets, a greater focus on larger companies is timely as it enables us to manage a fund which is more flexible in its investment approach."

Russell Lancaster, Director of Fund Manager Relations at Cofunds said: "We are delighted to welcome the IFSL Impax Environmental Leaders fund to Cofunds. We have seen increased interest in the environmental markets from our investors and this will give them the best opportunity to take advantage of such a rapidly growing sector."

Since the start of 2008, there has been a significant market correction and concerns about economic slowdown. However, there have also been several positive developments in the environmental market, particularly:

• EU legislation proposals aimed at achieving 20% of energy production from renewable sources, a 20% cut in greenhouse gas emissions, and 20% increase in energy efficiency by 2020
• In the US, environmental issues are a prominent battleground in the presidential campaign as key candidates from both sides express their support for climate change policies and support for renewable energy
• At the World Economic Forum in Davos, water issues featured heavily, with a series of discussions aimed at addressing the immense strain water resources are under as the world economy continues to grow

The new IFSL Impax Environmental Leaders fund is designed to capture the value in companies responding to these developments. It will benefit from Impax's 10 year track record of managing funds focused exclusively on the environmental sector, and the robust Impax investment process, with its strong emphasis on valuation.