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What is Sustainable Allocation? A balancing act in turbulent times

By Steve Falci, CFA® Anthony Trzcinka, CFA® Andrew Braun
5 January 2023

After a challenging year for both equities and bonds, have traditional approaches to asset allocation had their day?

We ask Steve Falci, Head of Systematic & Multi-Asset Strategies at Impax, for his insight on sustainable multiasset investing that stands the test of time. He outlines his conviction in this approach, where he perceives opportunities for active portfolio management and for diversification.

Steve is joined by Senior Portfolio Managers Tony Trzcinka and Andy Braun, who discuss how they use portfolio construction and disciplined review processes to help investors navigate challenging market conditions.

Our long-term convictions:

  • We believe the fundamental rationale for a multi-asset approach remains intact, with vigilance around risk management and a focus on additional sources of diversification and return
  • We believe having the transition to a more sustainable economic model embedded in the structure and holdings of our underlying portfolios can drive better long-term risk-adjusted returns as that transition accelerates
  • We believe a ‘core-satellite’ approach to asset allocation can add diversification and potential upside to a balanced portfolio, within investors’ risk tolerances
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Steve Falci, CFA®

Head of Systematic & Multi-Asset Strategies, Co-Head Quantitative Research Group

Steve co-heads the Quantitative Research Group, whose focus is risk advisory, data insights, and systematic portfolio management. Prior to shifting his focus to leading Systematic Equities and Multi-Asset Strategies, Steve was CIO at Impax Asset Management, LLC, the North American arm of Impax.

Before joining Impax in 2014, Steve was Head of Strategy Development for sustainable investments at Kleinwort Benson Investors. He was also Chief Investment Officer for equities at Calvert Group, and Principal and Senior Portfolio Manager at Mellon Equity Associates. He currently serves on the board of directors at Friends Forever International and at Mercy Investment Services.

A CFA® charterholder, Steve also has an MBA from the Stern School of Business, New York University, a master’s degree from Pittsburgh Theological Seminary, and a bachelor’s degree in economics from New York University.

Authored Insights

Anthony Trzcinka, CFA®

Senior Portfolio Manager, North America

Anthony is the Portfolio Manager for the Impax Core Bond strategy and is also a member of the Multi-Asset Sustainable Allocation team. Tony has been running impact bond products for almost two decades has overseen multiple strategies since joining Impax in 2003.

Prior to working at Impax, Tony spent three years as an Assistant Vice President at AEW Capital Management, a $90 billion Boston-based asset manager where he focused on analysis of public and private debt.

Tony is a CFA® charterholder and a member of the CFA Society Boston. He has an MBA from Northeastern University and a bachelor’s degree from the University of Massachusetts Amherst.

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Additional Insights

Andrew Braun, Pax World Funds

Andrew Braun

Senior Portfolio Manager

Andrew is a co-Portfolio Manager of the Impax US Large Cap strategy and is also a member of the Multi-Asset Sustainable Allocation team. He has held this role since 2017.

Before joining Impax, Andrew served as Managing Director for the value equity team at Goldman Sachs Asset Management. He began at the firm in 1993, first as a product development associate before progressing to Portfolio Manager and co-Chief Investment Officer, leading a team of 30 portfolio managers and analysts. Prior to Goldman Sachs, Andrew served in the corporate finance division of Dillon, Read & Co as a financial analyst.

A Harvard University graduate with a bachelor’s degree in economics, Andrew also has a master’s degree in business administration in finance and economics from New York University’s Stern School of Business.

Authored Insights

Asset TV’s 2023 Outlook Masterclass features Impax Portfolio Manager

In Asset TV’s 2023 Outlook Masterclass, Impax Portfolio Manager Andy Braun notes the themes that he believes will shape capital markets in the year ahead – and the risks and opportunities investors should be aware of related to the transition to a more sustainable economy.

9 February 2023
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