United StatesLondon, 4 December 2023 – Impax Asset Management (“Impax”), the specialist asset manager investing in the transition to a more sustainable economy, today announced the launch of the Global Social Leaders Strategy (“the Strategy”).
The Global Social Leaders Strategy seeks to generate long-term capital growth by investing in businesses with strong corporate cultures that are responding to long-term, secular, social trends. These include aging populations, the increased incidence of chronic disease, rising income in emerging markets, urbanization, and the impact of transformational technology across financial markets.
Impax believes that the investment opportunity to back companies that are benefiting from these societal trends is being undervalued by the market. The Strategy will seek out companies that also exhibit innovative, equitable and inclusive cultures, reflecting Impax’s view that a strong corporate culture is a powerful indicator of a company’s ability to outperform.
The Strategy is co-managed by Charles French, Deputy Chief Investment Officer and Amber Fairbanks, Portfolio Manager, who use a quantitative framework to establish an investable universe, including indicators of strong corporate culture such as low employee turnover, gender-diverse leadership and inclusive business practices. Stocks must pass through Impax’s proprietary 10-Step analysis, a framework which requires in-depth fundamental and ESG research, before they are eligible for the portfolio.
The Strategy is available in the United States and will be available in Europe, subject to the approval from the Central Bank of Ireland. The Strategy will use the MSCI All Country World Index for comparative purposes.
Amber Fairbanks, Portfolio Manager, Impax Asset Management said: “Although the market typically ignores culture for more easily understood metrics, strong culture can drive earnings growth through innovation, increased productivity, better relationships with suppliers and customers, and higher employee retention. Impax is exceptionally well positioned to launch this strategy given our history in quantifying behavior to support alpha generation, and our focus on long-term secular trends underestimated by the market.”
Charles French, Deputy Chief Investment Officer, Impax Asset Management added: “The launch of the Global Social Leaders Strategy leverages Impax’s proven investment process, which draws on more than 25 years’ experience in thematic investing and quantitative behavioural assessments. By investing in the products and services that will be positively affected by long-term trends shaping society, we continue identify opportunities related to the transition to a more sustainable economy.”
In the United States, the strategy is also available as a Mutual Fund listed in the Institutional Class (IGSIX) and Investor Class (IGSLX).
The Strategy in Europe will be structured as Article 9 for the purposes of SFDR, and will be available in EUR, GBP, NOK, CHF and USD currencies.
About Impax Asset Management
Founded in 1998, Impax is a specialist asset manager, with approximately £37.4 billion/US $45.6 as at 30 September 2023 in both listed and private markets strategies, investing in the opportunities arising from the transition to a more sustainable global economy.
Impax believes that capital markets will be shaped profoundly by global sustainability challenges, including climate change, pollution and essential investments in human capital, infrastructure and resource efficiency. These trends will drive growth for well-positioned companies and create risks for those unable or unwilling to adapt.
The company seeks to invest in higher quality companies with strong business models that demonstrate sound management of risk. Impax offers a well-rounded suite of investment solutions spanning multiple asset classes seeking superior risk-adjusted returns over the medium to long term.
Impax has approximately 300 employees across its offices in the United Kingdom, the United States, Ireland, Hong Kong and Japan making it one of the investment management sector’s largest investment teams dedicated to sustainable development.
- Market risk: The Fund’s investments are subject to market fluctuations, so they can fall as well as rise in value.
- Currency risk: The Fund’s underlying currency is Sterling. Fluctuation in exchange rates may reduce investment gains or income and increase losses, both for the Fund’s investments in currencies other than Sterling or for your own investments in Sterling Share Classes.
- Emerging market risk: The Fund’s investments may be adversely affected by uncertainties such as international political developments, changes in government policies, changes in taxation, restrictions in foreign investment and the movement of money from one country to another, currency fluctuations and other developments in the laws and regulations of countries in which investments may be made.
- Derivative risk: The Fund may invest in warrants and convertible bonds (financial derivative instruments). These instruments have additional risks such as legal or liquidity risk (the inability to sell the contract due to lack of buyers in the market). These risks can have adverse impacts on the overall value of the Fund.
- Liquidity risk: Substantial selling by shareholders may necessitate the Investment Manager having to sell investments, incurring losses that would otherwise not have arisen.
- Investment risk: The Fund may invest in Participatory Notes (an instrument that is similar to owning shares) which may expose investors to losses where the issuer of the Participatory Note becomes insolvent or defaults on their obligations.
- Sustainability risk: Sustainability risks are environmental, social and governance events or conditions whose occurrence could have an actual or potential material negative impact on the value of the Fund and all known types of risk of the Fund.
General Risks
- Market Fluctuations: Potential investors should note that the investments of each Fund are subject to market fluctuations and that there can be no assurance that any appreciation in value will occur. The value of investments and the income from them, and therefore the value of, and income from the Shares, can go down as well as up and an investor may not get back the amount invested.
- Cross Liability between funds: The Company is established as a segregated portfolio company. As a matter of Irish law, the assets of one Fund will not be available to satisfy the liabilities of another. However, the Company is a single legal entity which may operate or have assets held on its behalf or be subject to claims in other jurisdictions which may not necessarily recognise such segregation. There is no guarantee that the courts of any jurisdiction outside Ireland will respect the limitations on liability associated with segregated portfolio companies nor is there any guarantee that the creditors of one Fund will not seek to enforce such Fund’s obligations against another Fund.
- Expenses Charged to Capital: Shareholders should note that all or part of expenses may be charged to the capital of a Fund in order to enhance distribution levels. This will have the effect of lowering the capital value of an investment in a Fund.
- Substantial repurchases: Taxation: Substantial repurchases by Shareholders may necessitate liquidation of investments. It is possible that losses may be incurred due to such liquidations that might otherwise not have arisen.
- Temporary suspension: Investors are reminded that in certain circumstances their right to redeem or convert Shares may be temporarily suspended.
- Dependence on the principals of the Investment Manager: The principals of the Investment Manager have authority to control the investment management of the Company. If, for any reason, the Investment Manager were to lose the services of these individuals, the Company might be adversely affected.
- Performance fee: Any Performance Fee paid to the Investment Manager may create an incentive for the Investment Manager to cause a Fund to make investments that are riskier or more speculative than would be the case if there was no Performance Fee in place.
- Political or regulatory risks: The value of a Fund’s assets may be affected by uncertainties such as international political developments, changes in government policies, changes in taxation, restrictions in foreign investment and currency repatriation, currency fluctuations and other developments in the laws and regulations of countries in which investments may be made.
- Controlling Shareholder: There is no restriction on the percentage of the Company’s Shares that may be owned by one person or a number of connected persons. It is possible, therefore, that one person, including a person or entity related to the Manager or the Investment Manager, may obtain control of the Company or of a Fund.
Impax Asset Management LLC is investment adviser to Impax Funds.
Impax Funds are distributed in the United States by Foreside Financial Services, LLC. Foreside Financial Services LLC is not affiliated with Impax Asset Management LLC or any distribution services outside of the United States.
You should always consider Impax Funds’ investment objectives, risks, and charges and expenses carefully before investing. For this and other important information, please download a fund prospectus. Please read it carefully before investing.
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