United StatesImpax believes strong investment outcomes can be generated by investors who better understand the opportunities and risks associated with the transition to a more sustainable economy. Our investment philosophy emphasises the identification and analysis of powerful secular forces – such as advancements in technology, changes in policy and regulation, and evolving social trends. These enduring and dynamic trends are not only reshaping the global economy, but are also accelerating the transition to a more sustainable economy, creating significant opportunities and challenges for investors.
Our fundamental research-driven approach to investing adds value by recognising these trends and cycles may follow non-linear paths. The combination of our proprietary knowledge and insights into the transition to a more sustainable economy – together with fundamental and macroeconomic research, quantitative insights, stewardship and engagement and a disciplined focus on valuation – comprehensively shapes our investment approach across asset classes. Recognising that each asset class has distinct characteristics, our philosophy is thoughtfully adapted to ensure our approach remains effective and relevant across the investment spectrum.
Equities
Within Equities, our investment philosophy is anchored in the conviction that a deep understanding of both opportunity and risk – as shaped by the transition to a more sustainable economy – is fundamental to delivering long-term value for our clients. We recognise that shorter-term focused capital markets often under-appreciate and misprice the investment opportunities arising from the transition to a more sustainable economy and associated structural trends. Our approach is to take a longer-term perspective to exploit these market inefficiencies by applying rigorous fundamental research and analysis to identify companies that are well-positioned to benefit from these dynamics, whilst maintaining discipline on security valuation, portfolio construction and risk management.
Fixed Income
Within Fixed Income, our investment philosophy is grounded in the belief that a disciplined, research-driven approach can deliver attractive outcomes across market cycles. Portfolios are carefully constructed incorporating top-down guidance from Impax’s Credit Strategy Group, which provides a rolling six-month outlook and incorporates views of the macroeconomic outlook, credit (business) cycle, key sector and credit market valuations/technicals.
Individual issuer and credit selection seeks to identify attractive investment opportunities and avoid losers. The Global Credit Research Platform serves as the centre of excellence for credit selection and follows the Impax Credit Prism approach. The Credit Prism approach combines insights from fundamental credit research, material sustainability risks, and quantitative analysis to offer a comprehensive, well-rounded perspective on credit.
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Latest Insights
Waste infrastructure and the circular economy
As the global economy shifts toward a more circular model, the often-overlooked infrastructure that collects, processes and recovers waste is becoming increasingly important.
Landfill methane: cutting emissions, capturing value
Research and satellite data, alongside direct engagement, can help investors understand which operators are navigating the regulatory risks associated with fugitive methane emissions and seizing the financial opportunities from monetising captured gas
‘Don’t trust the Fed’: will Warsh be the new Burns?
As markets test the new Federal Reserve Chair’s resolve amid persistent inflation, rising long-dated US Treasury yields are amplifying duration risks for credit investors
Solutions enhancing the economics of desalination
Desalination has an increasingly strategic role in meeting rising water demand and enhancing water resilience amid more widespread droughts
‘Refi’ meets AI: impacts for MBS investors
Prepayment risk is rising in mortgage-backed securities as AI starts to make refinancing easier, but protection can be sought in certain loan groups
Why value can never go out of style in high yield
Why we believe the fragmented global high yield market lends itself to fundamentals-driven, relative value-based approaches to investing