Impax Asset Management LLC, investment advisor to Pax World Funds, is launching a new fund focused on sustainable investments, Impax announced Monday.
The Pax Global Opportunities Fund (PXGOX) is the first new product offered since Pax World Management was acquired by Impax Asset Management Group plc last January. The new fund is sub-advised by Impax’s London affiliate, Impax Asset Management Ltd.
The Pax Global Opportunities Fund seeks to deliver capital growth by investing in companies positioned to benefit from the transition to a more sustainable global economy. Impax believes that demographic change, resource scarcity, inadequate infrastructure and environmental constraints will disrupt private sector markets profoundly in the coming years, creating opportunities for well-positioned companies and increased risk for companies unable or unwilling to adapt, Impax said.
The fund aims to identify and invest in companies that possess sustainable competitive advantages and track records of consistent returns on investment.
The investment managers intend to take a five-year view of a company’s prospects before investing, hold a concentrated portfolio of 35 to 45 companies, and run the fund with a low level of turnover, Impax said. The portfolio has broad geographic and sector exposure and is overweight to mid-cap companies relative to the MSCI ACWI benchmark. In addition to the U.S. mutual fund, Impax Asset Management Ltd. has begun offering the strategy to European institutional and wholesale investors.