The end of the Magnificent Seven's reign may be a boon for this investing strategy

Sustainability investing is not new or novel. The first sustainable mutual fund was launched by two Methodist ministers in 1971 and remains investable. Today, sustainable investing strategies across equities, bonds, and private markets, are now a core part of many multi-faceted investment managers. Having said this, few firms have worked solely in this space over multiple decades and investment cycles. One of those firms is Impax Asset Management. 

Impax, a specialist asset manager aimed at finding investment opportunities in the global transition to a more sustainable economy, was set up in 1998. Its founder, Ian Simm, is still the CEO after 26 years. Its number two employee, Bruce Jenkyn-Jones, is the Co-Chief Investment Officer and was alone in that role for almost all of the firm's existence.

One other long-time employee is David Winborne. Winborne joined in September 2015 to establish the Impax Leaders Fund. Winborne now manages Impax's Global Opportunities and US Environmental Leaders strategies as well.

Managed Fund

Impax Sustainable Leaders Fund

Global Shares

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Managed Fund

Impax Global Opportunities Fund

Global Shares

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Winborne believes that the thing separating Impax from its rivals is not just its heritage but also its comprehensive framework for picking the best companies in the most profitable sub-sectors of the global energy transition theme.

 "We realised that a [traditional] revenue stream wasn't really feasible because there are 7,500 companies out there with a market cap of at least $1 billion. Instead, what we did was to develop a proprietary tool ... which ... aims to identify attractive sub-sectors within the market which we focus our investing energy on," Winborne said. 

"It won't give you all the answers but hopefully, it will give you attractive pools in which to fish," he added.

In this Fund in Focus, presented by Livewire's Eddie Orchard, Winborne argues why now is the right time to be allocating capital toward this classic (but controversial) investment theme, the key risks prospective investors should consider, and how their investors use Impax's funds in their investment strategy. The answer may surprise you!

Plus, Winborne shares an investment that he thinks is emblematic of the economic transition opportunity as well as some details on a recent sale the fund made.

Timecodes

• 0:00 - Intro
• 0:25 - Why is now the time to allocate capital toward sustainable investing?
• 1:09 - What makes Impax's approach different to its rivals?
• 2:19 - Tell us a little bit about the team managing Impax's funds.
• 4:00 - What are some of the risks prospective investors should consider?
• 5:32 - How do you narrow down your opportunity set?
• 7:20 - Tell us about a company that symbolises this opportunity.
• Stocks mentioned: Ashtead Group (LON: AHT)
• 10:00 - Tell us about a company you sold out of recently and why you did.
• Stocks mentioned: MSCI (NYSE: MSCI)
• 11:45 - Where do your funds tend to sit in a client's portfolio allocation?
• 12:29 - Where can Australian investors find more information about these funds?

Learn more

Impax invests in companies and assets that are well positioned to benefit from the shift to a more sustainable global economy. They seek higher quality companies with strong business models and governance that demonstrate sound management of risk. Visit their website to learn more. 

Managed Fund

Impax Global Opportunities Fund

Global Shares

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