Impax US Sustainable Economy Fund’s Q4 2025 Investor Letter

Impax Asset Management‘s “Impax US Sustainable Economy Fund” released its Q4 2025 investor letter. The fund reported that equity markets remained volatile during the quarter amid concerns over elevated valuations and financing for large-scale data center investments, although the portfolio modestly outperformed the Russell 1000 benchmark on the back of sustainability tilts and stock-specific gains, particularly within Health Care and Financials. On an annual basis, the Fund’s Institutional Class delivered a total return of 16.00% in 2025, compared to 17.37% for the Russell 1000, reflecting the impact of sector allocation and company-level developments such as gains in pharmaceutical and payment processing holdings and weakness in certain Consumer Staples names. Management noted that performance was influenced more by changing market leadership than macroeconomic deterioration, while maintaining a cautiously optimistic outlook supported by falling interest rates, resilient corporate earnings, and continued investment in structurally advantaged businesses positioned to benefit from the transition toward a more sustainable economy. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

A copy of Impax Asset Management’s Impax US Sustainable Economy Fund Q4 2025 investor letter can be downloaded here.