Impax Sustainable Allocation Fund Investment Overview

The Impax Sustainable Allocation Fund is a unique investment option that offers a blend of sustainability and diversification. It aims to generate long-term returns while also promoting environmental and social responsibility.

The fund invests in a mix of sustainable and conventional assets, with a focus on environmental and social themes. This approach allows investors to benefit from the growth potential of sustainable investments while also spreading risk.

Investors can choose from a range of asset classes, including equities, bonds, and alternative investments. The fund's diversified portfolio helps to reduce risk and increase potential returns over the long term.

By investing in the Impax Sustainable Allocation Fund, investors can support companies that are working towards a more sustainable future. This aligns with the growing trend of socially responsible investing and can provide a sense of fulfillment alongside potential financial returns.

The Impax Sustainable Allocation Fund has a rich history, with its inception dating back to January 3, 1994.

The fund is part of the Pax World family, a well-established and reputable investment firm.

Its shares are denominated in USD and are domiciled in the US, making it accessible to a global investor base.

Here are some key details about the fund:

The fund has a single manager, Anthony Trzcinka, who oversees its operations and investment strategy.

The Impax Sustainable Allocation Fund is designed to deliver strong returns while also promoting environmental and social sustainability.

The fund's performance is impressive, with a 5-year annualised return of 12.4% as of December 2022.

This return is particularly noteworthy given the fund's focus on sustainable investing, which can sometimes come with higher costs and lower returns.

The fund's benchmark is the MSCI ACWI ESG Enhanced Index, which it has consistently outperformed over the past 5 years.

In fact, the fund has beaten its benchmark by an average of 2.3% per annum over this period.

The Impax Sustainable Allocation Fund has various fees and expenses that you should be aware of. The expense ratio is a key metric to consider, and it measures how much of the fund's assets are used for administrative expenses and operating expenses.

The Impax Sustainable Allocation Instl expense ratio is 0.67%, which is 34% lower than its category average. This makes the fund's expense ratio grade a B. High annual expense ratios can reduce your rate of return, so it's essential to compare fund expense ratios against category averages.

Here's a breakdown of the fund's fees and expenses:

The fund also has a management fee of 0.05%, which is below the category average. The 12b-1 fee is 0.25%, which is within the category's range. The administrative fee is not applicable (N/A) in this case.

The Impax Sustainable Allocation Fund has a strong focus on ESG and sustainability.

The fund's overall impact rating considers material causes across all ESG categories, including Environment, Social, and Governance.

The fund's investment strategy is designed to achieve lower volatility by combining complementary investment approaches.

These approaches include investing in equity and debt securities, with a target allocation of 50-75% in equity securities and 25-50% in debt securities.

The fund's ESG strategy is guided by the principles of materiality, which means that the fund considers the impact of its investments on causes that are material to the energy industry, such as Climate Action and Sustainable Resource Use.

The Impax Sustainable Allocation Instl fund has received some mixed grades over the years. Year to date, the fund has returned 1.9%, 0.5 percentage points worse than the category, translating into a grade of F.

The fund has returned 9.3% over the past year, also earning a grade of F. Over the past three years, the fund has returned 2.9%, again earning a grade of F.

However, the fund has shown some improvement in the long term. Over the past five years, the fund has returned 7.0% per year, earning a grade of C. Over the past 10 years, the fund has returned 7.2% per year, also earning a grade of C.

Here's a summary of the fund's grades over the past few years:

It's worth noting that the fund's performance has varied significantly over the years, with returns ranging from -16.2% in 2022 to 21.2% in 2019.

Peter Schwab is a seasoned professional in the field of sustainable investing, bringing over two decades of experience to his role as SVP and Portfolio Manager of the Impax High Yield Bond Strategy at Impax Asset Management LLC.

He has held various positions of increasing responsibility, including Managing Director on the High Yield Bond and Loan Team at Goldman Sachs Asset Management.

Peter joined Goldman Sachs Asset Management as a Senior Sector Analyst in 2000, and was later promoted to Director of High Yield Research in 2010.

As a member of the portfolio management team of the Impax Sustainable Allocation Strategy, Peter is well-positioned to provide expertise in sustainable investing.

ESG ratings consider the impact of a company's activities on the environment, society, and governance. These ratings assess the impact on causes that are "material" to a company's industry.

For example, the energy industry has a larger impact on causes like Climate Action and Sustainable Resource Use than many other industries. Companies in this industry are therefore held to a higher standard in these areas.

ESG ratings for funds represent the weighted-average scores of companies held by the fund. This means that the fund's overall rating is a reflection of the companies it invests in.

Overall impact ratings consider material causes across all ESG categories. This is different from Environment, Social, and Governance ratings, which consider material causes within their respective categories.

The energy industry is just one example of how material causes can vary by industry.

Concentration Analysis is a crucial aspect of ESG and sustainability investing. The PAXWX fund has a concentration of net assets of $2.32 billion, which is a significant amount.

The fund's holdings are relatively concentrated, with only 10 holdings in its portfolio. This is a stark contrast to the category high, which has 16,143 holdings.

The top 10 holdings in the PAXWX fund account for 99.92% of its net assets. This means that the fund's performance is heavily influenced by these 10 holdings.

Here's a breakdown of the fund's concentration:

This concentration can be both a blessing and a curse. On one hand, it allows the fund to focus its resources and expertise on a smaller number of holdings, potentially leading to better performance. On the other hand, it increases the risk of the fund being heavily impacted by the performance of these 10 holdings.

Net Income Ratio is a key metric in evaluating a company's financial performance. PAXWX's Net Income Ratio is 0.80%.

This ratio indicates that PAXWX's net income is a small percentage of its total revenue. For context, a Net Income Ratio of 0.80% is significantly lower than the Category High of 13.92%.

To put this into perspective, a Net Income Ratio of 0.80% is also lower than the Category Low of -2.34%. This suggests that PAXWX may be struggling to generate net income.

Here's a comparison of PAXWX's Net Income Ratio to its category peers:

PAXWX's Net Income Ratio ranks 68.07% in its category, indicating that it's below average in terms of net income generation.

The Impax Sustainable Allocation Fund has a competitive track record, with a 3-year annualised return of 10.4% as of 31 December 2022.

This is a notable achievement, especially considering the fund's focus on sustainable investments.

The fund's 3-year annualised return is higher than the 3-year annualised return of the MSCI ACWI Index, which is a widely followed benchmark for global equity performance.

This suggests that the fund's sustainable investment approach has been successful in generating returns over the long term.

The Impax Sustainable Allocation Fund has also been ranked highly by Morningstar, with a 5-star rating as of 31 December 2022.

This ranking is based on the fund's performance relative to its peers, and is a testament to the fund's consistent delivery of strong returns.

The fund's Morningstar rating is a key indicator of its quality and performance, and is used by many investors to inform their investment decisions.

The Impax Sustainable Allocation Fund has received a 4-star rating from Morningstar, indicating a strong track record of performance.

This rating is based on the fund's ability to deliver consistent returns, with a 3-year annualized return of 14.15% as of March 2022.

The fund's low fees are another notable advantage, with an expense ratio of 0.45% as of the latest available data.

Investors can expect a diversified portfolio with a mix of 70% equities and 30% fixed income, as stated in the fund's investment strategy.

A key aspect of the fund's success is its focus on sustainable investing, with a goal of generating long-term returns while also promoting environmental and social responsibility.

The Impax Sustainable Allocation fund has lost a key leader with Steve Falci's departure, but it still has a sensible approach to investing.

The fund has a broad sustainability mandate, which is likely to appeal to investors who care about the environment and social responsibility.

It retains decent resources and is managed by Impax Asset Management, which launched the fund in 2007.

The fund's investment strategy is designed to achieve lower volatility by combining different investment approaches.

It seeks to generate income and conserve principal, with long-term growth of capital as a secondary objective.

The fund invests in a mix of equity and debt securities, with a target allocation of 50-75% to equities and 25-50% to debt securities.

This multi-asset ESG strategy is a key feature of the fund, and it's likely to appeal to investors who want to make a positive impact on the environment.

The fund has a relatively small portfolio of 13 securities, but the top 10 holdings account for a significant 98.5% of its assets.

This suggests that the fund's investment approach is focused and disciplined, with a clear idea of what it wants to achieve.

The fund meets the SEC's requirements for being a diversified fund, which is an important consideration for investors who want to minimize their risk.

It's worth noting that the fund has a significant allocation to foreign issues, with 13.3% of its portfolio invested overseas.

This could be an attractive feature for investors who want to diversify their portfolio and reduce their reliance on a single market.

The fund's bond allocation is also noteworthy, with 35.9% of its assets invested in fixed-income securities.

This could provide a source of income and stability for investors, particularly in times of market volatility.