Narrative

Impax funds are "fossil-fuel free," defined as:  0% of income from exploration & production and refining & processing of fossil fuels; <5% of profits from storage, distribution or power generation from fossil fuels; or a leader in the transition to zero-emissions, with targets as specified by the Paris Agreement.

This company has over a dozen funds, including two bond funds.  The funds are actively managed (that is, with stocks regularly being bought or sold according to the managers’ judgment) or indexed using a proprietary index.  They are described at impaxam.com/impax-funds-us/.

The firm is concerned with all aspects of ESG.  They vote all proxies, engage companies in dialogue, and file shareholder proposals when appropriate.  They also say, "During 2022, we supported a research project to examine what drives companies to protect biodiversity within their operations and supply chains. In recognition of the systemic risks posed by biodiversity loss, nature has taken on new significance as a standalone pillar of our stewardship and advocacy activities." 

The annual reports tend to focus on general principles, policies, and adherence to existing international agreements, rather than stories about particular companies.  For stock funds, the only explicitly given 2020 example of engagement to reduce climate change is the case in which Verizon committed to increase the renewable portion of its electricity to 50% by 2025.  This example is also cited by Green Century — it seems common for advocacy firms to cooperate in this way on specific issues.  The annual report for 2021 says that it had 62 engagements focused on climate change; however, it gives details on only one company, ENN in China, which has set emissions targets and started publicly reporting its emissions. 

Impax first engaged with Giant, a Taiwan-listed firm that is one of the world's largest bicycle manufacturers, starting in 2019, after identifying poor ESG risk management processes and disclosures.   Since then, Impax has cooperated with Giant to produce steadily more complete and transparent reports of emissions.  In 2023, Impax intends to continue to engage on GHG emissions disclosures and monitor absolute reductions and science-based target setting in line with international best practice frameworks.

For the two bond funds listed below, examples of their activity include bonds to finance residential solar power, to support a fleet of wind and solar projects, and to support a company that makes a solar roofing product.

Funds Offered

Impax offers 5 actively managed mutual funds,

• Impax Large Cap Fund
• Impax Small Cap Fund
• Impax Global Opportunities Fund
• Impax Global Environmental Markets Fund
• Impax Sustainable Allocation Fund

Impax also offers 4 funds that are indexed with proprietary indexes,

• Impax Global Sustainable Infrastructure Fund
• Impax U.S. Sustainable Economy Fund
• Impax International Sustainable Economy Fund
• Impax Elevate Women’s Global Leadership Fund

Impax also offers 2 bond funds,

• Impax Core Bond Fund
• Impax High Yield Bond Fund

Fees and Hassles

A 0.25% fee (a “load”) is charged for each withdrawal.  Withdrawals from an IRA can be made by phone or online.  However, each withdrawal for a charitable donation has the usual requirement of a medallion signature guarantee, on paper.

For owners of the Institutional Class shares (balance more than $250,000), the 0.25% fee is not assessed.  Withdrawals can be made by phone or online.