| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 7.4% | 4.2% | 15.7% |
| 2025 | 2024 |
|---|---|
| 16.0% | 20.4% |
The Impax US Sustainable Economy Fund outperformed the Russell 1000 benchmark in Q4 2025, driven by sustainability tilts and strong stock selection. The portfolio's sustainability tools were key performance drivers, with industry tilts from the Sustainability Lens and Corporate Resilience profiles both contributing positively. Health Care was the strongest performing sector, benefiting from Trump administration agreements on drug pricing that particularly helped pharmaceutical holdings like Eli Lilly and Merck. Technology holdings showed mixed results, with AI-related names like AMD surging on strong chip demand while others faced concerns over data center investment returns. The fund's approach of excluding companies with poor Corporate Resilience scores like Meta and Palantir proved beneficial as these stocks underperformed. Looking ahead to 2026, the managers express cautious optimism supported by falling interest rates and government spending, while acknowledging concerns about narrow economic growth drivers and fiscal sustainability. The strategy continues focusing on companies with strong secular growth drivers and robust sustainability characteristics.
The fund invests in US large cap companies positioned to benefit from the transition to a more sustainable economy, using sustainability tools and Corporate Resilience analysis to drive outperformance.
As we enter 2026, our macroeconomic outlook is one of cautious optimism. Falling interest rates and rising government spending should provide support for risk assets. However, narrow drivers of economic growth and unsustainable fiscal trajectories remain areas of concern.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 26 2026 | 2025 Q4 | AAPL, AMD, AMZN, AVGO, CLX, CPB, GIS, GOOG, GOOGL, JNJ, LLY, MA, META, MRK, MSFT, NVDA, ORCL, PLTR, STT, V, ZTS | AI, Esg, healthcare, large cap, Pharmaceuticals, semiconductors, sustainability, technology | - | AI-related companies experienced volatility due to concerns over elevated capital expenditures and returns on large-scale data center investments. Advanced Micro Devices surged on strong demand… |
| Sep 30 2025 | 2025 Q3 | AVGO, ELV, GOOG, INTC, ORCL, PGR | efficiency, Esg, innovation, Resilience, sustainability | - | Impax focuses on companies positioned to benefit from the transition to a more sustainable economy, emphasizing corporate resilience, resource efficiency, and long-term structural tailwinds. The… |
| Jul 31 2025 | 2025 Q2 | AVGO, LLY, MRK, NVDA, ORCL, PGR | Esg, productivity, Resilience, resource efficiency, sustainable economy |
ORCL AVGO NVDA MRK |
The letter focuses on positioning portfolios to benefit from the transition toward a more sustainable US economy. Management highlights companies aligned with productivity enhancement, resource… |
| Mar 31 2025 | 2025 Q1 | AWK, EIX, GILD, GLOB, NOW, PGR, TSLA | - | - | - |
| Dec 31 2024 | 2024 Q4 | DHI, ELV, GILD, HUBS, TEAM, ZTS | - | - | - |
| Sep 30 2024 | 2024 Q3 | AMAT, CBRE, GILD, HUBS, PGR, PINS | - | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
GLP1Eli Lilly represents the fund's exposure to the GLP-1 obesity and diabetes treatment market, which continues to show exceptional growth. Mounjaro and Zepbound sales more than doubled year-over-year, with demand continuing to outpace supply. The fund sees this as a multi-decade growth opportunity with expanding indications and sustained competitive advantages. |
Obesity Diabetes Pharmaceuticals Growth Innovation | |
PharmaceuticalsEli Lilly represents a high-quality growth franchise in global healthcare, with leadership in diabetes, obesity, and neuroscience providing durable competitive advantages. The company's GLP-1 treatments continue to see demand outpace supply with additional indications on the horizon. |
Pharmaceuticals GLP1 Diabetes Obesity Healthcare | |
Sustainability2025 was one of the three hottest years ever recorded with climate-driven disasters causing significant costs. Despite political challenges, 84% of large companies maintained climate commitments and investor sentiment remained resilient with 70% committed to sustainability long-term. |
Climate Commitments Resilient Temperature Disasters | |
| 2025 Q3 |
Sustainability2025 was one of the three hottest years ever recorded with climate-driven disasters causing significant costs. Despite political challenges, 84% of large companies maintained climate commitments and investor sentiment remained resilient with 70% committed to sustainability long-term. |
Climate Commitments Resilient Temperature Disasters |
| 2025 Q2 |
Sustainability2025 was one of the three hottest years ever recorded with climate-driven disasters causing significant costs. Despite political challenges, 84% of large companies maintained climate commitments and investor sentiment remained resilient with 70% committed to sustainability long-term. |
Climate Commitments Resilient Temperature Disasters |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 31, 2025 | Fund Letters | Scott LaBreche | ORCL | Oracle Corporation | Information Technology | Systems Software | Bull | New York Stock Exchange | AI, backlog, cloud, datacenters, productivity, resilience, Software | Login |
| Jul 31, 2025 | Fund Letters | Scott LaBreche | AVGO | Broadcom Inc. | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI, Asic, cashflow, datacenters, growth, Margins, semiconductors | Login |
| Jul 31, 2025 | Fund Letters | Scott LaBreche | NVDA | NVIDIA Corporation | Information Technology | Semiconductors & Semiconductor Equipment | Bull | NASDAQ | AI, datacenters, Ecosystem, GPUs, growth, hyperscalers, Margins | Login |
| Jul 31, 2025 | Fund Letters | Scott LaBreche | MRK | Merck & Co., Inc. | Health Care | Pharmaceuticals | Bull | New York Stock Exchange | cashflow, Defensives, dividends, Loe, Oncology, pipeline, vaccines | Login |
| TICKER | COMMENTARY |
|---|---|
| AAPL | Apple Inc. represents 1.6% of company owned with cost basis of $6,255 million and market value of $61,962 million, providing $280 million in 2025 dividends. |
| AMD | AMD was mentioned as an example of businesses that already make money, have shown they can do so through cycles and are priced so that we do not need everything to go right. |
| AMZN | One company we own that we think has unique positioning to benefit from both the infrastructure and application layers is Amazon. Amazon's logistical prowess is one of the foremost moats in business today and it can and will be enhanced with AI. The company will do this in multiple ways, with better orchestration of its logistics assets and underlying cargo, as well as the buildout of more capable, sophisticated and robust robotics. Amazon is singularly well positioned to dominate the coordination layer, with AI's help, across its entire logistics network. |
| AVGO | The primary contributors to its performance were our exposures to Broadcom |
| CLX | During Q4 2025, we initiated a position in The Clorox Company at an average cost basis of approximately $104 per share—a decade-low valuation for a business generating 35%+ returns on invested capital. In August 2025, Clorox's $580 million SAP S/4HANA implementation—the company's first ERP overhaul in two decades—went catastrophically wrong. Order fulfillment collapsed from 96%+ fill rates to the low 80s. Q1 fiscal 2026 organic sales declined 17%. The stock fell from $150+ to current levels around $104. At current prices, Clorox trades at 16x depressed earnings with a ~5% dividend yield—the highest in company history. Our DCF analysis yields fair value of $134-145 per share, implying 30-40% upside as operations normalize. |
| CPB | packaged food names Campbell's detracting |
| GIS | General Mills, a food and pet nutrition company with leading positions across several product categories, faced near-term volume pressure as consumer behavior shifted following significant post-pandemic price increases. The company has reinvested productivity savings into pricing and advertising, actions aimed at supporting the long-term health of its brands. |
| GOOG | From the moment OpenAI hit the scene with ChatGPT 3.5 in the Fall of 2022, Google was a perceived loser and thousands of pontificators warned about the end of search. Fast forward three years and this was Google Search's fastest quarter of revenue growth since Q1 2022, when the reopening and pandemic were still considerable drivers of results. In parallel with the Search re-acceleration, Google has also emerged as a leader in AI itself. This combination has been potent for Google's stock and could not have opened on Search alone, given the terminal value fears. |
| GOOGL | In the third quarter, Google, Kairos Power, and the Tennessee Valley Authority announced a major collaboration centered on a novel power purchase agreement. Google followed this announcement with another significant step forward. On October 27, Google and NextEra Energy announced plans to restart the Duane Arnold Energy Center. |
| JNJ | During the quarter, we switched out of a long-held position in Johnson & Johnson into a new holding in Merck. |
| LLY | Eli Lilly shares were a top performer in 4Q25 after delivering strong Q3 2025 earnings in October. Revenue rose 54% year-over-year to $17.6 billion, and adjusted EPS of $7.02 beat consensus of $6.02. Growth was driven by its GLP-1 franchises, Mounjaro and Zepbound, where sales more than doubled year-over-year, alongside strength in other therapeutic areas. Management raised full-year guidance for both revenue and earnings, reinforcing investor confidence in the company's growth outlook. |
| MA | The enduring appeal of card payments is their universality. Consumers trust that Visa and Mastercard will be accepted globally. After more than 20 years of litigation, Visa and Mastercard agreed to yet another settlement that gives merchants greater flexibility |
| META | On January 9, Meta Platforms unveiled a new agreement with Vistra—the largest generator of competitive electricity in the United States—as well as with TerraPower and Oklo. The announcement builds on Meta's agreement last year with Constellation Energy and positions the company to become one of the largest corporate purchasers of nuclear-generated electricity in the United States. |
| MRK | Top gainers in the Fund this quarter included Merck (+26%) |
| MSFT | MSFT was a detractor in 4Q25 following its fiscal first-quarter 2026 earnings report released on October 29. While results were better than expected operationally, investor reaction was driven by guidance and capital expenditure intensity rather than headline performance. Revenue grew 17% year-over-year, exceeding consensus expectations, and Azure revenue increased 39% year-over-year, also ahead of estimates. However, management guided to a sequential deceleration in Azure growth in fiscal Q2, signaling some moderation after a period of exceptional demand. |
| NVDA | AI bellwether NVIDIA's very strong set of earnings in late November helped the AI theme re-assert its dominance when investors breathed a sigh of relief following the results. |
| ORCL | Investor enthusiasm for Oracle's stock in calendar year 2025 was initially driven by several multi-billion-dollar contracts it signed with leading AI companies, including OpenAI and Meta. However, in Q4 sentiment for ORCL's growth prospects shifted to skepticism, as investors began to scrutinize the return profile of the substantial capital investments required to support the approximately $500 billion of contracts signed by Oracle. Given the widening range of potential outcomes associated with Oracle's elevated capital needs, we reduced our position in ORCL during Q4. |
| PLTR | The top three contributors to this outperformance came from Palantir Technologies (US Defense) |
| STT | Beat on both EPS and revenue on strong servicing and management fees income; AUC & AUM were both higher than expected, benefitting from market appreciation as well as inflows. Deposit growth was disappointing |
| V | There were companies there such as Visa, which we own, as well as many we do not, and which would not likely be appropriate for this mandate. |
| ZTS | ZTS: $6B authorized August 2024; $1.5B used as of September 2025 |
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