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Impax Furthers Social Focus with Global Leaders Strategy

Impax Asset Management has introduced a Global Social Leaders Strategy that looks to generate long-term capital growth through investment in businesses that respond to long-term social trends and have a “strong corporate culture”. These trends include ageing populations, rising income in emerging markets, urbanisation, and the impact of transformational technology across financial markets. Impax said that there is an investment opportunity in backing companies that are benefiting from societal trends that are “undervalued by the market”. The Article 9 Sustainable Finance Disclosure Regulation strategy will identify firms that also demonstrate “innovative, equitable and inclusive cultures” and reflect Impax’s viewpoint that a strong corporate culture is a “powerful indicator of a company’s ability to outperform” the market. The strategy will use a quantitative framework to establish an investable universe, including indicators to determine if firms have a strong corporate culture such as low employee turnover, gender-diverse leadership and inclusive business practices. Amber Fairbanks, Portfolio Manager at Impax, said: “Although the market typically ignores culture for more easily understood metrics, strong culture can drive earnings growth through innovation, increased productivity, better relationships with suppliers and customers, and higher employee retention.” 

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