Insights

Impax Asset Management

Key Points 

• In 2026, Impax is focused on investing in companies and issuers it believes demonstrate resilience amid ongoing economic transformation.
• Fiscal expansion and easing monetary policy should support risk assets, but significant risks remain in the background that may puncture investor optimism.
• Impax continues to take a critical view of certain stock valuations and expects investors to rediscover a focus on fundamentals, particularly among stocks whose potential has been overlooked.
• Impax is cautiously optimistic about corporate bond markets in 2026. However, tight spreads and recent private market failures mean rigorous credit selection remains essential.

Irreversible transformations are incrementally reshaping the global economy. The emergence of new technologies, evolving consumer demand and policy changes are combining to fuel a period of intense creative disruption.

As 2026 approaches, Impax’s investment teams are focused on identifying companies and issuers that demonstrate resilience as these transformations continue in the current market context.

Impax’s macroeconomic perspective is one of cautious optimism. Falling interest rates and rising government spending should support risk assets, but narrow drivers of economic growth and unsustainable fiscal trajectories raise concerns.

Within equities, Impax continues to take a critical view of certain stock valuations and expects a renewed focus on fundamentals, particularly among overlooked opportunities. Within fixed income, Impax sees compelling relative value opportunities, although rigorous credit selection is critical given spreads remain at historically tight levels.

As long term challenges facing global society come into sharper focus, Impax is seeking to capitalise on misunderstood and mispriced opportunities and risks arising from the transition to a more sustainable economy.