Impax Global Sustainable Infrastructure Fund — Q3 2025 Commentary & Outlook

The Impax Global Sustainable Infrastructure Fund’s Q3 2025 commentary emphasizes a selective, outcomes-driven approach as markets adapt to a complex macro backdrop. Fund managers note that sustainable infrastructure themes — notably renewable generation, grid modernization, water and waste management, and digital connectivity — continued to attract capital and policy attention during the quarter, even as inflationary pressures and higher-for-longer interest rates reshaped sector dynamics.

Performance dispersion widened within the portfolio as investors favored firms with clearer near-term cash flows and resilient pricing power. Companies delivering contracted revenues from regulated or long-term-offtake agreements generally outperformed more cyclically exposed equipment and services providers. Supply-chain normalization helped some mid-cap industrials recover ground, while elevated input costs and project delays weighed on parts of the construction and engineering supply chain.

From an investment stance, the managers highlight active stock selection and thematic rebalancing. The fund increased exposure to grid-scale battery projects and smart-grid software providers, reflecting expectations for accelerating electrification and capacity firming. Conversely, selective trimming occurred in highly leveraged project developers where financing spreads and execution risk had risen. Portfolio managers also maintained a bias toward companies with demonstrable ESG credentials, measurable emissions reductions, and strong governance practices, arguing these attributes reduce long-term operational risk.

Capital flows varied across the sustainable infrastructure universe. Institutional interest remained steady, particularly from investors targeting decarbonization outcomes and income generation, while retail demand showed sensitivity to short-term volatility. The fund continued engagement with portfolio companies on transition plans, permitting bottlenecks, and revenue visibility.

Looking ahead, the commentary frames the outlook as cautiously constructive. The managers expect continued structural demand for sustainable infrastructure supported by public policy and corporate decarbonization commitments but anticipate ongoing headline volatility tied to macro and financing conditions. The fund’s strategy is to prioritize companies with contracted cash flows, experienced management teams, and defensible market positions while seeking opportunities where valuation dislocations present attractive entry points.