Impax ***** et Management, based in London and specializing in sustainable investing, released its Q2 2026 investor letter for the "Impax US Sustainable Economy Fund". The letter can be downloaded here. The US Sustainable Economy portfolio outperformed the Russell 1000 in Q2 2026, with Institutional Class at 17.96%, Investor Class at 17.95%, and Class A at 17.92%, versus the index's 15.14%. Sector allocation and stock selection drove performance. The sustainability tools, including the Impax Sustainability Lens and Corporate Resilience framework, contributed positively. Equity markets rallied, with both the S&P 500 and Nasdaq reaching new highs before retreating. A key trend was rotation into AI and tech stocks, supported by mega-cap earnings and data center investments (US$750bn to US$1tn). In the second half of 2026, markets may remain volatile amid debates on AI adoption pace and economic momentum. However, growth tied to energy security and efficiency remains compelling, with demand for power, grid, and resource-efficient solutions supporting companies that benefit. The team focuses on businesses with strong growth, sound management, and attractive valuations, adjusting holdings as needed. This approach aims to build well-diversified, differentiated portfolios. Also, please check the fund's top five holdings for its best picks in 2026.
In its second-quarter 2026 investor letter, Impax US Sustainable Economy Fund highlighted Zoetis Inc. (NYSE:ZTS). Zoetis Inc. (NYSE:ZTS), an animal health company focused on animal health medications, vaccines, and diagnostic products, detracted from the Fund's performance during the quarter. On September 04, 2026, Zoetis Inc. (NYSE:ZTS) closed at $75.81 per share. Over the past month, Zoetis Inc. (NYSE:ZTS) returned 1.31%, but its shares are down 50.04% over the past year. Zoetis Inc. (NYSE:ZTS) has a market capitalization of $31.33 billion.
Impax US Sustainable Economy Fund stated the following regarding Zoetis Inc. (NYSE:ZTS) in its Q2 2026 investor letter:
"Zoetis Inc. (NYSE:ZTS) (Pharmaceuticals, Health Care) is owned for its attractive sustainability opportunity profile in areas including Wellbeing and Evolving Health Care Challenge, as well as its strong governance profile. The stock declined sharply in the quarter following a downward revision to near-term earnings guidance. Sales of Librela, the company's key canine arthritis pain management product, continued to face headwinds from safety perception concerns among some veterinarians, and management indicated that the ramp-up of next-generation product launches would extend into the following year."

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