The Core Bond portfolio outperformed its benchmark during the first quarter on a net-of-fees basis.
Impax Core Bond Fund’s overweight allocation to securitized products was the largest contributor to performance over the period, with security selection also bolstering returns.
During the period, the Impax Core Bond Fund modestly reduced its exposure to corporate credit, with reductions in the communications and capital goods sectors.
Impax Core Bond Fund has taken a deliberately conservative, diversified approach to the AI and data center build-out, accessing the opportunity through corporate bonds with diversified hyperscaler tenants.
Looking ahead, Impax expects a choppy environment over the next six months, with visibility constrained by the Middle East conflict, U.S. midterm elections, and uncertainty around Fed leadership.
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Performance
The Core Bond portfolio outperformed its benchmark during the first quarter on a net-of-fees basis. Performance was driven primarily by security selection, with allocation decisions also contributing positively.
