Performance and Portfolio Update
- During the second quarter, the Pax Ellevate Global Women’s Leadership Fund Institutional share class (PXWIX) outperformed the MSCI World Index (World Index).
- Global equity markets, as measured by the World Index, increased by 7.74% during the second quarter driven by continued re-opening and expansion of the economy. Equity markets rotated toward higher quality companies, while high beta1 stocks took a pause after leading markets in the first quarter. This market environment provided a tailwind for the Fund, as its higher quality profile was beneficial for relative performance.
- In addition, there were several holdings across multiple sectors that produced strong results and contributed to the Fund’s outperformance, including: Lululemon, Kering and Amazon in Consumer Discretionary, L’Oreal in Consumer Staples, and Microsoft, Twilio and PayPal in Information Technology.
- Detracting from relative performance during the quarter were a number of growth-orientated, higher market cap companies that fall outside our gender leadership universe but generated strong returns, including Nvidia, Apple, Alphabet and Facebook. Among Fund holdings, underperformance was largely stock specific, notably: Sunrun in Industrials, Walt Disney and Verizon in Communication Services, American Water Works in Utilities, and Starbucks in Consumer Discretionary.
- During the period, the Fund crossed the seven-year milestone since adopting a systematic investment approach in June of 2014. The Fund’s institutional class has modestly outperformed the MSCI World Index over the since re-org period (6/4/2014 to 6/30/2021) and has been resilient in both declining and advancing markets, as evidence by the Fund’s 4% less downside capture, 3% less risk, positive alpha2 and higher Sharpe Ratio3 relative to the MSCI World Index.4 In addition, over that same time period, the Fund has outperformed 81% of its global equity peers (19th percentile rank out of 77 funds) within the Lipper Global Multi-Cap Core category.5
- The Fund’s investment thesis is demonstrated by the long-term performance attribution, illustrated in the chart below. Over the 7-year period, the Fund’s overweight to the highest-rated quartile of companies within the World Index based on gender-diverse leadership has made the greatest contribution to the Fund’s relative outperformance, along with the Fund’s significant underweight to the bottom two quartiles of companies with less gender-diverse leadership.
Performance(as of 6/30/21)
|1-Month||Quarter||YTD||1 Year||3 Year||5 Year||10 Year||Since Reorg6|
|Pax Ellevate Global Women's Leadership Fund - Investor Class||1.29||7.80||12.31||35.38||14.03||14.02||9.90||10.07|
|Pax Ellevate Global Women's Leadership Fund - Institutional Class||1.33||7.87||12.46||35.75||14.32||14.32||10.17||10.34|
|MSCI World (Net) Index||1.49||7.74||13.05||39.04||14.99||14.83||10.65||10.29|
|Impax Global Women's Leadership (Net) Index||1.37||8.37||13.13||35.35||14.93||14.64||-||10.73|
|Lipper Global Multi-Cap Core Funds Index||0.75||6.66||13.56||42.04||13.68||13.94||9.98||9.40|
Performance data quoted represent past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance for the most recent month-end, call 800.767.1729 or visit impaxam.com
Figures include reinvested dividends, capital gains distributions and changes in principal value.
6Since Reorganization date is 6/4/2014.
Inception of Institutional Class shares is April 19, 2006. The performance information shown for Institutional Class shares represents the performance of the Retail Class shares of the earlier acquired Women’s Equity Fund shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares or to reflect any differences in expenses between the earlier acquired Women’s Equity Fund and the Fund. If such expense adjustments and allocable expenses were reflected, the returns would be higher than those shown. Institutional Class inception date return since April 19, 2006, is 6.62% (annualized).
Total annual Pax Ellevate Global Women’s Leadership Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Investor Class shares are 0.53% and 0.78% respectively as of the 5/1/2021 prospectus.ˆ
Gender Rank Quartiles:
(as of 6/30/21)
Average Weight (%) vs. MSCI World Index
|Since Re-Org (81 Months)
Cumulative Gross Relative Return (%) vs. MSCI World Index
A lower Impax Gender rank indicates a higher ranking – 1 is highest and 100 is lowest. Attribution is based on daily gross holdings based results, which does not include fund expenses, trading costs and etc. The total cumulative gross return for the fund was 95.05% vs. 82.86% for MSCI World. Other not rated securities and cash were excluded from both charts: Fund weight 4.54% vs. World Index weight: 0.20% and Fund’s gross relative return: -0.89%.
Portfolio Characteristics(as of 6/30/21)
|Market Cap (weighted avg.)∱||$287,324M||$369,511M|
|Number of Securities||417||1,560|
Top 10 Holdings
(as of 6/30/21)
Microsoft Corp. 5.0%, Amazon.com, Inc. 4.4%, Estee Lauder Cos, Inc., The, Class A 2.2%, L’Oreal SA 2.1%, Lululemon Athletica, Inc. 2.1%, American Water Works Co., Inc. 2.0%, Principal Financial Group, Inc. 2.0%, Ulta Beauty, Inc. 2.0%, Starbucks Corp. 1.8% and Sunrun, Inc. 1.7%. Holdings are subject to change.
1Beta reflects the sensitivity of a Fund’s return to fluctuations in its benchmark; a beta for a benchmark is 1.00: a beta greater than 1.00 indicates above average volatility and risk.
2Alpha is a coefficient measuring risk-adjusted performance, considering the risk due to the specific security, rather than the overall market. A positive alpha reflects relative risk-adjusted performance of the Fund versus its benchmark.
3Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratio has become the industry standard for such calculations.
4PXWIX Since re-org (06/04/14) Downside Capture is 95.52 vs. MSCI World 100.00; PXWIX Since re-org Alpha is 0.05 vs. MSCI World 0; PXWIX. Since re-org Sharpe Ratio is 0.72 vs. MSCI World of 0.69, percent difference calculation is +5%.
5Data shown represents rankings for the Pax Ellevate Global Women’s Leadership Fund – Institutional Class (PXWIX) in the Lipper Global Multi-Cap Core category based on average annual returns. Lipper rankings are based on total returns (not including sales charges) for the periods indicated and compare total return performance with that of other funds in the category. The Pax Ellevate Global Women’s Leadership Fund – Institutional Class (PXWIX) 1-year 77th percentile rank out of 141 funds, 3-year 27th percentile rank out of 110 funds, 5-year 31st percentile rank out of 96 funds, since re-org (06/04/14) 28th percentile rank out of 77 funds and 10-year 30th percentile rank out of 64 funds. The Pax Ellevate Global Women’s Leadership Fund – Investor Class (PXWEX) 1-year 83rd percentile rank out of 141 funds, 3-year 35th percentile rank out of 110 funds, 5-year 40th percentile rank out of 96 funds, since re-org (06/04/14) 28th percentile rank out of 77 funds and 10-year 41st percentile rank out of 64 funds.
ƒWeighted Average is an average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average.
∼Forward Price-Earnings Ratio or P/E FY1 ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings over the next 12 months.
∘Return on equity (ROE) is a ratio that provides investors’ insight into how efficiently a company (or, more specifically, its management team) is managing the equity that shareholders have contributed to the company.
∞A historical Beta is used for funds with greater than two years of performance history under the same mandate. 5 Year, Beta is used. Beta reflects the sensitivity of a fund’s return to fluctuations in its benchmark; a beta for a benchmark is 1.00: A beta greater than 1.00 indicates above-average volatility and risk.
The statements and opinions expressed are those of the author as of the date of this report. All information is historical and not indicative of future results and subject to change. This information is not a recommendation to buy or sell any security. Past performance does not guarantee future results.