Performance and Portfolio Update

  • The Pax Global Environmental Markets Fund outperformed both the MSCI ACWI and FTSE Environmental Opportunities All Share Index in the first quarter of 2019, gaining back more than half of its 2018 relative underperformance against global equities.
  • In a strong start to the year, a reversal of the negative sentiment that dominated global equities at the end of 2018 drove more cyclical areas of the market to outperform in the first quarter. In particular Industrials, a natural overweight in the environmental markets universe and the Fund, recovered well from oversold levels. Contributions to outperformance were broadly based, across sectors and end markets, with earnings announcements refocusing the market on positive company fundamentals.
  • Sealed Air (Logistics, Food Safety & Packaging, US) was a top contributor, having reported improved profitability in the fourth quarter and issued positive guidance for the year ahead. Investors also reacted positively to progress in management’s strategic initiatives.
  • Two water companies were also among the top contributors, Waters Corporation (Environmental Testing & Gas Sensing, US) and Danaher Corporation (Diversified Water Infrastructure & Technology, US), both of which announced strong quarterly earnings reports.
  • General concerns about the global economic outlook remain as do geopolitical issues, including Brexit. In this uncertain context, sources of reliable earnings growth can be hard to find. Companies with innovative environmental solutions continue to demonstrate pricing power within robust end markets. This is reflected once again in consensus earnings growth expectations for the Fund that are ahead of global equity markets for the next twelve months.
  • The portfolio managers are retaining their preference for more defensive and diversified holdings. Current themes of interest are digital solutions for manufacturing, including software; energy efficiency solutions that contribute to CO2 emissions reduction; water quality improvements for developing countries; reduction in plastic waste; and solutions for reducing food waste and accompanying resource inefficiencies.


(as of 3/31/19)
Returns (%)Average Annual Returns (%)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Investor Class1.2014.6114.610.9610.385.6012.165.59
Global Environmental Markets Fund - Class A1.2014.5614.560.9610.365.6012.165.59
Global Environmental Markets Fund - Institutional Class1.2514.7514.751.2310.665.8612.465.85
MSCI ACWI (Net) Index1.2612.1812.182.6010.676.4511.985.26
FTSE Environmental Opportunities Index Series1.3713.3813.380.5512.327.0513.20-

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

Figures include reinvested dividends, capital gains distributions and changes in principal value.

1The inception date for the Pax Global Environmental Markets Fund Institutional Class and the Investor Class is March 27, 2008. The Class A shares inception date is May 1, 2013.

Total annual Global Environmental Markets Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class, Investor Class and Class A shares are 1.02%, 1.26%, and 1.26%, respectively, as of 5/1/2018 prospectus. Total annual Global Environmental Markets Fund operating expenses, net of any fee waivers, reimbursements and acquired fund fees and expenses, for Institutional Class, Investor Class, and Class A shares were 0.98%, 1.23% and 1.23%, respectively.

The performance information shown for Class A represents the performance of the Investor Class shares for the period prior to Class A inception. Expenses have not been adjusted to reflect the expenses allocable to Class A shares. Class A inception date return since May 1, 2013 is 8.24% (annualized). A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund’s Class A Shares of 5.50%.


(as of 3/31/19)
Returns (%)Average Annual Returns (%)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Class A (Load)-4.358.278.27-4.598.304.4011.545.05

Performance Attribution

Environmental Markets Classification
Systemx Sectors

(as of 3/31/19)
Average Active Weights (%)
Total Relative Contribution (%)

XThe Environmental Markets Classification System (EMCS) is a comprehensive global classification system for environmental markets. Environmental market companies are defined as providing products and services that deliver solutions to environmental challenges, and include environmental technology. Relative results of the Fund compared to the FTSE Environmental Opportunities All Shares Index. Source: FTSE.
Past performance is no guarantee of future results.

Portfolio Characteristics

(as of 3/31/19)
Market Cap (weighted avg.)$26,699M$151,990M
Forward Price/Earnings17.0115.29
Number of Securities472,768


Top 10 Holdings

(as of 3/31/19)
Danaher Corp. 3.7%, Schneider Electric SE 3.4%, Ecolab, Inc. 3.3%, Xylem, Inc. 3.3%, Linde PLC 3.2%, Sealed Air Corp. 3.1%, Suez 3.1%, Waste Management, Inc. 3.1%, Siemens AG 3.0% and East Japan Railway Co. 2.9%. Holdings are subject to change.


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: The amount of net income returned as a percentage of shareholders’ equity. Return on equity measures a corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
A historical Beta is used for Funds with greater than two years of performance history under the same mandate. Three 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.

PAX008535 (7/19)

Hubert Aarts

Deputy CIO, Listed Equities, Executive Director

Hubert serves as Deputy CIO, Listed Equities. He and Bruce Jenkyn-Jones, CIO Listed Equities, are responsible for the development of the investment process, research and team. Hubert researches stocks globally and specialises in Industrials and Consumer Discretionary.

Hubert is Co-Portfolio Manager of Impax’s Leaders and Water strategies. He also leads Impax’s macro-economic research process and is responsible for the top-down investment framework.

Hubert started his career in the investment industry in 1990 and joined Impax in January 2007.  He has extensive experience investing in Pan-European equities as a portfolio manager at MeesPierson and Merrill Lynch Investment Managers, where he chaired the European Sector Strategy Group. Hubert joined Impax from Cambrian Capital Partners LLP where he was a partner and portfolio manager of the Curalium Fund and Incremental Leveraged hedge funds.

Hubert has a Master’s degree in Economics and Business Administration from Maastricht University.

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Bruce Jenkyn-Jones

Chief Investment Officer (CIO), Listed Equities, Executive Director

Bruce serves as Impax’s Chief Investment Officer, Listed Equities. He is responsible for supervising and overseeing investment process, policy and performance, regulatory oversight, and leads product design within Listed Equities and development as well as the application of Impax’s investment thesis across the Listed Equities product range.

Bruce is Chairman of the Listed Equities Investment Committee, and serves as Co-Portfolio Manager of Impax’s Specialists and Climate strategies.

Bruce joined Impax in 1999 where he worked initially on venture capital investments before developing the listed equities business.  Before joining Impax, Bruce worked as a utilities analyst at Bankers Trust and as an environmental consultant for Environmental Resources Management (ERM).

Bruce has an MBA from IESE (Barcelona), an MSc in Environmental Technology from Imperial College and a degree in Chemistry from Oxford.

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Additional Insights

David Winborne

Senior Portfolio Manager

David is co-manager of the Global Opportunities, Leaders and US Environmental Leaders strategies. He has global research responsibility and specialises in Energy Efficiency and Pollution Control environmental markets sub-sectors. David researches stocks globally with a focus on the Technology and Telecommunications sectors.

David joined Impax in 2015 from the in-house asset management team at Tesco Pension Investment where he had joint responsibility for the successful development, launch and management of a new global equities investment platform for Tesco’s pension fund. Prior to this David was a fund manager at Sarasin & Partners, where he was responsible for the firm’s Asia-Pacific equity fund and for contributing investment recommendations to Sarasin’s flagship thematic Global Equity fund.

After graduating from the University of Bath, David began his career at Insight Investment on the Global Equities graduate scheme in 2003 as a global equity analyst.

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