Performance and Portfolio Update

  • During a turbulent three-month period, which saw equity markets fall over -20%, the Pax Global Environmental Markets Fund modestly underperformed the MSCI ACWI benchmark over the quarter.
  • With an unprecedented deterioration in both demand and supply across almost all areas of economic activity and no easy way to project the duration of the COVID-19 crisis, sectors with more cyclical end markets suffered the greatest losses. Particularly vulnerable were Industrials, Materials and companies with exposure to end markets such as the automotive sector. Exposure to these areas of the market detracted from the Fund’s relative performance.
  • The Fund’s Transport Energy Efficiency holdings, including TE Connectivity (US) and Aptiv (US), underperformed due to exposure to declining automotive markets. Alongside many other companies, Aptiv announced the suspension of its dividend and tapped into its credit facility to build its war chest of liquidity. This was positive news amidst broader market concern regarding many companies’ balance sheets and financial liquidity during these stressed times.
  • Helping Fund performance was Equinix (Industrial Energy Efficiency, US), a real estate investment trust (REIT) specializing in green data centers, which was added to the portfolio last year. The company saw its share price rise during the quarter with strong demand for its services. Social restrictions and a surge in employees working remotely has amplified the use of technology and related data volumes.
  • Defensive Water Utilities holdings also held up well due to the highly regulated, predictable and mission critical nature of their business.
  • As long-term investors, Impax invests in the transition to a more sustainable economy which incorporates macroeconomic trends such as the impact of rising global populations and wealth, urbanization, rising consumption and the resultant increases in the demand for resources. Governments and central banks have moved to provide large amounts of monetary liquidity and fiscal stimulus to reassure markets and alleviate the impact of the resulting economic shock. The Impax investment team continues to monitor the strength of corporate balance sheets and indicators such as the spread of the COVID-19 virus globally, testing implementation national timetables for ending quarantine periods, and the development of vaccines and antibody tests. A global recession seems assured, with the market pricing in a recovery in 2021. The portfolio managers are working off this central thesis when assessing the longer-term valuation of investee companies.
  • We believe it is likely that as a result of this unprecedented global crisis, there will be a greater focus by consumers, governments and regulators on areas like health infrastructure and sanitation, water quality and water infrastructure, food systems and food safety. In addition, topics such as the health, safety and stability of the labor force, along with employee benefits, will be prominent issues going forward. Lastly, of potential significance for environmental markets opportunities, some European governments are discussing the inclusion of green infrastructure in COVID-19 stimulus packages.


(as of 3/31/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Investor Class-14.04-21.54-21.54-12.550.612.806.033.94
Global Environmental Markets Fund - Class A-14.06-21.57-21.57-12.520.602.796.043.94
Global Environmental Markets Fund - Institutional Class-14.06-21.51-21.51-12.330.853.066.314.20
MSCI ACWI (Net) Index-13.50-21.37-21.37-11.261.502.855.883.77
FTSE Environmental Opportunities Index Series-14.62-20.99-20.99-8.353.004.627.08-

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 0.99%, 1.24%, and 1.24%, respectively, as of 5/1/2019 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 0.99%, 1.24% and 1.24%, 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 4.95% (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%.

after sales charge

(as of 3/31/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Class A (Load)-18.77-25.88-25.88-17.31-1.291.655.443.46

Performance Attribution

Global Industry Classification Standard Sectors

(for quarter ended 3/31/20)
Average Active Weights (%)
Total Relative Contribution (%)

The Global Industry Classification Standard (GICS) is a standardized classification system for equities developed jointly by Morgan Stanley Capital International (MSCI) and Standard & Poor’s. The GICS methodology is used by the MSCI indexes, which include domestic and international stocks, as well as by a large portion of the professional investment management community.
Past performance is no guarantee of future results.

Performance Attribution

Environmental Markets Classification
Systemx Sectors

(for quarter ended 3/31/20)
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 3/31/20)
Market Cap (weighted avg.)$25,509M$184,495M
Forward Price/Earnings17.7914.84
Number of Securities503,044

Top 10 Holdings

(as of 3/31/20)
Linde PLC 3.6%, Schneider Electric SE 3.3%, IDEX Corp. 3.3%, Waste Management, Inc. 3.2%, Agilent Technologies, Inc. 3.2%, Suez 3.1%, American Water Works Co., Inc. 3.1%, Autodesk, Inc. 3.0%, Trimble, Inc. 2.9% and Koninklijke DSM N.V. 2.7%. 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. Five 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.

PAX009166 (7/20)

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.

Recent 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.

Recent Insights

Siddharth Jha

Portfolio Manager

Siddharth is co-portfolio manager of the Leaders and US Environmental Leaders strategies and a member of the Portfolio Construction team for the Water strategy. His research responsibilities centre on the water value chain and the Industrials, Utility and Healthcare sectors with a bias towards North American companies.

Siddharth joined Impax in 2014 after graduating from business school and interning with Impax’s Listed Equity team over the summer and autumn of 2012. In his pre-MBA career, Sid worked as a clean technology consultant in India.

Siddharth has an MBA with a focus in Finance from London Business School and a Bachelor of Arts in History and Political Science from Macalester College, where he graduated cum laude.

Recent Insights

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