Performance and Portfolio Update

  • The Fund trailed both global equity markets (MSCI ACWI Index) and its comparative index (FTSE Environmental Opportunities All Share) during the third quarter.
  • Underperformance was largely stock specific. Acuity Brands (Buildings Energy Efficiency, US) experienced uncertainty in its end markets on the back of muted orders for LED fixtures. Sealed Air Corporation (Logistics, Food Safety & Packaging, US) suffered from concerns on higher resin costs together with strategic uncertainty following the announcement of a CEO transition.
  • Investor preference for more cyclical market sectors weighed on performance for East Japan Railway Company (Public Transportation, Japan), which was also impacted by weaker than expected quarterly bullet train passenger trends.
  • The increasing adoption of hybrid and electric vehicles around the world continued to drive performance of Transport Energy Efficiency companies. Delphi Automotive (US) was one such example, benefiting from clarity on the rationale for the company being split into separate powertrain and electronics companies, a move expected to unlock significant shareholder value. Companies addressing pollution issues, including Umicore (Pollution Control Solutions, Belgium), also benefited from tightening emissions regulations and the increasing electrification of car fleets.
  • Stock specific outperformance included Intertek Group (Environmental Testing & Gas Sensing, UK) which was bolstered by strong revenue growth during the first half of the year and raised guidance.
  • The portfolio remains well diversified to the long-term growth opportunities in environmental markets, with a balance of both cyclical and defensive exposures.
  • Earnings delivery of companies in the portfolio over the year to date in 2017 has been solid and the portfolio managers’ focus continues to be on identifying companies that deliver above-market earnings at reasonable valuations. Whether in the fast-changing area of Transport Energy Efficiency, sought-after products and services in Environmental Testing, or innovative “˜smart water’ solutions in Water Infrastructure, Impax continues to identify high quality growth companies with attractive upside that offer compelling environmental solutions across a wide range of end-markets.


(as of 9/30/17)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Individual Investor Class2.204.3720.1617.629.9212.57-6.13
Global Environmental Markets Fund - Class A˜2.214.3120.1117.649.8812.57-6.13
Global Environmental Markets Fund - Institutional Class2.264.4120.3917.9410.1912.84-6.40
MSCI ACWI (Net) Index1.935.1817.2518.657.4310.203.885.31
FTSE Environmental Opportunities Index Series3.816.1023.3323.3810.9714.13--
MSCI World (Net) Index2.244.8416.0118.177.6910.994.225.71

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 Individual 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, Individual Investor Class and Class A shares are 1.04%, 1.29%, and 1.29%, respectively, as of 5/1/2017 prospectus. Total annual Global Environmental Markets Fund operating expenses, net of any fee waivers, reimbursements and acquired fund fees and expenses, for Institutional Class, Individual 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 Individual 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 10.36% (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 9/30/17)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Class A (Load)-3.44-1.4413.5511.197.8211.31-5.50

Performance Attribution

Environmental Markets Classification
Systemx Sectors

(as of 9/30/17)
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 9/30/17)
Market Cap (weighted avg.)$21,659M$120,388M
Forward Price/Earnings19.3617.00
Number of Securities472,491


Top Ten Holdings

(as of 9/30/17)
Siemens AG 3.6%, Sealed Air Corp. 3.6%, SUEZ Environnement Co. SA 3.6%, Delphi Automotive PLC 3.4%, TE Connectivity, Ltd. 3.2%, Legrand SA 3.1%, Xylem, Inc. 3.1%, East Japan Railway Co. 3.0%, Kubota Corp. 2.9% and Danaher Corp. 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 2 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.

PAX007458 (1/18)

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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