• The Pax Global Environmental Markets Fund outperformed the MSCI ACWI in the third quarter of 2022.

Market Review

  • Fund returns fell over the quarter against the backdrop of weaker global equity markets with inflationary pressures leading to rising interest rates and concerns over lower economic growth. Materials and Utilities exposure detracted from returns during the period. On a relative basis, the Fund’s overweight to Industrials was a bright spot during the period with strong performance coming from Energy Management & Efficiency holdings. These securities were rewarded during the period given their durable business models, pricing power, and ability to operate in an inflationary environment.


  • Given strong earnings results and higher guidance for full year 2022, Hubbell (Smart & Efficient Grids, US) has performed well during the period. Discussions of an infrastructure stimulus package has also provided a boost for Hubbell. The company’s utility segment is picking back up and reflects ongoing grid modernization initiatives and trends toward renewable energy. Industrial and residential end markets are bouncing back as well. Investors are focusing on the trends around grid resilience and upgrades as well as anticipated acceleration of renewables integration.
  • Shares of Trane Technologies (Buildings Energy Efficiency, US) rebounded following stronger than expected EPS and revenue for Q2 and an improvement in full year revenue and EPS guidance.
  • Idex Corporation (Industrials, Water Distribution & Infrastructure) advanced during the period following solid quarterly results.


  • Royal DSM (Sustainable Agriculture, Netherlands) continued to be weighed down by minor downgrades to the earnings outlook, and more so by worsening sentiment around the European chemicals sector, despite the company’s very high nutrition ingredients franchise.
  • Ørsted (Renewable Energy Developers & IPPs, Denmark) had disappointing second quarter results, driven in part by low wind speeds and higher electricity price hedging costs, which caused its share price to fall during the month.
  • Eurofins (Environmental Testing & Monitoring, France) sold-off after slightly missing organic growth and margin estimates. The market reacted negatively to results as core business growth on the quarter was lower than long-term objectives.


  • Importantly, earnings announcements by portfolio companies broadly speaking were above the market’s expectations, with companies generally reporting healthy top and bottom-line growth for their environmental products or services, and also demonstrating their ability to navigate higher input prices, supply complexities and potentially slower growth. The team is carefully watching the collapse in consumer confidence associated with inflation/higher energy prices. Inflationary pressures may continue to create challenges for some companies to varying degrees depending on their ability to pass through these costs. For this reason, Impax remains focused on companies with strong market positions and pricing power as they should be better placed to navigate through this period.
  • For companies exposed to the transition to a more sustainable economy, the current environment is also providing positive tailwinds. Over the longer term, Impax expects this rise in input prices to drive an increased focus on energy and resource efficiency and to accelerate the shift to diversify energy supplies and decarbonise economies. At the policy level, energy security concerns will increase, further prioritizing the shift away from fossil fuels such as natural gas, while climate resilience and ecosystem protection are also likely to become major themes in the market. Volatility in markets may continue, however, quality names with good structural growth drivers should benefit over the medium term.


(as of 9/30/22)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Environmental Markets Fund - Investor Class-9.31-5.55-33.05-27.283.723.407.895.18
Pax Global Environmental Markets Fund - Class A-9.33-5.56-33.03-27.313.733.407.895.18
Pax Global Environmental Markets Fund - Institutional Class-9.29-5.51-32.92-27.123.993.668.155.44
MSCI ACWI (Net) Index-9.57-6.82-25.63-20.663.754.447.285.01

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.

after sales charge

(as of 9/30/22)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Environmental Markets Fund - Class A (Load)-14.31-10.77-36.70-31.301.802.237.284.77

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.

ˆTotal annual Global Environmental Markets Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class, Investor Class and Class A shares are 0.90%, 1.15%, and 1.15%, respectively, as of 5/1/2022 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 0.90%, 1.15% and 1.15%, respectively.ˆ

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 6.61% (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%.

Performance Attribution

Global Industry Classification Standard Sectors

(for quarter ended 9/30/22)
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.

Portfolio Characteristics

(as of 9/30/22)
Market Cap (weighted avg.)$82,128M$305,486M
Forward Price/Earnings17.9813.46
Number of Securities482,897

Top 10 Holdings

(as of 9/30/22)
Linde PLC 4.2%, Waste Management, Inc. 3.7%, Agilent Technologies, Inc. 3.4%, GEA Group AG 3.1%, Schneider Electric SE 3.0%, Air Liquide SA 3.0%, Koninklijke DSM N.V. 2.7%, Republic Services, Inc. 2.7%, American Water Works Co., Inc. 2.7% and Autodesk, Inc. 2.5%. 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.

IMPX1266 (1/23)

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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