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 fourth quarter.
  • Against a backdrop of stock markets which finished 2017 on a strong note, the Water Infrastructure, Logistics, Food Safety & Packaging, and Transport Energy Efficiency sub-sectors contributed most to returns.
  • Stocks that underperformed in the Fund during the quarter did not detract significantly from overall performance, and lagged either because of broader market rotation and profit taking following good performance, or in a few cases because of weaker results than market expectations. These included Philips Lighting, Beijing Enterprises Water and Delta Electronics.
  • Top contributors included Sealed Air Corporation, whose share price recovered on good volumes and waning input cost concerns, and TE Connectivity, on continued confidence by investors that this company’s strong product position in connectors and sensors will benefit from the increasing related content in vehicles.
  • Hubbell and WestRock saw rising valuations after each announced an acquisition to strengthen their product and end market positions.
  • In terms of regions, North America led. Although European economic data has also been robust, strong economic figures in the US and anticipation of positive benefits from the passed US tax reform led the way.
  • Demand for products and services that address environmental challenges continues to increase, fueled not only by cost savings, but also by the recognition by governments that economic competitiveness longer term will be driven by a different set of factors. Developed and emerging nations continue to look for ways to build a greener infrastructure and address many pollution issues across key areas of power, water, waste, and food. Combine related policy initiatives with active deployment of technological advances to these global challenges and goals, and the resulting opportunity set for environmental market portfolios is compelling and broad.


(as of 12/31/17)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Individual Investor Class0.565.2126.4226.4211.3012.09-6.52
Global Environmental Markets Fund - Class A˜0.615.2826.4526.4511.3112.11-6.53
Global Environmental Markets Fund - Institutional Class0.625.3126.7926.7911.5912.39-6.79
MSCI ACWI (Net) Index1.615.7323.9723.979.3010.804.655.77
FTSE Environmental Opportunities Index Series0.546.2331.0231.0212.7913.65--
MSCI World (Net) Index1.355.5122.4022.409.2611.645.036.14

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 11.00% (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 12/31/17)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Global Environmental Markets Fund - Class A (Load)-4.93-0.5419.5419.549.2310.83-5.91

Performance Attribution

Environmental Markets Classification
Systemx Sectors

(as of 12/31/17)
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 12/31/17)
Market Cap (weighted avg.)$21,919M$131,595M
Forward Price/Earnings20.0317.58
Number of Securities482,499


Top Ten Holdings

(as of 12/31/17)
Sealed Air Corp. 4.0%, SUEZ Environnement Co., SA 3.7% , Siemens AG 3.3%, TE Connectivity, Ltd. 3.3%, Legrand SA 3.2%, East Japan Railway Co. 3.1%, Danaher Corp. 3.0%, Ecolab, Inc. 2.9%, Ferguson PLC 2.9% and Xylem, Inc. 2.8%. 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.

PAX007659 (4/18)

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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