Performance and Portfolio Update

  • The Pax Global Environmental Markets Fund slightly underperformed the MSCI ACWI Index in the fourth quarter but outperformed the Index for calendar year 2020.
  • Positive stock selection and negative asset allocation roughly offset each other during the quarter. From an asset allocation perspective, the Fund’s zero weighting to Financials was a headwind, while the substantial overweight in the cyclical Industrial sector and an underweight to Consumer Staples helped relative performance. The overweight to Industrials generated the largest contribution to return, followed by returns from the Information Technology, Health Care, and Materials sectors.
  • With the announcement of the arrival of the COVID-19 vaccine, economically sensitive environmental sectors, such as Energy Efficiency, continued to improve as the economy recovers. Similarly, there was good performance in sectors such as Water Infrastructure and Renewable & Alternative Energy, which are expected to benefit from the large stimulus package announcements with multi-year timeframes for roll out.
  • Aptiv (Transport Energy Efficiency, US) led returns during the period. Over the quarter, the share price rose on a faster than expected recovery in global auto production, with demand for Aptiv’s “safe, green and connected” componentry continuing to outpace the overall industry. Companies announcing results ahead of market expectations also drove performance. Trimble (Sustainable & Efficient Agriculture, US) finished the year at new highs after posting better than expected earnings, which showed recurring revenues and solid growth.
  • During the quarter, all Environmental Market sectors and geographic regions contributed positively to returns, with underperformance limited and stock specific. Among these companies was SAP (Industrial Energy Efficiency, Germany), which revised down full year forecasts when reporting third quarter results. Significantly, the CEO announced a change in strategy, accelerating the transition to the cloud and pushing out revenue and margin targets by two years. Kingspan (Buildings Energy Efficiency, Ireland) also reported third quarter trading slightly behind expectations, while also being impacted by negative press related to the Grenfell Tower disaster in the UK.
  • The performance of the Fund in 2020 demonstrates the secular durability of the investment thesis — companies that are well positioned for the transition to a more sustainable and therefore resilient economy will thrive. The post-COVID world is a suitable reminder of this thesis as companies and global economies have experienced the largest systemic shock in decades.
  • The investment team remains focused on portfolio construction to achieve a resilient, diversified and balanced portfolio, and on the selection of quality companies successfully navigating a variety of economic backdrops.
  • Current themes and opportunities of interest include the “factory of the future” and related efficiency software and hardware integration, reshoring and changing supply chains, the future of mobility, the changing landscape of power generation and implications for the energy grid, solutions for preserving biodiversity, and innovation in agricultural and food technology markets.


(as of 12/31/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Environmental Markets Fund - Investor Class4.7614.1025.7125.7111.1913.9710.027.60
Pax Global Environmental Markets Fund - Class A4.7714.1325.6825.6811.1913.9710.037.61
Pax Global Environmental Markets Fund - Institutional Class4.8014.1926.0026.0011.4614.2610.317.87
MSCI ACWI (Net) Index4.6414.6816.2516.2510.0612.269.136.76
FTSE Environmental Opportunities Index Series6.6622.4139.8636.8617.1518.6611.88-

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 12/31/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Environmental Markets Fund - Class A (Load)-0.997.8818.7718.779.1112.709.417.13

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 0.97%, 1.22%, and 1.22%, respectively, as of 5/1/2020 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 0.97%, 1.22% and 1.22%, 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 11.07% (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 12/31/20)
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 12/31/20)
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 12/31/20)
Market Cap (weighted avg.)$41,472M$308,207M
Forward Price/Earnings31.6422.31
Number of Securities492,979

Top 10 Holdings

(as of 12/31/20)
Linde PLC 3.4%, American Water Works Co., Inc. 3.3%, IDEX Corp. 3.2%, Waste Management, Inc. 3.2%, Agilent Technologies, Inc. 3.2%, Schneider Electric SE 2.9%, Autodesk, Inc. 2.8%, Koninklijke DSM N.V. 2.7%. Trimble, Inc. 2.7% and Siemens AG 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.

IMPX0015 (4/21)

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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