Performance and Portfolio Update

  • The Pax Global Opportunities Fund outperformed the MSCI ACWI in the first quarter of 2019.
  • In a strong start to the year, the reversal of the negative sentiment which had dominated global equities at the end of 2018 drove more cyclical areas of the market to outperform during the first quarter. Materials holdings led contributions to return for the Fund, followed by Healthcare and Information Technology companies.
  • Koninklijke DSM N.V. (Chemicals, Netherlands) was the top contributor to performance, having beat full year earnings expectations and announcing a share buyback. This specialty chemicals company with a keen focus on sustainability and innovation has been making an impressive transition from a chemicals company to a nutrition and performance materials group. Whether in developed regions tackling better nutrition, or developing countries seeking to address undernourished populations, the link between food and health in combination with changing consumer preferences is driving growing demand for alternatives to artificial food ingredients.
  • Ecolab (Chemicals, US) also contributed to the Fund. The stock saw strong gains as cost-saving solutions for water and energy efficiency continue to be in high demand across many end markets. A partnership is now in place with Microsoft to enable Ecolab customers to have real-time data on realized savings for water, energy and waste.
  • Underperformance was largely stock specific. Sprouts Farmers Market (Food & Staples Retailing, US) detracted from returns having announced lower guidance than the market expected despite strong results for the quarter. Costs, such as transportation, and fierce competition within the food retailing industry continue to worry the market.
  • KDDI (Wireless Telecommunication Services, Japan) was also a detractor this quarter. The stock was impacted by concerns about increasing competition within the telecommunications business in Japan.
  • General concerns about the global economic outlook remain as do geopolitical issues, including Brexit. Against this backdrop, the Fund aims to invest in companies generating consistently compounding free cash flow generation which the portfolio managers believe are less dependent on the macro economic environment. The Fund continues to adopt a more defensive stance relative to broader global equity indices and looks to further trim cyclical exposure.
  • Forward looking earnings growth for the Fund is ahead of the MSCI ACWI. The investment team is evaluating additional opportunities in secular growth areas such as emerging market “˜microfinance’ companies, healthcare clinical development and digital payment platforms.


(as of 3/31/19)
Returns (%)Average Annual Returns (%)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Opportunities Fund - Investor Class2.5016.2316.23----6.70
Pax Global Opportunities Fund - Institutional Class2.5016.2316.23----6.70
MSCI ACWI (Net) Index1.2612.1812.18----2.85
Lipper Global Multi-Cap Core Funds Index0.6311.5211.52----1.49

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 Opportunities Fund Institutional Class and the Investor Class is June 27, 2018.

Total annual Global Opportunities Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Investor Class are 1.81% and 2.06%, respectively, as of 6/26/2018 prospectus. Total annual Global Opportunities Fund operating expenses, net of any fee waivers, reimbursements and acquired fund fees and expenses, for Institutional Class and Investor Class, shares were 0.98% and 1.23%, respectively.ˆ  

Performance Attribution

(as of 3/31/19)
Sector: Average Active Weights (%)
Total Relative Contribution (%)

XOther: ETFs (for short-term cash mgmt. purposes) and Cash & Equivalents.
Past performance is no guarantee of future results.

Portfolio Characteristics

(as of 3/31/19)
Market Cap (weighted avg.)$93,745M$151,990M
Forward Price/Earnings20.9215.29
Number of Securities402768

Top 10 Holdings

(as of 3/31/19)
HDFC Bank, Ltd. 4.3%, Xylem, Inc. 4.1%, Visa, Inc., Class A 4.1%, Thermo Fisher Scientific, Inc. 4.0%, Danone SA 3.8%, Becton Dickinson & Co. 3.5%, Ecolab, Inc. 3.5%, Prudential PLC 3.5%, Linde PLC 3.1% and Cadence Design Systems, Inc. 3.0%. Holdings are subject to change.


Free cash flow is a measure of profitability that represents the cash a company generates after cash outflows to support operations and maintain its capital assets.
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.
An Ex-Ante Beta is used for Funds with less than two years of performance history under its new mandate. The Ex-Ante Beta is calculated using a multi-factor risk model. Beta explains common variations in stock returns due to different stock sensitivities to the market relative to its underlying benchmark for the current period, not historical. 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.

PAX008534 (7/19)

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

Kirsteen Morrison

Senior Portfolio Manager

Kirsteen co-manages the Global Opportunities strategy with David Winborne. She specializes in the Energy Efficiency environmental sub-sector and researches stocks globally with a focus on Financials. Kirsteen is a member of the Portfolio Construction team for the Asian Environmental Markets Strategy.

Kirsteen joined Impax in September 2009. She began her career in the investment industry in 1987, investing in Asian equities as a portfolio manager at Royal London and Henderson Global Investors. She returned from Singapore in 2001 to head the SRI Investment team at Henderson Global Investors in London. Subsequently, Kirsteen worked within global equities, as a Financial analyst for Odey Asset Management before joining JP Morgan to run a long/short Financials portfolio for the internal hedge fund.
Kirsteen has an MA in Metallurgy and Science of Materials from Oxford.

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