Performance and Portfolio Update

  • The Pax Global Opportunities Fund outperformed MSCI ACWI during the first quarter of 2020, demonstrating resilience during the market downturn.
  • The Fund’s focus on higher quality, less indebted businesses proved beneficial during the market downturn. Many of the companies within the portfolio have more asset-light business models, such as software firms, with less exposure to complex global supply chains that are facing significant disruption risks as a result of the COVID-19 crisis. Microsoft Corporation (Systems Software, US), was one such example, continuing to see strength in demand for its cloud computing platforms from enterprise customers.
  • Social distancing, self-isolation and the shift in work patterns towards remote working saw a surge in internet and data usage globally. Companies addressing these challenges and supporting the expansion of internet usage, such as KDDI Corporation (Wireless Telecommunication Services, Japan), delivered positive performance. Equinix (Specialized  real estate investment trusts (REITs), US), a leading data center provider, enabled increased internet usage and was aided by its pre-pandemic efforts at scaling up resources.
  • Defensive sectors also outperformed during the market weakness, driving the performance of grocery retailers, such as Jeronimo Martins (Food Retail, Portugal). These companies are helping to meet basic needs for food and providing access to more healthy food products more generally.
  • In line with the broader market, the Fund’s Financials exposure underperformed. This included HDFC Bank (Diversified Banks, India), Hiscox (Property & Casualty Insurance, UK) and Bandhan Bank (Regional Banks, India).
  • Consumer Discretionary exposure detracted from returns following disruption to both supply chains and consumer demand. This was particularly notable in the already weakened automotive market, where COVID-19 led to the closure of factories. Aptiv (Auto Parts & Equipment, US), a provider of componentry for safer, greener and more connected vehicle solutions, fell as a result. However, the company was quick to factor in a COVID-19 related slowdown into its guidance and has technological leadership in next-generation vehicle technologies, positioning it well for an eventual market recovery.
  • As long-term investors, Impax invests in the transition to a more sustainable economy, incorporating long-term macroeconomic trends such as the move to de-carbonize the global economy, cloud computing and the rise of ‘digital everything’, changes in consumer habits and health, and urbanization. Governments and central banks have moved to provide large amounts of monetary liquidity and fiscal stimulus to reassure markets and alleviate the impact of the resulting economic shock. The Impax investment team continues to monitor the strength of corporate balance sheets and indicators such as the spread of the COVID-19 virus globally, testing implementation, national timetables for ending quarantine periods, and the development of vaccines and antibody tests. In our view, a global recession seems assured, with the market pricing in a recovery in 2021. The portfolio managers are working off this central thesis when assessing the longer-term valuation of investee companies.
  • It is likely that as a result of this unprecedented global crisis, there will be a greater focus by consumers, governments and regulators on areas such as health infrastructure and sanitation, water quality, hygiene and food safety. In addition, topics such as the health and safety and stability of the labor force, and the provision of employee benefits, will be prominent issues going forward.
  • The portfolio managers continue to focus on companies demonstrating consistent growth and operational return profiles coupled with lower debt levels. Current areas of interest include the shift to off-premise computing architecture, more effective drug discovery and companies helping businesses grow through research and development. Market volatility can provide an opportunity to rotate into diversified and high-quality stocks in cyclical end markets where valuation has become more attractive.


(as of 3/31/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Opportunities Fund - Investor Class-10.62-18.19-18.19-6.03---0.15
Pax Global Opportunities Fund - Institutional Class-10.61-18.11-18.11-5.78---0.30
MSCI ACWI (Net) Index-13.50-21.37-21.37-11.26----5.05
Lipper Global Multi-Cap Core Funds Index-12.21-17.24-17.24-6.67----2.63

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 5/1/2019 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 0.92% and 1.16%, respectively.ˆ  

Performance Attribution

(as of 3/31/20)
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 3/31/20)
Market Cap (weighted avg.)$115,870M$184,495M
Forward Price/Earnings19.1814.84
Number of Securities413,044

Top 10 Holdings

(as of 3/31/20)
Microsoft Corp. 4.3%, AIA Group, Ltd. 4.0%, IQVIA Holdings, Inc. 3.4%, HDFC Bank, Ltd. 3.4%, Equinix, Inc. 3.3%, Linde PLC 3.3%, KDDI Corp. 3.2%, Keyence Corp. 3.2%, Thermo Fisher Scientific, Inc. 3.2% and Taiwan Semiconductor Manufacturing Co., Ltd. 3.1%. 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.
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.

PAX009177 (7/20)

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.

Recent Insights

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