Performance and Portfolio Update

  • Following outperformance during the market decline, the Pax Global Opportunities Fund performed in line with the MSCI ACWI benchmark as markets recovered during the second quarter of 2020.
  • The Information Technology sector led performance over the period, as the global pandemic accelerated technological investments including the shift to cloud computing. Cloud service providers have been able to provide and manage the digital infrastructure enabling companies and organizations to function with new remote working patterns. Microsoft Corporation (Systems Software, US) reported strong quarterly results reflecting the resilience of enterprise IT spending. Cadence Design Systems (Application Software, US) also released good results, indicating the resilience in demand for semiconductor design software. Spending is linked to customers’ research and development efforts to design chips for the digital world, rather than shorter-term sales trends.
  • Underperformance was largely stock specific. Hiscox (Property & Casualty Insurance, UK) fell on concerns that it may need to make business interruption payments to Small and Mid-Size Enterprise (SME) customers in the wake of lockdowns and social distancing measures in the UK and the US The company believes that its policies exclude closures linked to the pandemic. In early May, the company raised capital to enable them to benefit from the firm pricing environment across many of their business lines. Grifols (Biotechnology, Spain) suffered from continued weakness across plasma biotech companies, due to market fears of competitor clinical data, as well as the COVID-19 impact on plasma collection/supply, and near-term margin dilution from increased plasma donor fees.
  • From a regional perspective, overweight exposure to Europe and underweight exposure to North America detracted from performance, while strong stock selection in North America helped drive positive relative performance.
  • 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.
  • 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 accelerating digital transformation of enterprises given working-from-home patterns during lockdown, more efficacious 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 6/30/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Opportunities Fund - Investor Class3.9819.49-2.244.09---9.40
Pax Global Opportunities Fund - Institutional Class3.9719.57-2.084.37---9.58
MSCI ACWI (Net) Index3.2019.22-6.252.11---4.29
Lipper Global Multi-Cap Growth Funds Index5.7527.865.8114.26---10.39

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 1.42% and 1.68%, respectively, as of 5/1/2020 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 1.19%, respectively.ˆ  

Performance Attribution

(3/31/20 - 6/30/20)
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. Short term performance may not be indicative of long term results.

Portfolio Characteristics

(as of 6/30/20)
Market Cap (weighted avg.)$147,753M$246,851M
Forward Price/Earnings26.2220.78
Number of Securities412,985

Top 10 Holdings

(as of 6/30/20)
Microsoft Corp. 4.6%, IQVIA Holdings, Inc. 3.6%, AIA Group, Ltd. 3.6%, Thermo Fisher Scientific, Inc. 3.4%, Equinix, Inc. 3.3%, Linde PLC 3.3%, Taiwan Semiconductor Manufacturing Co., Ltd. 3.2%, HDFC Bank, Ltd. 3.1%, MasterCard, Inc. 3.1% and Ecolab, Inc. 3.0%. 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.

PAX009348 (10/20)

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.

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