Performance and Portfolio Update

  • The Pax Global Opportunities Fund outperformed the MSCI ACWI benchmark in the third quarter of 2020.
  • The Industrials, Health Care, Materials, and Information Technology sectors contributed to relative performance compared to the MSCI ACWI benchmark, while holdings in the Consumer Discretionary and Communications Services sectors detracted from performance. The portfolio’s lack of exposure to Energy and overweight exposure to Information Technology proved beneficial, as did solid stock selection in Industrials and Health Care.
  • Demand for digital infrastructure continues to demonstrate it is one of the core backbones of a resilient and more efficient economy. Within the portfolio, this included companies active in water infrastructure, efficient agricultural equipment, diagnostic medical and laboratory equipment, efficient drug testing tools, and healthy and bio-based food ingredients.
  • Taiwan Semiconductor Manufacturing Corporation (Semiconductors, Taiwan), the world’s largest chipmaker, saw strong demand from large customers, including Apple, together with a broadening need for semiconductor chips as connectivity demands continue to rise. Thermo Fisher Scientific (Life Sciences Tools & Services, US) performed above market expectations as demand continues for the company’s COVID-19-related expertise, including vaccine-related drug discovery and virus testing equipment. A second Health Care holding, Lonza (Life Sciences Tools & Services, Switzerland) also marked gains from positive news flow on the development of COVID-19-related therapies and vaccines in which the company is involved.
  • Underperformance was largely stock specific. KDDI (Wireless Telecommunications Services, Japan) was negatively impacted by concerns that the government might seek to implement tariff cuts for telecommunication companies in Japan. While the level of the cuts is unknown, KDDI has other important revenue streams, including lifestyle media packages. Jeronimo Martins (Food Retail, Portugal) suffered from restrictions on customer traffic, and rising COVID-19 safety equipment costs impacted profitability. Lastly, Bandhan Bank (Regional Banks, India), a microfinance institution in India, suffered from market concerns regarding non-performing loans in India due to the lockdown measures taken to control the pandemic. The company released a better-than-expected update in July regarding deposits and collections, which was taken positively by the market and the stock recovered in the latter part of the quarter.
  • Moving into the last quarter of 2020, economic uncertainty and market volatility may increase due to the US elections and second waves of COVID-19 in Europe. Periods of uncertainty can provide opportunities to rotate into diversified and high-quality stocks where valuations have become more attractive. The portfolio continues to demonstrate resilience, outperforming in both a positive market in July as well as during the more cautious tone of the market in September. This performance has been driven by both strong stock selection and good asset allocation.
  • The investment team remains focused on companies demonstrating consistent growth and operational return profiles coupled with lower debt levels. 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.


(as of 9/30/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Opportunities Fund - Investor Class-0.629.607.1416.41---12.79
Pax Global Opportunities Fund - Institutional Class-0.629.587.3116.71---12.95
MSCI ACWI (Net) Index-
Lipper Global Multi-Cap Growth Funds Index-1.7410.8417.2828.01---14.26

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.

Performance Attribution

(6/30/20 - 9/30/20)
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 9/30/20)
Market Cap (weighted avg.)$155,067M$292,088M
Forward Price/Earnings27.4921.20
Number of Securities412,991

Top 10 Holdings

(as of 9/30/20)
Microsoft Corp. 4.3%, IQVIA Holdings, Inc. 3.6%, AIA Group, Ltd. 3.6%, MasterCard, Inc., Class A 3.5%, Taiwan Semiconductor Manufacturing Co., Ltd. 3.4%, Thermo Fisher Scientific, Inc. 3.4%, Linde PLC 3.2%, Equinix, Inc. 3.2%, Cadence Design Systems, Inc. 3.1% and Evotec SE 2.9%. 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.

PAX009505 (1/21)

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.

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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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