• The Pax Global Opportunities Fund underperformed the MSCI ACWI in the third quarter of 2022.

Market Review

  • The Fund’s performance fell in absolute terms as central bank action to contain inflation resulted in weaker global equity markets.
  • All sectors were negative apart from Industrials. Health Care and Information Technology stocks detracted the most. Outperformance in Industrials was driven by holdings exposed to the sharing economy, such as rental equipment and uniform rental companies. These companies produced good earnings and bounced from oversold levels.
  • On a relative basis the Fund benefited from being underweight Communications as internet and hypergrowth companies in this sector came under pressure during the period. By comparison the Fund’s Communication holdings are very defensive in nature. On the other hand, stock selection in Health Care and Materials detracted. Health Care names were impacted by a combination of factors, including worsening sentiment towards indebted companies, currency headwinds and valuation compression. In Materials, stock specific factors were the driver of weaker stock performance.


  • Top performing stocks came from a diverse range of sectors but tended to be companies with strong secular growth drivers that announced good earnings. Consequently, they have behaved more defensively in this current environment of weaker equity markets.
  • United Rentals (Trading Companies & Distributors, US) provides rental equipment for industrial and construction users. Shares were sold heavily earlier in the year but rebounded on improved expectations for companies with cyclical exposure. Furthermore, the company delivered a strong set of results, ahead of market expectations.
  • HDFC Bank (Diversified Banks, India)– has continued to demonstrate its balance sheet strength with growth in both loans and deposits. The Indian stock market has a been relative outperformer, particularly compared to other emerging markets.
  • Cadence Design Systems (Application Software, US) – announced strong quarterly results demonstrating resilience in demand for Cadence’s semiconductor design tool software. Demand for this software is more closely correlated to the electronic industry’s research & development activities than end product demand, which is more cyclical in nature.


  • Detractors were from a variety of sectors and were impacted by stock specific factors.
  • IQVIA Holdings (Life Sciences Tools & Services, US) pulled back after a strong run in July as the rotation out of quality resumed. The company produced solid Q2 results but has struggled against negative sentiment toward the funding environment for the biotech industry and higher indebted companies.
  • Koninklijke DSM (Specialty Chemicals, Netherlands) – has been impacted by negative sentiment as a result of softer nutritional markets and slightly weaker performance from an acquisition target. The investment team remain positive on the stock as the company has a strong balance sheet and the proposed merger with Firmenich moves the company forward in its transformation towards a pure consumer and animal nutrition ingredients company.
  • AIA Group (Life & Health Insurance, Hong Kong) – suffered as ongoing Covid related mobility restrictions led to concerns about the value of new business growth. First half results were weaker on a change in product mix, however the investment team remain focused on the firm’s resilience and balance sheet strength.


  • With inflation remaining persistently high and central banks raising interest rates faster and further than expected, there is more uncertainty about whether the economy will grow in the coming quarters. The Fund took the opportunity when markets rallied in July to reduce exposure to companies with more cyclical characteristics and increase the weighting to defensive growth. Against this backdrop, the Fund has focused on the resilience of companies’ earnings and their ability to manage through periods of disruption. Impax believes that high quality companies with structural growth drivers benefitting from the transition to a more sustainable economy continue to present attractive investment opportunities. The investment team remains focused on companies demonstrating consistent growth and operational return profiles coupled with lower debt levels. Areas of interest for the Portfolio Management team include beneficiaries of increased spending on drug discovery and testing, the accelerating digital transformation of enterprises, companies providing access to finance and businesses enabling the sharing and circular economy.


(as of 9/30/22)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax Global Opportunities Fund - Investor Class-9.09-7.21-29.03-24.013.96--5.71
Pax Global Opportunities Fund - Institutional Class-9.06-7.18-28.90-23.834.24--5.93
MSCI ACWI (Net) Index-9.57-6.82-25.63-20.663.75--4.16
Lipper Global Multi-Cap Growth Funds Index-9.40-5.58-33.58-31.343.74--3.94

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 1.07% and 1.32%, respectively, as of 5/1/2022 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 0.96% and 1.21%, respectively.ˆ

Performance Attribution

(6/30/22 - 9/30/22)
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 9/30/22)
Market Cap (weighted avg.)$157,255M$305,486M
Forward Price/Earnings19.6113.46
Number of Securities432897

Top 10 Holdings

(as of 9/30/22)
Microsoft Corp. 4.4%, Linde PLC 3.8%, MasterCard, Inc., Class A 3.7%, Thermo Fisher Scientific, Inc. 3.7%, Hannover Rueck SE 3.5%, AIA Group, Ltd. 3.5%, HDFC Bank, Ltd. 3.3%, Boston Scientific Corporation 3.3%, Koninklijke DSM N.V. 3.1% and Schneider Electric SE 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.

IMPX1265 (1/23)

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 and is an interim manager on the Asian Environmental and Asian Opportunities strategies. She is also a member of the Pax Sustainable Allocation Fund portfolio management team.

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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