Performance and Portfolio Update
- Effective March 31, 2021, the Pax ESG Beta Dividend Fund was renamed the Pax Global Sustainable Infrastructure Fund. The Fund will continue to seek both capital appreciation and income on behalf of shareholders by investing in companies that, in our view, are more likely to offer higher dividend yields to shareholders. We are enhancing the Fund’s sustainability profile, however, such that it will now invest primarily in companies that support “sustainable infrastructure” — companies that conserve, enable or increase access to vital resources such as clean energy, water, food and agriculture, healthcare, education, finance, transportation and communications. Learn more by reading our press release.
- The Fund outperformed the benchmark Russell 1000 Index in the first quarter. The following performance commentary is representative of the ESG Beta Dividend investment strategy in place during the period. The main drivers of outperformance were the factors used in the strategy construction.
- The tilt towards two dividend sustainability factors, profitability and earnings quality, contributed to relative performance. The tilt toward companies with higher dividend yield also had a positive impact on returns as companies with larger dividend payouts outperformed the broader market.
- Industry exposures, which are driven by the factor and ESG tilts, modestly detracted from relative returns for the quarter. In particular, an underweight to the Energy and Financials sectors detracted from relative performance.
Performance(as of 3/31/21)
|1-Month||Quarter||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception1|
|Pax Global Sustainable Infrastructure Fund - Investor Class||5.60||7.76||7.76||54.10||14.69||-||-||13.99|
|Pax Global Sustainable Infrastructure Fund - Institutional Class||5.58||7.81||7.81||54.48||14.99||-||-||14.29|
|S&P Global Infrastructure Index||4.33||2.80||2.80||35.99||4.74||-||-||6.22|
|Russell 1000 Index||3.78||5.91||5.91||60.59||17.31||-||-||16.65|
|Lipper Global Infrastructure Index||5.15||2.33||2.33||25.28||6.97||-||-||8.26|
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 impaxam.com
Figures include reinvested dividends, capital gains distributions and changes in principal value.
1The inception date for the Pax Global Sustainable Infrastructure Fund Institutional Class and the Investor Class is December 16, 2016.
Portfolio Characteristics(as of 3/31/21)
|Market Cap (weighted avg.)∱||$36,679M||$36,978M|
|Number of Securities||120||77|
Top 10 Holdings
(as of 3/31/21)
Enel SpA 2.4%, Iberdrola SA 2.4%, Waste Management, Inc. 2.4%, American Water Works Co., Inc. 2.1%, Schneider Electric SE 2.0%, Orsted 1.9%, Edison International 1.8%, SSE PLC 1.8%, EDP-Energias de Portugal SA 1.7% and Verizon Communications, Inc. 1.7%. 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 corporations’ profitability by revealing how much profit a company generates with the money shareholders have invested.
∞A historical Beta is used for Funds with greater than 3 years of performance history under the same mandate. Three-year Beta is used. Beta reflects the sensitivity of a Fund’s return to fluctuations in its benchmark; a beta for a benchmark is 1.00; a beta greater than 1.00 indicates above-average volatility and risk.