• In the third quarter, the Pax Global Sustainable Infrastructure Fund outperformed traditional infrastructure, as measured by the S&P Global Infrastructure Index, and underperformed the broad global equity market, as measured by the MSCI ACWI.

Investment Strategy

  • The Fund uses a systematic process to construct a portfolio of companies that Impax believes is providing the infrastructure driving the transition to a more sustainable economy. The portfolio has significant weight in companies providing vital resources in a sustainable fashion, including those we classify as New Energy (renewable energy generation, more efficient energy use and distribution) as well as water infrastructure. The Fund also invests in Social and Economic Infrastructure that is essential to meeting basic needs (e.g., education, healthcare) and enhancing the collection, transmission and processing of information.

Market Overview

  • Despite a relief rally at the start of the quarter, equity and bond markets were weaker over the period as central banks moved to contain inflation by further raising interest rates. While rate hikes were not unexpected, the magnitude and the associated commentary took the market by surprise. The Federal Reserve indicated it would continue raising rates into next year, dampening hopes that a peak was in sight. Further volatility came from the United Kingdom, where the announcement of tax cuts, unsupported by full budget disclosure, led to sterling weakness and a sharp selloff in bonds. Currency moves were once again significant over the quarter, with the dollar continuing to gain against multiple currencies.
  • The MSCI ACWI fell as investors factored in higher interest rates and potentially slower economic growth. All sectors posted negative returns, with Energy the top performer relative to other sectors, followed by Consumer Discretionary. Financials also performed relatively better, supported by rising yield curves. Long duration and interest rate sensitive sectors underperformed, with Communications Services posting the worst returns, followed by Real Estate and Utilities.
  • The S&P Global Infrastructure Index returned -9.8% as investors factored in higher interest rates and potentially slower economic growth, which were particularly impactful to infrastructure names. Relevant securities in Social & Economic Infrastructure (-11.4%) underperformed the Infrastructure Index, while Resource Infrastructure (-8.4%) outperformed.

Sustainable Infrastructure Sector Attribution

  • The portfolio is guided by the Impax Sustainable Infrastructure Taxonomy, which provides the foundation to construct diversified portfolios that are representative of infrastructure essential for the transition to a more sustainable economy, while retaining the broad characteristics that investors expect from an infrastructure portfolio, high yields and defensive characteristics.

    Impax classifies sustainable infrastructure into two broad categories,
    1. Resource Infrastructure includes New Energy, Water, Waste & Resource Efficiency, and Food and Agriculture sub sectors.
    2. Social and Economic Infrastructure which includes Communications & Data, Buildings & Facilities, Transportation, Healthcare, Education, and Finance sub sectors.
  • Companies must generate at least 20% of their revenues from infrastructure-related activities as defined by this taxonomy.
  • The Fund’s outperformance can be attributed to its Resource related allocation within Waste & Resource Efficiency, New Energy, and Food & Agriculture, with those sub sectors all contributing positively, relative to the investment universe, while exposure to Water infrastructure detracted. Within New Energy, Renewable Energy Development was particularly additive to performance.
  • The Social and Economic infrastructure allocation was a drag on performance in the quarter as securities within Transportation, and Communications & Data subsectors detracted, significantly underperforming the broad infrastructure investment universe.
  • Companies that fall outside of our sustainable infrastructure universe but are included in the benchmark index returned -10.0%; the portfolio’s avoidance of these areas, which are generally more resource and carbon intensive, was a boost to performance.

GICS1 Sector Attribution

  • Sector positioning is an outcome of the portfolio construction process rather than a deliberate exposure. The Fund’s exposure to Communication Services and Real Estate, which are not held in the S&P Global Infrastructure index detracted from performance, as did the active underweight to Utilities. Healthcare, Information Technology and Consumer Staples which are also not part of the Index, contributed positively to Fund performance, as holdings in those sectors outperformed over the reporting period.


(as of 9/30/22)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception2
Pax Global Sustainable Infrastructure Fund - Investor Class-11.48-9.94-21.79-17.852.975.69-6.62
Pax Global Sustainable Infrastructure Fund - Institutional Class-11.43-9.90-21.69-17.663.205.96-6.89
S&P Global Infrastructure Index-11.84-9.81-10.66-6.72-0.911.22-3.93
Russell 1000 Index-9.25-4.61-24.59-17.227.959.00-10.07
Lipper Global Infrastructure Index-11.80-9.85-14.73-8.59-0.202.54-5.41

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.

2The inception date for the Pax Global Sustainable Infrastructure Fund Institutional Class and the Investor Class is December 16, 2016.

Total annual Pax Global Sustainable Infrastructure Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Investor Class shares are 0.65% and 0.90%, respectively, as of 5/1/2022 prospectus. Total annual Pax Global Sustainable Infrastructure Fund operating expenses, net of any fee waivers or reimbursements, for Institutional Class and Investor Class are 0.55% and 0.80%, respectively.ˆ

Portfolio Characteristics

(as of 9/30/22)
FundS&P Global
Infrastructure Index
Market Cap (weighted avg.)$37,267M$36,491M
Forward Price/Earnings14.8217.24
Dividend Yield3.763.77
Number of Securities13476
30-Day SEC Yield (%)*30-Day SEC yield (%)Unsubsidized

1The Global Industry Classification Standard (GICS) is a widely recognized industry standard for assigning a public company to the economic sector and industry group that best defines its business. It was developed jointly by MSCI and Standard & Poor’s and is used by the MSCI indexes.

Top 10 Holdings

(as of 9/30/22)
Schneider Electric SE 2.4%, Waste Management, Inc. 2.4%, Iberdrola SA 2.3%, Enel SpA 1.8%, Canadian Pacific Railway Limited 1.7%, American Water Works Co., Inc. 1.5%, SSE PLC 1.5%, Edison International 1.4%, Verizon Communications, Inc. 1.4% and Taiwan Semiconductor Manufacturing Co., Ltd. 1.4%. Holdings are subject to change.


*The 30-Day Yield represents net investment income earned by the Fund over the 30-Day period ended 6/30/2022, expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period. The 30-Day unsubsidized SEC Yield does not reflect any fee waivers/reimbursements/limits in effect.
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.
Dividend Yield, expressed as a percentage, is a financial ratio (dividend/price) that shows how much a company pays out in dividends each year relative to its stock price.
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.

IMPX1269 (1/23)

Scott LaBreche

Portfolio Manager

Scott LaBreche is Portfolio Manager & VP, Portfolio Analytics, at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

Scott is a Portfolio Manager of the Global Women’s Leadership Strategy, which includes the Pax Ellevate Global Women’s Leadership Fund. He is also a Portfolio Manager of the Pax International Sustainable Economy Fund, the Pax Global Sustainable Infrastructure Fund and the Pax U.S. Sustainable Economy Fund.

He is responsible for portfolio management of systematic strategies, portfolio analytics and risk oversight, and quantitative ESG research.

Before joining Impax in 2007, Scott was a Securities Fund Analyst at Lincoln Financial Group. He has been in the investment management industry since 1999.

Scott holds a Bachelor of Science in business administration and a Master of Business Administration with advanced certificate in finance from Southern New Hampshire University.

Recent Insights

Christine Cappabianca

Portfolio Manager

Christine co-manages Impax’s Systematic strategies and the actively managed Sustainable Infrastructure strategy.

Christine’s research brings a focus on identifying and emphasizing the optimal sources of return within sustainable/thematic universes and removing any unintentional portfolio biases.

Before joining Impax in 2021, Christine spent 14 years with Mellon, where she held several positions, most recently as senior quantitative research analyst and portfolio manager for the firm’s Internet of Things, Blockchain Innovation, U.S. Manufacturing and Smart Cures Innovation thematic strategies. She also served as the ESG data expert on Mellon’s ESG Council. In these roles she focused on informing active portfolios with the power of data and sustainability metrics.

Christine earned a Bachelor of Arts in economics at Harvard University and a Master of Science in investment management at Boston University. She holds the SASB FSA Credential.

Recent Insights

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