Performance and Portfolio Update

  • The Pax MSCI EAFE ESG Leaders Index Fund (PXNIX)1 slightly outperformed the MSCI EAFE Index (EAFE Index) during the third quarter of 2020, its sixth consecutive quarter of outperformance.2
  • The Fund’s stronger ESG profile relative to the EAFE Index benefited performance. A chart showing performance attribution by ESG ratings over the trailing three months and since the Fund’s inception is available below. The Fund’s overweight toward the highest-rated ESG companies has contributed the most to relative performance since inception, and also helped performance during the third quarter.
  • September 30, 2020, marks the one-year anniversary of integrating Impax’s proprietary SmartCarbonTM approach into the Fund’s investment process. We are pleased to report that the SmartCarbon approach, which substitutes energy efficiency companies in place of fossil fuel companies, has added 4.2% of relative return compared to the EAFE Index over that time period. Both aspects of this approach, an overweight exposure toward energy efficiency companies and no exposure to the Energy sector has helped performance.
  • From a sector perspective, six of the 11 sectors added relative return during the third quarter, led by Materials and Information Technology. In Materials, Fund holdings and an overweight allocation in Chemicals and Metals & Mining added the most to relative return. In Information Technology, Fund holdings in Software and Electronic Equipment outperformed.
  • Detracting the most from relative performance were holdings in Consumer Discretionary and Communication Services, driven by poor results within Automobiles and Diversified Telecommunications.


(as of 9/30/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception3
Pax MSCI EAFE ESG Leaders Index Fund - Investor Class-1.524.85
Pax MSCI EAFE ESG Leaders Index Fund - Institutional Class-1.554.83-3.564.662.125.60-4.32
MSCI EAFE ESG Leaders (Net) Index-2.075.23-
MSCI EAFE (Net) Index-2.604.80-7.090.490.625.26-3.71
Lipper International Large-Cap Core Funds Index-2.574.72-10.90-3.37-2.033.74-2.71

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. For most recent month-end performance information, call 800.767.1729 or visit

Figures include reinvested dividends, capital gains distributions and changes in principal value.

3The inception date for the Pax MSCI EAFE ESG Leaders Index Fund Institutional Class is January 27, 2011, and the Investor Class inception date is March 31, 2014.

As of 5/1/20 prospectus, total annual Pax MSCI EAFE ESG Leaders Index Fund operating expenses, gross of any fee waivers or reimbursements, for Investor Class and Institutional Class shares are 0.74% and 0.49%, respectively.

Performance Attribution

ESG Ratings

(6/30/20 - 9/30/20)
Average Active Weights (%)
3-month Relative Contribution (%)Since Inception 1/27/11
Relative Contribution (%)

XOther: ETFs (for short-term cash mgmt. purposes) and Cash & Equivalents.
Past performance does not guarantee future results. Short-term performance may not be indicative of long-term results.

Portfolio Characteristics

(as of 9/30/20)
Market Cap (weighted avg.)$60,954M$65,173M
Forward Price/Earnings19.5818.85
Number of Securities302901

1The minimum investment needed for investment in PXNIX is $250,000.

2PXNIX vs. the MSCI EAFE Index over the last 6 quarters. PXWIX vs. MSCI EAFE Index quarterly returns: Q3-20: 4.83% vs. 4.80%. Q2-20: 16.74% vs. 14.88%, Q1-20: -21.20% vs. -22.83%, Q4-19: 8.53% vs. 8.17%, Q3-19: -0.34% vs. -1.07%, Q2-19: 4.36% vs.3.68%.

Top 10 Holdings

(as of 9/30/20)
Roche Holding AG 3.4%, SAP SE 2.7%, ASML Holding NV 2.6%, Novo Nordisk A/S, Class B 1.6%, Siemens AG 1.6%, Sony Corp. 1.4%, Keyence Corp. 1.4%, GlaxoSmithKline PLC 1.4%, Unilever NV 1.3%, Commonwealth Bank of Australia 1.2%. Holdings are subject to change.


MSCI ESG Research evaluates companies’ ESG characteristics and derives corresponding ESG scores and ratings. Companies are ranked by ESG score against their sector peers to determine their eligibility for the MSCI ESG indices. MSCI ESG Research identifies the highest-rated companies in each peer group to meet the float-adjusted market capitalization sector targets. The rating system is based on general and industry-specific ESG criteria, assigning ratings on a seven-point scale from AAA (highest) to CCC (lowest).
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 (ROE) is a ratio that provides investors’ insight into how efficiently a company (or, more specifically, its management team) is managing the equity that shareholders have contributed to the company.
A historical Beta is used for funds with greater than two years of performance history under the same mandate. 5 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.

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.

PAX009507 (1/21)

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

Scroll to top
User Agent: CCBot/2.0 (