Frequently Asked Questions
We’ve compiled a list of commonly asked questions regarding the Pax World Global Environmental Markets Fund and their answers. If you don’t find what you are looking for, please contact us.
What are the objectives of the Global Environmental Markets Fund?
The Fund seeks long-term growth of capital by investing in companies around the world that are developing innovative solutions in the areas of energy efficiency, water infrastructure and technologies, waste management and technologies, and sustainable food, agriculture and forestry.
The Fund was once called the Pax World Global Green Fund. Why was the name changed?
Among the reasons Pax World renamed the Fund in August 2012 was to make clear that it is not an alternative energy fund but rather has a broader environmental mandate. While the Fund has some exposure to renewable energy, this accounted for only about 4% of its holdings as of June 30, 2012. By contrast, energy efficiency accounted for approximately 33% of Fund holdings, water infrastructure 25% of Fund holdings and waste management and pollution control another 25% of Fund holdings.
Why should someone invest in the Fund?
We believe the leading companies in environmental markets are fast becoming major drivers of global economic growth as industries, governments and societies come to terms with a series of challenges associated with the need to transition to low-carbon, resource-efficient economic models. For this reason, we contend that these companies deserve a place in the portfolio of any investor who recognizes that investing today is very much about preparing for tomorrow.
Are environmental markets sufficiently large to justify investors’ interest in them?
Environmental markets today are comprised of some 1,400 companies with annual revenues in excess of $500 billion. Impax Asset Management, subadviser to the Fund, believes that energy security, resource scarcity and efficiency solutions are becoming ever more important keys to sustainable global growth. Their data suggests, in fact, that environmental markets could potentially enjoy sustained compound annual growth rates of between 10 and 20%. This growth rate is based on broker estimates for the earnings per share (EPS) growth of the stocks within Impax’s investment universe.
Is growing resource scarcity part of the basis for investing in the Fund?
Factors such as rapid population growth, rising affluence in emerging markets, weather extremes and the cost of replacing reserves of natural materials are all placing ever-increasing demands on the world’s finite natural resources. The Global Environmental Markets Fund seeks to invest in innovative companies that are leading the development of efficiency solutions to address these challenges.
Tell me about Impax Asset Management, the subadviser to the Fund?
Impax Asset Management (www.impaxam.com) is a leading environmental technology investment firm with 27 investment professionals in offices in London, Washington and Hong Kong. The company has been researching and managing portfolios of publicly traded stocks and private equity in this space for close to 15 years.
Who are the specific portfolio managers of the Fund?
The Global Environmental Markets Fund is co-managed by three of Impax’s most senior investment managers, Bruce Jenkyn-Jones, Simon Gottelier and Hubert Aarts. Read more about the fund's co-managers by visiting the managers' biography page.
How can I find out more about the Fund?
For more information about the Pax World Global Environmental Markets Fund and our entire family of mutual funds or to open an account, call 800.767.1729.
Earnings per share (EPS) - The portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability.
ALPS Distributors, Inc. is not affiliated with Impax Asset Management Ltd.