The Pax Global Environmental Markets Fund (PGRNX) invests in companies around the world that are developing innovative solutions in the areas of energy (energy efficiency and renewable energy), water (water infrastructure and technologies, pollution control), waste (waste management and technologies, environmental support services) and sustainable food and agriculture. We believe the leading companies in these markets are fast becoming major drivers of global economic growth. The following are examples of these companies:
- Xylem, Inc. (2.6%*)
- Delta Electronics, Inc. (2.0%*)
- GEA Group (2.0%*)
- Umicore (1.4%*)
Xylem is a diversified global water technology company based in the United States that specializes in the transportation, treatment, testing, and efficient use of water.
- The company has a leading brand and global market share in water pumps, valves and water testing.
- With a global presence, emerging market opportunities provide additional growth opportunities.
- Municipal capital spending on water infrastructure and the industrial business sector are important end markets.
- M&A and other corporate activity continues to be active in the Water sector.
- Interesting new technologies include award-winning storm water tunnel and submersible pump technologies to address flash flooding, energy efficient waste water management technologies that slash emissions nearly in half and reduce energy costs, and advanced wastewater treatment solutions including innovative ”plug-and-play” treatment containers. New water treatment and purification technologies also allow increased water reuse such as for aquifer recharge.
Delta Electronics, Inc.
Delta Electronics is a Taiwan-based company that is active in products that boost energy efficiency.
- The company is a leading manufacturer of power management electronics and automation equipment.
- The growing themes of integration of software and the ‘internet of things’ for the management of industrial processes is an important focus for Delta Electronics.
- Companies continue to look for ways to reduce their energy use. Data center power supply is an important market for Delta Electronics. Other important markets are industries such as consumer electronics, industrial automation, power networks, telecom, lighting, and health care.
GEA is based in Germany and one of the largest suppliers of process technology, particularly in the food industry.
- GEA equipment helps to cut production costs significantly and sustainably reduces the impact on the environment.
- The company has good exposure to growing end markets in industrial energy efficiency and food production optimization.
- GEA’s food equipment and farming equipment divisions should benefit from strong demand due to the change in demographics in emerging markets.
- GEA is progressing toward becoming a more integrated, scalable and flexible organization, as demonstrated by company's new manufacturing footprint and supply chain. We believe that the ongoing restructuring will be additive over the longer term.
Umicore, a Belgian company founded in 1902, is a global materials technology and recycling group.
- Around 50% of profits come from recycling, including recycling of batteries and recovery of specialty metals from mobile phones.
- Umicore’s core belief is that metal-related materials have a vital role to play in sustainability, as they can be efficiently and infinitely recycled, making them the basis for more sustainable products and services
- Umicore also manufacturers automotive emission control catalysts and catalysts for industries such as life sciences.
- Other businesses include specialty metals for more efficient building construction and materials used in batteries for lower emission hybrid electric vehicles and solar energy.
- Recycling and pollution control are key drivers in the Resource Optimization investment universe and Umicore is one of a handful of key global players in these areas.
*Pax Global Environmental Markets Fund holdings as of 12/30/16.
Pax Global Environmental Markets Fund top ten holdings as of 12/30/16: Legrand SA 3.2%, SUEZ Environnement Co. SA 3.0%, Delphi Automotive PLC 3.0%, Danaher Corp. 2.9%, Sealed Air Corp. 2.9%, Waste Management, Inc. 2.9%, Ecolab, Inc. 2.9%, WestRock Co. 2.9%, Thermo Fisher Scientific, Inc. 2.7% and East Japan Railway Co. 2.7%. Holdings are subject to change.
This information is not a recommendation to buy or sell any security.