PORTSMOUTH, N.H. September 18, 2017 – Pax World Management LLC, investment adviser to Pax World Funds and a pioneer in the field of sustainable investing with approximately $4.5 billion1 in assets under management (AUM), today announced that it has entered an agreement to be acquired by Impax Asset Management Group plc (Impax), subject to approval of the investment advisory agreement by the trustees and shareholders of Pax World Funds.
Impax, a UK-based firm with approximately $9.4 billion1 in AUM, is a leading independent investment manager specializing in opportunities arising from the transition to a more sustainable global economy. Impax and Pax formed a partnership in 2007 to design and manage the Pax Global Environmental Markets Fund, which was launched in 2008 and today has over $500 million in assets.
The transaction will create a combined investment management firm with $13.4 billion in AUM2 and significantly expanded investment management, research and client service capabilities. Both firms have a heritage as pioneers in sustainable investing and share similar corporate cultures and values.
The strategic rationale for the combination is supported by highly complementary areas of investment management expertise, together with strong product and geographic fit. This will allow the expanded group to offer enhanced resources and services to Pax’s and Impax’s existing and prospective shareholders and clients.
Under the terms of the transaction, Pax will be renamed Impax Investment Management (US) LLC and will continue to manage Pax World Funds, which will retain their name, as the U.S.-based mutual fund division of Impax’s global business. Joe Keefe, Pax’s President & Chief Executive Officer, will continue to lead the renamed company, reporting to Ian Simm, Impax’s Chief Executive, and will also be named to Impax Asset Management Ltd’s board. Mr. Keefe, together with other members of Pax’s management and senior staff, have agreed to enter new employment agreements, ensuring Pax’s continued strength and stability.
“This is an exciting new chapter in our decade-long partnership with Impax. We believe that combining our two firms will create a leading sustainable investment manager with business on both sides of the Atlantic,” said Pax CEO Joe Keefe. “Pax World Funds’ shareholders stand to benefit in significant ways from our increased scale, research and investment capabilities as we seek to deliver a more robust investment and distribution platform for the global market.”
“I am delighted that, after a decade of successfully partnering to design, launch and manage the Pax Global Environmental Markets Fund, the Impax and Pax teams will be joining forces,” said Impax Founder and Chief Executive Ian Simm. “Like Impax, Pax has a long track record as a pioneer in sustainable investing and a strong team of highly experienced investment management and support staff. The combined group will start with closely aligned business cultures and be well placed to offer a broader service and more diversified range of products to existing and future clients.”
1 As of August 31, 2017
2 Net consolidated AUM (not double counting the AUM of Pax Global Environmental Markets Fund).
Pax World Management LLC, investment adviser to Pax World Funds, is a pioneer in the field of sustainable investing. Pax World integrates environmental, social and governance (ESG) research into its investment process to better manage risk and deliver competitive long-term investment performance. For over 45 years, Pax World has made it possible for investors to align their investments with their values and have a positive social and environmental impact. Today, its platform of sustainable investing solutions includes a family of mutual funds, as well as separately managed accounts.
Impax Asset Management manages or advises on approximately $9.4bn (as of August 31 2017) in both listed and private equity strategies primarily for institutional clients. The Company’s investments are based on the strong conviction that population dynamics, resource scarcity, inadequate infrastructure and environmental constraints will profoundly shape global markets, creating investment risks and opportunities. Impax expects that these trends, reflecting the transition towards a more sustainable global economy, will drive earnings growth for well-positioned companies. Impax’s proprietary investment framework identifies and calibrates the rising risks and expanding opportunities from this transition, and guides the search for investments that will deliver long term outperformance.
You should consider a fund’s investment objectives, risks, and charges and expenses carefully before investing. For this and other information, call 800.767.1729 or visit www.paxworld.com for a fund prospectus and read it carefully before investing.
Pax World Funds distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not the distributor of Pax World’s Separately Managed Accounts.