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IMPAX LARGE CAP FUND

(formerly, Pax Large Cap Fund)

Institutional Class (PXLIX)

Investor Class (PAXLX)

 

IMPAX SMALL CAP FUND

(formerly, Pax Small Cap Fund)

Institutional Class (PXSIX)

Investor Class (PXSCX)

Class A (PXSAX)

 

IMPAX US SUSTAINABLE ECONOMY FUND

(formerly, Pax US Sustainable Economy Fund)

Institutional Class (PWGIX)

Investor Class (PXWGX)

Class A (PXGAX)

 

IMPAX GLOBAL SUSTAINABLE

INFRASTRUCTURE FUND

(formerly, Pax Global Sustainable Infrastructure Fund)

Institutional Class (PXDIX)

Investor Class (PAXDX)

 

IMPAX GLOBAL OPPORTUNITIES FUND

(formerly, Pax Global Opportunities Fund)

Institutional Class (PXGOX)

Investor Class (PAXGX)

 

IMPAX GLOBAL ENVIRONMENTAL MARKETS FUND

(formerly, Pax Global Environmental Markets Fund)

Institutional Class (PGINX)

Investor Class (PGRNX)

Class A (PXEAX)

 

   

IMPAX ELLEVATE GLOBAL WOMEN’S

LEADERSHIP FUND

(formerly, Pax Ellevate Global Women’s Leadership Fund)

Institutional Class (PXWIX)

Investor Class (PXWEX)

 

IMPAX INTERNATIONAL SUSTAINABLE ECONOMY FUND

(formerly, Pax International Sustainable Economy Fund)

Institutional Class (PXNIX)

Investor Class (PXINX)

 

IMPAX CORE BOND FUND

(formerly, Pax Core Bond Fund)

Institutional Class (PXBIX)

Investor Class (PAXBX)

 

IMPAX HIGH YIELD BOND FUND

(formerly, Pax High Yield Bond Fund)

Institutional Class (PXHIX)

Investor Class (PAXHX)

Class A (PXHAX)

 

IMPAX SUSTAINABLE ALLOCATION FUND

(formerly, Pax Sustainable Allocation Fund)

Institutional Class (PAXIX)

Investor Class (PAXWX)

 

 

 



PROSPECTUS

 

May 1, 2023

 

 

The prospectus explains what you should know about the funds before you invest. Please read it carefully. The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy or accuracy of this Prospectus. Any representation to the contrary is a criminal offense.

 

 

 

 

Table of Contents

 

   

Impax Large Cap Fund

 

Summary of Key Information

9

Investment Objective

9

Fees & Expenses

9

Example of Expenses

9

Portfolio Turnover

10

Principal Investment Strategies

10

Principal Risks

11

Performance Information

14

Investment Adviser

15

Portfolio Managers

15

Impax Small Cap Fund

 

Summary of Key Information

16

Investment Objective

16

Fees & Expenses

16

Example of Expenses

17

Portfolio Turnover

17

Principal Investment Strategies

18

Principal Risks

19

Performance Information

20

Investment Adviser

23

Portfolio Managers

23

Impax US Sustainable Economy Fund

 

Summary of Key Information

24

Investment Objective

24

Fees & Expenses

24

Example of Expenses

25

Portfolio Turnover

25

Principal Investment Strategies

26

Principal Risks

27

Performance Information

29

Investment Adviser

31

Portfolio Managers

31

 

 

 

 

Table of Contents, continued

 

Impax Global Sustainable Infrastructure Fund

 

Summary of Key Information

32

Investment Objectives

32

Fees & Expenses

32

Example of Expenses

33

Portfolio Turnover

33

Principal Investment Strategies

33

Principal Risks

34

Performance Information

37

Investment Adviser

39

Portfolio Managers

39

Impax Global Opportunities Fund

 

Summary of Key Information

40

Investment Objective

40

Fees & Expenses

40

Example of Expenses

41

Portfolio Turnover

41

Principal Investment Strategies

41

Principal Risks

43

Performance Information

45

Investment Adviser

46

Portfolio Managers

47

Impax Global Environmental Markets Fund

 

Summary of Key Information

48

Investment Objective

48

Fees & Expenses

48

Example of Expenses

49

Portfolio Turnover

49

Principal Investment Strategies

50

Principal Risks

51

Performance Information

53

Investment Adviser

55

Portfolio Managers

55

 

 

 

 

Table of Contents, continued

 

Impax Ellevate Global Women’s Leadership Fund

 

Summary of Key Information

56

Investment Objective

56

Fees & Expenses

56

Example of Expenses

57

Portfolio Turnover

57

Principal Investment Strategies

57

Principal Risks

60

Performance Information

62

Investment Adviser

64

Portfolio Managers

65

Impax International Sustainable Economy Fund

 

Summary of Key Information

66

Investment Objective

66

Fees & Expenses

66

Example of Expenses

66

Portfolio Turnover

67

Principal Investment Strategies

67

Principal Risks

68

Performance Information

70

Investment Adviser

72

Portfolio Managers

73

Impax Core Bond Fund

 

Summary of Key Information

74

Investment Objective

74

Fees & Expenses

74

Example of Expenses

74

Portfolio Turnover

75

Principal Investment Strategies

75

Principal Risks

76

Performance Information

79

Investment Adviser

80

Portfolio Manager

80

 

 

 

 

Table of Contents, continued

 

Impax High Yield Bond Fund

 

Summary of Key Information

81

Investment Objectives

81

Fees & Expenses

81

Example of Expenses

82

Portfolio Turnover

82

Principal Investment Strategies

82

Principal Risks

84

Performance Information

86

Investment Adviser

87

Portfolio Managers

87

Impax Sustainable Allocation Fund

 

Summary of Key Information

88

Investment Objectives

88

Fees & Expenses

88

Example of Expenses

89

Portfolio Turnover

89

Principal Investment Strategies

89

Principal Risks

91

Performance Information

94

Investment Adviser

95

Portfolio Managers

96

Important Additional Information About the Funds

 

Purchase and Sale of Fund Shares

97

Taxes

97

Payments to Broker-Dealers and Other Financial Intermediaries

97

 

 

 

 

Table of Contents, continued

 

About the Funds

 

Investment Objectives and Strategies

98

Impax Large Cap Fund

98

Impax Small Cap Fund

100

Impax US Sustainable Economy Fund

102

Impax Global Sustainable Infrastructure Fund

103

Impax Global Opportunities Fund

105

Impax Global Environmental Markets Fund

107

Impax Ellevate Global Women’s Leadership Fund

109

Impax International Sustainable Economy Fund

111

Impax Core Bond Fund

113

Impax High Yield Bond Fund

114

Impax Sustainable Allocation Fund

116

Principal Risks

119

Sustainable Investing

131

Sustainability Lens

131

Portfolio Holdings

137

Management, Organization and Capital Structure

137

Primary Service Providers

137

Investment Adviser

137

Sub-Adviser

140

Portfolio Managers

140

How Share Price is Determined

144

Shareholder Guide

 

Choosing a Share Class

147

How to Purchase Shares

148

Sales Charges

149

Purchasing Additional Shares

156

How to Sell Shares

158

How to Exchange Shares

162

Frequent Purchases and Redemptions of Fund Shares

165

Taxes, Dividends and Distributions

 

Taxes

166

Dividends and Distributions

168

Important Note Regarding “Lost Shareholders”

170

Shareholder Services

 

Online Account Access

171

Tax-Advantaged Retirement Plans

171

Delivery of Shareholder Documents

171

 

 

 

 

Table of Contents, continued

 

Distribution Arrangements

 

Rule 12b-1 Plans

172

Payment for Sub-Transfer Agency Services

172

Additional Payments to Financial Intermediaries

173

Financial Highlights

176

Appendix A

191

Client Privacy Statement

196

 

 

 

 

 

PXLIX Institutional Class

PAXLX Investor Class

S&P 500 Index (reflects no deduction for fees, expenses or taxes)

Lipper Large-Cap Core Funds Index

Impax Large Cap Fund

(the “Large Cap Fund”)

 

Summary of Key Information

 

Investment Objective

 

The Large Cap Fund’s investment objective is to seek long-term growth of capital.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class or Investor Class shares of the Large Cap Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Maximum sales charge (load) imposed on purchases

(as a % of offering price)

None

None

Maximum deferred sales charge (load) imposed on redemptions

(as a % of the lower of original purchase price or net asset value)

None

None

 

 

Institutional
Class

Investor
Class

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

   

Management Fee

0.65%

0.65%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

Other Expenses

0.07%

0.07%

Total Annual Fund Operating Expenses

0.72%

0.97%

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class or Investor Class shares of the Large Cap Fund with the cost of investing in other mutual funds.

 

9

 

 

 

The table assumes that an investor invests $10,000 in Institutional Class or Investor Class shares of the Large Cap Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Large Cap Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$74

$230

$401

$894

Investor Class

$99

$309

$536

$1,190

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Large Cap Fund’s performance. During the Large Cap Fund’s most recent fiscal year, the Large Cap Fund’s portfolio turnover rate was 34% of the average value of its portfolio.

 

Principal Investment Strategies

 

The Large Cap Fund follows a sustainable investing approach, investing in companies that the Adviser believes are well positioned to benefit from the transition to a more sustainable global economy, integrating environmental, social and governance (ESG) analysis and ratings into portfolio construction and managing the portfolio within certain risk parameters relative to the Fund’s benchmark universe of S&P 500 Index companies.

 

The Fund utilizes the Impax Sustainability Lens, a proprietary tool designed to facilitate a systematic review of the economic opportunities and risks associated with the transition to a more sustainable economy. The tool highlights sub-industries with transition tailwinds and headwinds, assisting the investment team in identifying companies that the Adviser believes present attractive opportunities and lower risks.

 

The Fund’s investment team also utilizes the Impax Systematic ESG Rating, a fundamental, bottom-up rating by the Adviser of a company’s ESG profile. The rating emphasizes management of ESG-related risks, incorporates ESG trends (taking into account progress or regression in a company’s ESG profile) and takes into account any involvement by the company in significant ESG-related controversies.

 

Under normal market conditions, the Large Cap Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities (such as common stocks, securities convertible into common or preferred stocks and

 

10

 

 

 

warrants) of companies that, when purchased, have capitalizations within the range of the S&P 500 Index as measured by market capitalization. As of December 31, 2022, the S&P 500 Index included companies with market capitalizations ranging from approximately $3.99 billion to $2,058.10 billion.

 

The Large Cap Fund selects equity securities on a company-by-company basis primarily through the use of fundamental analysis, including ESG analysis. The Fund may take significant positions in one or more sectors, including the information technology sector. The Large Cap Fund is not constrained by any particular investment style, and may therefore invest in “growth” stocks, “value” stocks or a combination of both. Additionally, it may buy stocks in any sector or industry. The portfolio managers currently expect that the Fund typically will hold between 30 and 60 securities positions.

 

The Large Cap Fund may invest up to 45% of its assets in securities of non-US issuers, including American Depositary Receipts (“ADRs”). The Large Cap Fund may invest no more than 25% of its assets in securities of non-US issuers other than ADRs. The Large Cap Fund’s investments in securities of non-US issuers may include investments in emerging markets.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%) revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2°C.

 

Principal Risks

 

 

Equity Securities Risk The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund to experience losses. The prices of equity securities generally are more volatile than the prices of debt securities.

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or

 

11

 

 

 

regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Focused Portfolio Risk To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

 

Management Risk The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other funds that do not consider ESG factors or come to different conclusions regarding such factors.

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

 

Medium-Sized Capitalization Company Risk Securities of medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.

 

 

Turnover Risk Frequent changes in the securities held by the Fund increases the Fund’s transaction costs and may result in adverse tax consequences, which together may adversely affect the Fund’s performance.

 

12

 

 

 

 

Emerging Markets Risk Investments in emerging markets are likely to have greater exposure to the risks associated with investments in non-US securities generally. Additionally, emerging market countries generally have less mature economies and less developed securities markets with more limited trading activity, are more heavily dependent on international trade and support, have a higher risk of currency devaluation, and may have more volatile inflation rates or longer periods of high inflation than more developed countries.

 

 

Information Technology Sector Risk Prices of technology companies’ securities historically have been more volatile than those of many other securities, especially over the short term. Technology companies are subject to significant competitive pressures, such as aggressive pricing of their products or services, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments, evolving industry standards, changing customer demands and the potential for limited earnings and/or falling profit margins. The failure of a company to adapt to such changes could have a material adverse effect on the company’s business, results of operations, and financial condition. Many technology companies have limited operating histories.

 

As with all mutual funds, investors may lose money by investing in the Large Cap Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

13

 

 

 

Performance Information

 

The bar chart below presents the calendar year total returns for Institutional Class shares of the Large Cap Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the Large Cap Fund by showing changes in the Large Cap Fund’s performance from year to year. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Institutional Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 2nd quarter 2020, 20.09% 6/30/2020

 

Worst quarter: 1st quarter 2020, -18.27%3/31/2020

 

Average Annual Total Returns The performance table below presents the average annual total returns for Institutional Class and Investor Class shares of the Large Cap Fund. The performance table is intended to provide some indication of the risks of investment in the Large Cap Fund by showing how the Large Cap Fund’s average annual total returns compare with the returns of a broad-based securities market index and a performance average of other similar mutual funds, each over a one-year, five-year and since inception period. After-tax performance is presented only for Institutional Class shares of the Fund. After-tax returns for Investor Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to shareholders who hold their shares through tax-advantaged arrangements (such as 401(k) plans and individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

14

 

 

 

 

Periods ended
December 31, 2022

Share Class

Ticker Symbol

1 Year

5 Years

Since
Inception -
12/16/2016

Institutional Class1

PXLIX

 

 

 

 

Return Before Taxes

 

-19.77%

10.88%

12.26%

12/16/2016

Return After Taxes on Distributions

 

-20.60%

8.46%

9.70%

12/16/2016

Return After Taxes on Distributions and Sale of Fund Shares

 

-11.52%

7.94%

9.12%

12/16/2016

Investor Class1

PAXLX

       

Return Before Taxes

 

-19.99%

10.60%

11.99%

12/16/2016

S&P 500 Index (reflects no deduction for fees, expenses or taxes)2,4

 

-18.11%

9.42%

11.17%

12/16/2016

Lipper Large-Cap Core Funds Index3,4

 

-17.00%

8.25%

10.05%

12/16/2016

 

1

The Fund’s inception date is December 16, 2016. For more recent month-end performance data, please visit www.impaxam.com or call us at 800.767.1729.

 

2

The S&P 500 Index is an unmanaged index of large capitalization common stocks.

 

3

Lipper Large-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Large Cap Core Funds Index Average. The Lipper Large-Cap Core Funds Index Average is a total return performance average of mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s USDE large-cap floor. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have characteristics (i.e., price-to-earnings ratio, price-to-book ratio) that resemble the “average” of the common stocks of the S&P 500 Index. The Lipper Large-Cap Core Funds Index is not what is typically considered to be an “index” because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator. The Lipper Large-Cap Core Funds Index reflects deductions for fees and expenses of the constituent funds.

 

4

Unlike the Large Cap Fund, the S&P 500 Index and the Lipper Large-Cap Core Funds Index are not investments, are not professionally managed and have no policy of sustainable investing. One cannot invest directly in any index.

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the Large Cap Fund.

 

Portfolio Managers

 

The following provides additional information about the individual portfolio managers who have primary responsibility for managing the Large Cap Fund’s investments.

 

Portfolio Manager

Since

Title

Andrew Braun

2017

Portfolio Manager

Barbara Browning

2017

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

15

 

 

 

 

 

PXSCX Investor Class

PXSAX Class A

PXSIX Institutional Class

Russell 2000 Index (reflects no deduction for fees, expenses or taxes)

Lipper Small-Cap Core Funds Index

Impax Small Cap Fund

(the “Small Cap Fund”)

 

Summary of Key Information

 

Investment Objective

 

The Small Cap Fund’s investment objective is to seek long-term growth of capital.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class, Investor Class or Class A shares of the Small Cap Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts for Class A shares if you and your spouse or minor children invest, or agree to invest in the future, at least $50,000 in Class A shares of the Small Cap Fund. More information about these and other discounts is available from your financial intermediary, under “Shareholder Guide—Sales Charges” on page 149 of this Prospectus and under “Distribution and Shareholder Services—Sales Charge Reductions and Waivers” on page 106 in the Statement of Additional Information. Investors investing in the Small Cap Fund through an intermediary should consult Appendix A to this Prospectus, which includes information regarding financial intermediary specific sales charges and related discount policies that apply to purchases through certain specified intermediaries.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Class A

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

5.50%

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

1.00%1

 

16

 

 

 

 

 

Institutional
Class

Investor
Class

Class A

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

     

Management Fee

0.75%

0.75%

0.75%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

0.25%

Other Expenses

0.16%

0.16%

0.16%

Total Annual Fund Operating Expenses

0.91%

1.16%

1.16%

 

1

This charge applies to investors who purchase $1 million or more of Class A shares without an initial sales charge and redeem them within 18 months of purchase, with certain exceptions. See “Shareholder Guide—Sales Charges.”

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class, Investor Class or Class A shares of the Small Cap Fund with the cost of investing in other mutual funds.

 

The table assumes that an investor invests $10,000 in Institutional Class, Investor Class or Class A shares of the Small Cap Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Small Cap Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$93

$290

$504

$1,120

Investor Class

$118

$368

$638

$1,409

Class A

$662

$898

$1,153

$1,881

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Small Cap Fund’s performance. During the Small Cap Fund’s most recent fiscal year, the Small Cap Fund’s portfolio turnover rate was 38% of the average value of its portfolio.

 

17

 

 

 

 

Principal Investment Strategies

 

The Small Cap Fund follows a sustainable investing approach, investing in companies that the Adviser believes are well positioned to benefit from the transition to a more sustainable global economy, integrating environmental, social and governance (ESG) analysis and ratings into portfolio construction and managing the portfolio within certain risk parameters relative to the Fund’s benchmark universe of Russell 2000 Index companies.

 

The Fund utilizes the Impax Sustainability Lens, a proprietary tool designed to facilitate a systematic review of the economic opportunities and risks associated with the transition to a more sustainable economy. The tool highlights sub-industries with transition tailwinds and headwinds, assisting the investment team in identifying companies that the Adviser believes present attractive opportunities and lower risks.

 

Under normal market conditions, the Small Cap Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities (such as common stocks, securities convertible into common or preferred stocks and warrants) of companies that, when purchased, have capitalizations within the range of the Russell 2000 Index as measured by market capitalization. As of December 31, 2022, the Russell 2000 Index included companies with market capitalizations from approximately $6.07 million to $7.93 billion.

 

The Small Cap Fund selects equity securities on a company-by-company basis primarily through the use of fundamental analysis, including ESG analysis. The Fund may take significant positions in one or more sectors, including the financial services sector. The Small Cap Fund is not constrained by any particular investment style, and may therefore invest in “growth” stocks, “value” stocks or a combination of both. Moreover, it may buy stocks in any sector or industry.

 

The Small Cap Fund may invest up to 45% of its assets in securities of non-US issuers, including American Depositary Receipts (“ADRs”). The Small Cap Fund may invest no more than 25% of its assets in securities of non-US issuers other than ADRs. The Small Cap Fund’s investments in securities of non-US issuers, if any, may be diversified across multiple countries or geographic regions, or may be focused in a single country or geographic region.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%) revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines

 

18

 

 

 

that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2°C.

 

Principal Risks

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Equity Securities Risk The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund to experience losses. The prices of equity securities generally are more volatile than the prices of debt securities.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Turnover Risk Frequent changes in the securities held by the Fund increases the Fund’s transaction costs and may result in adverse tax consequences, which together may adversely affect the Fund’s performance.

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

 

Small- and Medium-Sized Capitalization Company Risk Securities of small- and medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.

 

19

 

 

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

 

Financial Services Sector Risk Companies in the financial services sector are subject to the risk of regulatory change, decreased liquidity in credit markets, extensive governmental regulation, and unstable interest rates. Such companies may have concentrated portfolios, which makes them vulnerable to economic conditions that affect that industry. Performance of such companies may be affected by competitive pressures and exposure to investments or agreements that, under certain circumstances, may lead to losses.

 

 

Management Risk The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other funds that do not consider ESG factors or come to different conclusions regarding such factors.

 

As with all mutual funds, investors may lose money by investing in the Small Cap Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

Performance Information

 

The bar chart below presents the calendar year total returns for Investor Class shares of the Small Cap Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the Small Cap Fund by showing changes in the Small Cap Fund’s performance from year to year. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

20

 

 

 

 

Investor Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 4th quarter 2020, 28.50%12/31/2020

 

Worst quarter: 1st quarter 2020, -29.24%3/31/2020

 

Average Annual Total Returns The performance table below presents the average annual total returns for Investor Class, Class A and Institutional Class shares of the Small Cap Fund. The performance table is intended to provide some indication of the risks of investment in the Small Cap Fund by showing how the Small Cap Fund’s average annual total returns compare with the returns of a broad-based securities market index and a performance average of other similar mutual funds, each over a one-year, five-year and ten-year period. After-tax performance is presented only for Investor Class shares of the Fund. After-tax returns for Class A and Institutional Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to shareholders who hold their shares through tax-advantaged arrangements (such as 401(k) plans and individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

21

 

 

 

 

Periods ended December 31, 2022

Share Class

Ticker Symbol

1 Year

5 Years

10 Years

Investor Class1

PXSCX

 

 

 

Return Before Taxes

 

-22.97%

3.07%

8.20%

Return After Taxes on Distributions

 

-23.31%

1.65%

7.07%

Return After Taxes on Distributions and Sale of Fund Shares

 

-13.22%

2.28%

6.63%

Class A1,2

PXSAX

     

Return Before Taxes

 

-27.25%

1.90%

7.58%

Institutional Class1

PXSIX

     

Return Before Taxes

 

-22.80%

3.32%

8.47%

Russell 2000 Index (reflects no deduction for fees, expenses or taxes)3,5

 

-20.44%

4.13%

9.01%

Lipper Small-Cap Core Funds Index4,5

 

-15.22%

5.48%

9.48%

 

1

The Fund’s investment adviser assumed certain expenses during the 10-year period; total returns would have been lower had these expenses not been assumed. For more recent month-end performance data, please visit www.impaxam.com or call us at 800.767.1729.

 

2

Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.

 

3

The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

 

4

The Lipper Small-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Small Cap Core Funds Average. The Lipper Small-Cap Core Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper’s USDE small-cap ceiling. Small-cap core funds have more latitude in the small-cap companies in which they invest. These funds typically have characteristics (i.e., price-to-earnings ratio, price-to-book ratio) that resemble the “average” of the common stocks of the S&P SmallCap 600 Index. The Lipper Small-Cap Core Funds Index is not what is typically considered to be an “index” because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index or some other traditional economic indicator. The Lipper Small-Cap Core Funds Index reflects deductions for fees and expenses of the constituent funds.

 

5

Unlike the Small Cap Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index are not investments, are not professionally managed and have no policy of sustainable investing. One cannot invest directly in any index.

 

22

 

 

 

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the Small Cap Fund.

 

Portfolio Managers

 

The following provides additional information about the individual portfolio manager who has primary responsibility for managing the Small Cap Fund’s investments.

 

Portfolio Manager

Since

Title

Diederik Basch

2022

Portfolio Manager

Curtis Kim

2022

Portfolio Manager

Nathan Moser

2008

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

23

 

 

 

 

 

PXWGX Investor Class

PXGAX Class A

PWGIX Institutional Class

Russell 1000 Index (reflects no deduction for fees, expenses or taxes)

Lipper Multi-Cap Core Funds Index

Impax US Sustainable Economy Fund

(the “US Sustainable Economy Fund”)

 

Summary of Key Information

 

Investment Objective

 

The US Sustainable Economy Fund’s investment objective is to seek long-term growth of capital.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class, Investor Class or Class A shares of the US Sustainable Economy Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts for Class A shares if you and your spouse or minor children invest, or agree to invest in the future, at least $50,000 in Class A shares of the US Sustainable Economy Fund. More information about these and other discounts is available from your financial intermediary, under “Shareholder Guide—Sales Charges” on page 149 of this Prospectus and under “Distribution and Shareholder Services—Sales Charge Reductions and Waivers” on page 106 in the Statement of Additional Information. Investors investing in the US Sustainable Economy Fund through an intermediary should consult Appendix A to this Prospectus, which includes information regarding financial intermediary specific sales charges and related discount policies that apply to purchases through certain specified intermediaries.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Class A

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

5.50%

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

1.00%1

 

24

 

 

 

 

 

Institutional
Class

Investor
Class

Class A

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

     

Management Fee2

0.63%

0.63%

0.63%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

0.25%

Total Annual Fund Operating Expenses

0.63%

0.88%

0.88%

Management Fee Waiver3

(0.18%)

(0.18%)

(0.18%)

Net Annual Fund Operating Expenses

0.45%

0.70%

0.70%

 

1

This charge applies to investors who purchase $1 million or more of Class A shares without an initial sales charge and redeem them within 18 months of purchase, with certain exceptions. See “Shareholder Guide—Sales Charges.”

 

2

The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of governmental agencies, interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, acquired fund fees and expenses and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses.

 

3

The US Sustainable Economy Fund’s investment adviser has contractually agreed to waive a portion of its management fee. This fee waiver may not be amended or terminated without the approval of the Fund’s Board of Trustees before May 1, 2024.

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class, Investor Class or Class A shares of the US Sustainable Economy Fund with the cost of investing in other mutual funds.

 

The table assumes that an investor invests $10,000 in Institutional Class, Investor Class or Class A shares of the US Sustainable Economy Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the US Sustainable Economy Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$46

$184

$333

$769

Investor Class

$72

$263

$470

$1,068

Class A

$618

$798

$994

$1,559

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect

 

25

 

 

 

the US Sustainable Economy Fund’s performance. During the US Sustainable Economy Fund’s most recent fiscal year, the US Sustainable Economy Fund’s portfolio turnover rate was 37% of the average value of its portfolio.

 

Principal Investment Strategies

 

The US Sustainable Economy Fund follows a sustainable investing approach, investing in companies that the Adviser believes are well positioned to benefit from the transition to a more sustainable economy, integrating environmental, social and governance (ESG) analysis into portfolio construction and managing the portfolio within certain risk parameters relative to the Fund’s benchmark universe of Russell 1000 Index companies.

 

Under normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in large-capitalization US equity securities. The Fund also may invest up to 20% of its assets in non-US issuers, including emerging market investments and American Depository Receipts (ADRs).

 

The Fund employs a systematic investment strategy that integrates proprietary and external tools and metrics in the portfolio construction process. The Fund incorporates the Impax Sustainability Lens, a tool utilized by the Adviser to facilitate a systematic review of the economic opportunities and risks associated with the transition to a more sustainable economy. The tool highlights sub-industries with transition tailwinds and headwinds, enabling the investment team to construct a portfolio weighted towards companies that the Adviser believes present attractive opportunities and lower risks. The Fund may take significant positions in one or more sectors, including the information technology sector.

 

The Fund also utilizes the Impax Systematic ESG Rating, a fundamental, bottom-up rating by the Adviser of a company’s ESG profile. The rating emphasizes management of ESG-related risks, incorporates ESG trends (taking into account progress or regression in a company’s ESG profile) and takes into account any involvement by the company in significant ESG-related controversies.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%) revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2⁰C. Under the Fund’s fossil fuel-free investment approach, fossil fuel

 

26

 

 

 

holdings are replaced with energy efficiency stocks. This approach is described more fully below under Sustainable Investing in the About the Funds section of this Prospectus.

 

 

Principal Risks

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Equity Securities Risk The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund to experience losses. The prices of equity securities generally are more volatile than the prices of debt securities.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Turnover Risk Frequent changes in the securities held by the Fund increases the Fund’s transaction costs and may result in adverse tax consequences, which together may adversely affect the Fund’s performance.

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

27

 

 

 

 

Information Technology Sector Risk Prices of technology companies’ securities historically have been more volatile than those of many other securities, especially over the short term. Technology companies are subject to significant competitive pressures, such as aggressive pricing of their products or services, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments, evolving industry standards, changing customer demands and the potential for limited earnings and/or falling profit margins. The failure of a company to adapt to such changes could have a material adverse effect on the company’s business, results of operations, and financial condition. Many technology companies have limited operating histories.

 

 

Emerging Markets Risk Investments in emerging markets are likely to have greater exposure to the risks associated with investments in non-US securities generally. Additionally, emerging market countries generally have less mature economies and less developed securities markets with more limited trading activity, are more heavily dependent on international trade and support, have a higher risk of currency devaluation, and may have more volatile inflation rates or longer periods of high inflation than more developed countries.

 

 

Management Risk The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other funds that do not consider ESG factors or come to different conclusions regarding such factors.

 

As with all mutual funds, investors may lose money by investing in the US Sustainable Economy Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

28

 

 

 

 

Performance Information

 

Prior to March 31, 2021, Impax US Sustainable Economy Fund was known as Pax ESG Beta Quality Fund and the strategy of the Fund differed from its current strategy. Accordingly, performance of the Fund for periods prior to March 31, 2021 may not be representative of the performance the Fund would have achieved had the Fund been following its current strategy.

 

The bar chart below presents the calendar year total returns for Investor Class shares of the US Sustainable Economy Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the US Sustainable Economy Fund by showing changes in the US Sustainable Economy Fund’s performance from year to year. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Investor Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 2nd quarter 2020, 19.29% 6/30/2020

 

Worst quarter: 1st quarter 2020, -20.55%3/31/2020

 

Average Annual Total Returns The performance table below presents the average annual total returns for Investor Class, Class A and Institutional Class shares of the US Sustainable Economy Fund. The performance table is intended to provide some indication of the risks of investment in the US Sustainable Economy Fund by showing how the US Sustainable Economy Fund’s average annual total returns compare with the returns of a broad-based securities market index and a performance average of other similar mutual funds over a one-year, five-year and ten-year period. After-tax performance is presented only for Investor Class Shares of the Fund. After-tax returns for Class A and Institutional Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or

 

29

 

 

 

foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to shareholders who hold their shares through tax-advantaged arrangements (such as 401(k) plans and individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Periods ended December 31, 2022

Share Class

Ticker Symbol

1 Year

5 Years

10 Years

Investor Class1

PXWGX

 

 

 

Return Before Taxes

 

-18.25%

7.91%

10.86%

Return After Taxes on Distributions

 

-19.74%

5.80%

9.19%

Return After Taxes on Distributions and Sale of Fund Shares

 

-10.01%

6.02%

8.76%

Class A1,2

PXGAX

     

Return Before Taxes

 

-22.75%

6.69%

10.23%

Institutional Class1

PWGIX

     

Return Before Taxes

 

-18.01%

8.18%

11.14%

Russell 1000 Index (reflects no deduction for fees, expenses or taxes)3,5

 

-19.13%

9.13%

12.37%

Lipper Multi-Cap Core Funds Index4,5

 

-17.99%

7.89%

11.02%

 

1

The Fund’s investment adviser assumed certain expenses during each period shown; total returns would have been lower had these expenses not been assumed. For more recent month-end performance data, please visit www.impaxam.com or call 800.767.1729.

 

2

Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.

 

3

The Russell 1000 Index measures the performance of the 1,000 largest US companies, as measured by market capitalization. It is a subset of the Russell 3000 Index, which measures the largest 3,000 companies. The Russell 1000 Index is comprised of over 90% of the total market capitalization of all listed US stocks.

 

4

The Lipper Multi-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Multi-Cap Core Funds Index Average. The Lipper Multi-Cap Core Funds Index Average is a total return performance average of mutual funds tracked by Lipper, Inc. that invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. These funds typically have characteristics (i.e., price-to-earnings ratio, price-to-book ratio) that resemble the “average” of the common stocks of the S&P SuperComposite 1500 Index. The Lipper Multi-Cap Core Funds Index is not what is typically considered to be an “index” because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index, or some other traditional economic indicator. The Lipper Multi-Cap Core Funds Index reflects deductions for fees and expenses of the constituent funds.

 

5

Unlike the US Sustainable Economy Fund, the Russell 1000 Index and the Lipper Multi-Cap Core Funds Index are not investments, are not professionally managed and have no policy of sustainable investing. One cannot invest directly in any index.

  

30

 

 

 

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the US Sustainable Economy Fund.

 

Portfolio Managers

 

The following provides additional information about the individual portfolio managers who have primary responsibility for managing the US Sustainable Economy Fund’s investments.

 

Portfolio Managers

Since

Title

Christine Cappabianca

2021

Portfolio Manager

Scott LaBreche

2021

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

31

 

 

 

 

 

PXDIX Institutional Class

PAXDX Investor Class

FTSE Global Infrastructure Opportunities Index (reflects no deduction for fees, expenses or taxes)

S&P Global Infrastructure (Net) Index (reflects no deduction for fees, expenses or taxes)

Lipper Global Infrastructure Funds Index

Impax Global Sustainable Infrastructure Fund

(the “Global Sustainable Infrastructure Fund”)

 

Summary of Key Information

 

Investment Objectives

 

The Global Sustainable Infrastructure Fund’s investment objective is capital appreciation and income.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class or Investor Class shares of the Global Sustainable Infrastructure Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

 

 

Institutional
Class

Investor
Class

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

   

Management Fee1

0.65%

0.65%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

Total Annual Fund Operating Expenses

0.65%

0.90%

Management Fee Waiver2

(0.10%)

(0.10%)

Net Annual Fund Operating Expenses

0.55%

0.80%

 

1

The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of governmental agencies, interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, acquired fund fees and expenses and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses.

 

2

The Global Sustainable Infrastructure Fund’s investment adviser has contractually agreed to waive a portion of its management fee. This fee waiver may not be amended or terminated without the approval of the Fund’s Board of Trustees before May 1, 2024.

 

32

 

 

 

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class or Investor Class shares of the Global Sustainable Infrastructure Fund with the cost of investing in other mutual funds.

 

The table assumes that an investor invests $10,000 in Institutional Class or Investor Class shares of the Global Sustainable Infrastructure Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Global Sustainable Infrastructure Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$56

$198

$352

$801

Investor Class

$82

$277

$489

$1,099

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Global Sustainable Infrastructure Fund’s performance. During the Global Sustainable Infrastructure Fund’s most recent fiscal year, the Global Sustainable Infrastructure Fund’s portfolio turnover rate was 54% of the average value of its portfolio.

 

Principal Investment Strategies

 

The Global Sustainable Infrastructure Fund follows a sustainable investing approach, investing in companies that the Adviser believes are well positioned to provide infrastructure essential for the transition to a more sustainable global economy, integrating environmental, social and governance (ESG) analysis and ratings into portfolio construction.

 

Under normal market conditions, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities of companies that the Adviser determines derive significant revenues (i.e., at least 20% of revenues) from owning, operating, developing or distributing sustainable infrastructure-related goods, services or assets. The Adviser defines “sustainable infrastructure” to mean infrastructure that conserves, enables or increases access to vital resources such as clean energy, water, food and agriculture, including resource and waste

 

33

 

 

 

management, as well as other societal resources such as healthcare, education, finance, transportation, and data and communications that advance social well-being.

 

Under normal market conditions, the Fund will invest in companies located around the world, including at least 40% of its net assets in securities of companies organized or located outside the United States or doing a substantial amount of business outside the United States, including those located in emerging markets. The Fund may take significant positions in one or more sectors, including the industrials and utilities sectors. While the Fund is not limited to equity securities that pay dividends, the Adviser expects that the Fund’s portfolio will normally have a higher dividend yield than the broader equity market.

 

The Fund employs a systematic investment strategy that integrates proprietary and external tools and metrics in the portfolio construction process. For US companies, the Fund utilizes the Impax Systematic ESG Rating, a fundamental, bottom-up rating by the Adviser of a company’s ESG profile. The rating emphasizes management of ESG-related risks, incorporates ESG trends (taking into account progress or regression in a company’s ESG profile) and takes into account any involvement by the company in significant ESG-related controversies.

 

For non-US companies or when an Impax Systematic ESG Rating is not available, the Fund utilizes ESG research or ratings provided by Sustainalytics, a Morningstar company whose ESG Risk Ratings measure the degree to which a company’s value is at risk based on ESG factors -- in other words, the magnitude of a company’s unmanaged ESG risk. ESG research or ratings provided by Sustainalytics might reflect assessments that differ from those the Adviser would make. When neither an Impax Systematic ESG Rating nor a Sustainalytics ESG Risk Rating is available, the Fund will utilize proprietary ESG research conducted by the Adviser.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%) revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2°C.

 

Principal Risks

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or

 

34

 

 

 

pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Turnover Risk Frequent changes in the securities held by the Fund increases the Fund’s transaction costs and may result in adverse tax consequences, which together may adversely affect the Fund’s performance.

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

 

Equity Securities Risk The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund to experience losses. The prices of equity securities generally are more volatile than the prices of debt securities.

 

 

Sector Risk There is a risk that significant problems will affect a particular sector, or that returns from that sector will trail returns from the overall stock market. Daily fluctuations in specific market sectors are often more extreme or volatile than fluctuations in the overall market. Because the Fund may take significant positions in the industrials and utilities sectors, the Fund’s performance largely depends on the general condition of each such sector. Companies in the industrials sector could be affected by, among other things, government regulation, world events and economic conditions,

 

35

 

 

 

insurance costs, and labor relations issues. Companies in the utilities sector could be affected by, among other things, government regulation, overall economic conditions and fuel prices.

 

 

Emerging Markets Risk Investments in emerging markets are likely to have greater exposure to the risks associated with investments in non-US securities generally. Additionally, emerging market countries generally have less mature economies and less developed securities markets with more limited trading activity, are more heavily dependent on international trade and support, have a higher risk of currency devaluation, and may have more volatile inflation rates or longer periods of high inflation than more developed countries.

 

 

Management Risk The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other funds that do not consider ESG factors or come to different conclusions regarding such factors.

 

As with all mutual funds, investors may lose money by investing in the Global Sustainable Infrastructure Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

36

 

 

 

 

Performance Information

 

Prior to March 31, 2021, Impax Global Sustainable Infrastructure Fund was known as Pax ESG Beta Dividend Fund and the strategy of the Fund differed from its current strategy. Accordingly, performance of the Fund for periods prior to March 31, 2021 may not be representative of the performance the Fund would have achieved had the Fund been following its current strategy.

 

Effective November 15, 2022, the FTSE Global Infrastructure Opportunities Index replaced the S&P Global Infrastructure (Net) Index as the primary benchmark for the Global Sustainable Infrastructure Fund because the Adviser believes the FTSE Global Infrastructure Opportunities Index is a more appropriate broad-based securities market index representing the universe of securities in which the Fund may invest.

 

The bar chart below presents the calendar year total returns for Institutional Class shares of the Global Sustainable Infrastructure Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the Sustainable Infrastructure Fund by showing changes in the Sustainable Infrastructure Fund’s performance from year to year. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Institutional Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 2nd quarter 2020, 20.20%6/30/2020

 

Worst quarter: 1st quarter 2020, -20.06%3/31/2020

 

Average Annual Total Returns The performance table below presents the average annual total returns for Institutional Class and Investor Class shares of the Global Sustainable Infrastructure Fund. The performance table is intended to provide some indication of the risks of investment in the Global Sustainable Infrastructure

 

37

 

 

 

 

Fund by showing how the Global Sustainable Infrastructure Fund’s average annual total returns compare with the returns of a broad-based securities market index and a performance average of other similar mutual funds, each over a one-year, five-year and since inception period. After-tax performance is presented only for Institutional Class shares of the Fund. After-tax returns for Investor Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to shareholders who hold their shares through tax-advantaged arrangements (such as 401(k) plans and individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Periods ended
December 31, 2022

Share Class

Ticker Symbol

1 Year

5 Years

Since
Inception -
12/16/2016

Institutional Class1

PXDIX

 

 

 

 

Return Before Taxes

 

-13.25%

6.59%

8.41%

12/16/2016

Return After Taxes on Distributions

 

-14.20%

3.33%

5.55%

12/16/2016

Return After Taxes on Distributions and Sale of Fund Shares

 

-7.85%

4.74%

6.29%

12/16/2016

Investor Class1

PAXDX

       

Return Before Taxes

 

-13.44%

6.30%

8.14%

12/16/2016

FTSE Global Infrastructure Opportunities Index (reflects no deduction for fees, expenses or taxes)2,5

 

-9.04%

3.65%

5.82%

12/16/2016

S&P Global Infrastructure (Net) Index (reflects no deduction for fees, expenses or taxes)3,5

 

-0.99%

2.99%

5.54%

12/16/2016

Lipper Global Infrastructure Funds Index4,5

 

-6.80%

4.02%

6.73%

12/16/2016

 

1

The Fund’s inception date is December 16, 2016. The Fund’s investment adviser waived a portion of its fee during each period shown; total returns would have been lower had these fees not been waived. For more recent month-end performance data, please visit www.impaxam.com or call us at 800.767.1729.

 

2

The FTSE Global Infrastructure Opportunities Index is designed to reflect the performance of infrastructure and infrastructure-related listed securities worldwide. Companies must derive a minimum of 20% of their revenue from either the core infrastructure activities or the infrastructure-related activities to be considered for index inclusion. The Index weights its constituents according to their investable market capitalization (after the application of free float and foreign ownership restrictions) in the index calculation. The FTSE Global Infrastructure Opportunities Index does not take account of ESG factors in its index construction.

 

3

The S&P Global Infrastructure (Net) Index is designed to track 75 companies from around the world chosen to represent the listed infrastructure industry while maintaining liquidity and tradability. To create diversified exposure, the index includes three distinct infrastructure clusters: energy, transportation, and utilities. Performance for the S&P Global Infrastructure Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding tax.

 

4

Lipper Global Infrastructure Funds Index tracks the results of the 10 largest mutual funds in the Lipper Global Infrastructure Funds Index Average. The Lipper Global Infrastructure Funds Index Average is a total return performance average of mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest predominantly across energy, industrials, utilities and materials sectors. Funds must contain a diverse mix of listed & liquid equities that reflect companies which engaged in core infrastructure activities. These generally include large geographic projects leading to the construction of energy supplies, utilities, education, health, social and transportation facilities.

 

38

 

 

 

 

5

Unlike the Global Sustainable Infrastructure Fund, the FTSE Global Infrastructure Opportunities Index, the S&P Global Infrastructure (Net) Index, and the Lipper Global Infrastructure Funds Index are not investments, are not professionally managed and have no policy of sustainable investing. One cannot invest directly in any index.

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the Global Sustainable Infrastructure Fund.

 

Portfolio Managers

 

The following provides additional information about the individual portfolio managers who have primary responsibility for managing the Global Sustainable Infrastructure Fund’s investments.

 

Portfolio Managers

Since

Title

Christine Cappabianca

2021

Portfolio Manager

Scott LaBreche

2021

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

39

 

 

 

 

 

PXGOX Institutional Class

PAXGX Investor Class

MSCI ACWI (Net) Index (reflects no deduction for fees, expenses or taxes)

Lipper Global Multi-Cap Growth Funds Index

Impax Global Opportunities Fund

(the “Global Opportunities Fund”)

 

Summary of Key Information

 

Investment Objective

 

The Global Opportunities Fund’s investment objective is to seek long term growth of capital by investing in companies benefiting from the transition to a more sustainable global economy.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class or Investor Class shares of the Global Opportunities Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

 

 

Institutional
Class

Investor
Class

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

   

Management Fee

0.80%

0.80%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

Other Expenses

0.28%

0.28%

Total Annual Fund Operating Expenses

1.08%

1.33%

Contractual Reimbursements and waivers1

(0.10%)

(0.10%)

Net Annual Fund Operating Expenses

0.98%

1.23%

 

1

The Global Opportunities Fund’s investment adviser has contractually agreed to reimburse expenses (other than interest, commissions, taxes, extraordinary expenses and Acquired Fund Fees and Expenses, if any) allocable to Institutional Class and Investor Class shares of the Global Opportunities Fund to the extent such expenses exceed 0.98% and 1.23% of the average daily net assets of Institutional Class and Investor Class shares, respectively. This reimbursement arrangement may not be amended or terminated without the approval of the Fund’s Board of Trustees before May 1, 2024.

 

40

 

 

 

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class or Investor Class shares of the Global Opportunities Fund with the cost of investing in other mutual funds.

 

The table assumes that an investor invests $10,000 in Institutional Class or Investor Class shares of the Global Opportunities Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Global Opportunities Fund’s operating expenses remain the same throughout those periods. The amounts shown reflect the contractual reimbursement noted in the Annual Fund Operating Expenses table for the first year. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$100

$334

$586

$1,308

Investor Class

$125

$412

$719

$1,593

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Global Opportunities Fund’s performance. During the Global Opportunities Fund’s most recent fiscal year, the Global Opportunities Fund’s portfolio turnover rate was 38% of the average value of its portfolio.

 

Principal Investment Strategies

 

The Global Opportunities Fund follows a sustainable investing approach, investing in companies that the Sub-Adviser believes are well positioned to benefit from the transition to a more sustainable global economy, integrating environmental, social and governance (ESG) analysis and ratings into portfolio construction and managing the portfolio within certain risk parameters relative to the Fund’s benchmark universe of MSCI ACWI Index companies.

 

The Fund utilizes the Impax Sustainability Lens, a proprietary tool designed to facilitate a systematic review of the economic opportunities and risks associated with the transition to a more sustainable economy. The tool highlights sub-industries with transition tailwinds and headwinds, assisting the investment team in identifying companies that the Sub-Adviser believes present attractive opportunities and lower risks.

 

41

 

 

 

Under normal market conditions, the Global Opportunities Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in companies that its Adviser or Sub-Adviser believe will benefit from the transition to a more sustainable global economy – the shift away from a depletive economy to one that preserves ecological and societal balance for the benefit of future generations. The Fund seeks to invest in companies with durable business models that are well positioned to benefit from or avoid the risks associated with this transition. Under normal market conditions, the Global Opportunities Fund will invest primarily in equity securities (such as common stocks, preferred stocks and securities convertible into common or preferred stocks) of companies located around the world, including at least 40% of its net assets in securities of companies organized or located outside the United States or doing a substantial amount of business outside the United States, including those located in emerging markets. The Fund’s investments may be diversified across multiple countries or geographic regions, or may be focused on a select geographic region, although the Global Opportunities Fund will normally have investments in a minimum of three countries other than the United States. The Fund’s investments in securities of non-US issuers may be denominated in currencies other than the US dollar. The Adviser and Sub-Adviser currently expect that the Fund typically will hold between 35 and 45 securities positions.

 

The Global Opportunities Fund’s Sub-Adviser selects equity securities on a company-by-company basis primarily through the use of fundamental analysis, including ESG analysis. The Global Opportunities Fund is not constrained by any particular investment style, and may therefore invest in “growth” stocks, “value” stocks or a combination of both. Additionally, it may buy stocks in any sector or industry, and it is not limited to investing in securities of a specific market capitalization.

 

The Global Opportunities Fund seeks to invest in companies with sustainable competitive advantages, track records of consistent returns on investment, and where the Fund’s Sub-Adviser believes a company’s attractive, bottom-up financial characteristics and long-term opportunities are not reflected in its share price.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%) revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2°C.

 

42

 

 

 

Principal Risks

 

 

Equity Securities Risk The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund to experience losses. The prices of equity securities generally are more volatile than the prices of debt securities.

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Emerging Markets Risk Investments in emerging markets are likely to have greater exposure to the risks associated with investments in non-US securities generally. Additionally, emerging market countries generally have less mature economies and less developed securities markets with more limited trading activity, are more heavily dependent on international trade and support, have a higher risk of currency devaluation, and may have more volatile inflation rates or longer periods of high inflation than more developed countries.

 

 

Currency Risk The US dollar value of your investment in the Fund may go down if the value of the local currency of the non-US markets in which the Fund invests depreciates against the US dollar.

 

 

Focused Portfolio Risk To the extent the Fund invests its assets in a more limited number of issuers than many other mutual funds, a decline in the market value of a particular security may affect the Fund’s value more than if the Fund invested in a larger number of issuers.

 

 

Turnover Risk Frequent changes in the securities held by the Fund increases the Fund’s transaction costs and may result in adverse tax consequences, which together may adversely affect the Fund’s performance.

 

43

 

 

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

 

Small- and Medium-Sized Capitalization Company Risk Securities of small- and medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.

 

 

Management Risk The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other funds that do not consider ESG factors or come to different conclusions regarding such factors.

 

As with all mutual funds, investors may lose money by investing in the Global Opportunities Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

 

44

 

 

 

 

Performance Information

 

The bar chart below presents the calendar year total returns for Institutional Class shares of the Global Opportunities Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the Global Opportunities Fund by showing changes in the Global Opportunities Fund’s performance from year to year. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Institutional Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 2nd quarter 2020, 19.57%6/30/2020

 

Worst quarter: 1st quarter 2020, -18.11%3/31/2020

 

Average Annual Total Returns The performance table below presents the average annual total returns for Institutional Class and Investor Class shares of the Global Opportunities Fund. The performance table is intended to provide some indication of the risks of investment in the Global Opportunities Fund by showing how the Global Opportunities Fund’s average annual total returns compare with the returns of a broad-based securities market index and a performance average of other similar mutual funds, each over a one-year and since inception period. After-tax performance is presented only for Institutional Class shares of the Fund. After-tax returns for Investor Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to shareholders who hold their shares through tax-advantaged arrangements (such as 401(k) plans and individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

45

 

 

 

 

Periods ended
December 31, 2022

Share Class

Ticker Symbol

1 Year

Since
Inception -
06/27/2018

Institutional Class1

PXGOX

 

 

 

Return Before Taxes

 

-18.49%

8.84%

06/27/2018

Return After Taxes on Distributions

 

-18.88%

8.31%

06/27/2018

Return After Taxes on Distributions and Sale of Fund Shares

 

-10.80%

6.79%

06/27/2018

Investor Class1

PAXGX

 

   

Return Before Taxes

 

-18.66%

8.63%

06/27/2018

MSCI ACWI (Net) Index (reflects no deduction for fees, expenses or taxes)2,4 2

 

-18.36%

6.09%

06/27/2018

Lipper Global Multi-Cap Growth Funds Index3,4 3

 

-28.63%

5.39%

06/27/2018

 

1

The Fund’s inception date is June 27, 2018. The Fund’s investment adviser assumed certain expenses during each period shown; total returns would have been lower had these expenses not been assumed. For more recent month-end performance data, please visit www.impaxam.com or call us at 800.767.1729.

 

2

The MSCI AC World (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI AC World consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Performance for the MSCI ACWI Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding tax.

 

3

Lipper Global Multi-Cap Growth Funds Index tracks the results of funds that invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have 25% to 75% of their assets invested in companies both inside and outside of the US with market capitalizations (on a three-year weighted basis) above 400% of the 75th market capitalization percentile of the S&P/Citigroup World Broad Market Index. Multi-cap growth funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup BMI. One cannot invest directly in an index.

 

4

Unlike the Global Opportunities Fund, the MSCI AC World (Net) Index and the Lipper Global Multi-Cap Growth Funds Index are not investments, are not professionally managed and have no policy of sustainable investing. One cannot invest directly in any index.

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the Global Opportunities Fund.

 

IAM has engaged Impax Asset Management Ltd. (“the “Sub-Adviser”) as a sub-adviser to manage the Global Opportunities Fund’s investments. Impax Asset Management Ltd. has its principal offices at 30 Panton Street, 7th Floor, London, SW1Y 4AJ, United Kingdom.

 

46

 

 

 

 

Portfolio Managers

 

The following provides additional information about the individual portfolio managers who have primary responsibility for managing the Global Opportunities Fund’s investments.

 

Portfolio Managers

Since

Title

Kirsteen Morrison

2018

Portfolio Manager

David Winborne

2018

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

47

 

 

 

 

 

PGRNX Investor Class

PXEAX Class A

PGINX Institutional Class

MSCI ACWI (Net) Index (reflects no deduction for fees, expenses or taxes)

FTSE Environmental Opportunities Index Series (reflects no deduction for fees, expenses or taxes)

Impax Global Environmental Markets Fund

(the “Global Environmental Markets Fund”)

 

Summary of Key Information

 

Investment Objective

 

The Global Environmental Markets Fund’s investment objective is to seek long term growth of capital by investing in innovative companies around the world whose businesses and technologies focus on environmental markets, including alternative energy and energy management & efficiency; transportation solutions; water infrastructure & technologies; environmental services & resources; resource efficiency & waste management; digital infrastructure; and sustainable food & agriculture.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class, Investor Class or Class A shares of the Global Environmental Markets Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below. You may qualify for sales charge discounts for Class A shares if you and your spouse or minor children invest, or agree to invest in the future, at least $50,000 in Class A shares of the Global Environmental Markets Fund. More information about these and other discounts is available from your financial intermediary, under “Shareholder Guide—Sales Charges” on page 149 of this Prospectus and under “Distribution and Shareholder Services—Sales Charge Reductions and Waivers” on page 106 in the Statement of Additional Information. Investors investing in the Global Environmental Markets Fund through an intermediary should consult Appendix A to this Prospectus, which includes information regarding financial intermediary specific sales charges and related discount policies that apply to purchases through certain specified intermediaries.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Class A

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

5.50%

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

1.00%1

 

48

 

 

 

 

 

Institutional
Class

Investor
Class

Class A

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

     

Management Fee

0.75%

0.75%

0.75%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

0.25%

Other Expenses

0.16%

0.16%

0.16%

Total Annual Fund Operating Expenses

0.91%

1.16%

1.16%

 

1

This charge applies to investors who purchase $1 million or more of Class A shares without an initial sales charge and redeem them within 18 months of purchase, with certain exceptions. See “Shareholder Guide—Sales Charges.”

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class, Investor Class or Class A shares of the Global Environmental Markets Fund with the cost of investing in other mutual funds.

 

The table assumes that an investor invests $10,000 in Institutional Class, Investor Class or Class A shares of the Global Environmental Markets Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Global Environmental Markets Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$93

$290

$504

$1,120

Investor Class

$118

$368

$638

$1,409

Class A

$662

$898

$1,153

$1,881

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Global Environmental Markets Fund’s performance. During the Global Environmental Markets Fund’s most recent fiscal year, the Global Environmental Markets Fund’s portfolio turnover rate was 35% of the average value of its portfolio.

 

49

 

 

 

 

Principal Investment Strategies

 

The Global Environmental Markets Fund follows a sustainable investing approach, investing in companies that the Sub-Adviser believes are well positioned to benefit from the transition to a more sustainable global economy, integrating environmental, social and governance (ESG) analysis and ratings into portfolio construction and managing the portfolio within certain risk parameters relative to the Fund’s benchmark universe of MSCI ACWI Index companies.

 

Under normal market conditions, the Global Environmental Markets Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in companies whose businesses and technologies focus on environmental markets, including alternative energy and energy management & efficiency; transportation solutions; water infrastructure & technologies; environmental services & resources; resource efficiency & waste management; digital infrastructure; and sustainable food & agriculture.

 

Under normal market conditions, the Global Environmental Markets Fund will invest primarily in equity securities (such as common stocks, preferred stocks and securities convertible into common and preferred stocks) of companies located around the world, including at least 40% of its net assets in securities of non-US issuers, including those located in emerging markets. The Fund’s investments may be diversified across multiple countries or geographic regions, or may be focused on a select geographic region, although the Global Environmental Markets Fund will normally have investments in a minimum of three countries other than the United States. The Fund’s investments in securities of non-US issuers may be denominated in currencies other than the US dollar.

 

The Global Environmental Markets Fund’s Sub-Adviser selects equity securities on a company-by-company basis primarily through the use of fundamental analysis, including ESG analysis. The Global Environmental Markets Fund is not constrained by any particular investment style, and may therefore invest in “growth” stocks, “value” stocks or a combination of both. Additionally, it may buy stocks in any sector or industry, and it is not limited to investing in securities of a specific market capitalization.

 

The Global Environmental Markets Fund seeks to invest in companies with positive overall environmental performance and whose products or services help other companies and countries improve their environmental performance, and seeks to avoid investing in companies with significant environmental problems or worsening environmental profiles.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%)

 

50

 

 

 

revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2°C.

 

Principal Risks

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Focused Investment Risk Focusing investments in a particular market or economic sector (which may include issuers in a number of different industries), including the energy efficiency and water and infrastructure sectors, increases the risk of loss because the stocks of many or all of the companies in the market or sector may decline in value due to economic, market, technological, political or regulatory developments adversely affecting the market or sector.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Turnover Risk Frequent changes in the securities held by the Fund increases the Fund’s transaction costs and may result in adverse tax consequences, which together may adversely affect the Fund’s performance.

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

51

 

 

 

 

Small- and Medium-Sized Capitalization Company Risk Securities of small- and medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

 

Emerging Markets Risk Investments in emerging markets are likely to have greater exposure to the risks associated with investments in non-US securities generally. Additionally, emerging market countries generally have less mature economies and less developed securities markets with more limited trading activity, are more heavily dependent on international trade and support, have a higher risk of currency devaluation, and may have more volatile inflation rates or longer periods of high inflation than more developed countries.

 

 

Currency Risk The US dollar value of your investment in the Fund may go down if the value of the local currency of the non-US markets in which the Fund invests depreciates against the US dollar.

 

 

Management Risk The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other funds that do not consider ESG factors or come to different conclusions regarding such factors.

 

As with all mutual funds, investors may lose money by investing in the Global Environmental Markets Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

 

52

 

 

 

 

Performance Information

 

The bar chart below presents the calendar year total returns for Investor Class shares of the Global Environmental Markets Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the Global Environmental Markets Fund by showing changes in the Global Environmental Markets Fund’s performance from year to year. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

Investor Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 2nd quarter 2020, 21.90%6/30/2020

 

Worst quarter: 1st quarter 2020, -21.54%3/31/2020

 

Average Annual Total Returns The performance table below presents the average annual total returns for Investor Class, Class A and Institutional Class shares of the Global Environmental Markets Fund. The performance table is intended to provide some indication of the risks of investment in the Global Environmental Markets Fund by showing how the Global Environmental Markets Fund’s average annual total returns compare with the returns of a broad-based securities market index over a one-year, five-year and ten-year period. After-tax performance is presented only for Investor Class shares of the Fund. After-tax returns for Class A and Institutional Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to shareholders who hold their shares through tax-advantaged arrangements (such as 401(k) plans and individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

53

 

 

 

 

Periods ended December 31, 2022

Share Class

Ticker Symbol

1 Year

5 Years

10 Years

Investor Class1

PGRNX

 

 

 

Return Before Taxes

 

-22.62%

5.36%

8.67%

Return After Taxes on Distributions

 

-22.52%

5.18%

8.48%

Return After Taxes on Distributions and Sale of Fund Shares

 

-13.18%

4.32%

7.24%

Class A1,2

PXEAX

     

Return Before Taxes

 

-26.83%

4.16%

8.06%

Institutional Class1

PGINX

     

Return Before Taxes

 

-22.39%

5.62%

8.95%

MSCI ACWI (Net) Index (reflects no deduction for fees, expenses or taxes)3,5

 

-18.36%

5.23%

7.98%

FTSE Environmental Opportunities Index Series (reflects no deduction for fees, expenses or taxes)4,5

 

-24.10%

8.01%

10.79%

 

1

The Fund’s investment adviser assumed certain expenses during the 5-year and 10-year periods; total returns would have been lower had these expenses not been assumed. For more recent month-end performance data, please visit www.impaxam.com or call us at 800.767.1729.

 

2

Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.

 

3

The MSCI ACWI (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI AC World consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Performance for the MSCI ACWI Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding tax.

 

4

The FTSE Environmental Opportunities Index Series measures the performance of global companies that have significant involvement in environmental business activities, including renewable and alternative energy, energy efficiency, water technology; waste and pollution control; and food, agriculture and forestry. The FTSE Environmental Opportunities Index Series requires companies to have at least 20% of their business derived from environmental markets and technologies. The FTSE Environmental Opportunities Index Series is published by a joint venture of FTSE International and Impax Asset Management, Ltd. Impax Asset Management Ltd. is the sub-adviser to Impax Global Environmental Markets Fund.

 

5

Unlike the Global Environmental Markets Fund, the MSCI ACWI (Net) Index and the FTSE Environmental Opportunities Index Series are not investments, are not professionally managed and have no policy of sustainable investing. One cannot invest directly in any index.

 

 

54

 

 

 

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the Global Environmental Markets Fund.

 

IAM has engaged Impax Asset Management Ltd. (“the “Sub-Adviser”) as a sub-adviser to manage the Global Environmental Markets Fund’s investments. Impax Asset Management Ltd. has its principal offices at 30 Panton Street, 7th Floor, London, SW1Y 4AJ, United Kingdom.

 

Portfolio Managers

 

The following provides additional information about the individual portfolio managers who have primary responsibility for managing the Global Environmental Markets Fund’s investments.

 

Portfolio Managers

Since

Title

Hubert Aarts

2013

Portfolio Manager

David Winborne

2018

Portfolio Manager

Siddharth Jha

2020

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

55

 

 

 

 

 

mpax Ellevate Global Women’s Leadership Fund

(the “Global Women’s Fund”)

 

Summary of Key Information

 

Investment Objective

 

The Global Women’s Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Impax Global Women’s Leadership Index (the “Women’s Index”), while maintaining risk characteristics that Impax Asset Management LLC (“IAM”) believes are generally similar to those of the Women’s Index.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class or Investor Class shares of the Global Women’s Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

 

 

Institutional
Class

Investor
Class

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

   

Management Fee1

0.52%

0.52%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

Other Expenses

0.00%

0.00%

Total Annual Fund Operating Expenses

0.52%

0.77%

 

1

The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of governmental agencies, interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, acquired fund fees and expenses and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses.

 

56

 

 

 

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class or Investor Class shares of the Global Women’s Fund with the cost of investing in other mutual funds.

 

The table assumes that an investor invests $10,000 in Institutional Class or Investor Class shares of the Global Women’s Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Global Women’s Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$53

$167

$291

$653

Investor Class

$79

$246

$428

$954

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Global Women’s Fund’s performance. During the Global Women’s Fund’s most recent fiscal year, the Global Women’s Fund’s portfolio turnover rate was 45% of the average value of the portfolio.

 

Principal Investment Strategies

 

The Global Women’s Fund employs a systematic investment approach intended to closely correspond to or exceed the performance of the Women’s Index. The Fund seeks to maintain risk characteristics that are generally similar to those of the Women’s Index, while overweighting gender leadership factors, rather than adhering to the market capitalization weights used by the Women’s Index.

 

Under normal circumstances, the Global Women’s Fund invests more than 80% of its total assets in the component securities of the Women’s Index and in American Depositary Receipts, Global Depositary Receipts and Euro Depositary Receipts representing the component securities of the Women’s Index, including at least 40% of its net assets (unless market conditions are not deemed favorable, in which case the Global Women’s Fund would normally invest at least 30% of its assets) in securities of companies organized or located outside the United States or doing a substantial amount of business outside the United States. The Global Women’s Fund’s investments in equity securities may include growth securities (shares in companies whose earnings

 

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are expected to grow more rapidly than the market), value securities (shares that IAM believes are trading at a lower price than their company’s intrinsic value) and companies of any size, including small- and medium-capitalization companies. The Global Women’s Fund generally invests in all of the components included in the Women’s Index, but may use a representative sampling strategy, or an optimized or enhanced strategy, to achieve its investment objective, weighting companies with more favorable characteristics with respect to women’s leadership (e.g., number of women in executive positions or on the board of directors) more heavily than the Women’s Index, which uses market weights exclusively. As a result, the Global Women’s Fund may not always hold the same securities in the same proportions or weightings as the Women’s Index. The Global Women’s Fund also may invest up to 20% of its total assets in certain futures, options and swap contracts, cash and cash equivalents, and stocks not included in the Women’s Index, but which IAM believes will help the Global Women’s Fund to exceed the price and yield performance of the Women’s Index. Any investments in stocks or stock options not included in the Women’s Index will be evaluated by IAM for satisfaction of IAM’s ESG and gender criteria. See “Environmental, Social and Governance (ESG) Criteria” on page 133. Although the Global Women’s Fund will seek to maintain risk characteristics that IAM believes are generally similar to those of the Women’s Index, it is possible that the performance may not correlate with the performance of the Women’s Index.

 

The Women’s Index is a customized market capitalization-weighted index consisting of equity securities of issuers organized or operating in countries around the world that demonstrate a commitment to advancing and empowering women through gender diversity in management, on their boards and that promote gender equity in the workplace through supportive policies and practices, and an understanding of the potential business advantages associated with greater gender diversity and equity, as rated by the IAM Gender Analytics team, with final approval by the IAM Women’s Index Committee. The Women’s Index is composed of approximately 400 securities. As of December 31, 2022, the Women’s Index included companies with market capitalizations between approximately $2.83 billion and $2,058.40 billion.

 

IAM intends that, over time, the correlation between the Global Women’s Fund’s performance and that of the Women’s Index, before fees and expenses, will be 95% or better.

 

In connection with each annual re-constitution and re-balancing of the Women’s Index, the IAM Women’s Index Committee approves the names of the issuers to be included in the Women’s Index, based on recommendations by the IAM Gender Analytics team. IAM has adopted policies and procedures designed to address conflicts of interest between IAM’s role in the creation and maintenance of the Women’s Index and its role in managing the Global Women’s Fund. These policies and procedures are designed so that no individuals with any portfolio management responsibilities for the Global Women’s Fund have any role, responsibility or input regarding the composition of the Women’s Index. In addition, IAM has adopted

 

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policies and procedures that prohibit the Global Women’s Fund’s portfolio managers from acquiring, for the Global Women’s Fund or their own account, securities under consideration for inclusion in the Women’s Index, and from selling, for the Global Women’s Fund or their own account, securities under consideration for removal from the Women’s Index, until the re-constituted Women’s Index has been published by the calculation agent for the Women’s Index. As a result, the Global Women’s Fund will be unable to benefit from any advance knowledge by the Global Women’s Fund’s portfolio managers of changes to the composition of the Women’s Index. IAM may delay or change a scheduled rebalancing or reconstitution of the Women’s Index or the implementation of certain rules at its sole discretion.

 

The Global Women’s Fund’s investments in securities of non-US issuers may include investments in emerging markets and generally will be diversified across multiple countries or geographic regions. The Fund’s investments in securities of non-U.S. issuers may be denominated in currencies other than the US dollar. The Fund may take significant positions in one or more sectors, including the financial services sector and the information technology sector.

 

The Women’s Index and the Global Women’s Fund seek to exclude companies that fail to meet certain ESG or sustainability thresholds, including companies involved in the manufacture or sale of weapons, the manufacture of tobacco products and fossil fuel companies. To determine ESG exclusions or companies involved in the manufacture or sale of weapons and sale of tobacco products, the Index and Fund utilize ESG research and ratings determined by MSCI ESG Research. MSCI ESG Research evaluates companies’ ESG characteristics and derives corresponding ESG scores and ratings. Companies are ranked by ESG score against sector peers to determine their eligibility for the MSCI ESG indices and for the Fund. The rating system is based on general and industry-specific ESG criteria, assigning ratings on a 9-point scale from AAA (highest) to C (lowest). Constituents of the MSCI World Index that have an ESG rating of B or above are eligible for inclusion in the Women’s Index and the Fund. ESG research or ratings provided by MSCI ESG Research might reflect assessments that differ from those the Adviser would make.

 

Under normal market conditions, and as a result of the Adviser’s focus on risks and opportunities accompanying the transition to a more sustainable economy, the Fund is fossil fuel-free - not invested in securities of companies that the Adviser determines derive revenues or profits from exploration, production, refining or processing of thermal coal, oil or gas, or significant (generally more than 5%) revenues or profits from storage, distribution or power generation from the same. However, a company may be included in the portfolio if the Adviser determines that it has established itself as a leader in the transition to a zero-emissions energy economy with reduction objectives that the Adviser believes are aligned with the Paris Agreement’s objective of limiting future warming to 2°C.

 

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Principal Risks

 

 

Market Risk Conditions in a broad or specialized market, a sector thereof or an individual industry or other factors including terrorism, war, natural disasters and the spread of infectious disease including epidemics or pandemics such as the COVID-19 outbreak may adversely affect security prices, thereby reducing the value of the Fund’s investments. To the extent the Fund takes significant positions in one or more specific sectors, countries or regions, the Fund will be subject to the risks associated with such sector(s), country(ies) or region(s) to a greater extent than would be a more broadly diversified fund.

 

 

Management Risk At any time that the Fund employs a representative sampling strategy, or an optimized or enhanced strategy, the investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG profile when selecting investments for the Fund, may not produce the desired results and may cause the Fund to underperform the Women’s Index.

 

 

Equity Securities Risk The market price of equity securities may fluctuate significantly, rapidly and unpredictably, causing the Fund to experience losses. The prices of equity securities generally are more volatile than the prices of debt securities.

 

 

Investment Approach Risk The Fund seeks investment returns that closely correspond to or exceed the performance of the Women’s Index. Accordingly, the Fund’s performance would likely be adversely affected by a decline in the Women’s Index. In addition, the Fund’s investment approach may not produce the desired results and may cause the Fund to underperform the Women’s Index.

 

 

Non-US Securities Risk Non-US securities may have less liquidity and more volatile prices than domestic securities, which can make it difficult for the Fund to sell such securities at desired times or prices. Non-US markets may differ from US markets in material and adverse ways. For example, securities transaction expenses generally are higher, transaction settlement may be slower, recourse in the event of default may be more limited and taxes and currency exchange controls may limit amounts available for distribution to shareholders. Non-US investments are also subject to the effects of local political, social, diplomatic or economic events.

 

 

Growth Securities Risk The values of growth securities may be more sensitive to changes in current or expected earnings than the values of other securities.

 

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Small- and Medium-Sized Company Risk Securities of small- and medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.

 

 

Value Securities Risk Value securities are securities the investment adviser believes are selling at a price lower than their true value, perhaps due to adverse business developments or special risks. If that belief is wrong or remains unrecognized by the market, the price of the securities may decline or may not appreciate as anticipated.

 

 

Emerging Markets Risk Investments in emerging markets are likely to have greater exposure to the risks associated with investments in non-US securities generally. Additionally, emerging market countries generally have less mature economies and less developed securities markets with more limited trading activity, are more heavily dependent on international trade and support, have a higher risk of currency devaluation, and may have more volatile inflation rates or longer periods of high inflation than more developed countries.

 

 

Currency Risk The US dollar value of your investment in the Fund may go down if the value of the local currency of the non-US markets in which the Fund invests depreciates against the US dollar.

 

 

Issuer Risk The value of a security may fluctuate due to factors affecting only the entity that issued the security.

 

 

Non-Correlation Risk The performance of the Fund and of the Women’s Index may vary somewhat for a variety of reasons, including the potential that the Fund may not always hold the same securities, or may not hold such securities in the same proportions or weightings, as the Women’s Index. Although the Fund will seek to maintain risk characteristics that the Adviser believes are generally similar to those of the Women’s Index, it is possible that the Fund’s performance may not correlate with the performance of the Women’s Index.

 

 

Financial Services Sector Risk Companies in the financial services sector are subject to the risk of regulatory change, decreased liquidity in credit markets, extensive governmental regulation, and unstable interest rates. Such companies may have concentrated portfolios, which makes them vulnerable to economic conditions that affect that industry. Performance of such companies may be affected by competitive pressures and exposure to investments or agreements that, under certain circumstances, may lead to losses.

 

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Information Technology Sector Risk Prices of technology companies’ securities historically have been more volatile than those of many other securities, especially over the short term. Technology companies are subject to significant competitive pressures, such as aggressive pricing of their products or services, new market entrants, competition for market share, short product cycles due to an accelerated rate of technological developments, evolving industry standards, changing customer demands and the potential for limited earnings and/or falling profit margins. The failure of a company to adapt to such changes could have a material adverse effect on the company’s business, results of operations, and financial condition. Many technology companies have limited operating histories.

 

As with all mutual funds, you may lose money by investing in the Global Women’s Fund.

 

The foregoing descriptions are only summaries. Please see “About the Funds—Principal Risks” on page 119 for more detailed descriptions of the foregoing risks.

 

Performance Information

 

Effective June 4, 2014, the Global Women’s Fund acquired the assets of Pax World Global Women’s Equality Fund, a series of Impax Funds Series Trust I, pursuant to an Agreement and Plan of Reorganization dated May 28, 2014 (the “Reorganization”). Because the Global Women’s Fund had no investment operations prior to the closing of the Reorganization, Pax World Global Women’s Equality Fund (the “Predecessor Fund”) is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Global Women’s Fund for periods prior to June 4, 2014 is that of the Predecessor Fund.

 

The bar chart below presents the calendar year total returns for Investor Class shares of the Global Women’s Fund before taxes. The bar chart is intended to provide some indication of the risk of investing in the Global Women’s Fund by showing changes in the Global Women’s Fund’s performance from year to year. All performance information shown for the Global Women’s Fund for periods prior to June 4, 2014 is that of the Predecessor Fund. As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

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Investor Class

 

 

 

For the periods shown in the bar chart:

Best quarter: 2nd quarter 2020, 19.75%

 

Worst quarter: 1st quarter 2020, -21.26%

 

Average Annual Total Returns The performance table below presents the average annual total returns for Institutional Class and Investor Class shares of the Global Women’s Fund. The performance table is intended to provide some indication of the risk of investing in the Global Women’s Fund by showing how the Global Women’s Fund’s average annual total returns compare with the returns of a broad-based securities market index over a one-year, five-year and ten-year period. All performance information shown for the Global Women’s Fund for periods prior to June 4, 2014 is that of the Predecessor Fund. After-tax performance is presented only for Investor Class shares of the Fund. After-tax returns for Institutional Class shares may vary. After-tax returns are estimated using the highest historical individual federal marginal income tax rates and do not reflect the effect of local, state or foreign taxes. Actual after-tax returns will depend on a shareholder’s own tax situation and may differ from those shown. After-tax returns may not be relevant to investors who hold shares of the Global Women’s Fund through tax-advantaged arrangements (such as 401(k) plans or individual retirement accounts). As with all mutual funds, past performance (before and after taxes) is not necessarily an indication of future performance.

 

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Periods ended December 31, 2022

Share Class

Ticker Symbol

1 Year

5 Years

10 Years

Investor Class1

PXWEX

 

 

 

Return Before Taxes

 

-19.98%

4.46%

7.95%

Return After Taxes on Distributions

 

-20.37%

4.03%

7.33%

Return After Taxes on Distributions and Sale of Fund Shares

 

-11.27%

3.63%

6.53%

Institutional Class1

PXWIX

     

Return Before Taxes

 

-19.76%

4.73%

8.22%

MSCI World (Net) Index (reflects no deduction for fees, expenses or taxes)2,5

 

-18.14%

6.14%

8.85%

Impax Global Women’s Leadership (Net) Index (reflects no deduction for fees, expenses or taxes)3,5

 

-20.57%

5.04%

N/A

Lipper Global Multi-Cap Core Funds Index4,5

 

-17.88%

4.38%

7.72%

 

1

For more recent month-end performance data, please visit www.impaxam.com or call us at 800.767.1729.

 

2

The MSCI World (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding taxes.

 

3

The Women’s Index is a customized market capitalization-weighted index created and licensed by IAM consisting of equity securities of issuers organized or operating in countries around the world that demonstrate a commitment to advancing and empowering women through gender diversity in management and that promote gender equity in the workplace through supportive policies and practices, and an understanding of the potential business advantages associated with greater gender diversity and equity, as rated by the IAM Gender Analytics team, with final approval by the IAM Women’s Index Committee. In addition, the companies comprising the Women’s Index meet ESG or sustainability thresholds, as rated by MSCI ESG Research. Inception date of the Women’s Index is February 28, 2014.

 

4

The Lipper Global Multi-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Global Multi-Cap Core Funds Index Average. The Global Multi-Cap Core Funds Index Average is a total return performance average of mutual funds tracked by Lipper, Inc. that track the results of funds that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Global multi-cap core funds typically have characteristics (i.e., price-to-earnings ratio, price-to-book ratio) that resemble the “average” of the common stocks of the MSCI World Index. The Lipper Global Multi-Cap Core Funds Index is not what is typically considered to be an “index” because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index, or some other traditional economic indicator. The Lipper Global Multi-Cap Core Funds Index reflects deductions for fees and expenses of the constituent funds.

 

5

Unlike the Global Women’s Fund, the MSCI World (Net) Index, the Impax Global Women’s Leadership (Net) Index, and the Lipper Global Multi-Cap Core Funds Index are not investments, are not professionally managed and have (with the exception of the Impax Global Women’s Leadership Index) no policy of sustainable investing. One cannot invest directly in an index.

 

 

Investment Adviser

 

Impax Asset Management LLC (“IAM” or the “Adviser”) is the investment adviser for the Global Women’s Fund.

 

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Portfolio Managers

 

The following provides additional information about the individual portfolio managers who have primary responsibility for managing the Global Women’s Fund’s investments.

 

Portfolio Managers

Since

Title

Christine Cappabianca

2021

Portfolio Manager

Scott LaBreche

2014

Portfolio Manager

 

For important information about the purchase and sale of fund shares, taxes and financial intermediary compensation, please turn to “Important Additional Information About the Funds” on page 97.

 

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PXINX Investor Class

PXNIX Institutional Class

MSCI EAFE (Net) Index (reflects no deduction for fees, expenses or taxes)

Lipper International Large-Cap Core Funds Index

Impax International Sustainable Economy Fund

(the “International Sustainable Economy Fund”)

 

Summary of Key Information

 

Investment Objective

 

The International Sustainable Economy Fund’s investment objective is to seek long-term growth of capital.

 

Fees & Expenses

 

The tables below describe the fees and expenses that you may pay if you buy, hold, and sell Institutional Class or Investor shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.

 

Shareholder Fees (Fees Paid Directly From Your Investment)

 

 

Institutional
Class

Investor
Class

Maximum sales charge (load) imposed on purchases (as a % of offering price)

None

None

Maximum deferred sales charge (load) imposed on redemptions (as a % of the lower of original purchase price or net asset value)

None

None

 

 

Institutional
Class

Investor
Class

Annual Fund Operating Expenses (expenses you pay each year as a percentage of the value of your investment):

   

Management Fee1

0.47%

0.47%

Distribution and/or Service (12b-1) Fees

0.00%

0.25%

Total Annual Fund Operating Expenses

0.47%

0.72%

 

1

The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of governmental agencies, interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940, acquired fund fees and expenses and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses.

 

Example of Expenses

 

This example is intended to help you compare the cost of investing in Institutional Class or Investor Class shares of the Fund with the cost of investing in other mutual funds.

 

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The table assumes that an investor invests $10,000 in Institutional Class or Investor Class shares of the Fund for the time periods indicated and then redeems all of his or her shares at the end of those periods. The table also assumes that the investment has a 5% return each year, that all dividends and distributions are reinvested and that the Fund’s operating expenses remain the same throughout those periods. Although an investor’s actual expenses may be higher or lower than those shown in the table, based on these assumptions his or her expenses would be:

 

 

1 year

3 years

5 years

10 years

Institutional Class

$48

$151

$263

$591

Investor Class

$74

$230

$401

$894

 

Portfolio Turnover

 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These transaction costs, which are not reflected in “Annual Fund Operating Expenses” or in the “Example of Expenses,” affect the Fund’s performance. During the International Sustainable Economy Fund’s most recent fiscal year, the International Sustainable Economy Fund’s portfolio turnover rate was 51% of the average value of the portfolio.

 

Principal Investment Strategies

 

The International Sustainable Economy Fund follows a sustainable investing approach, investing in companies that the Adviser believes are well positioned to benefit from the transition to a more sustainable economy, integrating environmental, social and governance (ESG) ratings into portfolio construction and managing the portfolio within certain risk parameters relative to the Fund’s benchmark universe of MSCI EAFE Index companies.