Performance and Portfolio Update

    • The Pax Balanced Fund modestly underperformed its benchmark (60% S&P500/40% Bloomberg Barclays US Aggregate Bond Index) in the first quarter.
    • Equity markets rebounded substantially in the first quarter, with S&P 500 Index returning 13.65%, its best quarterly start to a year since 1998. Part of the first quarter rally could be expected given the oversold conditions late in the fourth quarter, but the predominant impetus for the first quarter rally was the abrupt change in Federal Reserve policy that many investors interpreted as an end to their tightening bias and rising rates. Non-US developed market stocks also recovered, with the MSCI EAFE Index up 9.98%, but they significantly lagged US equities. Bonds delivered a solid return as the Bloomberg Barclays US Aggregate rose 2.94% amid the falling rate environment.
    • Performance of underlying funds within the Balanced Fund was the primary detractor to performance. The more defensive characteristics of the Pax Mid Cap Fund and Pax ESG Beta Dividend Fund that helped in the previous quarter, hurt these funds in the first quarter rally. The Balanced Fund allocation to non-US equities also detracted from performance versus the 60% S&P500/40% Bloomberg Barclays US Aggregate Bond Index as non-US developed market equities lagged their US counterparts.
    • The Fund’s equity and fixed income allocations are closely aligned with their 60% equity/40% fixed income neutral allocations. While the valuation of the equity market is approaching levels we saw just before the fourth quarter sell off, bond yields have fallen substantially, rendering both asset classes as less attractive from a valuation standpoint. Our non-US equity allocation is also near its long-term neutral target, but modestly below peers. The Fund made its initial allocation in the Pax High Yield Bond Fund in early January.
    • The Pax Balanced Fund Institutional Class ranked in the 29th percentile in the Morningstar 50%-70% Equity peer group for the five-year period ended 3/31/19, which we believe is reflective of both its strong performance and risk management.*

*Rankings in other time periods may be lower. Comparison based on the Morningstar 50%-70% Equity peer group for the period ending 3/31/19. The Pax Balanced Fund’s Institutional Class performance for the 1-year period ranked 206 out of 758 (29th percentile), for the 3-year period ranked 305 out of 690 (45th percentile), for the 5-year period ranked 170 out of 601 (29th percentile), and for the 10-year period 287 out of 439 (67th percentile). The Pax Balanced Fund’s Investor Class performance for the 1-year period ranked 221 out of 758 (30th percentile), for the 3-year period ranked 366 out of 690 (54th percentile), for the 5-year period ranked 207 out of 601 (34th percentile), and for the 10-year period 327 out of 439 (74th percentile).

Performance

(as of 3/31/19)
Returns (%)Average Annual Returns (%)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Balanced Fund - Investor Class1.428.338.334.747.295.749.148.22
Balanced Fund - Institutional Class1.448.438.434.997.566.009.428.29
S&P 500 Index1.9413.6513.659.5013.5110.9115.92
60% S&P 500 Index / 40% Bloomberg Barclays US Aggregate Bond Index1.939.319.317.788.957.7511.14
Morningstar Allocation--50% to 70% Equity1.168.898.893.907.445.129.98

Performance data quoted represent past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. To obtain performance for the most recent month-end, call 800.767.1729 or visit paxstaging.wpengine.com.

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

1The inception date for the Pax Balanced Fund Institutional Class is April 2, 2007, and the Investor Class inception date is August 10, 1971. The performance information shown for Institutional Class shares includes the performance of Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.

As of the 5/1/2018 prospectus, the Pax Balanced Fund All-In Gross expense ratio includes indirect expenses (Acquired Fund Fees and Expenses “AFFE”) of 0.61%. AFFE are fees and expenses charged by their investment companies in which the Fund invests a portion of its assets and are not direct costs paid by Fund shareholders. The All-In Gross expense ratio for Institutional Class and the Individual Investor Class shares are 0.66% and 0.91%, respectively. Pax Balanced Fund expense ratios, excluding indirect AFFE, are 0.05% and 0.30% for Institutional Class and Individual Investor Class shares, respectively. 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 and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses. (For this purpose, Impax Asset Management LLC does not consider acquired fund fees and expenses to be operating costs and expenses of the Fund.)

Asset Allocation

Relative Contribution (%)
 

Past performance is no guarantee of future results.
XThe Inception date of the Pax Large Cap Fund, Pax ESG Beta Dividend Fund and Pax Core Bond Fund is December 16, 2016. The Inception date of the Pax Global Opportunities Fund is June 27, 2018.

Asset Allocation (%)

(as of 3/31/19)
Fund
Equity60.7
Pax Large Cap Fund36.7
Pax ESG Beta® Dividend Fund7.2
Pax Mid Cap Fund6.3
Pax Global Opportunities Fund1.3
Pax Global Environmental Markets Fund1.5
Pax MSCI EAFE ESG Leaders Index Fund7.7
Fixed Income39.0
Pax Core Bond Fund38.0
Pax High Yield Bond Fund1.0
Cash & Other0.3
Total100.0


Top 10 Equity Holdings

(as of 3/31/19)
Microsoft Corp. 2.3%, Amazon.com, Inc. 2.0%, Apple, Inc. 1.8%, Merck & Co., Inc. 1.3%, Ingersoll-Rand PLC 1.3%, Waste Management, Inc. 1.2%, Alphabet, Inc., Class A 1.2%, IBM 1.1%, AT&T, Inc. 1.1% and Visa, Inc., Class A 1.1%. Holdings are subject to change.

Definitions

Standard & Poor’s 500 Stock Index is an unmanaged index of large capitalization common stocks.
The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the US and Canada. The MSCI EAFE Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.

©2019 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is an independent investment research firm that compiles and analyzes fund, stock and general market data.

The statements and opinions expressed are those of the authors as of the date of this report. All information is historical and not indicative of future results and subject to change. This information is not a recommendation to buy or sell any security. Past performance does not guarantee future results.

PAX008539 (7/19)

Nathan Moser, CFA®

Senior Portfolio Manager

Nathan Moser is a Senior Portfolio Manager at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds. He is Senior Portfolio Manager of the US Small Cap Strategy, including the Pax Small Cap Fund. Nathan has been a member of the Pax Sustainable Allocation Fund portfolio management team since 2015.

Nathan has managed the Pax Small Cap Fund since its inception in 2008, which is the year he joined the firm. Prior to that, he worked at Citizens Funds, first as an Equity Analyst then as a Portfolio Manager. Nathan started his career with John Hancock Funds, where he was an Equity Analyst.

Nathan holds a Bachelor of Science from Babson College. He is a CFA® charterholder and a member of the CFA Society Boston.

Recent Insights

Andrew Braun, Pax World Funds

Andrew Braun

Senior Portfolio Manager

Andrew Braun is Senior Portfolio Manager at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

He is a Senior Portfolio Manager of the US Large Cap Strategy, which includes the Pax Large Cap Fund. He is also a member of the Pax Sustainable Allocation Fund portfolio management team.

Prior to joining the firm in 2017, Andy was Managing Director on the value equity team at Goldman Sachs Asset Management, where he led a team of 30 portfolio managers and analysts. Andy joined Goldman Sachs Asset Management as a Product Development Associate in 1993. He was promoted to Portfolio Manager in 2001 and served as Co-Chief Investment Officer from 2008 to 2014. Before Goldman Sachs, Andy was a Financial Analyst in the corporate finance division of Dillon, Read & Co. Inc.

Andy has a Bachelor of Arts in economics from Harvard University and a Master of Business Administration in finance and economics from the Stern School of Business at New York University.

Recent Insights

Anthony Trzcinka, CFA®

Senior Portfolio Manager

Anthony (Tony) Trzcinka is a Senior Portfolio Manager at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

He is a Senior Portfolio Manager of the Core Bond Strategy, which includes the Pax Core Bond Fund. Tony is also a member of the Pax Sustainable Allocation Fund portfolio management team. A pioneer in sustainable fixed income investing, Tony has been managing strategies investing in impact bonds for over 10 years.

Tony has been responsible for multiple strategies since joining the firm in 2003. Before Impax, Tony spent three years as an Assistant Vice President at AEW Capital Management, where he worked in a Senior Analyst role. He began his financial services career as an analyst in 1999.

Tony is a CFA® charterholder and a member of the Boston Security Analysts Society. He holds an MBA from Northeastern University and a Bachelor of Arts from the University of Massachusetts.

Recent Insights

Peter Schwab, CFA®

Senior Portfolio Manager

Peter Schwab is a Senior Portfolio Manager at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

He is a Senior Portfolio Manager of the High Yield Bond Strategy, which includes the Pax High Yield Bond Fund. Peter is also a member of the Pax Sustainable Allocation Fund portfolio management team.

Prior to joining the firm in 2015, Peter was a Managing Director on the High Yield Bond and Loan Team at Goldman Sachs Asset Management. Prior to that he was an Investment Associate in the High Yield Group at Putnam Investments and a member of the High Yield Research Group at Donaldson, Lufkin and Jenrette.

Peter has a Bachelor of Arts in history and economics from Union College and an MBA in finance from Columbia Business School. He is a CFA® charterholder, a member of the New York Society of Security Analysts and holds the FINRA Series 7 and 63 registrations.

Peter Schwab is a registered representative of Foreside Financial Services, LLC.

Recent Insights

Scroll to top
User Agent: Mozilla/5.0 (compatible; SemrushBot/7~bl; +http://www.semrush.com/bot.html)