Performance and Portfolio Update

  • The Pax Core Bond Fund underperformed the Bloomberg Barclays US Aggregate Index in the quarter. The main driver of underperformance was security selection within the corporate sector. A number of the Fund’s lower duration bonds and floating-rate corporate bonds underperformed during the period. These securities provide a hedge against inflation, which has yet to materialize.
  • Positive security selection within Treasury securities and taxable municipal holdings helped relative performance. In general, these sectors have greater interest rate sensitivity than the benchmark and outperformed as rates declined.
  • The Fund continues to be positioned with a focus on high quality. As North Korean tensions arose during the quarter, there was a flight to quality and riskier fixed income assets, including some corporate issuers, sold off. The Fund performed very well during this period. However, the Fund gave back some of that performance advantage in the final week of the quarter when the fixed income market rallied looking past the geopolitical landscape.
  • We maintain the view that the credit market is in the later part of the cycle, and overall, the corporate bond portion of the portfolio is positioned with less interest rate sensitivity than the benchmark.
  • During the quarter we added a green mortgage backed security to our impact investments allocation. The Fannie Mae Green Rewards Program securitizes loans from buildings that make energy and water-saving improvements. These securities share Fannie Mae’s AAA credit rating.


(as of 9/30/17)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Core Bond Fund - Individual Investor Class-0.630.602.47----3.37
Core Bond Fund - Institutional Class-0.610.662.66----3.59
Bloomberg Barclays US Aggregate Index-0.480.853.140.072.712.064.274.29
Lipper Core Bond Funds Index-0.430.933.590.712.942.404.354.59

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. For most recent month-end performance information call 800.767.1729 or visit

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

1The inception date for the Pax Core Bond Fund Institutional Investor Class and the Individual Investor Class is December 16, 2016.

As of 5/1/17 prospectus, total annual Core Bond Fund operating expenses, gross of any fee waivers or reimbursements (excluding Acquired Fund fees and expenses), for Individual Investor Class and Institutional Class shares are 0.74% and 0.49%, respectively.

Performance Attribution

(as of 9/30/17)
Sector: Average Active Weights (%)
Total Relative Contribution (%)

XOther: ETFs (for short-term cash mgmt. purposes) and Cash & Equivalents.
Past performance is no guarantee of future results.

Portfolio Characteristics

(as of 9/30/17)
Effective Duration)5.83%5.92%
Years to Maturity11.8512.93
30 Day SEC Yield


Top Ten Holdings

(as of 9/30/17)
United States Treasury Note, 1.875%, 4/30/22 5.4%, United States Treasury Note, 2.375%, 08/15/24 5.3%, United States Treasury Note, 2.375%, 5/15/27 3.5%, United States Treasury Note, 3.000%, 5/15/47 3.5%, United States Treasury Note, 2.125%, 11/30/23 2.2%, United States Treasury Note, 1.375%, 1/15/20 1.7%, United States Treasury Note, 4.500%, 02/15/36 1.7%, United States Treasury Note, 2.125%, 09/30/21 1.5%, United States Treasury Note, 2.125%, 3/31/24 1.5%, and United States Treasury Note, 0.375%, 7/15/27 1.2%. Holdings are subject to change.


Effective Duration is a measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive
to changes in interest rates than securities of shorter durations.
~Years to Maturity (weighted average) is the number of years until the bond matures and/or expires.
°30 Day SEC Yield: An annualized yield based on the most recent 30 day period.

The statements and opinions expressed are those of the author 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.

PAX007450 (1/18)

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.

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