Performance and Portfolio Update

  • The Pax Core Bond Fund underperformed the Bloomberg Barclays US Aggregate in the fourth quarter.
  • The Fund’s corporate bonds were the largest detractors to performance during the quarter. Many of the Fund’s holdings in these sectors are high credit quality and have lower duration which have caused them to lag in the bond market rally. Many investors are calling this a “mini-Goldilocks” period with global growth perking up and inflation staying low. This has been a very good environment for risk-assets.
  • The main drivers of positive relative performance were the Fund’s treasury and agency mortgage-backed security positions. Many of the Fund’s treasury securities have a long duration and benefited from a declining yield environment. In addition, the Fund’s underweight to agency mortgage backed securities helped relative performance as lower rates drove an uptick in mortgage prepayments.
  • Overall, we feel the Fund should be positioned to perform well in a late credit cycle environment. The Fund’s underweight to treasuries and agency mortgage-backed securities helped as both sectors had relatively weak performance in a volatile rate environment.
  • The Fund continues to add impact holdings across multiple sectors in the portfolio. At the end of December 2019, 28% of the Fund’s assets were in securities classified as impact. The impact bond market, while relatively new, is growing at a fast pace. As such we expect the Fund’s allocation to these impact holdings to increase.


(as of 12/31/19)
Returns (%)Average Annual Returns (%)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Core Bond Fund - Investor Class-0.19-0.117.787.783.31--3.57
Core Bond Fund - Institutional Class-0.26-
Bloomberg Barclays US Aggregate Index-
Lipper Core Bond Funds Index0.160.399.399.394.22--4.49

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 Class and Investor Class is December 16, 2016.

As of 5/1/19 prospectus, total annual Core Bond Fund operating expenses, gross of any fee waivers or reimbursements (excluding Acquired Fund fees and expenses), for Investor Class and Institutional Class shares are 0.71% and 0.46%, respectively.

Performance Attribution

(as of 12/31/19)
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 12/31/19)
Effective Duration5.78%5.82%
Years to Maturity13.7113.04
30 Day SEC Yield

Top 10 Holdings

(as of 12/31/19)
United States Treasury Note, 1.500%, 10/31/24 4.1%, United States Treasury Note, 2.375%, 11/15/49 4.0%, United States Treasury Note, 2.750%, 9/30/20 2.4%, United States Treasury Note, 2.125%, 11/30/23 2.2%, United States Treasury Note, 0.375%, 7/15/27 1.5%, United States Treasury Note, 4.500%, 2/15/36 1.3%, United States Treasury Note, 4.375%, 11/15/39 1.1%, United States Treasury Note, 3.500%, 2/15/39 1.0%, United States Treasury Note, 2.250%, 3/31/26 1.0% and United States Treasury Note, 2.375%, 3/15/21 1.0%. 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.

PAX008820 (4/20)

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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