• The Pax Large Cap Fund underperformed the S&P 500 Index during the first quarter. The Fund lagged its benchmark primarily due to its avoidance of the Energy sector and the underperformance of individual holdings within the Industrials and Materials sectors.
  • Despite a challenging recent market backdrop, we remain confident in the Fund’s investment process and long-term prospects and note the top decile performance ranking of the Fund’s institutional class in Morningstar’s Large Blend category for the 3-year (2nd percentile rank, 16 out of 1,232 funds) and 5-year (2nd percentile rank, 14 out of 1,116 funds) periods ending March 31, 2022.1

Market Review

  • Volatility gripped US large cap equities to start the year as corporate earnings growth started to slow and inflationary pressures continued to build. In addition, the war between Russia and Ukraine, which began in late-February, exacerbated the already tight global commodities market, causing many input costs to skyrocket unexpectedly. The S&P 500 was down 4.60% for the first quarter, but in broader context of asset class returns, the US large cap equity universe held up relatively well, notably better than US small cap, non-US equity, and global fixed income areas of the market.


  • Energy (up 39%) and Utilities (up 5%) were the only S&P 500 Index sectors in positive territory for the quarter creating a headwind for the Fund’s relative performance given its fossil fuel free portfolio.
  • Within the Industrials sector, the top detractors were Trane Technologies (-24%) and Stanley Black and Decker (-26%). Both companies were off to a relatively slow start in 2022 due to supply chain challenges, however both are forecasting that operating conditions will improve in the second half of the year.
  • Within the Materials sector, PPG Industries (-24%) experienced a rapid rise in energy-related input costs, temporarily squeezing margins. As these costs begin to moderate, we are confident that the company’s margin structure can return to normalized levels.


  • The top contributing sectors during the quarter were Health Care and Communications Services. Within Health Care, the Fund benefitted from its holdings in Bristol-Myers Squibb (up 19%), Organon (up 16%), and Vertex Pharmaceuticals (up 19%). Bristol-Myers and Organon are very inexpensive names in our view that showed strong fundamental execution and were rewarded with a slight valuation uplift during the quarter, while Vertex saw advancement in its product pipeline for a number of its novel therapies.
  • Within Communications Services, T-Mobile (up 11%) rebounded as investors begin to look forward to a potential period of very strong free cash flow generation and meaningful share repurchases starting in the second half of 2022.


  • As we look out to the balance of 2022, we believe that the equity market has many challenges to face. The Federal Reserve’s signaling of a faster than expected normalization of interest rates to combat inflationary pressures, along with a geopolitical backdrop that is difficult to analyze and quite fluid, provide challenges above and beyond those investors typically encounter. That said, we are firm believers that bottom-up fundamentals drive stock prices over the longer term, and we remain keenly focused on sustainability “megatrends” that have the potential to shape the investment landscape for decades to come. We continue to emphasize companies that have durable business models along with company-specific growth and valuation drivers.


(as of 3/31/22)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception2
Pax Large Cap Fund - Investor Class0.94-6.07-6.0712.2721.8117.46-17.30
Pax Large Cap Fund - Institutional Class1.01-5.99-5.9912.5322.1117.77-17.59
S&P 500 Index3.71-4.60-4.6015.6518.9215.99-16.16
Lipper Large-Cap Core Funds Index2.96-5.33-5.3311.7616.6714.15-14.36

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.

2The inception date for the Pax Large Cap Fund Institutional Class and the Investor Class is December 16, 2016.

As of 5/1/2021 prospectus, total annual Pax Large Cap Fund operating expenses, gross of any fee waivers or reimbursements (excluding Acquired Fund fees and expenses), for Investor Class and Institutional Class shares are 0.95% and 0.70%, respectively.ˆ

Performance Attribution

(12/31/21 - 3/31/22)
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. Short-term performance may not be indicative of long-term results.

Portfolio Characteristics

(as of 3/31/22)
Market Cap (weighted avg.)$526,164M$646,824M
Forward Price/Earnings19.4420.15
Number of Securities50504

1Data shown represent rankings for the Pax Large Cap Fund – Institutional Class (PXLIX) in the Morningstar Large Blend category based on the Fund’s total return. Morningstar percentile rank is a standardized way of ranking items within a peer group, in this case, funds with the same Morningstar Category. The observation with the largest numerical value is ranked one; the observation with the smallest numerical value is ranked 100. The remaining observations are placed equal distance from one another on the rating scale. Note that lower percentile ranks are generally more favorable for returns (high returns), while higher percentile ranks are generally more favorable for risk measures (low risk). The Pax Large Cap Fund – Institutional Class (PXLIX) 1-year 56th percentile rank (725 out of 1,368 funds), 3-year 2nd percentile rank (16 out of 1,232 funds), and 5-year 2nd percentile rank (14 out of 1,116 funds). The Pax Large Cap Fund – Investor Class (PAXLX) 1-year 57th percentile rank (756 out of 1,368 funds), 3-year 2nd percentile rank (21 out of 1,232 funds), and 5-year 2nd percentile rank (18 out of 1,116 funds).

The Morningstar Ratings™ shown are as of 3/31/22. The Morningstar Rating for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five- and ten- year (if applicable) Morningstar Rating metrics. The weights are 100% three-year rating for 36-59 months of total returns, 60% five-year rating, 40% three-year rating for 60-119 months of total returns, and 50% ten-year rating, 30% five-year rating, 20% three-year rating for 120 or more months of total returns. While the ten-year overall rating formula seems to give the most weight to the ten-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.

Top 10 Holdings

(as of 3/31/22)
Microsoft Corp. 6.3%, Apple, Inc. 4.4%, Alphabet, Inc., Class A 3.5%,, Inc. 3.0%, Procter & Gamble Co., The 2.7%, T-Mobile US, Inc. 2.6%, Alphabet, Inc., Class C 2.5%, Bristol-Myers, Squibb Co. 2.4%, CVS Health Corp. 2.4% and Lowe’s Cos., Inc. 2.2%. Holdings are subject to change.


ƒWeighted Average is an average in which each quantity to be averaged is assigned a weight. These weightings determine the relative importance of each quantity on the average.
Forward Price-Earnings Ratio or P/E FY1 ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings over the next 12 months.
Return on Equity: The amount of net income returned as a percentage of shareholders’ equity. Return on equity measures a corporations’ profitability by revealing how much profit a company generates with the money shareholders have invested.
The Ex-Ante Beta is calculated using a multi-factor risk model. Beta explains common variations in stock returns due to different stock sensitivities to the market relative to its underlying benchmark for the current period, not historical. A beta for a benchmark is 1.00: A beta greater than 1.00 indicates above average volatility and risk.

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.

IMPX01055 (7/22)

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

Barbara Browning, Pax World Funds

Barbara Browning, CFA®

Portfolio Manager

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

Barbara is a Portfolio Manager of the US Large Cap Strategy, which includes the Pax Large Cap Fund.

Prior to joining the firm in 2017, Barbara was Vice President and Senior Portfolio Manager at RBC Global Asset Management, Inc., where she co-managed Diversified Core, Concentrated Core and Diversified Large Cap Value Equity funds. Prior to that, Barbara was a Senior Portfolio Manager and Investment Officer at National City Bank, a Senior Research Analyst at Banc One Investment Advisors Corporation and held various equity research positions.

Barbara has a Bachelor of Arts in economics from The Ohio State University, where she graduated cum laude. She is also a CFA® charterholder.

Recent Insights

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