Performance and Portfolio Update

  • The Pax MSCI EAFE ESG Leaders Index Fund outperformed the MSCI EAFE Index (EAFE Index) during the second quarter of 2019.
  • In the second quarter, international developed market equities ended the quarter up 3.68%, as measured by the EAFE Index.Δ During the quarter, equity markets became more volatile as concerns over US and China trade negotiations and Federal Reserve interest rate speculation weighed down equity market returns, before propelling forward in June.
  • The Fund’s ESG profile added to relative performance versus the EAFE Index during the quarter. A chart showing performance attribution by ESG ratings over the trailing three months and since the Fund’s inception is available below. An overweight to the highest-rated ESG companies contributed the most to relative performance during the quarter, and that is consistent with results since the Fund’s inception.△△
  • In the second quarter, nine out of the 11 sectors produced positive relative performance compared to the EAFE Index. Financials added the most to the Fund’s relative performance, driven by strong results from Banks in Australia and Insurance companies within Europe. In addition, selections in Materials helped performance, driven by strong results from Chemicals and Construction Materials. Lastly, selections in Industrials, led by Industrial Conglomerates benefitted performance.
  • Conversely, the Fund’s holdings in the Health Care sector detracted the most from relative performance, driven by poor results from European Pharmaceutical companies.
  • On a regional basis, the European and Pacific regions added to relative performance versus the EAFE Index. Within Europe, companies with leading ESG profiles in Germany, UK and Sweden outperformed. In the Pacific region, holdings in Australia and Japan added to relative performance.


(as of 6/30/19)
Returns (%)Average Annual Returns (%)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax MSCI EAFE ESG Leaders Index Fund - Investor Class5.874.1613.591.677.551.71-4.19
Pax MSCI EAFE ESG Leaders Index Fund - Institutional Class5.994.3613.731.987.811.97-4.46
MSCI EAFE ESG Leaders (Net) Index6.034.5414.262.088.342.63-4.92
MSCI EAFE (Net) Index5.933.6814.
Lipper International Large-Cap Core Funds Index6.002.4112.12-1.907.651.47-3.65

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 MSCI EAFE ESG Leaders Index Fund Institutional Class is January 27, 2011, and the Investor Class inception date is March 31, 2014.

As of 5/1/19 prospectus, total annual Pax MSCI EAFE ESG Leaders Index Fund operating expenses, gross of any fee waivers or reimbursements, for Investor Class and Institutional Class shares are 0.80% and 0.55%, respectively.

Performance Attribution

ESG Ratings

(as of 6/30/19)
Average Active Weights (%)
3-month Relative Contribution (%)Since Inception 1/27/11
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 6/30/19)
Market Cap (weighted avg.)$53,201M$65,753M
Forward Price/Earnings15.0813.95
Number of Securities358922


Top 10 Holdings

(as of 6/30/19)
Roche Holding AG 2.8%, Total SA 1.9%, SAP SE 1.9%, GlaxoSmithKline PLC 1.5%, Commonwealth Bank of Australia 1.5%, Allianz SE 1.5%, Unilever NV 1.4%, Novo Nordisk A/S, Class B 1.4%, ASML Holding NV 1.2% and Siemens AG 1.2%. Holdings are subject to change.


ΔMSCI EAFE Index quarterly returns: Q2-19: 3.68%, Q1-19: 9.98%, Q4-18: -12.54%, Q3-18: 1.35%, Q2-18: -1.07%, Q1-18:-1.70%, Q4-17: 4.23%, Q3-17: 5.40%, Q2-17: 6.12%, Q1:17: 7.25%, Q4-16: -0.71%, Q3-16: 6.43%, Q2-16: -1.46% and Q1-16:-3.01%.
△△MSCI ESG Research evaluates companies’ ESG characteristics and derives corresponding ESG scores and ratings. Companies are ranked by ESG score against their sector peers to determine their eligibility for the MSCI ESG indices. MSCI ESG Research identifies the highest-rated companies in each peer group to meet the float-adjusted market capitalization sector targets. The rating system is based on general and industry-specific ESG criteria, assigning ratings on a seven-point scale from AAA (highest) to CCC (lowest).
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 corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
A historical Beta is used for funds with greater than two years of performance history under the same mandate. Three year Beta is used. Beta reflects the sensitivity of a fund’s return to fluctuations in its benchmark; a beta for a benchmark is 1.00: A beta greater than 1.00 indicates above-average volatility and risk.

On 3/31/2014 Pax International Fund and Pax MSCI EAFE ESG Index ETF merged into the Pax MSCI International ESG Index Fund (the Fund), a passively managed index fund which seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index. Based on the similarity of the Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the Predecessor Fund) is treated as the survivor of the mergers for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to 3/31/2014 is that of the Predecessor Fund.

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.

PAX008690 (10/19)

Scott LaBreche

Portfolio Manager

Scott LaBreche is Portfolio Manager & VP, Portfolio Analytics, at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

Scott is a Portfolio Manager of the Global Women’s Leadership Strategy, which includes the Pax Ellevate Global Women’s Leadership Fund. He is also a Portfolio Manager of the Pax International Sustainable Economy Fund, the Pax Global Sustainable Infrastructure Fund and the Pax U.S. Sustainable Economy Fund.

He is responsible for portfolio management of systematic strategies, portfolio analytics and risk oversight, and quantitative ESG research.

Before joining Impax in 2007, Scott was a Securities Fund Analyst at Lincoln Financial Group. He has been in the investment management industry since 1999.

Scott holds a Bachelor of Science in business administration and a Master of Business Administration with advanced certificate in finance from Southern New Hampshire University.

Recent Insights

Scroll to top
User Agent: CCBot/2.0 (