Performance and Portfolio Update

  • The Pax MSCI EAFE ESG Leaders Index Fund outperformed the MSCI EAFE Index in the fourth quarter of 2018.
  • The MSCI EAFE Index posted a -12.54% return in the fourth quarter, its worst quarterly result since the third quarter of 2011, as concerns about declining global growth, US and China tariffs and the prospects of slowing earnings growth negatively influenced investor sentiment during the period.Δ
  • The Fund’s ESG profile added to relative performance versus the MSCI 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. The highest-rated ESG companies and the average-rated groups added the most during the quarter. Longer-term since the Fund’s inception, an overweight to the highest-rated ESG companies has contributed the most to relative performance.△△
  • From a sector perspective, stock selection in the Financials sector added the most to relative return, driven by selections in the banks and capital markets industries. In addition, stock selection in the Communication Services and the Industrials sectors added to relative return.
  • Conversely, stock selection in the Real Estate sector detracted the most during the quarter, led by companies in the real estate management and development industry. In addition, stock selection in the Materials sector and an underweight allocation to the Information Technology sector, detracted from relative results during the quarter.
  • On a regional basis, the European region added to relative performance versus the MSCI EAFE Index, while the Pacific region detracted. Within Europe, companies with leading ESG profiles in Germany, Denmark and Spain performed relatively well. Conversely, holdings in Hong Kong and Japan within the Pacific region detracted from relative performance.


(as of 12/31/18)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax MSCI EAFE ESG Leaders Index Fund - Investor Class-5.30-12.17-13.15-13.151.60-0.08-2.79
Pax MSCI EAFE ESG Leaders Index Fund - Institutional Class-5.25-12.04-12.90-12.901.850.21-3.06
MSCI EAFE ESG Leaders (Net) Index-5.04-12.31-13.41-13.412.070.79-3.48
MSCI EAFE (Net) Index-4.85-12.54-13.79-13.792.870.536.322.91
Lipper International Large-Cap Core Funds Index-5.71-13.14-15.42-15.422.890.085.752.39

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 5/1/18 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 12/31/18)
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 12/31/18)
Market Cap (weighted avg.)$46,327M$56,482M
Forward Price/Earnings13.5512.51
Number of Securities370919


Top 10 Holdings

(as of 12/31/18)
Roche Holding AG 2.7%, Total SA 2.0%, GlaxoSmithKline PLC 1.9%, SAP SE 1.5%, Commonwealth Bank of Australia 1.5%, Unilever NV 1.5%, Allianz SE 1.4%, Novo Nordisk A/S, Class B 1.4%, Siemens AG 1.3% and Westpac Banking Corp. 1.1%. Holdings are subject to change.


ΔMSCI EAFE Index quarterly returns: 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.

PAX008408 (4/19)

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.

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