A High-Yield Bond Fund Says Goodbye to Fossil Fuels

Barron’s features Portfolio Manager Peter Schwab and the Pax High Yield Bond Fund in this profile.

The top 10 holdings of the Pax High Yield Bond Fund as of 07/31/2021 are: Cco Holdings LLC, 4.750%, 3/1/30, 1.20%; Avantor Funding, Inc., 4.625%, 7/15/28, 1.0%; Kraft Heinz Foods Co., 4.375%, 6/1/46, 0.90%; Standard Industries, Inc., 5.0%, 2/15/27, 0.80%; Nmg Holding Co., Inc., 7.125%, 4/1/26, 0.70%; Univar Solutions, Inc., 5.125%, 12/1/27, 0.70%; Iqvia, Inc., 5.0%, 5/15/27, 0.70%; Tenet Healthcare Corp., 5.125%, 11/1/27, 0.60%; Ford Motor Co., 9.0%, 4/22/25, 0.60%; and Seg Holding LLC, 5.625%, 10/15/28, 0.60%. Holdings are subject to change.

Risks

Investments involve risk, including potential loss of principal.

The Fund can invest in “junk bonds” which are considered predominately speculative with respect to the issuer’s continuing ability to make principal and interest payments when due.

Yield and share price will vary with changes in interest rates and market conditions. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. Mortgage related securities tend to become more sensitive to interest rate changes as interest rates rise, increasing their volatility. There is also a chance that some of the fund’s holdings may have their credit rating downgraded or may default.

The Fund is actively managed. The investment techniques and decisions of the investment adviser and the Fund’s portfolio manager(s), including the investment adviser’s assessment of a company’s ESG (Environmental, Social and Governance) profile when selecting investments for the Fund, may not produce the desired results and may adversely impact the Fund’s performance, including relative to other Funds that do not consider ESG factors or come to different conclusions regarding such factors.

You should always consider Pax World Funds’ investment objectives, risks, and charges and expenses carefully before investing. For this and other important information, please download a fund prospectus. Please read it carefully before investing.

Click here for PXHIX standardized returns and current percentile rankings. 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, visit www.impaxam.com.

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