Performance and Portfolio Update
- In the first quarter the Institutional share class of the Fund slightly underperformed the MSCI World Index by 19 basis points (bps).†
- The Consumer Discretionary sector detracted the most from relative return during the quarter, impacted by the underperformance of Ulta Beauty and H&M, and by not owning Netflix and Amazon. In addition, stock selection in the Financials sector detracted from performance, led by the underperformance of Fund holdings in the insurance industry — Principal Financial and Intact Financial.
- Positive stock selection and an underweight allocation to the Energy sector was a significant contributor to relative performance. Stock selection in the Consumer Staples sector also added to relative performance, driven by strong results from Estee Lauder.
- On a regional basis, the Fund’s North American and Pacific holdings detracted from relative performance, while holdings in Europe were additive. In the Pacific region, the Fund’s underweight to Japan — no Japanese companies rank among the top 400 companies in the world based on our gender leadership criteria — hurt relative performance.
- Investing in companies demonstrating gender leadership is the Fund’s strategy for generating long-term outperformance. Since adopting its factor-based investment strategy in June of 2014, the Fund’s outperformance has been driven by the highest-rated companies for advancing women’s leadership, those with more women on their boards and in senior management, according to Pax’s Gender Leadership Score. Performance attribution by the Pax Gender Leadership Score is available below.
Performance(as of 6/30/18)
|1-Month||Quarter||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception1|
|Pax Ellevate Global Women's Index Fund - Individual Investor Class||0.35||1.94||0.35||11.57||9.29||10.36||5.10||6.79|
|Pax Ellevate Global Women's Index Fund - Institutional Class||0.38||2.00||0.50||11.83||9.57||10.63||5.36||6.92|
|Pax Global Women's Leadership (Net) Index||0.44||2.16||0.44||11.10||9.74||--||--|
|MSCI World (Net) Index||-0.05||1.73||0.43||11.09||8.48||9.94||6.26|
|Lipper Global Multi-Cap Core Funds Index||-0.90||-0.12||-1.27||8.76||7.97||9.02||6.88|
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. To obtain performance for the most recent month-end call 800.767.1729 or visit paxworld.wpengine.com
Figures include reinvested dividends, capital gains distributions, and changes in principal value.
1The inception date for the Pax Ellevate Global Women’s Leadership Fund Institutional Class is April 19, 2006 and the Individual Investor Class inception date is October 1, 1993.
Inception of Institutional Class shares is April 19, 2006. The performance information shown for Institutional Class shares represents the performance of the Retail Class shares of the earlier acquired Women’s Equity Fund shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares or to reflect any differences in expenses between the earlier acquired Women’s Equity Fund and the Fund. If such expense adjustments and allocable expenses were reflected, the returns would be higher than those shown. Institutional Class inception date return since April 19, 2006 is 4.74% (annualized).
Total annual Pax Ellevate Global Women’s Leadership Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Individual Investor Class shares are 0.65% and 0.90% respectively, and 0.55% and 0.80% net of fee waivers, as of the 2/26/18 prospectus supplement. The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of governmental agencies, interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses. (For this purpose, Impax Asset Management LLC does not consider acquired fund fees and expenses to be operating costs and expenses of the Fund.) The investment adviser has contractually agreed to waive its management fees in excess of 0.55% of the Fund’s net assets through March 1, 2019. This waiver may not be modified or terminated prior to that date without the approval of the Board of Trustees.
(as of 3/31/18)
Average Active Weights (%)
|Since Re-org (45-months)
Relative Contribution (%)
XOther: ETFs (for short-term cash mgmt. purposes) and Cash & Equivalents.
The above attribution analysis compares the Fund to the MSCI World Index. Past performance is no guarantee of future results.
Portfolio Characteristics(as of 3/31/18)
|Market Cap (weighted avg.)∱||$120,269M||$136,076M|
|Number of Securities||405||1,649|
Top Ten Holdings
(as of 6/30/18)
Microsoft Corp. 3.6%, Facebook, Inc., Class A 2.3%, Kellogg Co. 2.1%, American Water Works Co., Inc. 2.1%, Wolters Kluwer NV 2.0%, Target Corp. 2.0%, Michael Kors Holdings, Ltd. 2.0%, Intuit, Inc. 1.9%, Principal Financial Group, Inc.1.9% and Estee Lauder Cos, Inc., Class A 1.8%. Holdings are subject to change.
†A basis point (bps) is a unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.
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 (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its management team) is managing the equity that shareholders have contributed to the company.
∞A historical Beta is used for Funds with greater than 2 years of performance history under the same mandate. Since Re-org 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.
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.