Performance and Portfolio Update
- The Pax Global Opportunities Fund modestly underperformed the MSCI ACWI Index during the fourth quarter. However, due to a strong first half of the year, the Fund outperformed the MSCI ACWI for calendar year 2019.
- 2019 was a year of significant natural catastrophes and this negatively impacted the Fund’s Property & Casualty Insurance holdings Beazley (UK) and Hiscox (UK) during the final quarter of the year. The portfolio managers have retained exposure to these companies on anticipation of rising premium prices in the Lloyds market next year as well as the opportunities to capitalize on the rapidly developing market in cyber insurance.
- The Fund’s overweight exposure to the Information Technology (IT) and Health Care sectors drove performance during the quarter. In addition, the Fund’s IT holdings performed well despite a lack of exposure to a number of large cap internet stocks that drove returns in the broader market. Notably, Taiwan Semiconductor Manufacturing Company’s (Semiconductors, Taiwan) strong performance was driven by the accelerating connectivity trends leading to an improved semiconductor chip outlook for 2020.
- Prudential (Life & Health Insurance, UK) contributed positively to Fund performance as the company made steps to unlock the potential of its fast-growing Asian business following the recent de-merger. The company’s stock price was further supported by the outcome of the UK election which provided greater political clarity.
- Some alleviation of uncertainties regarding global economic growth, international and regional politics, and the direction of interest rates, enabled equity markets to close 2019 on a high. The investment team continues to take advantage of stock price volatility by maintaining buy/sell discipline and remains sensitive to pockets of expensive valuation in high quality global equities following a year of significant re-rating. Portfolio diversification remains important; by end market, catalyst, role in the transition to a more sustainable economy, and region.
Performance(as of 12/31/19)
|Returns (%)||Average Annual Returns (%)|
|1-Month||Quarter||YTD||1 Year||3 Year||5 Year||10 Year||Since Inception1|
|Pax Global Opportunities Fund - Investor Class||3.50||8.65||33.51||33.51||-||-||-||14.40|
|Pax Global Opportunities Fund - Institutional Class||3.52||8.76||33.72||33.72||-||-||-||14.52|
|MSCI ACWI (Net) Index||3.52||8.95||26.60||26.60||-||-||-||10.35|
|Lipper Global Multi-Cap Core Funds Index||3.18||9.32||29.20||29.2||-||-||-||9.98|
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.com
Figures include reinvested dividends, capital gains distributions and changes in principal value.
1The inception date for the Pax Global Opportunities Fund Institutional Class and the Investor Class is June 27, 2018.
Total annual Global Opportunities Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Investor Class are 1.81% and 2.06%, respectively, as of 5/1/2019 prospectus. Total annual Global Opportunities Fund operating expenses, net of any fee waivers, reimbursements and acquired fund fees and expenses, for Institutional Class and Investor Class, shares were 0.92% and 1.16%, respectively.ˆ
(as of 12/31/19)
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.
Portfolio Characteristics(as of 12/31/19)
|Market Cap (weighted avg.)∱||$127,244M||$189,203M|
|Number of Securities||41||3,047|
Top 10 Holdings
(as of 12/31/19)
Microsoft Corp. 4.2%, AIA Group, Ltd. 3.7%, HDFC Bank, Ltd. 3.7%, IQVIA Holdings, Inc. 3.6%, Taiwan Semiconductor Manufacturing Co., Ltd. 3.6%, Thermo Fisher Scientific, Inc. 3.4%, Hiscox, Ltd. 3.4%, Danone SA 3.1%, Visa, Inc., Class A 3.0% and Keyence Corp. 3.0%. 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 corporation’s profitability by revealing how much profit a company generates with the money shareholders have invested.
∞An Ex-Ante Beta is used for Funds with less than two years of performance history under its new mandate. 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.