Performance and Portfolio Update

  • The Pax MSCI EAFE ESG Leaders Index Fund outperformed the MSCI EAFE Index (EAFE Index) during the second quarter of 2020.
  • The Fund’s stronger ESG profile relative to the Index drove outperformance. A chart showing performance attribution by ESG ratings over the trailing three months and since the Fund’s inception is available below. The Fund’s overweight toward the highest-rated ESG companies contributed the most to relative performance during the quarter, as well as since inception.
  • In addition, the Fund’s proprietary SmartCarbonTM approach contributed strongly to relative performance. SmartCarbon substitutes energy efficiency companies in place of fossil fuel companies. Both aspects of this approach, an overweight exposure toward energy efficiency companies and no exposure to the Energy sector helped performance. Also, our avoidance of companies not meeting minimum ESG thresholds and companies involved in the manufacturing or sale of weapons helped performance.
  • From a sector perspective, eight of the 11 sectors added relative return during the second quarter, led by Financials, Industrials and Information Technology sectors. In Financials , Fund holdings in Banks (Commonwealth Bank of Australia and Credit Agricole) and Insurance (Allianz SE and Munich Reinsurance) added the most to relative performance.
  • Detracting the most from relative performance were holdings in Communication Services, driven by poor results within diversified and wireless Telecomm (NTT DoCoMo and Deutsche Telekom). Also detracting from performance were holdings within the Consumer Discretionary sector, led by poor results from companies in the Hotels Restaurants & Leisure (Compass Group and Oriental Land).


(as of 6/30/20)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception3
Pax MSCI EAFE ESG Leaders Index Fund - Investor Class3.7016.69-8.16-0.731.872.25-3.65
Pax MSCI EAFE ESG Leaders Index Fund - Institutional Class3.7716.74-8.01-0.502.152.51-3.92
MSCI EAFE ESG Leaders (Net) Index3.5815.40-8.84-
MSCI EAFE (Net) Index3.4014.88-11.34-5.130.812.05-3.30
Lipper International Large-Cap Core Funds Index2.1814.56-14.91-8.51-1.700.43-2.29

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.

3The 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 5/1/20 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 0.74% and 0.49%, respectively.

Performance Attribution

ESG Ratings

(3/31/20 - 6/30/20)
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 does not guarantee future results. Short term performance may not be indicative of long term results.

Portfolio Characteristics

(as of 6/30/20)
Market Cap (weighted avg.)$58,388M$62,841M
Forward Price/Earnings19.2919.21
Number of Securities303901

Top 10 Holdings

(as of 6/30/20)
Roche Holding AG 3.6%, ASML Holding NV 2.8%, SAP SE 2.6%, Novo Nordisk A/S, Class B 1.6%, Siemens AG 1.6%, GlaxoSmithKline PLC 1.5%, Keyence Corp. 1.4%, Commonwealth Bank of Australia 1.4%, Sony Corp. 1.3% and L’Oreal SA 1.3%. Holdings are subject to change.


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 (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 two years of performance history under the same mandate. 5 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.

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.

PAX009320 (10/20)

Scott LaBreche

Vice President & Portfolio Manager, Portfolio Analytics

Scott LaBreche is Vice President at Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds.

He is responsible for fund research, quantitative ESG research, advanced analytics, risk oversight, fund optimization and board reporting, as well as overseeing attribution across U.S.-managed strategies.

Scott is also a Portfolio Manager of the Global Women’s Leadership Strategy, which includes the Pax Ellevate Global Women’s Leadership Fund, and is a Portfolio Manager of the Pax MSCI EAFE ESG Leaders Index Fund.

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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