Performance and Portfolio Update

  • The Pax MSCI EAFE ESG Leaders Index Fund outperformed the MSCI EAFE Index in the third quarter.
  • The MSCI EAFE Index posted a 1.35% return in the third quarter, its strongest quarter in 2018, as strong corporate earnings and positive economic results influenced investor sentiment favorably 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, seven out of 11 sectors produced positive relative results for the Fund. Portfolio holdings in Consumer Discretionary, Consumer Staples, and Information Technology performed particularly well relative to the Index.
  • Conversely, stock selection in the Telecommunications sector detracted the most from relative return during the quarter, led by holdings in the diversified telecommunication services industry. Industrials detracted from performance largely due to zero allocation to Aerospace & Defense companies.
  • On a regional basis, the European and Pacific regions added to relative performance versus the MSCI EAFE Index. Within Europe, companies with leading ESG profiles in the UK and Germany performed relatively well, and in the Pacific region, Japan and Hong Kong holdings added to performance.


(as of 9/30/18)
1-MonthQuarterYTD1 Year3 Year5 Year10 YearSince Inception1
Pax MSCI EAFE ESG Leaders Index Fund - Investor Class0.551.90-1.111.877.733.65-4.64
Pax MSCI EAFE ESG Leaders Index Fund - Institutional Class0.451.94-0.982.087.993.91-4.90
MSCI EAFE ESG Leaders (Net) Index0.361.88-
MSCI EAFE (Net) Index0.871.35-1.432.749.234.425.384.82
Lipper International Large-Cap Core Funds Index0.650.73-2.630.798.794.084.744.37

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 9/30/18)
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 9/30/18)
Market Cap (weighted avg.)$50,890M$62,076M
Forward Price/Earnings15.3114.28
Number of Securities367924


Top Ten Holdings

(as of 9/30/18)
Roche Holding AG 2.3%, Total SA 2.2%, SAP SE 1.7%, GlaxoSmithKline PLC 1.7%, Allianz SE 1.4%, Commonwealth Bank of Australia 1.4%, Unilever NV 1.3%, Novo Nordisk A/S, Class B 1.3%, Siemens AG 1.3% and Sony Corp. 1.2%. Holdings are subject to change.


ΔMSCI EAFE Index quarterly returns: 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 identify es 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 7-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 2 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.

PAX008252 (1/19)

Scott LaBreche

Director, Portfolio Analytics & Index Strategy Optimization, Impax Asset Management LLC Portfolio Manager, Pax Ellevate Global Women's Leadership Fund, Pax MSCI EAFE ESG Leaders Index Fund

Scott LaBreche is Director, Portfolio Analytics & Index Strategy Optimization at Impax Asset Management LLC, formerly Pax World Management LLC, and a Portfolio Manager of the Pax Ellevate Global Women’s Leadership Fund and the Pax MSCI EAFE ESG Leaders Index Fund. Across all Pax World Funds, Scott is responsible for fund research, quantitative ESG research, advanced analytics, risk oversight, fund optimization and board reporting, as well as overseeing performance and attribution.

Prior to joining the firm in 2007, Scott was a Securities Fund Analyst at Lincoln Financial Group. He has been in the mutual fund industry since 1999.

Scott holds a Bachelor of Science in Business Administration and a Masters of Business Administration with Advanced Certificate in Finance from Southern New Hampshire University.

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