UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-22935 | |||||||
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PAX WORLD FUNDS SERIES TRUST III | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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30 Penhallow Street, Suite 400, Portsmouth, NH |
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(Address of principal executive offices) |
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Pax World Management LLC | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | 800-767-1729 |
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Date of fiscal year end: | December 31 |
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Date of reporting period: | December 31, 2014 |
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Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. §3507.
Item 1. Reports to Stockholders
PAX WORLD BALANCED FUND | |||
Individual Investor Class (PAXWX) Institutional Class (PAXIX) Class R (PAXRX) | |||
PAX WORLD GROWTH FUND | |||
Individual Investor Class (PXWGX) Class A (PXGAX) Institutional Class (PWGIX) Class R (PXGRX) | |||
PAX WORLD SMALL CAP FUND | |||
Individual Investor Class (PXSCX) Class A (PXSAX) Institutional Class (PXSIX) Class R (PXSRX) | |||
PAX WORLD HIGH YIELD BOND FUND | |||
Individual Investor Class (PAXHX) Class A (PXHAX) Institutional Class (PXHIX) Class R (PXHRX) |
PAX WORLD GLOBAL ENVIRONMENTAL MARKETS FUND | |||
Individual Investor Class (PGRNX) Class A (PXEAX) Institutional Class (PGINX) Class R (PGRGX) | |||
PAX MSCI INTERNATIONAL ESG INDEX FUND | |||
Individual Investor Class (PXINX) Institutional Class (PXNIX) Class R (PXIRX) | |||
PAX ELLEVATE GLOBAL WOMEN'S INDEX FUND | |||
Individual Investor Class (PXWEX) Institutional Class (PXWIX) |
ANNUAL REPORT
December 31, 2014
Table of Contents
Letter to Shareholders | 1 | ||||||
Portfolio Manager Comments and Highlights | |||||||
Pax World Balanced Fund | 6 | ||||||
Pax World Growth Fund | 10 | ||||||
Pax World Small Cap Fund | 15 | ||||||
Pax World High Yield Bond Fund | 19 | ||||||
Pax World Global Environmental Markets Fund | 25 | ||||||
Pax MSCI International ESG Index Fund | 30 | ||||||
Pax Ellevate World Global Women's Index Fund | 35 | ||||||
Sustainability Update | 41 | ||||||
Shareholder Expense Examples | 43 | ||||||
Schedule of Investments | 46 | ||||||
Statements of Assets and Liabilities | 76 | ||||||
Statements of Operations | 80 | ||||||
Statements of Changes in Net Assets | 82 | ||||||
Statements of Changes—Shares of Beneficial Interest | 86 | ||||||
Financial Highlights | 88 | ||||||
Notes to Financial Statements | 96 | ||||||
Report of Independent Registered Public Accounting Firm | 122 | ||||||
Account Options and Services | 134 |
For More Information
General Fund Information
800.767.1729
Shareholder Account Information
800.372.7827
Account Inquiries
Pax World
P.O. Box 55370
Boston, MA 02205-5370
Investment Adviser
Pax World Management LLC
Pax Ellevate Management LLC
30 Penhallow Street, Suite 400
Portsmouth, NH 03801
Transfer and
Dividend Disbursing Agent
Boston Financial Data Services
P.O. Box 55370
Boston, MA 02205-5370
Custodian
State Street Bank
and Trust Company
1 Lincoln Street
Boston, MA 02111
Letter to Shareholders
by Joseph Keefe, President & CEO
Dear fellow shareholders,
Looking back at 2014, it is striking how much steady improvement we saw in the U.S. economy while economic turmoil continued to plague much of the globe. Robust job creation, solid gross domestic product (GDP) growth, healthy corporate earnings, continued low inflation and other positive economic news lifted U.S. markets. At the same time, a significant disparity between U.S. markets and global markets—including the eurozone, China and Japan—was evident throughout much of the year. The S&P 500, for example, was up 13.69 percent for the year while the MSCI World Index was up only 4.94 percent, and MSCI ACWI Index, which includes emerging markets, was up only 4.16 percent.
This growing divergence between the U.S. economy and the rest of the world may be a major theme in 2015 as well—as the New Year began, uncertainty about Fed policy, a strengthening dollar, turmoil in the eurozone, slowed growth in China and lower oil prices all weighed on global markets.
2014 was also a year in which global economic growth was accompanied by continued, growing inequality between the very wealthy and the rest of mankind. It has been reported that the 85 richest people in the world now own more wealth than half of the earth's population while the richest one percent now own more wealth than the combined wealth of 99 percent of the earth's population. Most of the global wealth belonging to that bottom 99 percent is held by the wealthiest 20 percent, while only 5.5 percent of global wealth is shared by 80 percent of the earth's inhabitants.1 While there may be many causes of the horrific violence and strife we see across much of the globe, and while I am loathe to reduce all problems to economics, I cannot help but think that the widening gulf between the haves and the have-nots is playing out in increasingly destructive ways.
Nor can it be denied that inequalities of outcome and opportunity continue to break down along gender lines. In the U.S., women only earn 78 cents on every dollar a man earns2 and hold only 17 percent of Fortune 500 board seats.3 In other parts of the globe, the economic challenges facing women and girls are much starker, characterized by wide inequalities in access to education, employment, land, credit and capital. These economic inequities are too often
1
characterized by even more insidious forms of violence and oppression—domestic and sexual violence, honor killings, genital mutilation, trafficking, and even violence against young girls for the simple act of trying to attend school. It is fitting that 2014 saw a young Pakistani girl by the name of Malala win the Nobel Peace Prize. Gender inequality is the great human rights issue of our time.
2014 was also the warmest year on record, at least according to NASA and the NOAA (National Oceanographic and Atmospheric Administration), and Bloomberg reported that 13 of the hottest years ever recorded have occurred over the past 14 years. There has been some nit picking from the usual suspects over margins of error, slower rates of warming, oceanic vs. land temperatures, and so forth, but the vast majority of the scientific community, and indeed the global community, believes this is a settled issue: we simply must confront the developing catastrophe of climate change.
What does all this have to do with Pax World? Well, the plain fact of the matter is that confronting our greatest global challenges—from gender inequality to climate change—may also be the key to unleashing the greatest period of economic growth the world has ever known. These are issues, in other words, that investors should care about. A study by the University of Massachusetts Political Economy Research Institute (PERI) and the Center for American Progress found that the United States could reduce carbon pollution by 40 percent from 2005 levels and create a net increase of 2.7 million clean energy jobs, thus reducing the unemployment rate by 1.5 percent. Numerous other studies have pointed to the economic growth that would accompany serious efforts to reduce carbon emissions and promote a clean energy economy.
That's why we prod the companies in our portfolios to disclose and reduce their emissions. It's why we offer two fossil fuel-free funds. It's why we offered the first mutual fund in the U.S.—the Pax World Global Environmental Markets Fund (PGRNX)—with a broad, multi-sector focus on resource efficiency. According to Impax Asset Management, the sub-advisor for that Fund:
"A revolution in efficiency is now underway that is creating unprecedented opportunities for the private sector. The result is a diverse set of companies offering cleaner, more efficient products and services across the energy, water, waste, food, and agriculture sectors...."
At Pax World, we want to invest in those companies.
And can you imagine how much value is locked up inside of outdated, inequitable patriarchal structures around the globe—value that could be
2
unleashed if women were afforded the same educational and economic opportunities as men? According to UN Women, eliminating wage disparities between men and women would boost GDP in the U.S. by 9 percent, the eurozone's GDP by 13 percent and Japan's by 16 percent. Per capita income across 15 major developing economies would rise by 14 percent by 2020 and 20 percent by 2030. Eliminating discrimination against female employees could boost productivity per worker by up to 40 percent. And there is now a compelling body of research underscoring that where women are better represented on corporate boards and in corporate management, companies simply perform better and become more profitable.
That's why we launched the Pax Ellevate Global Women's Index Fund (PXWEX), which invests in the highest-rated companies in the world for advancing women on boards and in senior management. We believe these companies are not only moving the needle on the critically important issue of gender equality but that they are quite simply better investments.
At Pax World, we believe that the way you invest matters. You can invest in ways that seek to resolve the great moral and economic challenges of our time—that is to say, you can invest for impact—or you can ignore these imperatives in pursuit of short-term gain regardless of the social and environmental costs. We choose to invest for impact. We choose to make a difference. And we strongly believe that advancing women, tackling climate change and confronting the world's most vexing challenges can lead to positive returns for investors.
We hope and trust you agree, and I am pleased to provide you with this Annual Report detailing the performance of our Funds during 2014.
Sincerely,
Joseph F. Keefe
President and CEO
1Sources: Credit Suisse Data 2000-2014; Oxfam.
2U.S. Census Bureau, Current Population Reports, P60 — 249. Income, Poverty, and Health Insurance Coverage in the United States: 2013. Issued September 2014.
3Catalyst, "US Women in Business," May 2014.
3
The S&P 500 Index is an unmanaged index of large capitalization common stocks. One cannot invest directly in an index.
The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World (Net) Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Performance for the MSCI ACWI Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
4
Performance Information
Commentary The portfolio manager commentaries in this report provide insight from the respective fund managers in an effort to help you examine your fund. The views expressed therein are those of the portfolio managers and are for the period covered by this report. Such commentary does not necessarily represent the views of the Board of Trustees of your fund. The views expressed herein are subject to change at any time based upon market and/or other conditions and Pax World Management LLC and the funds disclaim any responsibility to update such views. The commentaries should not be relied upon as investment advice.
Historical performance Historical performance can be evaluated in several ways. Each fund's portfolio highlights provide total and average annual total returns. A comparison of this historical data to an appropriate benchmark is also provided. These performance figures include changes in a fund's share price, plus reinvestment of any dividends (generally income) and any capital gains (generally profits the fund earns when it sells securities that have grown in value). Past performance does not guarantee future results.
The Funds' distributor, ALPS Distributors, Inc., is not affiliated with Pax World Management LLC, Pax Ellevate Management LLC or Ellevate Asset Management, LLC.
5
December 31, 2014
Pax World Balanced Fund
Portfolio Manager
Christopher Brown
Portfolio Manager's Comments
How did the Pax World Balanced Fund (the Fund) perform for the period? For the one-year period ended December 31, 2014, the Individual Investor Class, Institutional Class, and Class R shares of the Fund had total returns of 8.00%, 8.21%, and 7.68%, respectively, compared to 10.62% for the 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index blend (the Blended Index) and 7.21% for the Lipper Balanced Funds Index.
What factors contributed to the Fund's performance? The major driver to the Fund's positive performance was an overweight in equities (63.70% average weight versus the Blended Index). Equities in general outperformed bonds during the period. Within the equity component, strong stock selection in the consumer discretionary sector contributed positively to relative performance. Allocation and weak stock selection in the information technology sector detracted from relative performance. While underweighting bonds versus our benchmark helped the Fund, the Fund's lower duration versus the BARCAP hurt the overall relative performance.
Can you discuss any significant changes to the Fund's positioning throughout the period? During the period, we lowered the Fund's equity allocation, reduced the number of equity holdings and increased the duration of the bond component. In our view, this helped the Fund's relative performance while reducing risk to the overall portfolio.
What portfolio holdings contributed positively to performance? UnitedHealth Group, Inc., a health maintenance company that provides healthcare plans for many businesses, reported strong 3rd quarter earnings as well as a more positive outlook for the company in 2015. The company's stock appreciated substantially during the 4th quarter of 2014.
Dresser-Rand Group, Inc., an energy service company, received a takeover offer at a substantial premium to its price prior to the offer. This drove the stock significantly higher during the period.
DIRECTV, a digital television company, received a takeover offer from AT&T which caused the shares to rise substantially during the period.
6
December 31, 2014
What portfolio holdings detracted from performance? Hess Corp., a global independent energy company, dropped significantly during the period as a result of lower oil prices and on the anticipation of lower earnings for the company in the near-term.
Ultra Petroleum Corp., a natural gas exploration and production company declined substantially during the period due to falling natural gas prices. Investors sold the stock due to fears of potentially lower profits, if not losses as a result of falling energy prices.
EQT Corp., an integrated natural gas company, saw its shares drop during the period. While 3rd quarter earnings slightly beat estimates, investor fears of lower natural gas prices caused investors to sell the stock.
Portfolio Highlights (Unaudited)
Ten Year Annual Total Return—Historical Growth of $10,000
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December 31, 2014
Pax World Balanced Fund, continued
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | 5 years | 10 years | ||||||||||||||||||
Individual Investor Class1 | PAXWX | 8.00 | % | 11.80 | % | 8.94 | % | 5.12 | % | ||||||||||||||
Institutional Class1, 2 | PAXIX | 8.21 | % | 12.08 | % | 9.22 | % | 5.33 | % | ||||||||||||||
Class R1, 3 | PAXRX | 7.68 | % | 11.52 | % | 8.67 | % | 4.93 | % | ||||||||||||||
S&P 500 Index4, 8 | 13.69 | % | 20.41 | % | 15.45 | % | 7.67 | % | |||||||||||||||
Blended Index5, 6, 8 | 10.62 | % | 13.12 | % | 11.18 | % | 6.77 | % | |||||||||||||||
Lipper Balanced Funds Index7, 8 | 7.21 | % | 11.78 | % | 9.51 | % | 6.01 | % |
1Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2Inception of Institutional Class shares is April 2, 2007. The performance information shown for Institutional Class shares includes the performance of Individual Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.
3Inception of Class R shares is April 2, 2007. The performance information shown for Class R shares includes the performance of Individual Investor Class shares for the period prior to Class R inception. Expenses have not been adjusted to reflect the expenses allocable to Class R shares. If such expenses were reflected, the returns would be lower than those shown.
4The S&P 500 Index is an index of large capitalization common stocks.
5The Blended Index is composed of 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index.
6The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The Index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.
7The Lipper Balanced Funds Index tracks the results of the 30 largest mutual funds in the Lipper Balanced Funds Average, which is a total return performance average of mutual funds tracked by Lipper, Inc. whose primary objective is to conserve principal by maintaining, at all times, a balanced portfolio of both stocks and bonds. The Lipper Balanced Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator.
8Unlike the Balanced Fund, the S&P 500 Index, the Barclays U.S. Aggregate Bond Index and the Lipper Balanced Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Balanced Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
8
December 31, 2014
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 60.6 | % | |||||
U.S. Bonds | 35.3 | % | |||||
Foreign Stocks | 1.3 | % | |||||
Foreign Bonds | 0.7 | % | |||||
Affiliated Investment Companies | 0.9 | % | |||||
Cash & Cash Equivalents | 1.2 | % | |||||
Total | 100.0 | % |
Top Ten Equity Holdings
Company | Percent of Net Assets | ||||||
Apple, Inc. | 2.7 | % | |||||
Becton Dickinson & Co. | 2.4 | % | |||||
BlackRock, Inc. | 2.0 | % | |||||
UnitedHealth Group, Inc. | 2.0 | % | |||||
Morgan Stanley | 1.7 | % | |||||
Microsoft Corp. | 1.6 | % | |||||
American Express Co. | 1.5 | % | |||||
Merck & Co., Inc. | 1.4 | % | |||||
Intel Corp. | 1.4 | % | |||||
American Tower Corp., REIT | 1.4 | % | |||||
Total | 18.1 | % |
Holdings are subject to change
Sector Diversification
Sector | Percent of Net Assets | ||||||
Fixed Income | 36.0 | % | |||||
Corporate Bonds 9.3%, Agency/Gov't Related Bonds 8.1%, Treasury Bonds 9.9%, Mortgage Backed Bonds 6.6%, Municipal Bonds 1.3%, Gov't Bonds 0.6% and Community Investing Bonds 0.2%. | |||||||
Financials | 13.9 | % | |||||
Information Technology | 12.0 | % | |||||
Health Care | 10.9 | % | |||||
Industrials | 6.9 | % | |||||
Consumer Discretionary | 6.2 | % | |||||
Consumer Staples | 3.9 | % | |||||
Energy | 3.3 | % | |||||
Materials | 2.9 | % | |||||
Utilities | 1.2 | % | |||||
Affiliated Investment Companies | 0.9 | % | |||||
Telecommunication Services | 0.6 | % | |||||
Other | 1.3 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
9
December 31, 2014
Pax World Growth Fund
Portfolio Manager
Anthony Trzcinka, CFA
Portfolio Manager's Comments
How did the Pax World Growth Fund (the Fund) perform for the period? For the one-year period ended December 31, 2014, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 11.66%, 11.68%, 11.91%, and 11.37%, respectively, compared to 13.05% for the Russell 1000 Growth Index (the Index) and 11.08% for the Lipper Multi-Cap Growth Funds Index. Earlier in the year, the Fund divested its fossil fuel holdings and now pursues a fossil fuel-free investment strategy. The Fund seeks to avoid investments in companies that derive a majority of their revenue from the exploration, development and refining of fossil fuels including oil, coal and natural gas. In lieu of fossil fuel companies, the Fund substitutes investments in companies that are proactively developing solutions to global sustainability challenges, including climate change, water, food and health care.
What factors contributed to the Fund's performance? Performance of the Fund's investments in the Consumer Discretionary, Energy and Financial sectors were top contributors to its performance relative to the Index. Investments in Information Technology, Health Care and Consumer Staples were the largest detractors of relative performance.
Can you discuss any significant changes to the Fund's positioning throughout the period? The Fund has been fossil fuel free now for two complete quarters. We continued to redeploy those assets into energy efficiency clean tech names especially as the energy sector declined. We still see positive secular tailwinds to these investments. We also continued to position the Fund for a moderate paced economic expansion.
What portfolio holdings contributed positively to performance? Marriott International, Inc., Class A, which operates hotels and resorts worldwide, benefited from an uptick in travel, particularly business-related travel, and increases in occupancy and room rates. It has been a top performer for the fund throughout the year.
Time Warner, Inc. benefited from consolidation in the media industry. During the year, Time Warner received a takeover offer from 21st Century Fox. Even though that deal fell through, Time Warner's valuable content attracted investors.
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December 31, 2014
Whirlpool Corp., which is a global leader in manufacturing major home appliances, had a good year. The housing recovery grew stronger as the year progressed which was reflected in their earnings.
What portfolio holdings detracted from performance? Whole Foods Market, Inc. owns and operates a chain of natural food supermarkets. The company fell short of earnings expectations and saw a decline in the rate of same-store sales growth.
Trimble Navigation, LTD. provides advanced location based services (GPS, laser) to construction and agriculture industries. Sales to some of their end markets, particularly agriculture, have been sluggish which has led to investors selling the stock.
Eaton Corp PLC is a diversified industrial manufacture of automotive systems, electrical control products and fluid power systems. Eaton experienced operational issues earlier in the year and had to reset expectations downward.
Portfolio Highlights (Unaudited)
Ten Year Annual Total Return—Historical Growth of $10,000
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December 31, 2014
Pax World Growth Fund, continued
Portfolio Highlights (Unaudited), continued
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | 5 years | 10 years | ||||||||||||||||||||||
Individual Investor Class1 | PXWGX | 11.66 | % | 17.81 | % | 14.39 | % | 6.58 | % | ||||||||||||||||||
Class A1, 2, 4 | PXGAX | NAV3 | 11.68 | % | 17.81 | % | 14.39 | % | 6.58 | % | |||||||||||||||||
POP | 5.55 | % | 15.60 | % | 13.11 | % | 5.97 | % | |||||||||||||||||||
Institutional Class1, 5 | PWGIX | 11.91 | % | 18.08 | % | 14.67 | % | 6.76 | % | ||||||||||||||||||
Class R1, 6 | PXGRX | 11.37 | % | 17.52 | % | 14.09 | % | 6.39 | % | ||||||||||||||||||
Russell 1000 Growth Index7, 10 | 13.05 | % | 20.26 | % | 15.81 | % | 8.49 | % | |||||||||||||||||||
Russell 3000 Growth Index8, 10 | 12.44 | % | 20.25 | % | 15.89 | % | 8.50 | % | |||||||||||||||||||
Lipper Multi-Cap Growth Funds Index9, 10 | 11.08 | % | 20.67 | % | 15.22 | % | 8.14 | % |
1The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call 800.767.1729.
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class A Shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5Inception of Institutional Class shares is April 2, 2007. The performance information shown for Institutional Class shares includes the performance of Individual Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.
6Inception of Class R shares is April 2, 2007. The performance information shown for Class R shares includes the performance of Class A shares for the period prior to Class R inception. Expenses have not been adjusted to reflect the expenses allocable to Class R shares. If such expenses were reflected, the returns would be lower than those shown.
7The Russell 1000 Growth Index ("Benchmark") measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies, as measured by market capitalization. Effective December 12, 2013, the Russell 1000 Growth Index replaced the Russell 3000 Growth Index as the primary benchmark for Pax World Growth Fund (the "Fund") because Pax World Management believes the Russell 1000 Growth Index is a more appropriate representation of the universe of securities in which the Fund may invest. One cannot invest directly in an index.
8The Russell 3000 Growth Index measures the performance of those companies in the Russell 3000 Index with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies, as measured by market capitalization.
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December 31, 2014
9The Lipper Multi-Cap Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Multi-Cap Growth Funds Average. The Lipper Multi-Cap Growth Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap Growth Funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales per-share growth value, compared to the S&P SuperComposite 1500 Index. The Lipper Multi-Cap Growth Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index or some other traditional economic indicator.
10Unlike the Growth Fund, the Russell 1000 Growth Index, Russell 3000 Growth Index and the Lipper Multi-Cap Growth Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Multi-Cap Growth Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 95.0 | % | |||||
Foreign Stocks | 2.2 | % | |||||
Cash & Cash Equivalents | 2.8 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Apple, Inc. | 4.9 | % | |||||
PepsiCo, Inc. | 2.6 | % | |||||
3M Co. | 2.5 | % | |||||
Microsoft Corp. | 2.2 | % | |||||
Abbott Laboratories | 2.1 | % | |||||
PNC Financial Services Group, Inc. | 2.1 | % | |||||
Google, Inc., Class A | 1.8 | % | |||||
QUALCOMM, Inc. | 1.8 | % | |||||
VF Corp. | 1.8 | % | |||||
Newell Rubbermaid, Inc. | 1.8 | % | |||||
Total | 23.6 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable
Holdings are subject to change
13
December 31, 2014
Pax World Growth Fund, continued
Portfolio Highlights (Unaudited), continued
Sector Diversification
Sector | Percent of Net Assets | ||||||
Information Technology | 29.7 | % | |||||
Consumer Discretionary | 17.1 | % | |||||
Health Care | 15.6 | % | |||||
Industrials | 14.5 | % | |||||
Financials | 8.3 | % | |||||
Consumer Staples | 6.5 | % | |||||
Materials | 2.4 | % | |||||
Telecommunication Services | 1.6 | % | |||||
Utilities | 1.3 | % | |||||
Other | 3.0 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
14
December 31, 2014
Pax World Small Cap Fund
Portfolio Manager
Nathan Moser, CFA
Portfolio Manager's Comments
How did the Pax World Small Cap Fund (the Fund) perform for the period? For the one-year period ended December 31, 2014, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 7.06%, 7.10%, 7.31% and 6.79%, respectively, compared to 4.89% for the Russell 2000 Index (the Index) and 4.09% for the Lipper Small-Cap Core Funds Index.
What factors contributed to the Fund's performance? The Pax World Small Cap Fund Institutional Class outperformed the Russell 2000 Index by 242 basis points1 in 2014. Strong stock selection within Consumer Staples, Energy and Consumer Discretionary sectors were positive relative contributors. Information Technology and Financials were laggards from a selection standpoint and detracted from relative performance.
Can you discuss any significant changes to the Fund's positioning throughout the period? Our small cap market view entering 2014 was less positive than in previous years. We entered the year with valuations near 10-year highs and at a significant premium to large caps. As a result, we moved the average market cap of the Fund higher by reducing our micro-cap exposure and adding selectively to companies with market capitalizations near the high end of the Index range.
What portfolio holdings contributed positively to performance? Hillshire Brands Co., a food company, was our largest contributor to performance. This resulted from the sale of the company to Tyson after a multiple round bidding war.
The Pantry, Inc., an operator of convenience stores and gas stations, increased sharply late in the year. Strong performance was driven by declining gasoline costs which boosted fuel margins and overall profitability. In addition, the company was acquired in Q4.
Natus Medical, Inc., a medical device company focused on newborn care, increased meaningfully during the year. The company continues to improve fundamentally, expanding margins and steadily improving organic growth. Natus exceeded consensus estimates in each quarter during the year.
1Basispoint is 1/100th of 1%
15
December 31, 2014
Pax World Small Cap Fund, continued
What portfolio holdings detracted from performance? Westell Technologies, Inc., Class A, a technology equipment company, declined significantly and was our largest detractor of performance. Poor quarterly results likely drove shares lower.
Ultra Petroleum Corp., an energy company with significant natural gas assets, declined sharply late in 2014. The absence of hot weather during the summer months allowed for the favorable (from a commodity price perspective) natural gas supply situation to turn negative.
LinnCo. LLC, the holder of Linn Energy units, declined sharply as oil and natural gas prices fell sharply. We sold our shares in Q4 due in large part to our more cautious view of energy fundamentals.
Portfolio Highlights (Unaudited)
Total Return—Historical Growth of $10,000—Since Inception
16
December 31, 2014
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | 5 years | Since Inception | ||||||||||||||||||||||
Individual Investor Class1 | PXSCX | 7.06 | % | 20.26 | % | 16.93 | % | 11.08 | % | ||||||||||||||||||
Class A1, 2, 4 | PXSAX | NAV3 | 7.10 | % | 20.28 | % | 16.97 | % | 11.08 | % | |||||||||||||||||
POP | 1.21 | % | 18.04 | % | 15.65 | % | 10.16 | % | |||||||||||||||||||
Institutional Class1 | PXSIX | 7.31 | % | 20.54 | % | 17.23 | % | 11.37 | % | ||||||||||||||||||
Class R1 | PXSRX | 6.79 | % | 19.96 | % | 16.66 | % | 10.80 | % | ||||||||||||||||||
Russell 2000 Index5, 7 | 4.89 | % | 19.21 | % | 15.55 | % | 10.06 | % | |||||||||||||||||||
Lipper Small-Cap Core Funds Index6, 7 | 4.09 | % | 17.99 | % | 14.71 | % | 9.85 | % |
1The Fund's inception date is March 27, 2008. The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class A Shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
6The Lipper Small-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Small- Cap Core Funds Average. The Lipper Small-Cap Core Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper's USDE small-cap ceiling. Small-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index. The Lipper Small-Cap Core Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index or some other traditional economic indicator.
7Unlike the Small Cap Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Small-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
17
December 31, 2014
Pax World Small Cap Fund, continued
Portfolio Highlights (Unaudited), continued
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 90.4 | % | |||||
Foreign Stocks | 4.2 | % | |||||
Cash & Cash Equivalents | 5.4 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Hologic, Inc. | 4.0 | % | |||||
Capitol Federal Financial, Inc. | 3.7 | % | |||||
Natus Medical, Inc. | 3.6 | % | |||||
Investors Bancorp, Inc. | 3.0 | % | |||||
United Financial Bancorp., Inc. | 2.9 | % | |||||
Knoll, Inc. | 2.8 | % | |||||
Fox Chase Bancorp, Inc. | 2.7 | % | |||||
LaSalle Hotel Properties, REIT | 2.7 | % | |||||
Meridian Bancorp, Inc. | 2.6 | % | |||||
Peoples Federal Bancshares, Inc. | 2.6 | % | |||||
Total | 30.6 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable
Holdings are subject to change
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 27.4 | % | |||||
Information Technology | 24.0 | % | |||||
Health Care | 14.0 | % | |||||
Consumer Discretionary | 9.8 | % | |||||
Industrials | 9.6 | % | |||||
Utilities | 4.1 | % | |||||
Consumer Staples | 2.5 | % | |||||
Materials | 2.2 | % | |||||
Energy | 2.0 | % | |||||
Other | 4.4 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
18
December 31, 2014
Pax World High Yield Bond Fund
Portfolio Manager
Mary Austin, CFA
Portfolio Manager's Comments
How did the Pax World High Yield Bond Fund (the Fund) perform for the period? For the one-year period ended December 31, 2014, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of -1.41%, -1.27%, -1.05%, and -1.64%, respectively, compared to 3.48% for the BofA Merrill Lynch U.S. High Yield—Cash Pay—BB-B (Constrained 2%) Index (the Index) and 2.24% for the Lipper High Yield Bond Funds Index.
What factors contributed to the Fund's performance? Energy prices declined 45% in 2014 and our energy positions accounted for 67% of the fund's relative underperformance. Some of our energy names were smaller and/or niche players that were impacted more than the larger players. Other detractors from performance were the banking and retail sectors, while basic industry and leisure contributed positively to our yearly performance. In addition, our underweight in "BB1" rated names worked against us as the 10-year Treasury outperformed the high yield market resulting in an outperformance of "BB" rated credits. Investment grade and higher rated high yield credits are more highly correlated with the 10-year and moved up with it. A shorter than benchmark duration also negatively impacted performance.
Can you discuss any significant changes to the Fund's positioning throughout the period? Our most significant change to the portfolio during the year was our large reduction in energy issuers. The price of oil continues to drop and we don't expect to feel comfortable adding to the energy sector until the dust settles. As the energy sector suffered, gas prices dropped at the tank benefitting consumers who now have more discretionary spending, especially those with lower income. We have increased our specialty retail exposure during the year, which we believe should help us due to the increased cash flow of consumers. We also added to our media sector mostly by adding cable companies as a consolidation play.
What portfolio holdings contributed positively to performance? Sappi, LTD., a coated and specialty paper company, was our top performer. Its profitability and cash flow generation improved as it closed its facilities during a period of industry capacity rationalization.
19
December 31, 2014
Pax World High Yield Bond Fund, continued
Onex Corp., a leading owner and operator of business-to-business and consumer tradeshows in the United States, reported better than expected results for 2014. Leverage decreased during 2013 and we expect the company to continue to pay down more of its term loan in 2015.
Hercules Technology Growth Capital, Inc., a business development corporation focused on financing technology and health care small businesses, outperformed due to its strong growth, profitability and low delinquencies.
What portfolio holdings detracted from performance? Chaparral Energy, Inc. is an exploration and production company with operations in Northern Oklahoma. Chaparral uses CO2 for enhanced oil recovery methods which increases the overall cost of oil extraction. Although well hedged for 2015 and partial 2016, its primary fields are not as profitable at current oil price levels.
Hercules Offshore, Inc. is a driller of oil wells primarily in the Gulf of Mexico. An expected fall-off in drilling by exploration and production (E&P) companies and potential oversupply of rigs in a declining industry negatively impacted its bond price. We have since sold out of our position.
Vanguard Natural Resources, LLC is an upstream oil and gas master limited partnership (MLP), primarily gas weighted with operations in Wyoming, Colorado and Texas. MLP's operate with higher leverage than other E&P companies and they also pay the majority of their free cash flow to unit holders, attributes which have caused this company to be hard hit during the downturn.
1BB rating is an S&P rating of bonds. An obligation rated "BB" is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.
20
December 31, 2014
Portfolio Highlights (Unaudited)
Ten Year Annual Total Return—Historical Growth of $10,000
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | 5 years | 10 years | ||||||||||||||||||||||
Individual Investor Class1 | PAXHX | -1.41 | % | 6.12 | % | 6.11 | % | 5.85 | % | ||||||||||||||||||
Class A1, 2, 4 | PXHAX | NAV3 | -1.27 | % | 6.16 | % | 6.13 | % | 5.86 | % | |||||||||||||||||
POP | -5.76 | % | 4.54 | % | 5.17 | % | 5.37 | % | |||||||||||||||||||
Institutional Class1, 5 | PXHIX | -1.05 | % | 6.43 | % | 6.43 | % | 6.10 | % | ||||||||||||||||||
Class R1, 6 | PXHRX | -1.64 | % | 5.90 | % | 5.93 | % | 5.65 | % | ||||||||||||||||||
BofA Merrill Lynch U.S. High Yield— Cash Pay—BB-B (Constrained 2%) Index7, 9 | 3.48 | % | 8.02 | % | 8.71 | % | 7.09 | % | |||||||||||||||||||
Lipper High Yield Bond Funds Index8, 9 | 2.24 | % | 8.30 | % | 8.47 | % | 6.35 | % |
1The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call 800.767.1729.
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's
21
December 31, 2014
Pax World High Yield Bond Fund, continued
Portfolio Highlights (Unaudited), continued
Class A Shares of 4.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5Inception of Institutional Class shares is June 1, 2004. The performance information shown for Institutional Class shares includes the performance of Individual Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.
6Inception of Class R shares is April 2, 2007. The performance information shown for Class R shares includes the performance of Individual Investor Class shares for the period prior to Class R inception. Expenses have not been adjusted to reflect the expenses allocable to Class R shares. If such expenses were reflected, the returns would be lower than those shown.
7The BofA Merrill Lynch U.S. High Yield Cash Pay BB-B (Constrained 2%) Index tracks the performance of BB- and B rated fixed income securities publicly issued in the major domestic or eurobond markets, with total index allocation to an individual issuer limited to 2%.
8The Lipper High Yield Bond Funds Index tracks the results of the 30 largest mutual funds in the Lipper High Yield Bond Funds Average. The Lipper High Yield Bond Funds Average is a total return performance average of mutual funds tracked by Lipper, Inc. that aim at high (relative) current yield from fixed income securities, have no quality or maturity restrictions and tend to invest in lower grade debt issues. The Lipper High Yield Bond Funds Index is not what is typically considered an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator.
9Unlike the High Yield Bond Fund, the BofA Merrill Lynch U.S. High Yield BB-B (Constrained 2%) Index and the Lipper High Yield Bond Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper High Yield Bond Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Bonds | 61.7 | % | |||||
Foreign Bonds | 25.4 | % | |||||
Loans | 9.3 | % | |||||
U.S. Stocks | 2.1 | % | |||||
Exchange Traded Funds | 0.4 | % | |||||
Cash & Cash Equivalents | 1.1 | % | |||||
Total | 100.0 | % |
Credit Quality
Bond Rating | Percent of Bonds | ||||||
A | 0.4 | % | |||||
B | 62.2 | % | |||||
BB | 27.4 | % | |||||
CCC | 7.8 | % | |||||
Not Rated | 2.2 | % | |||||
Total | 100.0 | % |
22
December 31, 2014
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Expo Event Transco, Inc., 144A, 9.000%, 06/15/21 | 2.0 | % | |||||
Jack Cooper Holdings Corp., 144A, 9.250%, 06/01/20 | 1.9 | % | |||||
Ingles Markets, Inc., 5.750%, 06/15/23 | 1.8 | % | |||||
Kennedy-Wilson, Inc., 5.875%, 04/01/24 | 1.8 | % | |||||
Charlotte Russe, Inc., Term B, 6.750%, 05/21/19 | 1.7 | % | |||||
Columbus International, Inc., 144A, 7.375%, 03/30/21 | 1.6 | % | |||||
Unifrax I, LLC/Holding Co., 144A, 7.500%, 02/15/19 | 1.6 | % | |||||
syncreon Group BV/Global Finance US, Inc., 144A, 8.625%, 11/01/21 | 1.5 | % | |||||
Perry Ellis International, Inc., 7.875%, 04/01/19 | 1.5 | % | |||||
Kissner Milling Co., Ltd., 144A, 7.250%, 06/01/19 | 1.4 | % | |||||
Total | 16.8 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable
Holdings are subject to change
Fixed Income Sector Diversification
Sector | Percent of Net Assets | ||||||
Media | 20.0 | % | |||||
Retail | 12.4 | % | |||||
Energy | 10.7 | % | |||||
Technology & Electronics | 9.6 | % | |||||
Basic Industry | 7.4 | % | |||||
Telecommunications | 6.8 | % | |||||
Capital Goods | 6.4 | % | |||||
Transportation | 6.3 | % | |||||
Financial Services | 4.3 | % | |||||
Service | 4.2 | % | |||||
Health Care | 3.2 | % | |||||
Real Estate | 2.4 | % | |||||
Automotive | 1.4 | % | |||||
Consumer Goods | 1.3 | % | |||||
Banking | 0.4 | % | |||||
Leisure | 0.1 | % | |||||
Utility | 0.1 | % | |||||
Other | 3.0 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
23
December 31, 2014
Pax World High Yield Bond Fund, continued
Portfolio Highlights (Unaudited), continued
Geographical Diversification
Country | Percent of Net Assets | ||||||
United States | 72.4 | % | |||||
Canada | 4.3 | % | |||||
Luxembourg | 3.5 | % | |||||
Netherlands | 3.1 | % | |||||
Bermuda | 2.4 | % | |||||
Marshall Islands | 1.9 | % | |||||
Austria | 1.7 | % | |||||
Barbados | 1.6 | % | |||||
Cayman Islands | 1.1 | % | |||||
United Kingdom | 1.1 | % | |||||
Country | Percent of Net Assets | ||||||
Israel | 1.1 | % | |||||
Sweden | 1.1 | % | |||||
Germany | 0.8 | % | |||||
Malaysia | 0.5 | % | |||||
Norway | 0.3 | % | |||||
Australia | 0.2 | % | |||||
Mexico | 0.2 | % | |||||
France | 0.1 | % | |||||
Other | 2.6 | % | |||||
Total | 100.0 | % |
24
December 31, 2014
Pax World Global Environmental
Markets Fund
Co-Portfolio Managers
Bruce Jenkyn-Jones, Simon Gottelier & Hubert Aarts
Sub-Adviser
Impax Asset
Management Ltd.
Portfolio Manager's Comments
How did the Pax World Global Environmental Markets Fund (the Fund) perform for the period? For the one-year period ended December 31, 2014, the Individual Investor Class, Class A, Institutional Class and Class R shares of the Fund had total returns of -2.78%, -2.73%, -2.53% and -3.04%, respectively, versus 4.94% for the MSCI World (Net) Index and 0.14% for the FTSE Environmental Opportunities Index.
What factors contributed to the Fund's performance? Against the backdrop of volatile global markets, investors drove up prices in defensive areas of the markets and economically sensitive Resource Optimization companies underperformed. Also, some sectors outside of our environmental resource optimization focus, including Health Care and Information Technology, outperformed, impacting our relative performance.
Having no exposure to fossil energy stocks proved beneficial. Although Renewable Energy sectors suffered from association, the broader Resource Optimization markets, including Water Treatment, Energy Efficiency and Waste/Resource Recovery largely benefitted from the dramatic fall in oil prices.
There were numerous favorable policy developments during 2014. China committed significant investments to pollution mitigation and renewable energy and, with the U.S., agreed to carbon dioxide (CO2) emissions reductions. We expect these positive trends to continue in 2015 culminating with the UN Climate talks.
Can you discuss any significant changes to the Fund's positioning throughout the period? Energy Efficiency and Water Infrastructure remained our preferred sub-sectors during 2014 given the long term drivers behind them. The Fund also took advantage of improving fundamentals within the Renewable Energy markets and added
25
December 31, 2014
Pax World Global Environmental Markets Fund, continued
Huaneng Renewables Corp., Class H (China), Trina Solar, LTD., ADS (China) and Enel Green Power SPA (Italy).
We made our first investments in the Sustainable Food and Agriculture area through the purchase of Sealed Air Corp. (logistics, food safety and packaging, U.S.) and Trimble Navigation, LTD. (sustainable and efficient agriculture, U.S.). We are optimistic about the long term opportunities from needing to feed an increasingly hungry planet.
What portfolio holdings contributed positively to performance? Water Utility companies, with their stable earnings profiles performed well, as investors sought stability against volatile macro-economic conditions. American Water Works Co., Inc. (US) was a key contributor, as were our UK holdings Pennon Group and Severn Trent PLC, which additionally benefited from diminished regulatory risk in the UK water market.
The U.S.'s commitment to reducing fuel consumption and emissions gained traction as the EPA issued new emissions rules. Combined with recovering automotive sales early in the year, Transport Energy Efficiency was a key catalyst in 2014. Delphi Automotive PLC (UK), (manufacturer of fuel efficient power trains and turbochargers to improve fuel efficiency and reduce CO2 emissions) was the main beneficiary within the portfolio.
Companies reporting strong results and positive outlook statements also benefitted. Pall Corporation (Water Treatment equipment, U.S.) was one such example.
What portfolio holdings detracted from performance? The most notable detractors to performance were largely stock specific. We participated in the initial public offering (IPO) of Applus Services SA (Environmental Testing and Gas Sensing, Spain) during the second quarter but two subsequent profit warnings suggest that earnings improvements need more time to take effect. SABESP (Water Utilities, Brazil) was impacted by the severe drought experienced in the region.
While declining oil prices had a limited impact on the portfolio overall, Renewable and Alternative energy markets suffered from negative sentiment and our holdings in Trina Solar (China) and Enel Green Power (Italy) were not immune.
26
December 31, 2014
Portfolio Highlights (Unaudited)
Total Return—Historical Growth of $10,000—Since Inception
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | 5 years | Since Inception | ||||||||||||||||||||||
Individual Investor Class1 | PGRNX | -2.78 | % | 15.22 | % | 8.81 | % | 4.47 | % | ||||||||||||||||||
Class A1, 2, 4 | PXEAX | NAV3 | -2.73 | % | 15.24 | % | 8.82 | % | 4.48 | % | |||||||||||||||||
POP | -8.06 | % | 13.09 | % | 7.58 | % | 3.61 | % | |||||||||||||||||||
Institutional Class1 | PGINX | -2.53 | % | 15.49 | % | 9.11 | % | 4.73 | % | ||||||||||||||||||
Class R1 | PGRGX | -3.04 | % | 14.93 | % | 8.54 | % | 4.19 | % | ||||||||||||||||||
MSCI World (Net) Index5, 7 | 4.94 | % | 15.47 | % | 10.20 | % | 4.78 | % | |||||||||||||||||||
FTSE Environmental Opportunities Index Series6, 7 | 0.14 | % | 15.50 | % | 9.50 | % |
1The Fund's inception date is March 27, 2008. The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
27
December 31, 2014
Pax World Global Environmental Markets Fund, continued
Portfolio Highlights (Unaudited), continued
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class A Shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5The MSCI World (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World (Net) Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
6The FTSE Environmental Opportunities Index Series measures the performance of global companies that have significant involvement in environmental business activities, including renewable and alternative energy, energy efficiency, water technology and waste and pollution control. The FTSE Environmental Opportunities Index Series requires companies to have at least 20% of their business derived from environmental markets and technologies. The FTSE Environmental Opportunities Index Series is published by a joint venture of Impax Asset Management, Ltd. ("Impax") with FTSE International. Impax is also the sub-adviser to the Pax World Global Environmental Markets Fund.
7Unlike the Global Environmental Markets Fund, the MSCI World (Net) Index and the FTSE Environmental Opportunities Index Series are not investments, are not professionally managed, have no policy of sustainable investing and do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
Foreign Stocks | 60.5 | % | |||||
U.S. Stocks | 38.1 | % | |||||
Cash & Cash Equivalents | 1.4 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Xylem, Inc. | 3.1 | % | |||||
Linde AG | 3.1 | % | |||||
American Water Works Co., Inc. | 3.1 | % | |||||
Pentair PLC | 3.1 | % | |||||
Pall Corp. | 3.0 | % | |||||
Pennon Group PLC | 3.0 | % | |||||
BorgWarner, Inc. | 3.0 | % | |||||
Delphi Automotive PLC | 3.0 | % | |||||
GEA Group AG | 3.0 | % | |||||
Stericycle, Inc. | 2.9 | % | |||||
Total | 30.3 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable
Holdings are subject to change
28
December 31, 2014
Environmental Markets Classification System (EMCS)
Sector | Sub Sector | Percent of Net Assets | |||||||||
Energy Efficiency | 34.0 | % | |||||||||
Industrial Energy Efficiency | 9.2 | % | |||||||||
Buildings Energy Efficiency | 7.2 | % | |||||||||
Transport Energy Efficiency | 6.0 | % | |||||||||
Consumer Energy Efficiency | 4.6 | % | |||||||||
Power Network Efficiency | 4.0 | % | |||||||||
Diversified Energy Efficiency | 3.0 | % | |||||||||
Water Infrastructure & Technologies | 31.2 | % | |||||||||
Water Infrastructure | 15.5 | % | |||||||||
Water Utilities | 10.5 | % | |||||||||
Water Treatment Equipment | 5.2 | % | |||||||||
Pollution Control | 11.3 | % | |||||||||
Environmental Testing & Gas Sensing | 8.0 | % | |||||||||
Pollution Control Solutions | 3.3 | % | |||||||||
Environmental Support Services | 7.6 | % | |||||||||
Diversified Environmental | 7.6 | % | |||||||||
Waste Management & Technologies | 6.4 | % | |||||||||
Hazardous Waste Management | 5.3 | % | |||||||||
General Waste Management | 1.1 | % | |||||||||
Renewable & Alternative Energy | 6.3 | % | |||||||||
Solar Energy Generation Equipment | 1.8 | % | |||||||||
Renewable Energy Developers & Independent Power Producers (IPPs) | 4.5 | % | |||||||||
Food, Agriculture & Forestry | 2.4 | % | |||||||||
Logistics, Food Safety and Packaging | 1.5 | % | |||||||||
Sustainable and Efficient Agriculture | 0.9 | % | |||||||||
Other | 0.8 | % | |||||||||
100.0 | % |
May include companies representing multiple industries within a single "Sector".
Geographical Diversification
Country | Percent of Net Assets | ||||||
United States | 38.3 | % | |||||
United Kingdom | 12.4 | % | |||||
Japan | 10.6 | % | |||||
Germany | 7.6 | % | |||||
China | 6.7 | % | |||||
Ireland | 6.6 | % | |||||
France | 3.6 | % | |||||
Taiwan | 2.2 | % | |||||
Finland | 2.2 | % | |||||
Country | Percent of Net Assets | ||||||
Hong Kong | 2.0 | % | |||||
Italy | 1.9 | % | |||||
Brazil | 1.4 | % | |||||
Spain | 1.3 | % | |||||
Belgium | 1.0 | % | |||||
Switzerland | 0.9 | % | |||||
Australia | 0.5 | % | |||||
Other | 0.8 | % | |||||
Total | 100.0 | % |
29
December 31, 2014
Pax MSCI International ESG Index Fund
Portfolio Manager
Christopher Brown
Portfolio Manager's Comments
How did the Pax MSCI International ESG Index Fund (the Fund) perform for the period? For the one-year period ended December 31, 2014, the Individual Investor Class, Institutional Class and Class R of the Fund had total returns of -5.86%, -5.49% and -6.06%, respectively, compared to -4.38% for the MSCI EAFE ESG (Net) Index (the Index) and -4.90% for the MSCI EAFE (Net) Index (EAFE Index).
It is important to note that, effective March 31, 2014, the Fund acquired the assets of Pax World International Fund and of Pax MSCI EAFE ESG Index ETF, a series of Pax World Funds Trust II, pursuant to an Agreement and Plan of Reorganization dated December 13, 2013 (the Reorganizations). Because the Pax MSCI International ESG Index Fund had no investment operations prior to the closing of the Reorganizations, and based on the similarity of the Pax MSCI International ESG Index Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the Predecessor Fund) is treated as the survivor of the Reorganizations for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to March 31, 2014 is that of the Predecessor Fund.
The Fund is designed to track the performance of the Index with the objective of outperforming the EAFE Index over the long run. The Fund and the Index are constructed to have a better environmental, social and governance (ESG) profile than the EAFE Index. Based on evaluations of ESG characteristics conducted by MSCI ESG Research as of December 31, 2014, the ESG profile of the Fund's holdings averaged an overall rating of AA on MSCI ESG Research's seven-point scale compared to an overall rating of A for the EAFE Index.1
Can you discuss any significant changes to the Fund's positioning throughout the period? With the change upon the Reorganizations to a passively managed investment strategy, certain securities were sold and other securities were purchased to achieve a closer alignment of the holdings of the Fund and the constituent securities of the EAFE ESG Index.
What portfolio holdings contributed positively to performance? The top contributors to the Fund's performance relative to the EAFE Index were Novartis AG, a Swiss based pharmaceutical company increased based on improved third
30
December 31, 2014
quarter earnings and strong future guidance. Novo Nordisk A/S, Class B, a Danish based pharmaceutical company increased based on improved sales growth over the third quarter and FDA approval of a new medication focused on obesity. Bunzl PLC, headquartered in London, provides a range of consumer products primarily to retail stores as well as government and educational markets in the Americas, Europe and Australasia. Bunzl rose on third quarter revenue growth and positive impacts from acquisitions.
The largest sector contributors relative to the EAFE Index were Materials, Industrials and Health Care, mainly driven by the Pharmaceuticals industry. From a regional perspective the largest regional contributors relative to the EAFE Index were the Pacific and Europe and Middle East regions.
What portfolio holdings detracted from performance? The top detractors from the Fund's performance relative to the EAFE Index were BG Group PLC, a UK energy company that engages in the exploration, development and production of energy declined based on the sharp declines in energy prices. Pearson PLC, a London based international media and education company declined based on lower earnings guidance due to difficult market conditions within its space. Tesco PLC, a UK based bank that provides banking activities throughout many developed and emerging countries declined based on future guidance on earnings due to uncertainties and challenging global market conditions.
The largest sector detractors relative to the EAFE Index were Telecommunications, Consumer Staples and Consumer Discretionary.
1MSCI 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 7-point scale from AAA (highest) to CCC (lowest).
31
December 31, 2014
Pax MSCI International ESG Index Fund, continued
Portfolio Highlights (Unaudited)
Total Return—Historical Growth of $10,000—Since Inception
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | Since Inception | |||||||||||||||
Individual Investor Class2 | PXINX | -5.86 | % | 11.05 | % | 4.20 | % | ||||||||||||
Institutional Class1 | PXNIX | -5.49 | % | 11.32 | % | 4.48 | % | ||||||||||||
Class R2 | PXIRX | -6.06 | % | 10.75 | % | 3.96 | % | ||||||||||||
MSCI EAFE ESG (Net) Index3, 6 | -4.38 | % | 11.59 | % | 4.88 | % | |||||||||||||
MSCI EAFE (Net) Index4, 6 | -4.90 | % | 11.06 | % | 3.91 | % | |||||||||||||
Lipper International Large-Cap Core Funds Index5, 6 | -4.78 | % | 10.92 | % | 3.49 | % |
1The Fund's inception date is January 27, 2011. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2Inception of the Individual Investor Class and Class R is March 31, 2014. The performance information shown for periods prior to the inception date for the Individual Investor Class and Class R shares are those of the Predecessor Fund. These returns have been adjusted to reflect the expenses allocable to Individual Investor Class and Class R shares.
3The MSCI EAFE ESG (Net) Index is a free float-adjusted market capitalization weighted index designed to measure the performance of equity securities of issuers organized or operating in developed market countries
32
December 31, 2014
around the world excluding the U.S. and Canada that have high environmental, social and governance (ESG) ratings relative to their sector and industry group peers, as rated by MSCI ESG Research annually. 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 7-point scale from AAA (highest) to CCC (lowest). Performance for the MSCI EAFE ESG (Net) Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
4The MSCI EAFE (Europe, Australasia, Far East) (Net) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE (Net) Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE ESG (Net) Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
5The Lipper International Large-Cap Core Funds Index tracks the results of funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the U.S. with market capitalizations (on a three-year weighted basis) above Lipper's international large-cap floor. International large-cap core funds typically have an average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared to the S&P/Citigroup World ex-U.S. BMI. The Lipper International Large-Cap Core Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index, or some other traditional economic indicator. One cannot invest directly in an index.
6Unlike the International Index Fund, the MSCI EAFE ESG (Net) Index, the MSCI EAFE (Net) Index and the Lipper International Large-Cap Core Funds Index are not investments and are not professionally managed and (with the exception of the Lipper International Large-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
Foreign Stocks | 97.3 | % | |||||
Exchange Traded Funds | 1.8 | % | |||||
Cash & Cash Equivalents | 0.9 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Novartis AG | 3.3 | % | |||||
Roche Holding AG | 3.0 | % | |||||
HSBC Holdings PLC | 3.0 | % | |||||
Commonwealth Bank of Australia | 1.9 | % | |||||
iShares MSCI EAFE ETF | 1.8 | % | |||||
GlaxoSmithKline PLC | 1.6 | % | |||||
Vodafone Group PLC | 1.4 | % | |||||
Westpac Banking Corp. | 1.4 | % | |||||
Novo Nordisk A/S, Class B | 1.4 | % | |||||
BASF SE | 1.3 | % | |||||
Total | 20.1 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable
Holdings are subject to change
33
December 31, 2014
Pax MSCI International ESG Index Fund, continued
Portfolio Highlights (Unaudited), continued
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 27.0 | % | |||||
Industrials | 12.2 | % | |||||
Consumer Discretionary | 12.2 | % | |||||
Health Care | 12.0 | % | |||||
Consumer Staples | 9.3 | % | |||||
Materials | 8.3 | % | |||||
Telecommunication Services | 5.5 | % | |||||
Information Technology | 5.3 | % | |||||
Energy | 2.6 | % | |||||
Utilities | 4.2 | % | |||||
Exchange Traded Funds | 1.8 | % | |||||
Other assets and liabilities (net) | -0.4 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
Geographical Diversification
Country | Percent of Net Assets | ||||||
Japan | 22.5 | % | |||||
United Kingdom | 20.0 | % | |||||
Switzerland | 9.7 | % | |||||
Australia | 9.3 | % | |||||
Germany | 8.5 | % | |||||
France | 7.0 | % | |||||
Netherlands | 4.9 | % | |||||
Sweden | 4.3 | % | |||||
Spain | 3.3 | % | |||||
Denmark | 2.0 | % | |||||
Hong Kong | 1.6 | % | |||||
Italy | 1.3 | % | |||||
Country | Percent of Net Assets | ||||||
Norway | 1.0 | % | |||||
Singapore | 0.7 | % | |||||
Belgium | 0.7 | % | |||||
Ireland | 0.5 | % | |||||
Luxembourg | 0.4 | % | |||||
Finland | 0.3 | % | |||||
Portugal | 0.3 | % | |||||
New Zealand | 0.2 | % | |||||
Austria | 0.1 | % | |||||
Israel | 0.0 | %* | |||||
Other | 1.4 | % | |||||
Total | 100.0 | % |
*Rounds to less that 0.1%
34
December 31, 2014
Pax Ellevate Global Women's Index Fund
Co-Portfolio Managers:
Julie Fox Gorte, Ph.D., Scott LaBreche & Heather Smith
Portfolio Manager's Comments
How did the Pax Ellevate Global Women's Index Fund (the Fund) perform for the period? For the period since reorganization of the Fund (June 4, 2014 through December 31, 2014), the Individual Investor Class and Institutional Class shares of the Fund had total returns of 1.12% and 1.25%, respectively, compared to 1.32% for the Pax Global Women's Leadership Index1 (Women's Index), 0.42% for the MSCI World (Net) Index (World Index), and -0.74% for the Lipper Global Large-Cap Core Funds Index.
It is important to note that on June 4, 2014, the Fund acquired the net assets of the Pax World Global Women's Equality Fund, pursuant to an Agreement and Plan of Reorganization dated March 4, 2014 (the Reorganization). Because the Fund had no investment operations prior to the closing of the Reorganization, the Pax World Global Women's Equality Fund (the Predecessor Fund) is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to June 4, 2014 is that of the Predecessor Fund.
Pax World Management LLC and Ellevate Asset Management LLC, whose principal is Sallie Krawcheck, entered into a partnership agreement to manage and distribute the Fund. Pax Ellevate Management LLC (PEM) is the investment adviser to the Fund.
What is the investment objective of the Fund? The Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Women's Index, while maintaining risk characteristics that PEM believes are generally similar to those of the Women's Index. The Fund is the first mutual fund in the United States that focuses on investing in companies that are global leaders in advancing women.
How are the Fund's investments positioned? The Fund employs an enhanced index-based investment approach intended to closely correspond to or exceed the
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December 31, 2014
Pax Ellevate Global Women's Index Fund, continued
performance of the Women's Index, while maintaining risk characteristics that PEM believes are generally similar to those of the Women's Index. Under normal circumstances, the Global Women's Index Fund invests more than 80% of its total assets in the component securities of the Women's Index and other financial instruments.
The Women's Index is the first broad-market index of the highest-rated companies in the world in advancing women's leadership. The Women's Index consists of equity securities of companies around the world that demonstrate a commitment to advancing women through gender diversity on their board, in executive management and through other policies and programs, as rated by Pax World Gender Analytics. Companies in the Women's Index also meet threshold environmental, social and governance (ESG) standards, as rated by MSCI ESG Research.
What factors contributed to the Fund's performance? The Fundamental Gender Factors drove the relative performance since reorganization vs. the World Index. The Fund's outperformance was primarily driven by the companies with at least 30% women on their boards of directors. Within the Fund, these companies had an average weight of 52.51%, compared with 18.42% in the World Index. Another factor that drove the Fund's relative performance vs. the World Index was women in senior management. Within the Fund, 48.06% of companies have at least 25% women senior managers, compared with 20.87% in the World Index.
On a regional basis, North America and the Pacific regions contributed positively to relative World Index performance, while Europe detracted. On a sector basis, the Fund's underweight in energy contributed to relative World Index performance, followed by materials and industrials, while heath care, consumer staples and the utilities sectors detracted.
What portfolio holdings contributed positively to performance? The Fund's performance results noted above are based on the since-reorganization period of June 4, 2014 to December 31, 2014. The top contributors to the Fund's performance relative to the World Index include Lockheed Martin Corp., a U.S. based security and aerospace company that increased from improved earnings. Lockheed Martin's CEO and 33% of the board of directors are women. Weyerhaeuser Co., a U.S. based real estate investment trust (REIT) that manufactures, distributes and sells forest products, increased based on positive investor sentiment from continued cost saving initiatives. At Weyerhaeuser, women comprise 30% of the company's board of directors and over 50% of its senior
36
December 31, 2014
officers. Ulta Salon Cosmetics & Fragrances, Inc., a U.S. based beauty retailer, increased based on improved earnings. At Ulta Salon, women comprise 40% of senior executives and 50% of the board of directors.
What portfolio holdings detracted from performance? The Fund's performance results noted above are based on the period since the Fund was reorganized from June 4, 2014 to December 31, 2014. The top detractors to the Fund's performance relative to the World Index include Deutsche Lufthansa AG, a German airline that declined based on poor earnings and reports of potential pilot strikes. At Deutsche Lufthansa, the CFO and 40% of the executive board are women. DNB ASA, a Norwegian banking and financial services company, declined based on fears from loan losses due to the sharp declines in energy prices. At DNB ASA, women are 38% of the board of directors and 33% of senior executives. Kering SA, a French apparel and accessories company, declined based on poor results from its luxury brand Gucci. At Kering, women are 33% of the executive committee and 36% of the board of directors.
1A custom index calculated by MSCI
For the one-year period ended December 31, 2014, the Individual Investor Class and Institutional Class shares of the Fund had total returns of 5.95% and 6.21%, respectively, compared to 4.94% for the MSCI World (Net) Index and 3.98% for the Lipper Global Large-Cap Core Funds Index.
Portfolio Highlights (Unaudited)
Ten Year Annual Total Return—Historical Growth of $10,000
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December 31, 2014
Pax Ellevate Global Women's Index Fund, continued
Portfolio Highlights (Unaudited), continued
Returns—Period ended December 31, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||
Share class | Ticker Symbol | 1 year | 3 years | 5 years | 10 years | ||||||||||||||||||
Individual Investor Class1 | PXWEX | 5.95 | % | 14.11 | % | 8.47 | % | 3.20 | % | ||||||||||||||
Institutional Class1, 2, 3 | PXWIX | 6.21 | % | 14.38 | % | 8.74 | % | 3.43 | % | ||||||||||||||
Pax Global Women's Leadership (Net) Index*, 4, 7 | — | — | — | — | |||||||||||||||||||
MSCI World (Net) Index5, 7 | 4.94 | % | 15.47 | % | 10.20 | % | 6.03 | % | |||||||||||||||
Lipper Global Large-Cap Core Funds Index6, 7 | 3.98 | % | 15.76 | % | 10.53 | % | 6.61 | % |
*A custom index calculated by MSCI.
1Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of 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 more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2Pax World Global Women's Equality Fund, a series of Pax World Funds Series Trust I, acquired Women's Equity Fund, a series of Professionally Managed Portfolios ("Old Women's Equity Fund"), on October 29, 2007. Performance information shown includes the performance of Retail Class shares of Old Women's Equity Fund for periods prior to October 29, 2007, which has not been adjusted to reflect any differences in expenses between Old Women's Equity Fund and the Pax World Global Women's Equality Fund; if such expense adjustments were reflected, the returns would be higher than those shown. The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed.
3Inception of Institutional Class shares is April 19, 2006. The performance information shown for Institutional Class shares includes the performance of the Retail Class shares of Old 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 Old Women's Equity Fund and the Global Women's Index Fund. If such expense adjustments and allocable expenses were reflected, the returns would be higher than those shown.
4The Women's Index is a customized market-weighted index consisting of equity securities of issuers organized or operating in countries around the world that demonstrate a commitment to advancing and empowering women through gender diversity on their boards, in management and through other policies and programs, and an understanding of the potential business advantages associated with greater gender diversity, as rated by Pax World Gender Analytics. In addition, the companies comprising the Women's Index meet certain environmental, social and governance (ESG) or sustainability thresholds, as rated by MSCI ESG Research. No performance information is included here as the Women's Index is newly created.
5The MSCI World (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World (Net) Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World (Net) Index is shown "net," which includes dividend reinvestments after deduction of foreign withholding taxes.
6The Lipper Global Large-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Global Large-Cap Funds Average. The Lipper Global Large-Cap Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their
38
December 31, 2014
equity assets in companies both inside and outside of the U.S. with market capitalizations (on a three year weighted basis) above Lipper's global large-cap floor. The Lipper Global Large-Cap Core Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator. One cannot invest directly in an index.
7Unlike the Global Women's Index Fund, the Pax Global Women's Leadership Index, the MSCI World (Net) Index and the Lipper Global Large-Cap Core Funds Index are not investments, are not professionally managed, have (with the exception of the Pax Global Women's Leadership Index) no policy of sustainable investing and (with the exception of the Lipper Global Large-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 57.5 | % | |||||
Foreign Stocks | 41.1 | % | |||||
Exchange Traded Funds | 1.4 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
KeyCorp. | 2.0 | % | |||||
Xerox Corp | 2.0 | % | |||||
Weyerhaeuser Co., REIT | 2.0 | % | |||||
Lockheed Martin Corp. | 2.0 | % | |||||
Procter & Gamble Co., The | 2.0 | % | |||||
Coca-Cola Enterprises, Inc. | 2.0 | % | |||||
Kellogg Co. | 2.0 | % | |||||
Microsoft Corp. | 2.0 | % | |||||
PepsiCo, Inc. | 1.9 | % | |||||
Estee Lauder Cos, Inc., Class A | 1.9 | % | |||||
Total | 19.8 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
39
December 31, 2014
Pax Ellevate Global Women's Index Fund, continued
Portfolio Highlights (Unaudited), continued
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 22.1 | % | |||||
Consumer Staples | 18.9 | % | |||||
Information Technology | 14.6 | % | |||||
Consumer Discretionary | 13.1 | % | |||||
Industrials | 9.4 | % | |||||
Health Care | 9.8 | % | |||||
Telecommunication Services | 5.5 | % | |||||
Utilities | 3.5 | % | |||||
Materials | 2.0 | % | |||||
Energy | 1.3 | % | |||||
Exchange Traded Funds | 1.4 | % | |||||
Other assets and liabilities (net) | -1.6 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
Geographical Diversification
Country | Percent of Net Assets | ||||||
United States | 59.1 | % | |||||
France | 7.1 | % | |||||
United Kingdom | 5.9 | % | |||||
Sweden | 5.6 | % | |||||
Canada | 5.4 | % | |||||
Australia | 3.9 | % | |||||
Germany | 3.5 | % | |||||
Switzerland | 2.0 | % | |||||
Netherlands | 1.5 | % | |||||
South Africa | 1.2 | % | |||||
Norway | 1.0 | % | |||||
Denmark | 0.7 | % | |||||
Finland | 0.6 | % | |||||
Ireland | 0.5 | % | |||||
Italy | 0.5 | % | |||||
Singapore | 0.3 | % | |||||
Hong Kong | 0.3 | % | |||||
Country | Percent of Net Assets | ||||||
Malaysia | 0.2 | % | |||||
Belgium | 0.2 | % | |||||
Thailand | 0.1 | % | |||||
China | 0.1 | % | |||||
Israel | 0.1 | % | |||||
Taiwan | 0.1 | % | |||||
Spain | 0.1 | % | |||||
New Zealand | 0.1 | % | |||||
Poland | 0.1 | % | |||||
Chile | 0.0 | %* | |||||
Philippines | 0.0 | %* | |||||
Turkey | 0.0 | %* | |||||
Brazil | 0.0 | %* | |||||
Austria | 0.0 | %* | |||||
Greece | 0.0 | %* | |||||
Indonesia | 0.0 | %* | |||||
Other | -0.2 | % | |||||
Total | 100.0 | % |
*Rounds to less than 0.1%
40
December 31, 2014
Sustainable Investing
Senior Vice President for
Sustainable Investing
Julie Gorte, Ph.D.
Sustainable Investment Update (Unaudited)
Sustainable investing strategies seek to provide returns to investors while also having a positive impact on society. It can be difficult to gauge that impact in real time, but there are many indicators that we are achieving what we set out to do, even if we all wish that progress was faster and more dramatic.
Take, for example, our commitment to board diversity. For many years, Pax has been an advocate for diverse boards and management teams, and for gender empowerment throughout corporations. There are several ways Pax works to achieve this through our investments:
1. Proxy voting: Pax generally votes against or withholds votes from all male nominees on slates of company directors that include fewer than two women. In companies where board diversity is below 5%, we withhold votes from or vote against male nominees on all slates that include no women. In the second half of 2014, that meant that we withheld votes for the male directors at 19 companies—about 13% of all the proxy ballots we voted during that time. The encouraging news in this is not only that our votes are sending a message to companies that male-dominated boardrooms are unacceptable, but that there were only 19 companies where those votes were necessary (6 for having no women on their boards, and 13 that had only one). The number of companies with no female board members is shrinking, and we believe sustainable investors can rightly take some credit for that.
2. Pax World also files shareholder proposals—that is, places a voting item on a company's annual proxy ballot—asking that companies amend their policies to make gender diversity part of every director search. We have filed several of these over the years, and have been able to withdraw every one of them after reaching an agreement with the company that those policies would be amended. In the last six months we have engaged with two companies (Fox Chase Bancorp and Evolving Systems) on this issue, and co-filed a shareholder proposal at one (EBay).
3. We created the world's first gender equality index, the Global Women's Leadership Index,* and launched an index fund based on it, the Pax Ellevate
41
December 31, 2014
Global Women's Index Fund, whose 400+ constituents have the highest ratings in the world in advancing women's leadership. Among the companies in the Fund, 32% of all board members are women, compared with 12% globally, and 25% of senior managers are female, compared with 11% globally. There is a healthy amount of academic literature supporting the fact that empowering women, especially in corporate decision-making bodies (boards and management) is correlated with better financial performance. We believe that the performance of the Fund will bear that out.
Another mechanism for impact is our work with other investors to change the way markets and market participants bring sustainability concerns to the fore. Here are a couple of examples of how we do that.
1. We are working with a group of other investors and analysts convened by the United Nations Environment Programme Finance Initiatives (UNEP FI) to develop a method for fixed income analysis to incorporate water risks into financial analysis of bonds and other fixed income securities. Water risks are one of the more important and enduring risks many companies will face in the coming months, years, and decades, particularly as the planet warms. We believe that companies that depend on abundant fresh water supplies, such as food and beverage companies and electric and water utilities, should understand and manage those risks, and analysis of their debt should factor in water risks. We are helping to make that easier for all market participants.
2. We are working with a group of financial institutions (asset managers, banks, and insurance companies) convened by UNEP FI and the World Resources Institute (WRI) to develop a protocol for financial institutions to calculate and be accountable for financed emissions of greenhouse gases. This complements our other efforts to address climate change—carbon benchmarking our own portfolios, using carbon intensity in our own ESG evaluations of all companies or issuers, offering two fossil fuel-free funds and engaging in shareholder engagement and public policy advocacy to support emissions reduction.
Impact isn't instantaneous, much as we all yearn for instant gratification. But we believe that all these efforts make a difference, to our investors and, in small but measurable ways, to the continuation of a just and civil society.
*A custom index calculated by MSCI. One cannot invest directly in an index.
42
December 31, 2014
Shareholder Expense Examples (Unaudited)
Examples As a shareholder of the Funds, you incur ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. The examples on the next page are intended to help you understand your ongoing costs (in dollars) of investing in each of the Funds and compare these costs with the ongoing costs of investing in other mutual funds. For more information, see the relevant Fund's prospectus or talk to your financial adviser.
The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period beginning on July 1, 2014 and ending on December 31, 2014.
Please note that Individual Retirement Account (IRA), Coverdell Education Savings, Roth IRA, SEP-IRA, SIMPLE IRA, and 403(b)(7) accounts are charged an annual custodial fee of twelve dollars. If you are invested in one of these account types, you should add an additional six dollars to the estimated expenses paid during the period.
Actual Expenses For each Fund, the first table on the next page provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. For the Fund, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Examples for Comparison Purposes For each Fund, the second table on the following page provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
43
December 31, 2014
Shareholder Expense Examples (Unaudited), continued
Based on Actual Fund Return | Beginning Account Value 7/1/14 | Ending Account Value 12/31/14 | Annualized Expense Ratio | Expenses Paid During Period1 | |||||||||||||||
Balanced Fund - Individual Investor | $ | 1,000.00 | $ | 1,028.50 | 0.91 | % | $ | 4.65 | |||||||||||
Balanced Fund - Institutional | 1,000.00 | 1,029.90 | 0.66 | % | 3.38 | ||||||||||||||
Balanced Fund - Class R | 1,000.00 | 1,027.20 | 1.16 | % | 5.93 | ||||||||||||||
Growth Fund - Individual Investor2 | 1,000.00 | 1,064.00 | 1.24 | % | 6.45 | ||||||||||||||
Growth Fund - Class A2 | 1,000.00 | 1,063.70 | 1.24 | % | 6.45 | ||||||||||||||
Growth Fund - Institutional2 | 1,000.00 | 1,065.00 | 0.99 | % | 5.15 | ||||||||||||||
Growth Fund - Class R2 | 1,000.00 | 1,062.40 | 1.49 | % | 7.75 | ||||||||||||||
Small Cap Fund - Individual Investor | 1,000.00 | 1,008.90 | 1.24 | % | 6.28 | ||||||||||||||
Small Cap Fund - Class A | 1,000.00 | 1,008.90 | 1.24 | % | 6.28 | ||||||||||||||
Small Cap Fund - Institutional | 1,000.00 | 1,009.90 | 0.99 | % | 5.02 | ||||||||||||||
Small Cap Fund - Class R | 1,000.00 | 1,007.20 | 1.49 | % | 7.54 | ||||||||||||||
High Yield Bond Fund - Individual Investor | 1,000.00 | 941.30 | 0.98 | % | 4.80 | ||||||||||||||
High Yield Bond Fund - Class A | 1,000.00 | 942.60 | 0.98 | % | 4.80 | ||||||||||||||
High Yield Bond Fund - Institutional | 1,000.00 | 943.50 | 0.73 | % | 3.58 | ||||||||||||||
High Yield Bond Fund - Class R | 1,000.00 | 941.40 | 1.23 | % | 6.02 | ||||||||||||||
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 943.10 | 1.40 | % | 6.86 | ||||||||||||||
Global Environmental Markets Fund - Class A | 1,000.00 | 943.20 | 1.40 | % | 6.86 | ||||||||||||||
Global Environmental Markets Fund - Institutional | 1,000.00 | 943.90 | 1.15 | % | 5.63 | ||||||||||||||
Global Environmental Markets Fund - Class R | 1,000.00 | 941.40 | 1.65 | % | 8.07 | ||||||||||||||
MSCI International ESG Index Fund - Individual Investor | 1,000.00 | 905.30 | 0.80 | % | 3.84 | ||||||||||||||
MSCI International ESG Index Fund - Institutional | 1,000.00 | 906.90 | 0.55 | % | 2.64 | ||||||||||||||
MSCI International ESG Index Fund - Class R | 1,000.00 | 904.10 | 1.05 | % | 5.04 | ||||||||||||||
Global Women's Index Fund - Individual Investor2 | 1,000.00 | 1,001.70 | 1.04 | % | 5.25 | ||||||||||||||
Global Women's Index Fund - Institutional2 | 1,000.00 | 1,002.80 | 0.79 | % | 3.99 |
1Expenses are equal to each Funds' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period beginning on July 1, 2014 and ending on December 31, 2014).
2Expenses were reduced during the first half of 2014 (See Note B for more information). Expense examples are based on the most recent six-month expense ratio, which will differ from the expense ratio shown in the Financial Highlights.
44
December 31, 2014
Shareholder Expense Examples (Unaudited), continued
Based on Hypothetical 5% Return (before expenses) | Beginning Account Value 7/1/14 | Ending Account Value 12/31/14 | Annualized Expense Ratio | Expenses Paid During Period1 | |||||||||||||||
Balanced Fund - Individual Investor | $ | 1,000.00 | $ | 1,020.62 | 0.91 | % | $ | 4.63 | |||||||||||
Balanced Fund - Institutional | 1,000.00 | 1,021.88 | 0.66 | % | 3.36 | ||||||||||||||
Balanced Fund - Class R | 1,000.00 | 1,019.36 | 1.16 | % | 5.90 | ||||||||||||||
Growth Fund - Individual Investor2 | 1,000.00 | 1,018.85 | 1.24 | % | 6.31 | ||||||||||||||
Growth Fund - Class A2 | 1,000.00 | 1,018.85 | 1.24 | % | 6.31 | ||||||||||||||
Growth Fund - Institutional2 | 1,000.00 | 1,020.11 | 0.99 | % | 5.04 | ||||||||||||||
Growth Fund - Class R2 | 1,000.00 | 1,017.59 | 1.49 | % | 7.58 | ||||||||||||||
Small Cap Fund - Individual Investor | 1,000.00 | 1,018.95 | 1.24 | % | 6.31 | ||||||||||||||
Small Cap Fund - Class A | 1,000.00 | 1,018.95 | 1.24 | % | 6.31 | ||||||||||||||
Small Cap Fund - Institutional | 1,000.00 | 1,020.21 | 0.99 | % | 5.04 | ||||||||||||||
Small Cap Fund - Class R | 1,000.00 | 1,017.69 | 1.49 | % | 7.58 | ||||||||||||||
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,020.27 | 0.98 | % | 4.99 | ||||||||||||||
High Yield Bond Fund - Class A | 1,000.00 | 1,020.27 | 0.98 | % | 4.99 | ||||||||||||||
High Yield Bond Fund - Institutional | 1,000.00 | 1,021.53 | 0.73 | % | 3.72 | ||||||||||||||
High Yield Bond Fund - Class R | 1,000.00 | 1,019.00 | 1.23 | % | 6.26 | ||||||||||||||
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,018.15 | 1.40 | % | 7.12 | ||||||||||||||
Global Environmental Markets Fund - Class A | 1,000.00 | 1,018.15 | 1.40 | % | 7.12 | ||||||||||||||
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,019.41 | 1.15 | % | 5.85 | ||||||||||||||
Global Environmental Markets Fund - Class R | 1,000.00 | 1,016.89 | 1.65 | % | 8.39 | ||||||||||||||
MSCI International ESG Index Fund - Individual Investor | 1,000.00 | 1,021.17 | 0.80 | % | 4.08 | ||||||||||||||
MSCI International ESG Index Fund - Institutional | 1,000.00 | 1,022.43 | 0.55 | % | 2.80 | ||||||||||||||
MSCI International ESG Index Fund - Class R | 1,000.00 | 1,019.91 | 1.05 | % | 5.35 | ||||||||||||||
Global Women's Index Fund - Individual Investor2 | 1,000.00 | 1,019.96 | 1.04 | % | 5.30 | ||||||||||||||
Global Women's Index Fund - Institutional2 | 1,000.00 | 1,021.22 | 0.79 | % | 4.02 |
1Expenses are equal to each Funds' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period beginning on July 1, 2014 and ending on December 31, 2014).
2Expenses were reduced during the first half of 2014 (See Note B for more information). Expense examples are based on the most recent six-month expense ratio, which will differ from the expense ratio shown in the Financial Highlights.
45
December 31, 2014
Schedule of Investments
Pax World Balanced Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 61.8% | |||||||||||
Consumer Discretionary: 6.2% | |||||||||||
Amazon.com, Inc. (a) | 5,000 | $ | 1,551,750 | ||||||||
BorgWarner, Inc. | 138,565 | 7,614,147 | |||||||||
DirecTV (a) | 95,000 | 8,236,500 | |||||||||
Newell Rubbermaid, Inc. | 599,100 | 22,819,719 | |||||||||
NIKE, Inc., Class B | 177,667 | 17,082,682 | |||||||||
Time Warner, Inc. | 284,416 | 24,294,815 | |||||||||
VF Corp. | 270,000 | 20,223,000 | |||||||||
Walt Disney Co., The | 229,100 | 21,578,929 | |||||||||
123,401,542 | |||||||||||
Consumer Staples: 3.9% | |||||||||||
Colgate-Palmolive Co. | 120,000 | 8,302,800 | |||||||||
Estee Lauder Cos, Inc., Class A | 245,812 | 18,730,874 | |||||||||
Mead Johnson Nutrition Co. | 157,775 | 15,862,699 | |||||||||
PepsiCo, Inc. | 190,000 | 17,966,400 | |||||||||
Procter & Gamble Co., The | 185,000 | 16,851,650 | |||||||||
77,714,423 | |||||||||||
Energy: 3.3% | |||||||||||
Apache Corp. | 20,000 | 1,253,400 | |||||||||
Core Laboratories NV | 52,000 | 6,257,680 | |||||||||
EQT Corp. | 207,906 | 15,738,484 | |||||||||
Hess Corp. | 142,000 | 10,482,440 | |||||||||
National Oilwell Varco, Inc. | 225,000 | 14,744,250 | |||||||||
ONEOK, Inc. | 245,156 | 12,206,317 | |||||||||
Pioneer Natural Resources Co. | 30,000 | 4,465,500 | |||||||||
Rosetta Resources, Inc. (a) | 255 | 5,689 | |||||||||
65,153,760 | |||||||||||
Financials: 13.9% | |||||||||||
American Express Co. | 330,000 | 30,703,200 | |||||||||
American Tower Corp., REIT | 273,100 | 26,995,935 | |||||||||
AvalonBay Communities, Inc., REIT | 134,360 | 21,953,080 | |||||||||
Bank of New York Mellon Corp., The | 621,300 | 25,206,141 | |||||||||
BlackRock, Inc. | 112,500 | 40,225,500 | |||||||||
Discover Financial Services | 263,797 | 17,276,066 | |||||||||
Goldman Sachs Group, Inc., The | 92,500 | 17,929,275 | |||||||||
HCP, Inc., REIT | 484,400 | 21,328,132 | |||||||||
M&T Bank Corp. | 98,000 | 12,310,760 | |||||||||
Morgan Stanley | 860,300 | 33,379,640 | |||||||||
T Rowe Price Group, Inc. | 234,500 | 20,134,170 | |||||||||
US Bancorp | 220,000 | 9,889,000 | |||||||||
277,330,899 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care: 10.9% | |||||||||||
Abbvie, Inc. | 410,000 | $ | 26,830,400 | ||||||||
Becton Dickinson & Co. | 348,052 | 48,434,916 | |||||||||
Celgene Corp. (a) | 220,000 | 24,609,200 | |||||||||
Express Scripts Holding Co. (a) | 160,000 | 13,547,200 | |||||||||
Gilead Sciences, Inc. (a) | 190,000 | 17,909,400 | |||||||||
Hologic, Inc. (a) | 420,000 | 11,230,800 | |||||||||
Merck & Co., Inc. | 495,000 | 28,111,050 | |||||||||
UnitedHealth Group, Inc. | 395,000 | 39,930,550 | |||||||||
Zoetis, Inc. | 160,000 | 6,884,800 | |||||||||
217,488,316 | |||||||||||
Industrials: 6.9% | |||||||||||
3M Co. | 155,000 | 25,469,600 | |||||||||
Delta Air Lines, Inc. | 325,000 | 15,986,750 | |||||||||
Masco Corp. | 195,000 | 4,914,000 | |||||||||
Nordson Corp. | 186,600 | 14,547,336 | |||||||||
Pall Corp. | 135,000 | 13,663,350 | |||||||||
Quanta Services, Inc. (a) | 509,221 | 14,456,784 | |||||||||
Ryder System, Inc. | 185,852 | 17,256,358 | |||||||||
Stericycle, Inc. (a) | 175,000 | 22,939,000 | |||||||||
Xylem, Inc. | 210,000 | 7,994,700 | |||||||||
137,227,878 | |||||||||||
Information Technology: 12.0% | |||||||||||
Amdocs, Ltd. | 413,341 | 19,284,424 | |||||||||
Apple, Inc. | 487,500 | 53,810,250 | |||||||||
Cognizant Technology Solutions, Class A (a) | 266,188 | 14,017,460 | |||||||||
EMC Corp. | 855,000 | 25,427,700 | |||||||||
Facebook, Inc., Class A (a) | 130,000 | 10,142,600 | |||||||||
Google, Inc., Class A | 38,000 | 20,165,080 | |||||||||
Google, Inc., Class C (a) | 38,000 | 20,003,200 | |||||||||
Intel Corp. | 745,000 | 27,036,050 | |||||||||
Microsoft Corp. | 705,786 | 32,783,760 | |||||||||
Oracle Corp. | 390,000 | 17,538,300 | |||||||||
240,208,824 | |||||||||||
Materials: 2.9% | |||||||||||
Ecolab, Inc. | 15,000 | 1,567,800 | |||||||||
EI du Pont de Nemours & Co. | 248,500 | 18,374,090 | |||||||||
International Paper Co. | 490,900 | 26,302,422 | |||||||||
Nucor Corp. | 230,000 | 11,281,500 | |||||||||
57,525,812 | |||||||||||
Telecommunication Services: 0.6% | |||||||||||
AT&T, Inc. | 380,000 | 12,764,200 |
SEE NOTES TO FINANCIAL STATEMENTS
46
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Utilities: 1.2% | |||||||||||
CenterPoint Energy, Inc. | 566,275 | $ | 13,267,823 | ||||||||
ONE Gas, Inc. | 255,000 | 10,511,100 | |||||||||
23,778,923 | |||||||||||
TOTAL COMMON STOCKS (Cost $971,529,274) | 1,232,594,577 | ||||||||||
AFFILIATED INVESTMENT COMPANIES (NOTE C): 0.9% | |||||||||||
Pax MSCI International ESG Index Fund | 2,205,361 | 17,753,158 | |||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $18,124,281) | 17,753,158 | ||||||||||
BONDS: 36.0% | |||||||||||
Community Investment Notes: 0.2% | |||||||||||
Calvert Social Investment Foundation, Inc., 1.000%, 01/15/15 | $ | 3,000,000 | 3,000,000 | ||||||||
CINI Investment Note, 2.000%, 11/01/17 (b) | 260,300 | 256,265 | |||||||||
Enterprise Community Impact, 1.500%, 12/11/15 (b)(f) | 500,000 | 499,988 | |||||||||
Total Community Investment Notes (Cost $3,760,300) | 3,756,253 | ||||||||||
CORPORATE BONDS: 9.3% | |||||||||||
Consumer Discretionary: 0.9% | |||||||||||
Best Buy Co., Inc., 3.750%, 03/15/16 (d) | 2,396,000 | 2,446,915 | |||||||||
DIRECTV Holdings, LLC/Financing Co., 3.800%, 03/15/22 | 1,000,000 | 1,018,963 | |||||||||
Expedia, Inc., 5.950%, 08/15/20 | 2,000,000 | 2,237,638 | |||||||||
Marriott International, Inc., 3.250%, 09/15/22 | 3,000,000 | 3,017,004 | |||||||||
Newell Rubbermaid, Inc., 2.050%, 12/01/17 | 170,000 | 169,601 | |||||||||
Time Warner Cable, Inc., 6.750%, 07/01/18 | 3,000,000 | 3,443,346 | |||||||||
VF Corp., 5.950%, 11/01/17 | 2,235,000 | 2,518,197 | |||||||||
Walt Disney Co., The, 6.000%, 07/17/17 | 2,141,000 | 2,393,486 | |||||||||
17,245,150 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Consumer Staples: 1.0% | |||||||||||
Anheuser-Busch Inbev Worldwide, 1.375%, 07/15/17 | $ | 4,000,000 | $ | 3,998,920 | |||||||
Costco Wholesale Corp., 1.125%, 12/15/17 | 3,000,000 | 2,982,663 | |||||||||
Kellogg Co., 4.150%, 11/15/19 | 2,000,000 | 2,158,574 | |||||||||
Kimberly-Clark Corp., 6.125%, 08/01/17 | 5,000,000 | 5,597,390 | |||||||||
Kraft Foods Group, Inc., 6.125%, 08/23/18 | 3,000,000 | 3,433,080 | |||||||||
Mondelez International, Inc., 6.125%, 08/23/18 | 2,000,000 | 2,275,526 | |||||||||
20,446,153 | |||||||||||
Energy: 0.3% | |||||||||||
Cameron International Corp., 3.700%, 06/15/24 (d) | 1,250,000 | 1,213,174 | |||||||||
ONEOK Partners, LP, 8.625%, 03/01/19 | 3,775,000 | 4,565,508 | |||||||||
Talisman Energy, Inc., 3.750%, 02/01/21 | 1,000,000 | 968,330 | |||||||||
6,747,012 | |||||||||||
Financials: 3.6% | |||||||||||
American Express Co., 7.000%, 03/19/18 | 1,000,000 | 1,157,798 | |||||||||
American Tower Corp., REIT, 7.250%, 05/15/19 | 1,665,000 | 1,946,142 | |||||||||
Bank of America Corp., 1.350%, 11/21/16 | 4,950,000 | 4,938,204 | |||||||||
Bank of New York Mellon Corp., The, 2.950%, 06/18/15 (d) | 3,000,000 | 3,034,044 | |||||||||
BB&T Corp., 1.450%, 01/12/18 | 3,134,000 | 3,106,352 | |||||||||
BlackRock, Inc., 3.375%, 06/01/22 | 1,000,000 | 1,032,849 | |||||||||
Branch Banking & Trust Co., 0.664%, 12/01/16 | 1,000,000 | 1,001,384 | |||||||||
Branch Banking & Trust Co./Wilson NC, 0.554%, 09/13/16 | 4,000,000 | 3,988,000 | |||||||||
Discover Bank, 3.200%, 08/09/21 | 3,000,000 | 3,017,304 | |||||||||
Ford Motor Credit Co., LLC, 1.482%, 11/20/18 | 3,000,000 | 2,994,996 | |||||||||
Ford Motor Credit Co., LLC, 1.070%, 03/12/19 | 3,000,000 | 2,985,849 |
SEE NOTES TO FINANCIAL STATEMENTS
47
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Financials, continued | |||||||||||
Goldman Sachs Group, Inc., The, 6.250%, 09/01/17 | $ | 3,000,000 | $ | 3,340,017 | |||||||
Goldman Sachs Group, Inc., The, 1.433%, 04/30/18 | 4,000,000 | 4,050,212 | |||||||||
Goldman Sachs Group, Inc., The, 2.000%, 10/30/22 | 3,000,000 | 2,976,816 | |||||||||
International Bank for Reconstruction & Development, 0.375%, 08/24/15 | 4,000,000 | 4,001,504 | |||||||||
International Bank for Reconstruction & Development, 0.625%, 07/12/17 | 2,000,000 | 1,982,454 | |||||||||
International Finance Corp., 2.000%, 09/15/24 | 3,000,000 | 3,018,261 | |||||||||
Morgan Stanley, 0.711%, 10/15/15 | 2,000,000 | 2,003,660 | |||||||||
Morgan Stanley, 1.509%, 04/25/18 | 4,000,000 | 4,066,928 | |||||||||
Morgan Stanley, 3.100%, 11/09/18 | 1,177,000 | 1,243,599 | |||||||||
North American Development Bank, 2.400%, 10/26/22 | 2,000,000 | 1,940,144 | |||||||||
PNC Bank NA, 6.875%, 04/01/18 | 2,000,000 | 2,305,506 | |||||||||
Prudential Financial, Inc., 7.375%, 06/15/19 | 2,000,000 | 2,406,634 | |||||||||
Prudential Financial, Inc., 3.700%, 11/02/20 | 3,000,000 | 3,141,150 | |||||||||
State Street Corp., 4.956%, 03/15/18 | 4,010,000 | 4,346,251 | |||||||||
Toyota Motor Credit Corp., 4.250%, 01/11/21 | 1,480,000 | 1,625,733 | |||||||||
US Bancorp, 1.950%, 11/15/18 | 2,064,000 | 2,072,155 | |||||||||
73,723,946 | |||||||||||
Health Care: 0.9% | |||||||||||
Becton Dickinson & Co., 1.750%, 11/08/16 | 3,000,000 | 3,023,496 | |||||||||
Becton Dickinson & Co., 3.250%, 11/12/20 | 3,000,000 | 3,055,875 | |||||||||
Celgene Corp., 2.300%, 08/15/18 | 950,000 | 958,674 | |||||||||
Celgene Corp., 3.950%, 10/15/20 | 2,000,000 | 2,118,432 | |||||||||
Gilead Sciences, Inc., 3.700%, 04/01/24 | 2,000,000 | 2,101,676 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Health Care, continued | |||||||||||
UnitedHealth Group, Inc., 4.875%, 03/15/15 | $ | 119,000 | $ | 120,022 | |||||||
UnitedHealth Group, Inc., 5.375%, 03/15/16 | 4,000,000 | 4,223,528 | |||||||||
UnitedHealth Group, Inc., 6.000%, 02/15/18 | 2,500,000 | 2,816,153 | |||||||||
18,417,856 | |||||||||||
Industrials: 1.0% | |||||||||||
Atlas Copco AB, 144A, 5.600%, 05/22/17 (c) | 2,505,000 | 2,745,365 | |||||||||
CSX Corp., 7.375%, 02/01/19 | 2,000,000 | 2,397,186 | |||||||||
Cummins, Inc., 7.125%, 03/01/28 | 3,200,000 | 4,350,160 | |||||||||
Ingersoll-Rand Co., 6.443%, 11/15/27 | 2,000,000 | 2,413,468 | |||||||||
Pentair PLC, 5.000%, 05/15/21 | 4,050,000 | 4,510,995 | |||||||||
Ryder System, Inc., 5.850%, 11/01/16 | 2,000,000 | 2,160,702 | |||||||||
United Parcel Service, Inc., 5.500%, 01/15/18 | 1,000,000 | 1,116,255 | |||||||||
19,694,131 | |||||||||||
Information Technology: 1.2% | |||||||||||
Adobe Systems, Inc., 3.250%, 02/01/15 | 2,000,000 | 2,003,830 | |||||||||
Adobe Systems, Inc., 4.750%, 02/01/20 | 1,150,000 | 1,263,827 | |||||||||
Apple, Inc., 0.450%, 05/03/16 | 4,000,000 | 3,996,980 | |||||||||
CA, Inc., 5.375%, 12/01/19 | 3,000,000 | 3,323,964 | |||||||||
Cisco Systems, Inc., 0.734%, 03/01/19 | 2,000,000 | 2,011,822 | |||||||||
Corning, Inc., 8.875%, 08/15/21 | 2,000,000 | 2,618,980 | |||||||||
IBM Corp., 2.000%, 01/05/16 | 1,750,000 | 1,776,119 | |||||||||
IBM Corp., 5.700%, 09/14/17 | 5,000,000 | 5,575,700 | |||||||||
NetApp, Inc., 3.250%, 12/15/22 | 671,000 | 662,939 | |||||||||
23,234,161 |
SEE NOTES TO FINANCIAL STATEMENTS
48
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Materials: 0.2% | |||||||||||
Potash Corp of Saskatchewan, Inc., 3.250%, 12/01/17 | $ | 2,000,000 | $ | 2,087,656 | |||||||
Rock-Tenn Co., 4.900%, 03/01/22 | 2,000,000 | 2,151,632 | |||||||||
4,239,288 | |||||||||||
Telecommunication Services: 0.2% | |||||||||||
Vodafone Group PLC, 5.625%, 02/27/17 | 3,000,000 | 3,252,111 | |||||||||
Utilities: 0.0% | |||||||||||
CenterPoint Energy Houston Electric LLC, 2.250%, 08/01/22 | 1,000,000 | 959,474 | |||||||||
TOTAL CORPORATE BONDS (Cost $180,743,707) | 187,959,282 | ||||||||||
U.S. GOVERNMENT AGENCY BONDS: 8.1% | |||||||||||
Federal Farm Credit Bank (Agency): 1.6% | |||||||||||
Federal Farm Credit Bank, 3.850%, 02/11/15 | 4,000,000 | 4,016,044 | |||||||||
Federal Farm Credit Bank, 1.010%, 06/26/17 | 4,000,000 | 3,987,616 | |||||||||
Federal Farm Credit Bank, 1.120%, 08/20/18 | 4,000,000 | 3,942,224 | |||||||||
Federal Farm Credit Bank, 1.140%, 09/04/18 | 3,500,000 | 3,469,624 | |||||||||
Federal Farm Credit Bank, 1.950%, 08/05/19 | 3,000,000 | 3,000,339 | |||||||||
Federal Farm Credit Bank, 1.740%, 03/11/20 | 3,000,000 | 2,943,999 | |||||||||
Federal Farm Credit Bank, 1.840%, 02/04/21 | 3,000,000 | 2,931,147 | |||||||||
Federal Farm Credit Bank, 3.190%, 07/07/23 | 2,000,000 | 2,011,866 | |||||||||
Federal Farm Credit Bank, 3.280%, 08/06/24 | 2,000,000 | 2,011,612 | |||||||||
Federal Farm Credit Bank, 3.180%, 11/18/24 | 3,000,000 | 3,004,692 | |||||||||
31,319,163 | |||||||||||
Federal Home Loan Bank System (Agency): 2.8% | |||||||||||
Federal Home Loan Bank, 5.625%, 06/13/16 | 2,000,000 | 2,144,640 | |||||||||
Federal Home Loan Bank, 0.500%, 06/19/17 | 2,700,000 | 2,696,795 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | |||||||||||
Federal Home Loan Bank System (Agency), continued | |||||||||||
Federal Home Loan Bank, 1.000%, 06/27/17 | $ | 4,000,000 | $ | 3,994,088 | |||||||
Federal Home Loan Bank, 0.750%, 11/28/17 | 3,000,000 | 2,954,676 | |||||||||
Federal Home Loan Bank, 0.950%, 01/25/18 | 2,000,000 | 1,973,054 | |||||||||
Federal Home Loan Bank, 1.020%, 01/30/18 | 3,000,000 | 2,975,205 | |||||||||
Federal Home Loan Bank, 1.000%, 02/05/18 | 5,000,000 | 4,938,695 | |||||||||
Federal Home Loan Bank, 1.375%, 03/09/18 | 3,000,000 | 3,008,709 | |||||||||
Federal Home Loan Bank, 1.375%, 06/27/18 | 3,000,000 | 2,981,103 | |||||||||
Federal Home Loan Bank, 1.150%, 07/25/18 | 3,000,000 | 2,959,098 | |||||||||
Federal Home Loan Bank, 1.140%, 10/25/18 | 5,000,000 | 4,926,525 | |||||||||
Federal Home Loan Bank, 0.800%, 06/05/19 | 3,000,000 | 2,948,271 | |||||||||
Federal Home Loan Bank, 1.550%, 02/05/20 | 3,000,000 | 2,898,186 | |||||||||
Federal Home Loan Bank, 2.375%, 03/12/21 | 3,000,000 | 3,056,055 | |||||||||
Federal Home Loan Bank, 1.500%, 09/26/22 | 3,000,000 | 2,945,688 | |||||||||
Federal Home Loan Bank, 2.250%, 10/11/22 | 3,000,000 | 2,915,061 | |||||||||
Federal Home Loan Bank, 2.220%, 12/27/22 | 3,000,000 | 2,915,703 | |||||||||
Federal Home Loan Bank, 1.000%, 10/28/19 | 3,000,000 | 2,990,421 | |||||||||
56,221,973 | |||||||||||
Freddie Mac (Agency): 1.3% | |||||||||||
Freddie Mac, 1.000%, 09/29/17 | 4,000,000 | 3,992,832 | |||||||||
Freddie Mac, 1.000%, 02/14/18 | 3,000,000 | 2,973,735 | |||||||||
Freddie Mac, 1.250%, 03/13/18 | 3,000,000 | 2,983,572 | |||||||||
Freddie Mac, 1.050%, 03/26/18 | 3,000,000 | 2,991,276 | |||||||||
Freddie Mac, 1.125%, 05/25/18 | 5,000,000 | 4,951,300 | |||||||||
Freddie Mac, 1.250%, 06/10/19 | 5,500,000 | 5,347,386 | |||||||||
Freddie Mac, 2.000%, 06/27/19 | 3,000,000 | 3,009,879 | |||||||||
26,249,980 |
SEE NOTES TO FINANCIAL STATEMENTS
49
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | |||||||||||
Fannie Mae (Agency): 2.4% | |||||||||||
Fannie Mae, 2.000%, 03/10/16 | $ | 3,000,000 | $ | 3,052,362 | |||||||
Fannie Mae, 0.500%, 03/30/16 | 925,000 | 930,587 | |||||||||
Fannie Mae, 0.800%, 06/19/17 | 2,290,000 | 2,262,815 | |||||||||
Fannie Mae, 2.200%, 10/27/17 | 5,000,000 | 5,128,145 | |||||||||
Fannie Mae, 1.000%, 12/27/17 | 3,000,000 | 2,970,930 | |||||||||
Fannie Mae, 1.050%, 01/30/18 | 3,000,000 | 2,974,218 | |||||||||
Fannie Mae, 1.050%, 01/30/18 | 2,000,000 | 1,985,172 | |||||||||
Fannie Mae, 1.050%, 05/25/18 | 3,000,000 | 2,939,601 | |||||||||
Fannie Mae, 1.000%, 12/20/18 | 4,000,000 | 3,901,244 | |||||||||
Fannie Mae, 1.000%, 03/13/19 | 6,645,000 | 6,629,664 | |||||||||
Fannie Mae, 1.625%, 08/08/19 | 2,000,000 | 1,991,032 | |||||||||
Fannie Mae, 1.500%, 10/23/19 | 3,000,000 | 2,941,623 | |||||||||
Fannie Mae, 1.500%, 04/17/20 | 2,750,000 | 2,682,647 | |||||||||
Fannie Mae, 2.000%, 05/21/21 | 925,000 | 906,915 | |||||||||
Fannie Mae, 2.000%, 11/14/22 | 6,000,000 | 5,798,832 | |||||||||
47,095,787 | |||||||||||
TOTAL U.S. GOVERNMENT AGENCY BONDS (Cost $161,245,330) | 160,886,903 | ||||||||||
GOVERNMENT BONDS: 0.6% | |||||||||||
Canadian Government Bond, 2.500%, 06/01/15 (e)(CA) | 3,000,000 | 2,598,313 | |||||||||
U.S. Dept of Housing & Urban Development, 4.330%, 08/01/15 | 3,000,000 | 3,069,480 | |||||||||
U.S. Dept of Housing & Urban Development, 4.620%, 08/01/18 | 5,000,000 | 5,552,075 | |||||||||
TOTAL GOVERNMENT BONDS (Cost $10,898,718) | 11,219,868 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MUNICIPAL BONDS: 1.3% | |||||||||||
Alderwood Water & Wastewater District, 5.150%, 12/01/25 | $ | 2,435,000 | $ | 2,663,038 | |||||||
City of Portland OR, 6.031%, 06/15/18 | 3,125,657 | 3,347,829 | |||||||||
Iowa Finance Authority, 3.430%, 08/01/19 | 2,000,000 | 2,113,740 | |||||||||
New Jersey State Transportation Trust Fund Authority, 6.104%, 12/15/28 | 2,500,000 | 2,775,575 | |||||||||
New York City Transitional Finance Authority, 4.100%, 11/01/27 | 2,550,000 | 2,708,916 | |||||||||
State Board of Administration Finance Corp., 1.298%, 07/01/16 | 4,260,000 | 4,289,309 | |||||||||
State of California, 5.000%, 10/01/28 | 3,000,000 | 3,630,030 | |||||||||
State of Colorado Department of Transportation, 0.963%, 12/15/16 | 1,485,000 | 1,479,535 | |||||||||
State of Illinois, 5.000%, 07/01/21 | 2,930,000 | 3,298,799 | |||||||||
TOTAL MUNICIPAL BONDS (Cost $25,517,742) | 26,306,771 | ||||||||||
U.S. TREASURY NOTES: 9.9% | |||||||||||
United States Treasury Note (TIPS), 1.875%, 07/15/15 | 3,051,925 | 3,062,418 | |||||||||
United States Treasury Note, 0.375%, 08/31/15 | 15,000,000 | 15,021,090 | |||||||||
United States Treasury Note, 0.250%, 12/15/15 (d) | 10,000,000 | 10,001,560 | |||||||||
United States Treasury Note (TIPS), 2.000%, 01/15/16 | 2,392,740 | 2,428,818 | |||||||||
United States Treasury Note, 0.375%, 01/15/16 | 27,000,000 | 27,018,981 | |||||||||
United States Treasury Note, 0.250%, 02/29/16 | 905,000 | 903,939 | |||||||||
United States Treasury Note, 0.375%, 03/15/16 | 20,000,000 | 20,003,120 | |||||||||
United States Treasury Note, 0.875%, 09/15/16 | 5,000,000 | 5,026,560 | |||||||||
United States Treasury Note, 0.625%, 02/15/17 | 905,000 | 902,808 | |||||||||
United States Treasury Note (TIPS), 0.125%, 04/15/18 | 1,006,676 | 1,003,215 |
SEE NOTES TO FINANCIAL STATEMENTS
50
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. TREASURY NOTES, continued | |||||||||||
United States Treasury Note, 1.500%, 05/31/19 | $ | 5,000,000 | $ | 4,987,890 | |||||||
United States Treasury Note, 1.750%, 09/30/19 | 10,000,000 | 10,059,380 | |||||||||
United States Treasury Note, 3.375%, 11/15/19 | 5,000,000 | 5,417,190 | |||||||||
United States Treasury Note, 3.625%, 02/15/20 | 2,000,000 | 2,192,968 | |||||||||
United States Treasury Note (TIPS), 1.250%, 07/15/20 | 4,355,200 | 4,576,361 | |||||||||
United States Treasury Note, 2.125%, 09/30/21 | 10,000,000 | 10,113,280 | |||||||||
United States Treasury Note, 2.000%, 10/31/21 | 3,000,000 | 3,007,968 | |||||||||
United States Treasury Note, 2.000%, 11/15/21 | 3,000,000 | 3,011,250 | |||||||||
United States Treasury Note, 2.375%, 08/15/24 | 41,000,000 | 41,762,354 | |||||||||
United States Treasury Note, 4.375%, 11/15/39 | 4,000,000 | 5,245,624 | |||||||||
United States Treasury Note, 3.125%, 08/15/44 (d) | 20,000,000 | 21,535,940 | |||||||||
TOTAL U.S. TREASURY NOTES (Cost $194,723,055) | 197,282,714 | ||||||||||
MORTGAGE-BACKED SECURITIES: 6.6% | |||||||||||
Ginnie Mae (Mortgage Backed): 1.0% | |||||||||||
Ginnie Mae, 6.000%, 05/15/21 | 212,206 | 229,074 | |||||||||
Ginnie Mae, 6.000%, 07/15/21 | 7,945 | 8,465 | |||||||||
Ginnie Mae, 6.000%, 02/15/22 | 267,684 | 287,957 | |||||||||
Ginnie Mae, 1.625%, 11/20/33 | 2,082,395 | 2,169,683 | |||||||||
Ginnie Mae, 1.625%, 05/20/34 | 2,296,536 | 2,393,946 | |||||||||
Ginnie Mae, 1.625%, 08/20/34 | 1,268,405 | 1,318,382 | |||||||||
Ginnie Mae, 1.625%, 04/20/35 | 2,340,824 | 2,442,075 | |||||||||
Ginnie Mae, 1.625%, 07/20/35 | 1,642,128 | 1,715,447 | |||||||||
Ginnie Mae, 6.000%, 08/15/35 | 637,760 | 737,445 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Ginnie Mae (Mortgage Backed), continued | |||||||||||
Ginnie Mae, 6.000%, 05/20/36 | $ | 396,624 | $ | 450,278 | |||||||
Ginnie Mae, 6.000%, 01/15/38 | 630,786 | 733,517 | |||||||||
Ginnie Mae, 2.000%, 07/20/41 | 974,542 | 1,016,270 | |||||||||
Ginnie Mae, 2.000%, 06/20/43 | 2,887,108 | 2,948,297 | |||||||||
Ginnie Mae, 3.458%, 05/16/53 | 2,929,396 | 2,956,938 | |||||||||
19,407,774 | |||||||||||
Freddie Mac (Mortgage-Backed): 1.6% | |||||||||||
Freddie Mac, 4.500%, 09/01/18 | 92,043 | 96,694 | |||||||||
Freddie Mac, 4.000%, 09/01/18 | 76,544 | 81,086 | |||||||||
Freddie Mac, 5.500%, 10/01/18 | 53,942 | 57,062 | |||||||||
Freddie Mac, 5.000%, 11/01/18 | 79,297 | 83,383 | |||||||||
Freddie Mac, 5.000%, 11/01/18 | 67,546 | 71,012 | |||||||||
Freddie Mac, 3.500%, 11/01/25 | 1,063,750 | 1,124,988 | |||||||||
Freddie Mac, 3.000%, 11/01/28 | 2,144,913 | 2,224,864 | |||||||||
Freddie Mac, 3.500%, 01/01/29 | 1,781,475 | 1,887,088 | |||||||||
Freddie Mac, 4.000%, 08/01/31 | 2,824,258 | 3,042,684 | |||||||||
Freddie Mac, 3.000%, 07/01/33 | 2,863,315 | 2,952,554 | |||||||||
Freddie Mac, 3.500%, 01/01/34 | 2,870,457 | 3,021,569 | |||||||||
Freddie Mac, 2.353%, 12/01/35 | 1,456,245 | 1,555,094 | |||||||||
Freddie Mac, 2.275%, 05/01/36 | 13,665 | 13,697 | |||||||||
Freddie Mac, 2.373%, 11/01/36 | 1,216,879 | 1,303,726 | |||||||||
Freddie Mac, 2.408%, 04/01/37 | 546,015 | 580,506 | |||||||||
Freddie Mac, 2.392%, 01/01/38 | 1,520,207 | 1,623,313 |
SEE NOTES TO FINANCIAL STATEMENTS
51
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Freddie Mac (Mortgage-Backed), continued | |||||||||||
Freddie Mac, 5.000%, 07/01/39 | $ | 954,861 | $ | 1,058,330 | |||||||
Freddie Mac, 5.000%, 08/01/39 | 658,239 | 729,533 | |||||||||
Freddie Mac, 5.500%, 10/01/39 | 988,953 | 1,113,582 | |||||||||
Freddie Mac, 2.490%, 12/01/39 | 3,114,725 | 3,323,018 | |||||||||
Freddie Mac, 3.500%, 01/01/41 | 1,457,454 | 1,519,516 | |||||||||
Freddie Mac, 2.429%, 01/01/43 | 4,056,127 | 4,093,070 | |||||||||
31,556,369 | |||||||||||
Fannie Mae (Mortgage Backed): 3.4% | |||||||||||
Fannie Mae, 4.500%, 07/01/18 | 252,794 | 265,665 | |||||||||
Fannie Mae, 3.500%, 09/01/18 | 245,589 | 259,733 | |||||||||
Fannie Mae, 3.500%, 10/01/18 | 147,093 | 155,564 | |||||||||
Fannie Mae, 3.500%, 10/01/18 | 44,135 | 46,677 | |||||||||
Fannie Mae, 5.000%, 11/01/18 | 148,150 | 156,209 | |||||||||
Fannie Mae, 5.000%, 11/01/18 | 110,223 | 116,190 | |||||||||
Fannie Mae, 5.000%, 11/01/18 | 18,672 | 19,686 | |||||||||
Fannie Mae, 5.000%, 10/01/20 | 436,169 | 468,711 | |||||||||
Fannie Mae, 3.500%, 01/01/26 | 1,610,441 | 1,709,888 | |||||||||
Fannie Mae, 3.500%, 02/01/26 | 1,432,523 | 1,516,010 | |||||||||
Fannie Mae, 4.000%, 10/01/26 | 2,464,675 | 2,641,340 | |||||||||
Fannie Mae, 3.000%, 11/01/26 | 1,949,931 | 2,032,644 | |||||||||
Fannie Mae, 3.000%, 11/01/26 | 1,447,929 | 1,510,910 | |||||||||
Fannie Mae, 3.500%, 12/01/26 | 2,419,728 | 2,569,012 | |||||||||
Fannie Mae, 2.500%, 03/01/27 | 1,914,872 | 1,952,515 | |||||||||
Fannie Mae, 2.500%, 06/01/27 | 5,135,934 | 5,244,783 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Fannie Mae (Mortgage Backed), continued | |||||||||||
Fannie Mae, 2.500%, 09/01/27 | $ | 2,292,769 | $ | 2,341,437 | |||||||
Fannie Mae, 2.500%, 12/01/27 | 3,238,343 | 3,305,041 | |||||||||
Fannie Mae, 3.000%, 04/01/28 | 3,399,869 | 3,541,177 | |||||||||
Fannie Mae, 3.000%, 09/01/28 | 2,908,503 | 3,017,029 | |||||||||
Fannie Mae, 4.000%, 01/01/31 | 2,404,576 | 2,593,166 | |||||||||
Fannie Mae, 4.000%, 01/01/32 | 1,953,665 | 2,120,194 | |||||||||
Fannie Mae, 6.500%, 06/01/32 | 253,979 | 289,475 | |||||||||
Fannie Mae, 2.550%, 12/01/33 | 117,337 | 126,205 | |||||||||
Fannie Mae, 2.170%, 12/01/33 | 287,070 | 309,205 | |||||||||
Fannie Mae, 6.000%, 02/01/34 | 487,634 | 554,571 | |||||||||
Fannie Mae, 4.500%, 04/01/34 | 2,717,296 | 2,975,513 | |||||||||
Fannie Mae, 2.160%, 05/01/34 | 960,802 | 1,025,872 | |||||||||
Fannie Mae, 2.359%, 07/01/34 | 1,479,383 | 1,581,557 | |||||||||
Fannie Mae, 2.222%, 01/01/35 | 637,972 | 678,925 | |||||||||
Fannie Mae, 1.870%, 03/01/35 | 573,076 | 604,402 | |||||||||
Fannie Mae, 2.194%, 06/01/35 | 163,641 | 173,910 | |||||||||
Fannie Mae, 1.865%, 10/01/35 | 2,622,047 | 2,760,553 | |||||||||
Fannie Mae, 1.911%, 12/01/35 | 1,849,334 | 1,971,772 | |||||||||
Fannie Mae, 2.045%, 05/01/36 | 164,373 | 172,215 | |||||||||
Fannie Mae, 2.167%, 06/01/37 | 445,658 | 478,225 | |||||||||
Fannie Mae, 2.122%, 09/01/37 | 3,240,571 | 3,451,084 | |||||||||
Fannie Mae, 4.000%, 01/01/41 | 3,306,359 | 3,533,928 | |||||||||
Fannie Mae, 4.000%, 02/01/41 | 2,383,552 | 2,575,053 |
SEE NOTES TO FINANCIAL STATEMENTS
52
December 31, 2014
Schedule of Investments, continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Fannie Mae (Mortgage Backed), continued | |||||||||||
Fannie Mae, 3.500%, 10/01/41 | $ | 2,211,250 | $ | 2,317,011 | |||||||
Fannie Mae, 2.709%, 04/01/42 | 2,076,972 | 2,133,105 | |||||||||
Fannie Mae, 2.073%, 09/01/42 | 2,335,554 | 2,418,962 | |||||||||
67,715,124 | |||||||||||
Commercial Mortgage-Backed: 0.6% | |||||||||||
FREMF Mortgage Trust, 144A, 5.435%, 04/25/20 (c) | 3,264,000 | 3,644,626 | |||||||||
FREMF Mortgage Trust, 144A, 5.333%, 02/25/47 (c) | 3,300,000 | 3,656,794 | |||||||||
FREMF Mortgage Trust, 144A, 4.599%, 01/25/48 (c) | 2,986,504 | 3,212,623 | |||||||||
Morgan Stanley Capital I, Inc., 4.989%, 08/13/42 | 1,869,488 | 1,874,529 | |||||||||
12,388,572 | |||||||||||
TOTAL MORTGAGE-BACKED SECURITIES (Cost $129,120,972) | 131,067,839 | ||||||||||
TOTAL BONDS (Cost $706,009,824) | 718,479,630 | ||||||||||
CERTIFICATES OF DEPOSIT: 0.0% (g) | |||||||||||
Hope Community Credit Union, 0.750%, 05/07/15 | 100,000 | 100,000 | |||||||||
Urban Partnership Bank, 0.200%, 03/19/16 | 248,000 | 248,000 | |||||||||
TOTAL CERTIFICATES OF DEPOSIT (Cost $348,000) | 348,000 | ||||||||||
MONEY MARKET: 0.0% (g) | |||||||||||
Self Help Credit Union Money Market Account | 417,628 | 417,628 | |||||||||
(Cost $417,628) | |||||||||||
TIME DEPOSIT: 1.2% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 01/02/15 | 22,976,000 | 22,976,000 | |||||||||
(Cost $22,976,000) |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 0.3% | |||||||||||
State Street Navigator Securities Lending Prime Portfolio | 5,043,105 | $ | 5,043,105 | ||||||||
(Cost $5,043,105) | |||||||||||
TOTAL INVESTMENTS: 100.2% (Cost $1,724,448,112) | 1,997,612,098 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -0.3% | (5,043,105 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 2,152,081 | ||||||||||
(NET): 0.1% | |||||||||||
NET ASSETS: 100.0% | $ | 1,994,721,074 |
(a) Non income producing security.
(b) Fair Valued security.
(c) Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers.
(d) Security or partial position of this security was on loan as of December 31, 2014. The total market value of securities on loan as of December 31, 2014 was $36,395,176.
(e) Principal amount is in Canadian dollars; value is in U.S. dollars.
(f) Illiquid security.
(g) Rounds to less than 0.05%.
CA Canada
LP Limited Partnership
REIT Real Estate Investment Trust
TIPS Treasury Inflation Protected Securities
SEE NOTES TO FINANCIAL STATEMENTS
53
December 31, 2014
Schedule of Investments, continued
Pax World Growth Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 97.0% | |||||||||||
Consumer Discretionary: 17.1% | |||||||||||
Amazon.com, Inc. (a) | 6,750 | $ | 2,094,863 | ||||||||
BorgWarner, Inc. | 53,300 | 2,928,835 | |||||||||
DirecTV (a) | 17,000 | 1,473,900 | |||||||||
Macy's, Inc. | 40,500 | 2,662,875 | |||||||||
Marriott International, Inc., Class A | 41,000 | 3,199,230 | |||||||||
Newell Rubbermaid, Inc. | 92,000 | 3,504,281 | |||||||||
NIKE, Inc., Class B | 31,278 | 3,007,380 | |||||||||
Priceline Group, Inc., The (a) | 1,675 | 1,909,852 | |||||||||
Scripps Networks Interactive, Class A | 27,000 | 2,032,289 | |||||||||
Starbucks Corp. | 25,150 | 2,063,558 | |||||||||
Time Warner, Inc. | 34,550 | 2,951,261 | |||||||||
VF Corp. | 47,300 | 3,542,769 | |||||||||
Walt Disney Co., The | 9,500 | 894,805 | |||||||||
Whirlpool Corp. | 11,000 | 2,131,140 | |||||||||
34,397,038 | |||||||||||
Consumer Staples: 6.5% | |||||||||||
Estee Lauder Cos, Inc., Class A | 35,800 | 2,727,960 | |||||||||
General Mills, Inc. | 36,500 | 1,946,545 | |||||||||
PepsiCo, Inc. | 55,430 | 5,241,461 | |||||||||
Procter & Gamble Co., The | 33,600 | 3,060,624 | |||||||||
12,976,590 | |||||||||||
Financials: 8.3% | |||||||||||
American Tower Corp., REIT | 22,950 | 2,268,608 | |||||||||
CBRE Group, Inc., Class A (a) | 68,500 | 2,346,125 | |||||||||
Morgan Stanley | 68,800 | 2,669,440 | |||||||||
PNC Financial Services Group, Inc. | 46,200 | 4,214,826 | |||||||||
State Street Corp. | 39,650 | 3,112,525 | |||||||||
Weyerhaeuser Co., REIT | 53,500 | 1,920,115 | |||||||||
16,531,639 | |||||||||||
Health Care: 15.6% | |||||||||||
Abbott Laboratories | 95,000 | 4,276,900 | |||||||||
Agilent Technologies, Inc. | 47,500 | 1,944,650 | |||||||||
Alexion Pharmaceuticals, Inc. (a) | 8,850 | 1,637,516 | |||||||||
Biogen Idec, Inc. (a) | 4,500 | 1,527,525 | |||||||||
Bristol-Myers Squibb Co. | 40,500 | 2,390,714 | |||||||||
Celgene Corp. (a) | 27,000 | 3,020,220 | |||||||||
Express Scripts Holding Co. (a) | 29,750 | 2,518,933 | |||||||||
Gilead Sciences, Inc. (a) | 29,150 | 2,747,679 | |||||||||
Hologic, Inc. (a) | 72,750 | 1,945,335 | |||||||||
Laboratory Corp of America Holdings (a) | 18,400 | 1,985,360 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Mylan, Inc. (a) | 42,000 | $ | 2,367,540 | ||||||||
Roche Holding AG | 5,900 | 1,598,559 | |||||||||
Thermo Fisher Scientific, Inc. | 26,462 | 3,315,424 | |||||||||
31,276,355 | |||||||||||
Industrials: 14.5% | |||||||||||
3M Co. | 30,000 | 4,929,599 | |||||||||
Cummins, Inc. | 19,500 | 2,811,315 | |||||||||
Delta Air Lines, Inc. | 25,000 | 1,229,750 | |||||||||
Eaton Corp PLC | 37,050 | 2,517,918 | |||||||||
Expeditors Int. of Washington, Inc. | 46,000 | 2,052,060 | |||||||||
Landstar System, Inc. | 29,250 | 2,121,503 | |||||||||
Pall Corp. | 18,375 | 1,859,734 | |||||||||
Quanta Services, Inc. (a) | 65,700 | 1,865,223 | |||||||||
Roper Industries, Inc. | 13,100 | 2,048,185 | |||||||||
Stanley Black & Decker, Inc. | 34,500 | 3,314,759 | |||||||||
United Parcel Service, Inc., Class B | 27,951 | 3,107,313 | |||||||||
United Rentals, Inc. (a) | 10,750 | 1,096,608 | |||||||||
28,953,967 | |||||||||||
Information Technology: 29.7% (b) | |||||||||||
Apple, Inc. | 88,425 | 9,760,351 | |||||||||
ASML Holding NV | 16,294 | 1,756,982 | |||||||||
Cognizant Technology Solutions, Class A (a) | 46,000 | 2,422,360 | |||||||||
eBay, Inc. (a) | 46,750 | 2,623,610 | |||||||||
EMC Corp. | 88,500 | 2,631,990 | |||||||||
Facebook, Inc., Class A (a) | 20,000 | 1,560,400 | |||||||||
Google, Inc., Class A | 6,905 | 3,664,206 | |||||||||
Google, Inc., Class C (a) | 5,305 | 2,792,552 | |||||||||
IBM | 14,967 | 2,401,305 | |||||||||
Ingram Micro Inc., Class A (a) | 64,000 | 1,768,960 | |||||||||
Intuit, Inc. | 26,400 | 2,433,816 | |||||||||
MasterCard, Inc., Class A | 28,000 | 2,412,480 | |||||||||
Microsoft Corp. | 96,500 | 4,482,425 | |||||||||
Oracle Corp. | 37,320 | 1,678,280 | |||||||||
QUALCOMM, Inc. | 48,250 | 3,586,423 | |||||||||
Red Hat, Inc. (a) | 23,200 | 1,604,048 | |||||||||
salesforce.com, inc. (a) | 49,750 | 2,950,673 | |||||||||
SunPower Corp. (a)(c) | 67,250 | 1,737,068 | |||||||||
Tableau Software, Inc. (a) | 14,115 | 1,196,387 | |||||||||
Texas Instruments, Inc. | 48,500 | 2,593,053 | |||||||||
Trimble Navigation, Ltd. (a) | 52,750 | 1,399,985 | |||||||||
Visa, Inc., Class A | 8,000 | 2,097,600 | |||||||||
59,554,954 |
SEE NOTES TO FINANCIAL STATEMENTS
54
December 31, 2014
Schedule of Investments, continued
Pax World Growth Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Materials: 2.4% | |||||||||||
Nucor Corp. | 50,000 | $ | 2,452,500 | ||||||||
Praxair, Inc. | 17,750 | 2,299,690 | |||||||||
4,752,190 | |||||||||||
Telecommunication Services: 1.6% | |||||||||||
Verizon Communications, Inc. | 46,370 | 2,169,189 | |||||||||
Vodafone Group PLC, ADR | 27,729 | 947,500 | |||||||||
3,116,689 | |||||||||||
Utilities: 1.3% | |||||||||||
American Water Works Co., Inc. | 47,404 | 2,526,633 | |||||||||
TOTAL COMMON STOCKS (Cost $125,248,110) | 194,086,055 | ||||||||||
TIME DEPOSIT: 2.8% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 01/02/15 | $ | 5,683,000 | 5,683,000 | ||||||||
(Cost $5,683,000) | |||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 0.9% | |||||||||||
State Street Navigator Securities Lending Prime Portfolio | 1,731,135 | 1,731,135 | |||||||||
(Cost $1,731,135) | |||||||||||
TOTAL INVESTMENTS: 100.7% (Cost $132,662,245) | 201,500,190 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -0.9% | (1,731,135 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 398,697 | ||||||||||
(NET): 0.2% | |||||||||||
NET ASSETS: 100.0% | $ | 200,167,752 |
(a) Non-income producing security.
(b) Broad industry sectors used for financial reporting purposes. Diversification compliance testing is based on narrower industries within broad sector.
(c) Security or partial position of this security was on loan as of December 31, 2014. The total market value of securities on loan as of December 31, 2014 was $1,719,632.
ADR American Depositary Receipt
REIT Real Estate Investment Trust
Pax World Small Cap Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 95.6% | |||||||||||
Consumer Discretionary: 9.8% | |||||||||||
Carter's, Inc. | 56,157 | $ | 4,903,068 | ||||||||
Columbia Sportswear Co. | 80,800 | 3,598,832 | |||||||||
Gannett Co., Inc. | 132,396 | 4,227,404 | |||||||||
Jamba, Inc. (a) | 195,003 | 2,942,595 | |||||||||
Libbey, Inc. (a) | 130,000 | 4,087,200 | |||||||||
19,759,099 | |||||||||||
Consumer Staples: 2.5% | |||||||||||
Pantry, Inc., The (a) | 136,851 | 5,071,698 | |||||||||
Energy: 2.0% | |||||||||||
Ultra Petroleum Corp. (a)(b) | 307,951 | 4,052,635 | |||||||||
Financials: 27.4% (c) | |||||||||||
Cape Bancorp, Inc. | 134,303 | 1,263,791 | |||||||||
Capitol Federal Financial, Inc. | 577,688 | 7,382,853 | |||||||||
FBR & Co. (a) | 196,290 | 4,826,771 | |||||||||
Fox Chase Bancorp, Inc. | 330,302 | 5,506,134 | |||||||||
Hampden Bancorp, Inc. | 98,452 | 2,106,873 | |||||||||
Investors Bancorp, Inc. | 538,390 | 6,043,428 | |||||||||
LaSalle Hotel Properties, REIT | 132,639 | 5,367,900 | |||||||||
Meridian Bancorp, Inc. (a) | 476,628 | 5,347,766 | |||||||||
Peoples Federal Bancshares, Inc. | 229,228 | 5,166,799 | |||||||||
Physicians Realty Trust, REIT | 175,000 | 2,905,000 | |||||||||
SEI Investments Co. | 83,800 | 3,355,352 | |||||||||
United Financial Bancorp., Inc. | 409,152 | 5,875,423 | |||||||||
55,148,090 | |||||||||||
Health Care: 14.0% | |||||||||||
Cantel Medical Corp. | 113,162 | 4,895,388 | |||||||||
Exactech, Inc. (a) | 172,474 | 4,065,212 | |||||||||
Hologic, Inc. (a) | 302,456 | 8,087,674 | |||||||||
Natus Medical, Inc. (a) | 204,449 | 7,368,342 | |||||||||
Quintiles Transnational Holdings, Inc. (a) | 30,100 | 1,771,987 | |||||||||
Sirona Dental Systems, Inc. (a) | 24,300 | 2,123,091 | |||||||||
28,311,694 | |||||||||||
Industrials: 9.6% | |||||||||||
Knoll, Inc. | 265,802 | 5,627,028 | |||||||||
Lydall, Inc. (a) | 100,400 | 3,295,128 | |||||||||
NN, Inc. | 166,844 | 3,430,313 | |||||||||
Oshkosh Corp. | 64,200 | 3,123,330 |
SEE NOTES TO FINANCIAL STATEMENTS
55
December 31, 2014
Schedule of Investments, continued
Pax World Small Cap Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Industrials, continued | |||||||||||
United Stationers, Inc. | 71,703 | $ | 3,022,998 | ||||||||
Thermon Group Holdings, Inc. (a) | 39,934 | 966,003 | |||||||||
19,464,800 | |||||||||||
Information Technology: 24.0% | |||||||||||
Amdocs, Ltd. | 80,000 | 3,732,400 | |||||||||
Broadridge Financial Solutions, Inc. | 80,000 | 3,694,400 | |||||||||
Dealertrack Technologies, Inc. (a) | 96,401 | 4,271,528 | |||||||||
Evolving Systems, Inc. | 202,085 | 1,893,536 | |||||||||
ExlService Holdings, Inc. (a) | 113,143 | 3,248,336 | |||||||||
Open Text Corp. (b) | 81,925 | 4,772,951 | |||||||||
Plantronics, Inc. | 34,265 | 1,816,730 | |||||||||
Sonus Networks, Inc. (a) | 922,599 | 3,662,718 | |||||||||
SS&C Technologies Holdings, Inc. | 65,733 | 3,844,723 | |||||||||
Syntel, Inc. (a) | 73,174 | 3,291,367 | |||||||||
Teradyne, Inc. | 133,769 | 2,647,289 | |||||||||
TheStreet, Inc. | 1,371,653 | 3,264,534 | |||||||||
TiVo, Inc. (a) | 368,989 | 4,368,830 | |||||||||
Verint Systems, Inc. (a) | 37,000 | 2,156,360 | |||||||||
Westell Technologies, Inc., Class A (a) | 1,250,986 | 1,876,479 | |||||||||
48,542,181 | |||||||||||
Materials: 2.2% | |||||||||||
Axiall Corp. | 50,000 | 2,123,500 | |||||||||
Innophos Holdings, Inc. | 40,000 | 2,338,000 | |||||||||
4,461,500 | |||||||||||
Utilities: 4.1% | |||||||||||
Laclede Group, Inc., The | 94,873 | 5,047,244 | |||||||||
Unitil Corp. | 89,265 | 3,273,348 | |||||||||
8,320,592 | |||||||||||
TOTAL COMMON STOCKS (Cost $185,037,747) | 193,132,289 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
TIME DEPOSIT: 5.4% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 01/02/15 | $ | 10,938,000 | $ | 10,938,000 | |||||||
TOTAL TIME DEPOSIT (Cost $10,938,000) | |||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 3.4% | |||||||||||
State Street Navigator Securities Lending Prime Portfolio | 6,899,006 | 6,899,006 | |||||||||
(Cost $6,899,006) | |||||||||||
TOTAL INVESTMENTS: 104.4% (Cost $202,874,753) | 210,969,295 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -3.4% | (6,899,006 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | (2,011,812 | ) | |||||||||
(NET): -1.0% | |||||||||||
NET ASSETS: 100.0% | $ | 202,058,477 |
(a) Non-income producing security.
(b) Security or partial position of this security was on loan as of December 31, 2014. The total market value of securities on loan as of December 31, 2014 was $6,699,228.
(c) Broad industry sectors used for financial reporting purposes. Diversification compliance testing is based on narrower industries within broad sector.
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
56
December 31, 2014
Schedule of Investments, continued
Pax World High Yield Bond Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 0.3% | |||||||||||
Health Care: 0.0% | |||||||||||
Interactive Health, Inc. (b)(c)(e) | 706 | $ | 0 | ||||||||
Telecommunications: 0.3% | |||||||||||
T Mobile USA, Inc. (e) | 54,000 | 1,454,760 | |||||||||
TOTAL COMMON STOCKS (Cost $1,583,678) | 1,454,760 | ||||||||||
PREFERRED STOCKS: 1.8% | |||||||||||
Energy: 0.2% | |||||||||||
Vanguard Natural Resources LLC, 7.625% (b)(d)(e) | 57,779 | 1,121,490 | |||||||||
Financial Services: 1.6% | |||||||||||
Hercules Tech Growth Capital, Inc., 7.000% (b)(e) | 72,219 | 1,847,362 | |||||||||
Hercules Tech Growth Capital, Inc., 6.250% (b)(d)(e) | 276,125 | 6,969,395 | |||||||||
8,816,757 | |||||||||||
Health Care: 0.0% | |||||||||||
Interactive Health, Inc., 0.000% (b)(c)(e) | 1,412 | 0 | |||||||||
TOTAL PREFERRED STOCKS (Cost $10,489,692) | 9,938,247 | ||||||||||
EXCHANGE TRADED FUNDS: 0.4% | |||||||||||
ProShares UltraShort Euro (d) | 100,000 | 2,161,000 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $2,008,510) | 2,161,000 | ||||||||||
BONDS: 94.9% | |||||||||||
CORPORATE BONDS: 85.8% | |||||||||||
Automotive: 1.4% | |||||||||||
Lear Corp., 5.375%, 03/15/24 | $ | 1,000,000 | 1,027,500 | ||||||||
Stackpole International Intermediate Co., 144A, 7.750%, 10/15/21 (a)(d) | 7,000,000 | 7,035,000 | |||||||||
8,062,500 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Banking: 0.4% | |||||||||||
Bank of America Corp., 1.350%, 11/21/16 (b) | $ | 2,000,000 | $ | 1,995,234 | |||||||
Basic Industry: 7.4% | |||||||||||
Algeco Scotsman Global Finance PLC, 144A, 8.500%, 10/15/18 (a)(d) | 5,750,000 | 5,577,500 | |||||||||
FMG Resources, 144A, 6.875%, 02/01/18 (a)(d) | 1,333,333 | 1,213,333 | |||||||||
Gibraltar Industries, Inc., 6.250%, 02/01/21 | 250,000 | 255,000 | |||||||||
Kissner Milling Co., Ltd., 144A, 7.250%, 06/01/19 (a) | 8,000,000 | 8,020,000 | |||||||||
Neenah Paper, Inc., 144A, 5.250%, 05/15/21 (a) | 1,000,000 | 1,025,000 | |||||||||
Nexeo Solutions LLC/Finance Corp., 8.375%, 03/01/18 (b) | 8,000,000 | 7,800,000 | |||||||||
Polymer Group, Inc., 7.750%, 02/01/19 | 1,000,000 | 1,041,250 | |||||||||
Polymer Group, Inc., 144A, 6.875%, 06/01/19 (a) | 6,000,000 | 5,782,500 | |||||||||
Sappi Papier Holding GmbH, 144A, 6.625%, 04/15/21 (a) | 6,750,000 | 6,952,500 | |||||||||
Sappi Papier Holding GmbH, 144A, 7.500%, 06/15/32 (a) | 2,955,000 | 2,777,700 | |||||||||
Zachry Holdings, Inc., 144A, 7.500%, 02/01/20 (a) | 1,000,000 | 1,010,000 | |||||||||
41,454,783 | |||||||||||
Capital Goods: 6.4% | |||||||||||
CTP Transportation Products LLC/Finance, Inc., 144A, 8.250%, 12/15/19 (a) | 6,000,000 | 6,360,000 | |||||||||
Hyva Global BV, 144A, 8.625%, 03/24/16 (a)(b)(d) | 4,000,000 | 3,850,000 | |||||||||
Mcron Finance Sub LLC/ Finance Corp., 144A, 8.375%, 05/15/19 (a) | 4,198,000 | 4,470,870 | |||||||||
Milacron LLC/Mcron Finance Corp., 144A, 7.750%, 02/15/21 (a) | 1,615,000 | 1,655,375 | |||||||||
Paperworks Industries, Inc., 144A, 9.500%, 08/15/19 (a) | 3,000,000 | 3,011,250 | |||||||||
Plastipak Holdings, Inc., 144A, 6.500%, 10/01/21 (a) | 1,000,000 | 1,005,000 | |||||||||
SPL Logistics Escrow LLC/ Finance Corp., 144A, 8.875%, 08/01/20 (a) | 5,000,000 | 5,325,000 |
SEE NOTES TO FINANCIAL STATEMENTS
57
December 31, 2014
Schedule of Investments, continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Capital Goods, continued | |||||||||||
Unifrax I, LLC/Holding Co., 144A, 7.500%, 02/15/19 (a) | $ | 8,916,000 | $ | 8,826,840 | |||||||
Waterjet Holdings, Inc., 144A, 7.625%, 02/01/20 (a) | 1,400,000 | 1,445,500 | |||||||||
35,949,835 | |||||||||||
Consumer Goods: 1.3% | |||||||||||
Apex Tool Group LLC, 144A, 7.000%, 02/01/21 (a) | 250,000 | 215,000 | |||||||||
H.J. Heinz Finance Co., 144A, 7.125%, 08/01/39 (a) | 3,000,000 | 3,247,500 | |||||||||
KeHE Distributors, LLC/ Finance Corp., 144A, 7.625%, 08/15/21 (a) | 3,500,000 | 3,727,500 | |||||||||
7,190,000 | |||||||||||
Energy: 9.7% | |||||||||||
Alta Mesa Holdings, LP/ Finance Services Corp., 9.625%, 10/15/18 | 6,000,000 | 5,040,000 | |||||||||
CGG SA, 6.500%, 06/01/21 | 500,000 | 382,500 | |||||||||
Chaparral Energy, Inc., 7.625%, 11/15/22 | 9,750,000 | 6,483,750 | |||||||||
Clayton Williams Energy, Inc., 7.750%, 04/01/19 | 5,550,000 | 4,745,250 | |||||||||
Drill Rigs Holdings, Inc., 144A, 6.500%, 10/01/17 (a) | 3,000,000 | 2,505,000 | |||||||||
EV Energy Partners, LP/Finance Corp., 8.000%, 04/15/19 | 2,475,000 | 2,116,125 | |||||||||
Exterran Partners LP/EXPL Finance Corp., 6.000%, 04/01/21 | 6,250,000 | 5,500,000 | |||||||||
Exterran Partners LP/EXPL Finance Corp., 144A, 6.000%, 10/01/22 (a) | 2,000,000 | 1,720,000 | |||||||||
Ferrell Gas LP, 6.750%, 01/15/22 | 3,600,000 | 3,537,000 | |||||||||
ION Geophysical Corp., 8.125%, 05/15/18 | 8,000,000 | 6,920,000 | |||||||||
KCA Deutag UK Finance PLC, 144A, 7.250%, 05/15/21 (a) | 750,000 | 538,125 | |||||||||
Petroleum Geo-Services ASA, 144A, 7.375%, 12/15/18 (a) | 2,000,000 | 1,690,000 | |||||||||
PHI, Inc., 5.250%, 03/15/19 | 3,000,000 | 2,565,000 | |||||||||
Rosetta Resources, Inc., 5.875%, 06/01/22 | 2,000,000 | 1,820,000 | |||||||||
Sabine Pass Liquefaction, LLC, 5.625%, 02/01/21 | 1,710,000 | 1,688,625 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Energy, continued | |||||||||||
Sabine Pass Liquefaction, LLC, 5.750%, 05/15/24 | $ | 1,450,000 | $ | 1,430,063 | |||||||
Sanjel Corp., 144A, 7.500%, 06/19/19 (a)(b) | 7,000,000 | 5,355,000 | |||||||||
54,036,438 | |||||||||||
Financial Services: 2.7% | |||||||||||
Fly Leasing, Ltd., 6.750%, 12/15/20 | 2,000,000 | 2,025,000 | |||||||||
Fly Leasing, Ltd., 6.375%, 10/15/21 | 7,000,000 | 6,912,500 | |||||||||
Jefferies Finance LLC, 144A, 7.500%, 04/15/21 (a) | 6,500,000 | 6,069,375 | |||||||||
15,006,875 | |||||||||||
Health Care: 2.7% | |||||||||||
Air Medical Group Holdings, Inc., 9.250%, 11/01/18 | 2,000,000 | 2,092,500 | |||||||||
Hanger, Inc., 7.125%, 11/15/18 | 4,920,000 | 4,969,200 | |||||||||
Salix Pharmaceuticals, Ltd., 144A, 6.000%, 01/15/21 (a) | 7,590,000 | 7,760,775 | |||||||||
14,822,475 | |||||||||||
Leisure: 0.1% | |||||||||||
Viking Cruises, Ltd., 144A, 8.500%, 10/15/22 (a) | 500,000 | 543,750 | |||||||||
Media: 20.0% | |||||||||||
Altice Financing SA, 144A, 6.500%, 01/15/22 (a) | 4,000,000 | 3,920,000 | |||||||||
Altice Finco SA, 144A, 8.125%, 01/15/24 (a) | 7,250,000 | 7,105,000 | |||||||||
Altice SA, 144A, 7.750%, 05/15/22 (a) | 1,500,000 | 1,506,563 | |||||||||
CCOH Safari LLC, 5.500%, 12/01/22 | 2,000,000 | 2,035,000 | |||||||||
CCOH Safari LLC, 5.750%, 12/01/24 | 1,000,000 | 1,013,750 | |||||||||
Columbus International, Inc., 144A, 7.375%, 03/30/21 (a) | 8,500,000 | 8,871,875 | |||||||||
Dish DBS Corp., 5.875%, 07/15/22 | 4,000,000 | 4,110,000 | |||||||||
Dish DBS Corp., 144A, 5.875%, 11/15/24 (a) | 2,500,000 | 2,518,750 | |||||||||
Expo Event Transco, Inc., 144A, 9.000%, 06/15/21 (a) | 11,050,000 | 11,326,250 | |||||||||
Harland Clarke Holdings Corp., 144A, 6.875%, 03/01/20 (a) | 5,000,000 | 4,900,000 |
SEE NOTES TO FINANCIAL STATEMENTS
58
December 31, 2014
Schedule of Investments, continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Media, continued | |||||||||||
Harland Clarke Holdings Corp., 144A, 9.250%, 03/01/21 (a) | $ | 5,000,000 | $ | 4,775,000 | |||||||
Harron Communications, LP/ Finance Corp., 144A, 9.125%, 04/01/20 (a) | 3,435,000 | 3,761,325 | |||||||||
Lee Enterprises, Inc., 144A, 9.500%, 03/15/22 (a) | 3,520,000 | 3,630,000 | |||||||||
LIN Television Corp, 144A, 5.875%, 11/15/22 (a) | 500,000 | 496,250 | |||||||||
MDC Partners, Inc., 144A, 6.750%, 04/01/20 (a) | 7,591,000 | 7,847,196 | |||||||||
MHGE Parent LLC/Finance, 144A, 8.500%, 08/01/19 (a) | 5,000,000 | 4,893,750 | |||||||||
Quad/Graphics, Inc., 144A, 7.000%, 05/01/22 (a) | 7,000,000 | 6,650,000 | |||||||||
Sirius XM Radio, Inc., 144A, 6.000%, 07/15/24 (a) | 2,950,000 | 3,031,125 | |||||||||
SITV LLC/Finance, 144A, 10.375%, 07/01/19 (a)(b) | 2,000,000 | 1,865,000 | |||||||||
Time, Inc., 144A, 5.750%, 04/15/22 (a) | 5,000,000 | 4,850,000 | |||||||||
Tivo, Inc., 144A, 2.000%, 10/01/21 (a) | 1,000,000 | 961,250 | |||||||||
Townsquare Radio, LLC/Inc., 144A, 9.000%, 04/01/19 (a) | 6,350,000 | 6,794,500 | |||||||||
Unitymedia Hessen GmbH & Co. KG, 144A, 6.125%, 01/15/25 (a) | 4,000,000 | 4,140,000 | |||||||||
Unitymedia Hessen GmbH & Co. KG, 144A, 5.000%, 01/15/25 (a) | 500,000 | 502,500 | |||||||||
VTR Finance BV, 144A, 6.875%, 01/15/24 (a) | 5,000,000 | 5,112,500 | |||||||||
WMG Acquisition Corp., 144A, 6.750%, 04/15/22 (a) | 5,000,000 | 4,575,000 | |||||||||
WMG Acquisition Corp., 144A, 5.625%, 04/15/22 (a) | 250,000 | 243,125 | |||||||||
111,435,709 | |||||||||||
Real Estate: 2.4% | |||||||||||
Forestar USA Real Estate Group, Inc., 144A, 8.500%, 06/01/22 (a) | 3,100,000 | 3,038,000 | |||||||||
Kennedy-Wilson, Inc., 5.875%, 04/01/24 | 10,000,000 | 10,050,000 | |||||||||
13,088,000 | |||||||||||
Retail: 8.6% | |||||||||||
Brown Shoe Co., Inc., 7.125%, 05/15/19 | 4,000,000 | 4,190,000 | |||||||||
CST Brands, Inc., 5.000%, 05/01/23 | 4,000,000 | 4,060,000 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Retail, continued | |||||||||||
DriveTime Automotive Group/ Acceptance Corp., 144A, 8.000%, 06/01/21 (a)(d) | $ | 3,000,000 | $ | 2,711,250 | |||||||
Hot Topic, Inc., 144A, 9.250%, 06/15/21 (a) | 3,000,000 | 3,225,000 | |||||||||
Ingles Markets, Inc., 5.750%, 06/15/23 | 10,000,000 | 10,066,100 | |||||||||
Outerwall, Inc., 6.000%, 03/15/19 | 6,200,000 | 6,138,000 | |||||||||
Perry Ellis International, Inc., 7.875%, 04/01/19 | 8,000,000 | 8,240,000 | |||||||||
PF Chang's China Bistro, Inc., 144A, 10.250%, 06/30/20 (a)(d) | 500,000 | 501,250 | |||||||||
Radio Systems Corp., 144A, 8.375%, 11/01/19 (a) | 2,100,000 | 2,257,500 | |||||||||
Sally Holdings LLC/Capital, Inc., 6.875%, 11/15/19 | 3,450,000 | 3,682,875 | |||||||||
Sally Holdings LLC/Capital, Inc., 5.750%, 06/01/22 | 2,425,000 | 2,552,313 | |||||||||
Sally Holdings LLC/Capital, Inc., 5.500%, 11/01/23 | 100,000 | 104,750 | |||||||||
47,729,038 | |||||||||||
Services: 4.2% | |||||||||||
BlueLine Rental Finance Corp., 144A, 7.000%, 02/01/19 (a) | 4,100,000 | 4,212,750 | |||||||||
Jurassic Holdings III, Inc., 144A, 6.875%, 02/15/21 (a) | 2,750,000 | 2,571,250 | |||||||||
Light Tower Rentals, Inc., 144A, 8.125%, 08/01/19 (a)(b) | 3,800,000 | 2,973,500 | |||||||||
Michael Baker Holdings LLC/ Finance Corp., 144A, 8.875%, 04/15/19 (a) | 8,000,000 | 7,760,000 | |||||||||
Michael Baker International LLC/CDL Acq Co, Inc., 144A, 8.250%, 10/15/18 (a) | 3,600,000 | 3,600,000 | |||||||||
United Rentals North America, Inc., 7.375%, 05/15/20 | 2,000,000 | 2,170,000 | |||||||||
23,287,500 | |||||||||||
Technology & Electronics: 7.2% | |||||||||||
Advanced Micro Devices, Inc., 6.750%, 03/01/19 | 4,950,000 | 4,677,750 | |||||||||
Advanced Micro Devices, Inc., 7.750%, 08/01/20 | 3,000,000 | 2,775,000 | |||||||||
Advanced Micro Devices, Inc., 7.000%, 07/01/24 | 2,250,000 | 1,918,125 | |||||||||
BCP Singapore VI Cayman Financing Co., Ltd., 144A, 8.000%, 04/15/21 (a)(d) | 6,000,000 | 6,090,000 | |||||||||
Entegris, Inc., 144A, 6.000%, 04/01/22 (a) | 4,100,000 | 4,171,750 | |||||||||
MMI International, Ltd., 144A, 8.000%, 03/01/17 (a) | 3,000,000 | 3,007,500 |
SEE NOTES TO FINANCIAL STATEMENTS
59
December 31, 2014
Schedule of Investments, continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Technology & Electronics, continued | |||||||||||
NeuStar, Inc., 4.500%, 01/15/23 (d) | $ | 3,000,000 | $ | 2,632,500 | |||||||
Syniverse Holdings, Inc., 9.125%, 01/15/19 | 7,013,000 | 7,346,118 | |||||||||
j2 Global, Inc., 8.000%, 08/01/20 | 7,000,000 | 7,568,750 | |||||||||
40,187,493 | |||||||||||
Telecommunications: 4.9% | |||||||||||
B Communications, Ltd., 144A, 7.375%, 02/15/21 (a) | 5,500,000 | 5,843,750 | |||||||||
Eileme 2 AB, 144A, 11.625%, 01/31/20 (a) | 5,400,000 | 6,075,000 | |||||||||
Equinix, Inc., 5.750%, 01/01/25 | 3,000,000 | 3,041,250 | |||||||||
Level 3 Communications, 144A, 5.750%, 12/01/22 (a) | 500,000 | 505,625 | |||||||||
Maxcom Telecomunicaciones SAB de CV, 6.000%, 06/15/20 (b) | 1,000,000 | 861,000 | |||||||||
Pacnet,Ltd., 144A, 9.000%, 12/12/18 (a)(b) | 3,500,000 | 3,915,625 | |||||||||
Sprint Corp., 7.875%, 09/15/23 | 1,000,000 | 992,200 | |||||||||
Sprint Corp., 7.125%, 06/15/24 | 4,500,000 | 4,207,500 | |||||||||
T Mobile USA, Inc., 6.375%, 03/01/25 | 2,000,000 | 2,037,000 | |||||||||
27,478,950 | |||||||||||
Transportation: 6.3% | |||||||||||
Air Canada, 144A, 7.750%, 04/15/21 (a) | 2,500,000 | 2,609,375 | |||||||||
Jack Cooper Holdings Corp., 144A, 9.250%, 06/01/20 (a) | 10,380,000 | 10,847,100 | |||||||||
Kenan Advantage Group, Inc., The, 144A, 8.375%, 12/15/18 (a) | 4,400,000 | 4,554,000 | |||||||||
Navios Maritime Acquisition Corp./Finance US, Inc., 144A, 8.125%, 11/15/21 (a) | 8,000,000 | 7,840,000 | |||||||||
Ridgebury Crude Tankers LLC, 144A, 7.625%, 03/20/17 (a)(b) | 800,000 | 808,250 | |||||||||
syncreon Group BV/Global Finance US, Inc., 144A, 8.625%, 11/01/21 (a) | 9,050,000 | 8,552,250 | |||||||||
35,210,975 | |||||||||||
Utility: 0.1% | |||||||||||
FPL Energy National Wind Portfolio LLC, 144A, 6.125%, 03/25/19 (a)(b) | 43,320 | 43,753 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Utility, continued | |||||||||||
Ormat Funding Corp., 8.250%, 12/30/20 (b) | $ | 422,035 | $ | 428,366 | |||||||
472,119 | |||||||||||
TOTAL CORPORATE BONDS (Cost $493,766,855) | 477,951,674 | ||||||||||
BANK LOANS: 9.1% | |||||||||||
Energy: 0.8% | |||||||||||
Green Plains Processing LLC, 6.500%, 06/30/20 (b) | 4,750,556 | 4,679,297 | |||||||||
Health Care: 0.5% | |||||||||||
Salix Pharmaceuticals, Ltd., 4.250%, 01/02/20 | 2,801,282 | 2,773,269 | |||||||||
Media: 0.0% | |||||||||||
Lee Enterprises, Inc., 7.250%, 03/21/19 (b) | 215,500 | 214,423 | |||||||||
Retail: 3.8% | |||||||||||
Charlotte Russe, Inc., Term B, 6.750%, 05/21/19 (b) | 9,872,487 | 9,642,162 | |||||||||
Stuart Weitzman Acq Co., LLC, 4.500%, 03/04/20 (b) | 3,980,000 | 3,928,598 | |||||||||
TOMS Shoes LLC, 1.000%, 10/31/20 (b) | 8,000,000 | 7,355,040 | |||||||||
20,925,800 | |||||||||||
Technology & Electronics: 2.4% | |||||||||||
Internap Network Services Corp., 6.000%, 11/26/19 | 6,930,000 | 6,904,013 | |||||||||
Isola USA Corp., 9.250%, 11/29/18 (b) | 6,825,000 | 6,517,875 | |||||||||
13,421,888 | |||||||||||
Telecommunications: 1.6% | |||||||||||
Birch Communications, Inc., 7.750%, 07/18/20 | 3,400,347 | 3,349,342 | |||||||||
Fairpoint Communications, Inc., 7.500%, 02/14/19 | 2,969,773 | 2,953,083 | |||||||||
PRWireless, Inc., 1.000%, 06/27/20 (b) | 2,985,000 | 2,686,500 | |||||||||
8,988,925 | |||||||||||
TOTAL LOANS (Cost $51,716,047) | 51,003,602 | ||||||||||
TOTAL BONDS (Cost $545,482,902) | 528,955,276 |
SEE NOTES TO FINANCIAL STATEMENTS
60
December 31, 2014
Schedule of Investments, continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
CERTIFICATES OF DEPOSIT: 0.2% | |||||||||||
Beneficial State Bank, 1.100%, 01/21/15 | $ | 200,000 | $ | 200,000 | |||||||
Beneficial State Bank, 1.250%, 05/10/17 | 100,000 | 100,000 | |||||||||
Beneficial State Bank, FSB CDARS, 0.080%, 01/08/15 | 200,000 | 200,000 | |||||||||
Beneficial State Bank, FSB CDARS, 0.080%, 04/09/15 | 100,000 | 100,000 | |||||||||
Self Help Credit Union, 0.550%, 01/04/15 | 100,000 | 100,000 | |||||||||
Urban Partnership Bank, 0.200%, 02/03/15 | 100,000 | 100,000 | |||||||||
Urban Partnership Bank, 0.300%, 07/01/15 | 100,639 | 100,639 | |||||||||
TOTAL CERTIFICATES OF DEPOSIT (Cost $900,639) | 900,639 | ||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 4.9% | |||||||||||
State Street Navigator Securities Lending Prime Portfolio | 27,392,530 | 27,392,530 | |||||||||
(Cost $27,392,530) | |||||||||||
TOTAL INVESTMENTS: 102.5% (Cost $587,857,951) | 570,802,452 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -4.9% | (27,392,530 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 13,381,296 | ||||||||||
(NET): 2.4% | |||||||||||
NET ASSETS: 100.0% | $ | 556,791,218 |
(a) Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers.
(b) Illiquid security.
(c) Fair Valued security.
(d) Security or partial position of this security was on loan as of December 31, 2014. The total market value of securities on loan as of December 31, 2014 was $26,671,268.
(e) Non-income producing security.
LP Limited Partnership
Pax World Global Environmental Markets Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 99.2% | |||||||||||
RENEWABLE & ALTERNATIVE ENERGY: 6.3% | |||||||||||
Solar Energy Generation Equipment: 1.8% | |||||||||||
Trina Solar, Ltd., ADR (a) | 382,300 | $ | 3,540,098 | ||||||||
Renewable Energy Developer & Independent Power Producers (IPPS) : 4.5% | |||||||||||
Enel Green Power SpA | 1,742,408 | 3,650,625 | |||||||||
Huaneng Renewables Corp., Ltd. | 16,376,000 | 5,253,048 | |||||||||
8,903,673 | |||||||||||
ENERGY EFFICIENCY: 34.0% | |||||||||||
Power Network Efficiency: 4.0% | |||||||||||
ABB, Ltd. (a) | 81,738 | 1,729,424 | |||||||||
Itron, Inc. (a) | 48,785 | 2,063,118 | |||||||||
Quanta Services, Inc. (a) | 141,500 | 4,017,185 | |||||||||
7,809,727 | |||||||||||
Industrial Energy Efficiency: 9.2% | |||||||||||
GEA Group AG | 132,791 | 5,838,311 | |||||||||
Regal-Beloit Corp. | 71,800 | 5,399,360 | |||||||||
SMC Corp./Japan | 10,900 | 2,858,241 | |||||||||
Spirax-Sarco Engineering PLC | 82,279 | 3,662,801 | |||||||||
17,758,713 | |||||||||||
Buildings Energy Efficiency: 7.2% | |||||||||||
Acuity Brands, Inc. | 16,200 | 2,269,134 | |||||||||
Ingersoll-Rand PLC | 48,400 | 3,068,076 | |||||||||
Kingspan Group PLC | 223,335 | 3,872,450 | |||||||||
Legrand SA | 94,108 | 4,936,732 | |||||||||
14,146,392 | |||||||||||
Transport Energy Efficiency: 6.0% | |||||||||||
BorgWarner, Inc. | 107,600 | 5,912,620 | |||||||||
Delphi Automotive PLC | 80,600 | 5,861,232 | |||||||||
11,773,852 | |||||||||||
Consumer Energy Efficiency: 4.6% | |||||||||||
Epistar Corp. | 2,200,000 | 4,353,803 | |||||||||
Murata Manufacturing Co., Ltd. | 43,600 | 4,757,672 | |||||||||
9,111,475 | |||||||||||
Diversified Energy Efficiency: 3.0% | |||||||||||
IMI PLC | 151,817 | 2,970,140 | |||||||||
Siemens AG | 26,478 | 2,970,934 | |||||||||
5,941,074 |
SEE NOTES TO FINANCIAL STATEMENTS
61
December 31, 2014
Schedule of Investments, continued
Pax World Global Environmental Markets Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
WATER INFRASTRUCTURE & TECHNOLOGIES: 31.2% | |||||||||||
Water Infrastructure: 15.5% | |||||||||||
Beijing Enterprises Water Group, Ltd. (a) | 5,718,000 | $ | 3,849,085 | ||||||||
IDEX Corp. | 65,850 | 5,125,764 | |||||||||
Pentair PLC | 90,250 | 5,994,404 | |||||||||
Roper Industries, Inc. | 26,800 | 4,190,180 | |||||||||
Watts Water Technologies, Inc., Class A | 78,646 | 4,989,302 | |||||||||
Xylem, Inc. | 161,300 | 6,140,691 | |||||||||
30,289,426 | |||||||||||
Water Treatment Equipment: 5.2% | |||||||||||
Kemira Oyj | 363,427 | 4,324,689 | |||||||||
Pall Corp. | 59,000 | 5,971,390 | |||||||||
10,296,079 | |||||||||||
Water Utilities: 10.5% | |||||||||||
American Water Works Co., Inc. | 113,100 | 6,028,230 | |||||||||
Cia de Saneamento Basico do Estado, ADR | 429,300 | 2,700,297 | |||||||||
Pennon Group PLC | 417,414 | 5,963,460 | |||||||||
Severn Trent PLC | 121,299 | 3,783,225 | |||||||||
Suez Environnement Co. | 118,528 | 2,065,139 | |||||||||
20,540,351 | |||||||||||
POLLUTION CONTROL: 11.3% | |||||||||||
Pollution Control Solutions: 3.3% | |||||||||||
ENN Energy Holdings, Ltd. | 781,500 | 4,421,188 | |||||||||
Umicore SA | 50,192 | 2,019,742 | |||||||||
6,440,930 | |||||||||||
Environmental Testing & Gas Sensing: 8.0% | |||||||||||
Agilent Technologies, Inc. | 120,500 | 4,933,269 | |||||||||
ALS, Ltd. | 226,620 | 981,668 | |||||||||
Applus Services SA (a) | 227,072 | 2,501,091 | |||||||||
Horiba, Ltd. | 105,899 | 3,505,443 | |||||||||
Thermo Fisher Scientific, Inc. | 30,600 | 3,833,874 | |||||||||
15,755,345 | |||||||||||
WASTE MANAGEMENT & TECHNOLOGIES: 6.4% | |||||||||||
Hazardous Waste Management: 5.3% | |||||||||||
Daiseki Co., Ltd. | 272,686 | 4,711,129 | |||||||||
Stericycle, Inc. (a) | 43,350 | 5,682,318 | |||||||||
10,393,447 | |||||||||||
General Waste Management: 1.1% | |||||||||||
Shanks Group PLC | 1,347,942 | 2,079,122 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
ENVIRONMENTAL SUPPORT SERVICES: 7.6% | |||||||||||
Diversified Environmental: 7.6% | |||||||||||
3M Co. | 23,700 | $ | 3,894,384 | ||||||||
Linde AG | 32,982 | 6,075,361 | |||||||||
Sekisui Chemical Co., Ltd. | 417,200 | 5,019,322 | |||||||||
14,989,067 | |||||||||||
FOOD, AGRICULTURE & FORESTRY: 2.4% | |||||||||||
Sustainable and Efficient Agriculture: 0.9% | |||||||||||
Trimble Navigation, Ltd. (a) | 65,400 | 1,735,716 | |||||||||
Logistics, Food Safety and Packaging: 1.5% | |||||||||||
Sealed Air Corp. | 70,400 | 2,987,072 | |||||||||
TOTAL COMMON STOCKS (Cost $172,708,341) | 194,491,559 | ||||||||||
TOTAL INVESTMENTS: 99.2% (Cost $172,708,341) | 194,491,559 | ||||||||||
OTHER ASSETS AND LIABILITIES— | 1,632,419 | ||||||||||
(NET): 0.8% | |||||||||||
NET ASSETS: 100.0% | $ | 196,123,978 |
(a) Non-income producing security.
ADR American Depositary Receipt
SUMMARY OF INVESTMENTS BY COUNTRY | |||||||||||
Percent of Net Assets | Value | Percent of Net Assets | |||||||||
Australia | $ | 981,668 | 0.5 | % | |||||||
Belgium | 2,019,742 | 1.0 | % | ||||||||
Brazil | 2,700,297 | 1.4 | % | ||||||||
China | 13,214,334 | 6.7 | % | ||||||||
Finland | 4,324,689 | 2.2 | % | ||||||||
France | 7,001,871 | 3.6 | % | ||||||||
Germany | 14,884,607 | 7.6 | % | ||||||||
Hong Kong | 3,849,085 | 2.0 | % | ||||||||
Ireland | 12,934,931 | 6.6 | % | ||||||||
Italy | 3,650,625 | 1.9 | % | ||||||||
Japan | 20,851,806 | 10.6 | % | ||||||||
Spain | 2,501,090 | 1.3 | % | ||||||||
Switzerland | 1,729,424 | 0.9 | % | ||||||||
Taiwan | 4,353,803 | 2.2 | % | ||||||||
United Kingdom | 24,319,979 | 12.4 | % | ||||||||
United States | 75,173,608 | 38.3 | % | ||||||||
Other assets and liabilities - (Net) | 1,632,419 | 0.8 | % | ||||||||
Total | $ | 196,123,978 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
62
December 31, 2014
Schedule of Investments, continued
Pax MSCI International ESG Index Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 98.6% | |||||||||||
Australia: 9.3% | |||||||||||
Amcor, Ltd. | 26,354 | $ | 289,955 | ||||||||
AMP, Ltd. | 59,493 | 264,968 | |||||||||
Australia & New Zealand Banking Group, Ltd | 58,699 | 1,527,344 | |||||||||
Brambles, Ltd. | 32,643 | 281,194 | |||||||||
Commonwealth Bank of Australia | 34,849 | 2,421,264 | |||||||||
Fortescue Metals Group, Ltd. | 42,080 | 92,392 | |||||||||
Goodman Group, REIT | 39,285 | 181,453 | |||||||||
GPT Group, The, REIT | 52,521 | 185,874 | |||||||||
Insurance Australia Group, Ltd. | 50,001 | 253,881 | |||||||||
Lend Lease Group | 19,791 | 263,594 | |||||||||
Mirvac Group, REIT | 99,049 | 143,279 | |||||||||
National Australia Bank, Ltd. | 47,466 | 1,294,410 | |||||||||
Newcrest Mining, Ltd. (a) | 24,854 | 218,689 | |||||||||
Novion Property Group, REIT | 137,816 | 236,881 | |||||||||
Orica, Ltd. | 12,771 | 195,698 | |||||||||
QBE Insurance Group, Ltd. | 23,064 | 209,430 | |||||||||
Ramsay Health Care, Ltd. | 3,693 | 171,201 | |||||||||
Stockland, REIT | 57,517 | 192,215 | |||||||||
Transurban Group | 34,765 | 242,268 | |||||||||
Wesfarmers, Ltd. | 22,438 | 759,698 | |||||||||
Westpac Banking Corp. | 67,154 | 1,806,159 | |||||||||
Woodside Petroleum, Ltd. | 18,552 | 573,763 | |||||||||
11,805,610 | |||||||||||
Austria: 0.1% | |||||||||||
OMV AG | 4,343 | 115,321 | |||||||||
Belgium: 0.7% | |||||||||||
Colruyt SA | 3,530 | 164,108 | |||||||||
Delhaize Group SA | 4,277 | 311,474 | |||||||||
KBC Groep NV (a) | 6,521 | 363,937 | |||||||||
839,519 | |||||||||||
Denmark: 2.0% | |||||||||||
Coloplast A/S, Class B | 2,764 | 231,304 | |||||||||
Novo Nordisk A/S, Class B | 41,178 | 1,741,820 | |||||||||
Novozymes A/S, Class B | 5,329 | 224,317 | |||||||||
Pandora A/S | 1,813 | 146,956 | |||||||||
TDC A/S | 12,003 | 91,546 | |||||||||
Vestas Wind Systems A/S (a) | 3,666 | 133,137 | |||||||||
2,569,080 | |||||||||||
Finland: 0.3% | |||||||||||
Stora Enso OYJ, Class R | 14,131 | 126,345 | |||||||||
UPM-Kymmene OYJ | 15,208 | 249,231 | |||||||||
375,576 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
France: 7.0% | |||||||||||
Accor SA | 4,151 | $ | 186,592 | ||||||||
Air Liquide SA | 7,535 | 932,378 | |||||||||
AtoS | 1,573 | 124,983 | |||||||||
AXA SA | 39,557 | 911,513 | |||||||||
Bouygues SA | 5,006 | 180,758 | |||||||||
Cap Gemini SA | 3,985 | 284,996 | |||||||||
Carrefour SA | 12,525 | 381,153 | |||||||||
Christian Dior SA | 1,376 | 235,486 | |||||||||
Cie de St-Gobain | 8,565 | 362,820 | |||||||||
Danone SA | 12,003 | 784,733 | |||||||||
Hermes International | 2 | 712 | |||||||||
Kering | 1,356 | 260,583 | |||||||||
Lafarge SA | 3,591 | 252,089 | |||||||||
Legrand SA | 5,426 | 284,638 | |||||||||
L'Oreal SA | 5,385 | 901,297 | |||||||||
Natixis SA | 18,301 | 120,761 | |||||||||
Renault SA | 3,874 | 282,168 | |||||||||
Rexel SA | 5,834 | 104,523 | |||||||||
Schneider Electric SA | 10,880 | 792,382 | |||||||||
Societe BIC SA | 1,411 | 187,556 | |||||||||
Technip SA | 1,838 | 109,485 | |||||||||
Unibail-Rodamco SE, REIT | 1,984 | 508,967 | |||||||||
Vallourec SA | 2,925 | 79,272 | |||||||||
Vinci SA | 10,793 | 589,325 | |||||||||
Wendel SA | 1,039 | 116,414 | |||||||||
8,975,584 | |||||||||||
Germany: 8.5% | |||||||||||
adidas AG | 3,664 | 254,448 | |||||||||
Allianz SE | 9,792 | 1,621,811 | |||||||||
BASF SE | 19,534 | 1,638,530 | |||||||||
Bayerische Motoren Werke AG | 7,132 | 736,663 | |||||||||
Deutsche Boerse AG | 3,755 | 266,837 | |||||||||
Deutsche Lufthansa AG | 5,874 | 97,338 | |||||||||
Deutsche Post AG | 23,171 | 752,175 | |||||||||
Fraport AG Frankfurt Airport Svc Worldwide | 2,034 | 117,365 | |||||||||
GEA Group AG | 5,448 | 239,528 | |||||||||
HeidelbergCement AG | 3,193 | 225,362 | |||||||||
Henkel AG & Co. KGaA | 6,934 | 719,651 | |||||||||
K+S AG | 5,391 | 148,765 | |||||||||
Linde AG | 3,827 | 704,942 | |||||||||
Merck KGaA | 2,756 | 259,363 | |||||||||
METRO AG (a) | 7,317 | 223,664 | |||||||||
Muenchener Rueckversicherungs AG | 3,803 | 757,319 | |||||||||
ProSiebenSat.1 Media AG | 5,516 | 230,477 |
SEE NOTES TO FINANCIAL STATEMENTS
63
December 31, 2014
Schedule of Investments, continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Germany, continued | |||||||||||
SAP AG | 17,656 | $ | 1,232,890 | ||||||||
Volkswagen AG | 2,953 | 656,320 | |||||||||
10,883,448 | |||||||||||
Hong Kong: 1.6% | |||||||||||
Chaoda Modern Agriculture (Holdings), Ltd. (a)(b)(c) | 710,000 | 19,877 | |||||||||
CLP Holdings, Ltd. | 53,500 | 464,312 | |||||||||
Hang Seng Bank, Ltd. | 17,400 | 289,196 | |||||||||
Hong Kong & China Gas Co., Ltd. | 142,000 | 322,796 | |||||||||
Hong Kong Exchanges and Clearing, Ltd. | 24,239 | 535,118 | |||||||||
Li & Fung, Ltd. | 146,000 | 136,687 | |||||||||
Swire Pacific, Ltd., Class A | 18,500 | 240,139 | |||||||||
2,008,125 | |||||||||||
Ireland: 0.5% | |||||||||||
CRH PLC | 12,836 | 308,648 | |||||||||
Kerry Group PLC, Class A | 4,672 | 322,771 | |||||||||
631,419 | |||||||||||
Israel: 0.0% (d) | |||||||||||
Delek Group, Ltd. | 221 | 55,433 | |||||||||
Italy: 1.3% | |||||||||||
Assicurazioni Generali SpA | 24,041 | 493,630 | |||||||||
Atlantia SpA | 11,072 | 257,335 | |||||||||
Enel Green Power SpA | 40,939 | 85,774 | |||||||||
Intesa Sanpaolo SpA | 251,259 | 728,877 | |||||||||
Pirelli & C. SpA | 6,171 | 83,231 | |||||||||
1,648,847 | |||||||||||
Japan: 22.5% | |||||||||||
Aisin Seiki Co., Ltd. | 4,300 | 154,492 | |||||||||
Ajinomoto Co., Inc. | 21,000 | 390,955 | |||||||||
Asahi Kasei Corp. | 27,000 | 246,305 | |||||||||
Asics Corp. | 700 | 16,853 | |||||||||
Astellas Pharma, Inc. | 51,900 | 722,557 | |||||||||
Canon, Inc. | 25,500 | 810,485 | |||||||||
Casio Computer Co., Ltd. | 4,800 | 73,427 | |||||||||
Central Japan Railway Co. | 2,900 | 434,641 | |||||||||
Chugai Pharmaceutical Co., Ltd. | 5,800 | 142,409 | |||||||||
Citizen Holdings Co., Ltd. | 700 | 5,386 | |||||||||
Daikin Industries, Ltd. | 5,400 | 346,270 | |||||||||
Daiwa House Industry Co., Ltd. | 18,000 | 340,042 | |||||||||
Denso Corp. | 10,200 | 475,400 | |||||||||
Dentsu, Inc. | 3,800 | 159,757 | |||||||||
East Japan Railway Co. | 7,700 | 580,356 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Japan, continued | |||||||||||
Eisai Co., Ltd. | 7,200 | $ | 278,447 | ||||||||
Fast Retailing Co., Ltd. | 1,100 | 400,285 | |||||||||
Fuji Heavy Industries, Ltd. | 12,600 | 445,863 | |||||||||
Fujitsu, Ltd. | 46,000 | 245,257 | |||||||||
Hitachi Chemical Co., Ltd. | 6,000 | 106,001 | |||||||||
Hitachi Construction Machinery Co., Ltd. | 2,900 | 61,315 | |||||||||
Honda Motor Co., Ltd. | 34,200 | 1,003,369 | |||||||||
Ibiden Co., Ltd. | 7,100 | 104,840 | |||||||||
Inpex Corp. | 22,500 | 250,492 | |||||||||
JFE Holdings, Inc. | 12,800 | 285,451 | |||||||||
Kajima Corp. | 36,000 | 148,044 | |||||||||
Kao Corp. | 12,400 | 488,988 | |||||||||
Kawasaki Heavy Industries, Ltd. | 29,000 | 131,879 | |||||||||
KDDI Corp. | 12,100 | 760,171 | |||||||||
Keyence Corp. | 1,000 | 445,595 | |||||||||
Kobe Steel, Ltd. | 79,000 | 136,077 | |||||||||
Komatsu, Ltd. | 18,900 | 417,840 | |||||||||
Konica Minolta, Inc. | 10,500 | 114,408 | |||||||||
Kubota Corp. | 27,000 | 391,899 | |||||||||
Kyocera Corp. | 8,000 | 366,077 | |||||||||
Makita Corp. | 4,700 | 211,791 | |||||||||
Mazda Motor Corp. | 10,800 | 259,368 | |||||||||
Mitsubishi Corp. | 31,000 | 567,304 | |||||||||
Mitsubishi Electric Corp. | 39,000 | 463,244 | |||||||||
Mitsubishi Materials Corp. | 33,000 | 109,475 | |||||||||
Mitsubishi Motors Corp. | 10,600 | 96,836 | |||||||||
Mitsubishi UFJ Lease & Finance Co., Ltd. | 10,200 | 47,969 | |||||||||
Mitsui Fudosan Co., Ltd. | 22,000 | 589,942 | |||||||||
Mitsui OSK Lines, Ltd. | 12,000 | 35,553 | |||||||||
Mizuho Financial Group, Inc. | 486,800 | 816,024 | |||||||||
Murata Manufacturing Co., Ltd. | 4,800 | 523,780 | |||||||||
NEC Corp. | 73,000 | 212,138 | |||||||||
NGK Insulators, Ltd. | 6,000 | 122,990 | |||||||||
NGK Spark Plug Co., Ltd. | 3,000 | 91,156 | |||||||||
Nikon Corp. | 7,400 | 98,323 | |||||||||
Nippon Paint Holdings Co., Ltd. | 5,000 | 144,890 | |||||||||
Nippon Steel & Sumitomo Metal Corp. | 161,000 | 399,382 | |||||||||
Nippon Telegraph & Telephone Corp. | 8,200 | 418,877 | |||||||||
Nissan Motor Co., Ltd. | 56,900 | 496,269 | |||||||||
Nitto Denko Corp. | 4,800 | 268,202 |
SEE NOTES TO FINANCIAL STATEMENTS
64
December 31, 2014
Schedule of Investments, continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Japan, continued | |||||||||||
NSK, Ltd. | 10,000 | $ | 118,067 | ||||||||
NTT DOCOMO, Inc. | 38,400 | 559,221 | |||||||||
Obayashi Corp. | 16,000 | 103,139 | |||||||||
Omron Corp. | 6,100 | 272,886 | |||||||||
Oriental Land Co., Ltd./ Japan | 1,200 | 276,737 | |||||||||
Osaka Gas Co., Ltd. | 60,000 | 224,097 | |||||||||
Panasonic Corp. | 38,400 | 452,292 | |||||||||
Resona Holdings, Inc. | 57,000 | 287,936 | |||||||||
Ricoh Co., Ltd. | 21,000 | 212,290 | |||||||||
Santen Pharmaceutical Co., Ltd. | 2,400 | 129,203 | |||||||||
Secom Co., Ltd. | 5,700 | 327,491 | |||||||||
Sekisui Chemical Co., Ltd. | 16,000 | 192,496 | |||||||||
Sekisui House, Ltd. | 19,800 | 260,528 | |||||||||
Seven & I Holdings Co., Ltd. | 17,200 | 618,707 | |||||||||
Sharp Corp./Japan (a) | 28,000 | 61,944 | |||||||||
Shimizu Corp. | 20,000 | 135,841 | |||||||||
Shin-Etsu Chemical Co., Ltd. | 9,500 | 618,447 | |||||||||
SoftBank Corp. | 20,600 | 1,226,179 | |||||||||
Sompo Japan Nipponkoa Holdings, Inc. | 7,100 | 178,549 | |||||||||
Sony Corp. | 23,600 | 481,658 | |||||||||
Sumitomo Chemical Co., Ltd. | 35,000 | 137,785 | |||||||||
Sumitomo Electric Industries, Ltd. | 15,800 | 197,331 | |||||||||
Sumitomo Metal Mining Co., Ltd. | 18,000 | 268,468 | |||||||||
Sumitomo Mitsui Financial Group | 27,100 | 979,738 | |||||||||
Suzuken Co., Ltd. | 3,900 | 107,731 | |||||||||
Sysmex Corp. | 3,000 | 133,147 | |||||||||
T&D Holdings, Inc. | 19,200 | 230,167 | |||||||||
Takeda Pharmaceutical Co., Ltd. | 18,200 | 753,440 | |||||||||
TDK Corp. | 2,500 | 147,238 | |||||||||
Toho Gas Co., Ltd. | 24,000 | 117,417 | |||||||||
Tokyo Electron, Ltd. | 3,900 | 295,738 | |||||||||
Tokyo Gas Co., Ltd. | 80,000 | 431,653 | |||||||||
Toray Industries, Inc. | 41,000 | 327,589 | |||||||||
Toyota Industries Corp. | 2,900 | 148,630 | |||||||||
Toyota Tsusho Corp. | 4,200 | 97,566 | |||||||||
Yamaha Motor Co., Ltd. | 8,000 | 160,058 | |||||||||
28,726,550 | |||||||||||
Luxembourg: 0.4% | |||||||||||
SES SA | 8,264 | 297,146 | |||||||||
Subsea 7 SA | 9,756 | 99,832 | |||||||||
Tenaris SA | 8,065 | 121,869 | |||||||||
518,847 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Netherlands: 4.9% | |||||||||||
Aegon NV | 41,982 | $ | 315,535 | ||||||||
Akzo Nobel NV | 5,682 | 393,138 | |||||||||
ASML Holding NV | 7,827 | 845,688 | |||||||||
CNH Industrial NV | 19,057 | 154,268 | |||||||||
Gemalto NV | 1,119 | 91,324 | |||||||||
ING Groep NV (a) | 74,529 | 962,889 | |||||||||
Koninklijke Ahold NV | 17,075 | 303,472 | |||||||||
Koninklijke DSM NV | 4,641 | 283,068 | |||||||||
Koninklijke KPN NV | 68,224 | 215,407 | |||||||||
Koninklijke Philips NV | 21,355 | 618,996 | |||||||||
Reed Elsevier NV | 13,307 | 317,779 | |||||||||
Unilever NV | 35,549 | 1,390,595 | |||||||||
Wolters Kluwer NV | 11,577 | 353,274 | |||||||||
6,245,433 | |||||||||||
New Zealand: 0.2% | |||||||||||
Auckland International Airport, Ltd. | 59,347 | 195,274 | |||||||||
Norway: 1.0% | |||||||||||
DNB ASA | 23,633 | 348,601 | |||||||||
Norsk Hydro ASA | 19,894 | 112,064 | |||||||||
Statoil ASA | 24,618 | 433,445 | |||||||||
Telenor ASA | 18,643 | 377,122 | |||||||||
1,271,232 | |||||||||||
Portugal: 0.3% | |||||||||||
EDP - Energias de Portugal SA | 40,582 | 157,362 | |||||||||
Galp Energia SGPS SA | 6,300 | 63,977 | |||||||||
Jeronimo Martins SGPS SA | 11,264 | 112,870 | |||||||||
334,209 | |||||||||||
Singapore: 0.7% | |||||||||||
CapitaLand, Ltd. | 47,000 | 116,858 | |||||||||
City Developments, Ltd. | 11,000 | 84,865 | |||||||||
Keppel Corp., Ltd. | 30,000 | 199,961 | |||||||||
Singapore Press Holdings, Ltd. | 164,000 | 520,612 | |||||||||
922,296 | |||||||||||
Spain: 3.3% | |||||||||||
Abertis Infraestructuras SA | 7,262 | 144,004 | |||||||||
Amadeus IT Holding SA, Class A | 8,105 | 322,801 | |||||||||
Banco Bilbao Vizcaya Argentaria SA | 118,047 | 1,114,883 | |||||||||
CaixaBank SA | 56,275 | 294,873 | |||||||||
Distribuidora Internacional d Alimentacion | 20,003 | 135,542 | |||||||||
Ferrovial SA | 10,836 | 214,208 |
SEE NOTES TO FINANCIAL STATEMENTS
65
December 31, 2014
Schedule of Investments, continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Spain, continued | |||||||||||
Iberdrola SA | 112,756 | $ | 760,059 | ||||||||
Inditex SA | 22,480 | 641,251 | |||||||||
Red Electrica Corp. SA | 3,004 | 264,807 | |||||||||
Repsol SA | 18,301 | 342,610 | |||||||||
4,235,038 | |||||||||||
Sweden: 4.3% | |||||||||||
Alfa Laval AB | 5,161 | 97,593 | |||||||||
Assa Abloy AB, Class B | 7,104 | 375,208 | |||||||||
Atlas Copco AB, Class A | 14,328 | 398,686 | |||||||||
Atlas Copco AB, Class B | 9,327 | 238,751 | |||||||||
Electrolux AB, Class B | 4,735 | 138,353 | |||||||||
Hennes & Mauritz AB, Class B | 19,493 | 809,837 | |||||||||
Investment AB Kinnevik, Class B | 6,302 | 204,936 | |||||||||
Nordea Bank AB | 59,273 | 686,132 | |||||||||
Sandvik AB | 20,610 | 200,393 | |||||||||
Skandinaviska Enskilda Banken AB, Class A | 30,868 | 391,979 | |||||||||
Skanska AB, Class B | 11,344 | 243,560 | |||||||||
SKF AB, Class B | 12,428 | 261,802 | |||||||||
Svenska Cellulosa AB SCA, Class B | 14,501 | 312,623 | |||||||||
Swedbank AB, Class A | 16,658 | 413,300 | |||||||||
TeliaSonera AB | 50,157 | 322,478 | |||||||||
Volvo AB, Class B | 37,988 | 409,643 | |||||||||
5,505,274 | |||||||||||
Switzerland: 9.7% | |||||||||||
Actelion, Ltd. (a) | 2,815 | 324,066 | |||||||||
Aryzta AG (a) | 2,737 | 210,337 | |||||||||
Geberit AG | 858 | 290,264 | |||||||||
Givaudan SA (a) | 215 | 385,679 | |||||||||
Holcim, Ltd. (a) | 4,567 | 326,468 | |||||||||
Kuehne & Nagel International AG | 901 | 122,388 | |||||||||
Lindt & Spruengli AG | 46 | 227,445 | |||||||||
Lonza Group AG (a) | 1,084 | 122,049 | |||||||||
Novartis AG | 45,823 | 4,249,784 | |||||||||
Roche Holding AG | 14,266 | 3,865,261 | |||||||||
SGS SA | 160 | 326,715 | |||||||||
STMicroelectronics NV | 16,231 | 121,108 | |||||||||
Swiss Re AG (a) | 6,416 | 537,479 | |||||||||
Swisscom AG | 432 | 226,686 | |||||||||
Zurich Insurance Group AG (a) | 3,256 | 1,017,507 | |||||||||
12,353,236 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
United Kingdom: 20.0% | |||||||||||
3i Group PLC | 18,446 | $ | 128,620 | ||||||||
Aberdeen Asset Management PLC | 16,454 | 109,945 | |||||||||
Aggreko PLC | 9,115 | 212,562 | |||||||||
Associated British Foods PLC | 8,484 | 414,775 | |||||||||
Aviva PLC | 57,581 | 432,628 | |||||||||
BG Group PLC | 72,360 | 968,300 | |||||||||
British Land Co. PLC, REIT | 20,909 | 252,134 | |||||||||
BT Group PLC | 160,916 | 1,000,907 | |||||||||
Bunzl PLC | 9,849 | 269,244 | |||||||||
Capita PLC | 18,111 | 303,680 | |||||||||
Centrica PLC | 120,662 | 522,639 | |||||||||
Croda International PLC | 3,481 | 143,676 | |||||||||
GKN PLC | 42,090 | 224,034 | |||||||||
GlaxoSmithKline PLC | 97,479 | 2,091,275 | |||||||||
HSBC Holdings PLC | 401,105 | 3,790,346 | |||||||||
InterContinental Hotels Group PLC | 6,156 | 247,695 | |||||||||
Intertek Group PLC | 5,687 | 205,824 | |||||||||
ITV PLC | 75,561 | 252,050 | |||||||||
Johnson Matthey PLC | 5,006 | 263,370 | |||||||||
Kingfisher PLC | 54,173 | 286,366 | |||||||||
Land Securities Group PLC, REIT | 19,107 | 343,460 | |||||||||
Legal & General Group PLC | 124,579 | 481,018 | |||||||||
London Stock Exchange Group PL | 7,425 | 255,487 | |||||||||
Marks & Spencer Group PLC | 35,941 | 266,121 | |||||||||
Meggitt PLC | 27,209 | 218,876 | |||||||||
National Grid PLC | 80,576 | 1,143,316 | |||||||||
Next PLC | 3,887 | 412,243 | |||||||||
Old Mutual PLC | 97,114 | 286,211 | |||||||||
Pearson PLC | 14,976 | 276,579 | |||||||||
Petrofac, Ltd. | 6,357 | 69,253 | |||||||||
Prudential PLC | 52,277 | 1,208,617 | |||||||||
Reckitt Benckiser Group PLC | 13,980 | 1,132,295 | |||||||||
Reed Elsevier PLC | 22,353 | 381,834 | |||||||||
RSA Insurance Group PLC (a) | 15,649 | 105,654 | |||||||||
Smiths Group PLC | 12,574 | 213,810 | |||||||||
SSE PLC | 22,972 | 580,435 | |||||||||
Standard Chartered PLC | 54,777 | 819,239 | |||||||||
Standard Life PLC | 51,635 | 319,842 | |||||||||
Tesco PLC | 167,318 | 487,849 | |||||||||
Tullow Oil PLC | 21,655 | 139,552 | |||||||||
Unilever PLC | 25,375 | 1,030,940 | |||||||||
United Utilities Group PLC | 17,100 | 242,887 | |||||||||
Vodafone Group PLC | 527,510 | 1,808,635 |
SEE NOTES TO FINANCIAL STATEMENTS
66
December 31, 2014
Schedule of Investments, continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
United Kingdom, continued | |||||||||||
Whitbread PLC | 3,936 | $ | 291,288 | ||||||||
William Hill PLC | 21,338 | 119,900 | |||||||||
Wolseley PLC | 5,280 | 301,867 | |||||||||
WPP PLC | 23,581 | 490,288 | |||||||||
25,547,566 | |||||||||||
TOTAL COMMON STOCKS (Cost $128,116,728) | 125,762,917 | ||||||||||
EXCHANGE TRADED FUNDS: 1.8% | |||||||||||
iShares MSCI EAFE ETF | 37,560 | 2,285,150 | |||||||||
(Cost $2,317,836) | |||||||||||
RIGHTS: 0.0% (d) | |||||||||||
Spain: 0.0% (d) | |||||||||||
Banco Bilbao Vizcaya | 118,047 | 11,285 | |||||||||
Repsol SA | 18,301 | 10,120 | |||||||||
TOTAL RIGHTS (Cost $22,138) | 21,405 | ||||||||||
TIME DEPOSIT: 0.9% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 01/02/15 | $ | 1,133,000 | 1,133,000 | ||||||||
(Cost $1,133,000) | |||||||||||
TOTAL INVESTMENTS: 101.3% (Cost $131,589,702) | 129,202,472 | ||||||||||
OTHER ASSETS AND LIABILITIES— | (1,698,631 | ) | |||||||||
(NET): -1.3% | |||||||||||
NET ASSETS: 100.0% | $ | 127,503,841 |
(a) Non-income producing security.
(b) Fair Valued security.
(c) Illiquid security.
(d) Rounds to less than 0.05%.
REIT Real Estate Investment Trust
SUMMARY OF INVESTMENTS BY SECTOR | |||||||||||
Percent of Net Assets | Value | Percent of Net Assets | |||||||||
Consumer Discretionary | $ | 15,540,045 | 12.2 | % | |||||||
Consumer Staples | 11,845,819 | 9.3 | % | ||||||||
Energy | 3,343,332 | 2.6 | % | ||||||||
Financials | 34,428,676 | 27.0 | % | ||||||||
Health Care | 15,323,057 | 12.0 | % | ||||||||
Industrials | 15,614,421 | 12.2 | % | ||||||||
Information Technology | 6,779,908 | 5.3 | % | ||||||||
Materials | 10,562,876 | 8.3 | % | ||||||||
Telecommunication Services | 7,007,229 | 5.5 | % | ||||||||
Utilities | 5,317,554 | 4.2 | % | ||||||||
Exchange Traded Funds | 2,285,150 | 1.8 | % | ||||||||
Rights | 21,405 | 0.0 | %(d) | ||||||||
Time Deposit | 1,133,000 | 0.9 | % | ||||||||
Other assets and liabilities - (Net) | (1,698,631 | ) | -1.3 | % | |||||||
Total | $ | 127,503,841 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
67
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 100.2% | |||||||||||
Consumer Discretionary: 13.1% | |||||||||||
Accor SA | 738 | $ | 33,174 | ||||||||
Astro Malaysia Holdings Bhd | 5,800 | 5,013 | |||||||||
BEC World PCL | 3,500 | 5,417 | |||||||||
Best Buy Co., Inc. | 1,210 | 47,166 | |||||||||
Burberry Group PLC | 1,790 | 45,415 | |||||||||
Daimler AG | 3,959 | 328,811 | |||||||||
Darden Restaurants, Inc. | 542 | 31,777 | |||||||||
Electrolux AB, Class B | 9,042 | 264,200 | |||||||||
Eutelsat Communications SA | 627 | 20,277 | |||||||||
FF Group (a) | 115 | 3,674 | |||||||||
Foschini Group, Ltd./The | 849 | 9,747 | |||||||||
Fossil Group, Inc. (a) | 205 | 22,702 | |||||||||
Gap Inc., The | 1,092 | 45,984 | |||||||||
GKN PLC | 6,637 | 35,327 | |||||||||
Great Wall Motor Co., Ltd. | 4,000 | 22,703 | |||||||||
Hennes & Mauritz AB, Class B | 18,489 | 768,126 | |||||||||
Home Depot, Inc., The | 5,670 | 595,180 | |||||||||
Husqvarna AB, Class B | 1,505 | 11,062 | |||||||||
InterContinental Hotels Group PLC | 988 | 39,753 | |||||||||
JCDecaux SA | 264 | 9,090 | |||||||||
JUMBO SA | 329 | 3,345 | |||||||||
Kering | 3,346 | 643,003 | |||||||||
Kingfisher PLC | 10,423 | 55,097 | |||||||||
Kohl's Corp. | 855 | 52,189 | |||||||||
Lagardere SCA | 516 | 13,438 | |||||||||
lululemon athletica, Inc. (a)(b) | 6,808 | 379,818 | |||||||||
Marks & Spencer Group PLC | 6,468 | 47,892 | |||||||||
Marriott International, Inc., Class A | 965 | 75,299 | |||||||||
MGM China Holdings, Ltd. | 4,400 | 11,110 | |||||||||
Michael Kors Holdings, Ltd. (a) | 5,983 | 449,323 | |||||||||
Michelin | 813 | 73,387 | |||||||||
Netflix, Inc. (a) | 264 | 90,185 | |||||||||
Next PLC | 634 | 67,240 | |||||||||
NIKE, Inc., Class B | 2,979 | 286,431 | |||||||||
Nordstrom, Inc. | 577 | 45,808 | |||||||||
Omnicom Group, Inc. | 1,042 | 80,724 | |||||||||
PetSmart, Inc. | 369 | 29,998 | |||||||||
Publicis Groupe SA | 9,468 | 679,001 | |||||||||
Renault SA | 856 | 62,348 | |||||||||
SACI Falabella | 3,598 | 24,147 | |||||||||
Scripps Networks Interactive, Class A | 13,432 | 1,011,027 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Consumer Discretionary, continued | |||||||||||
Sodexo | 385 | $ | 37,685 | ||||||||
Staples, Inc. | 2,512 | 45,517 | |||||||||
Surya Citra Media Tbk PT | 16,500 | 4,656 | |||||||||
Swatch Group AG/The | 338 | 78,607 | |||||||||
Tabcorp Holdings, Ltd. | 3,324 | 11,221 | |||||||||
Tiffany & Co. | 555 | 59,307 | |||||||||
TJX Cos., Inc., The | 2,921 | 200,322 | |||||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 3,520 | 449,997 | |||||||||
VF Corp. | 2,335 | 174,892 | |||||||||
Walt Disney Co., The | 6,921 | 651,889 | |||||||||
Whitbread PLC | 723 | 53,506 | |||||||||
Wolters Kluwer NV | 1,222 | 37,290 | |||||||||
Woolworths Holdings, Ltd./South | 94,061 | 623,787 | |||||||||
Wyndham Worldwide Corp. | 532 | 45,624 | |||||||||
8,999,708 | |||||||||||
Consumer Staples: 18.9% | |||||||||||
Avon Products, Inc. | 9,515 | 89,346 | |||||||||
British American Tobacco Malyasia Bhd | 600 | 11,113 | |||||||||
Campbell Soup Co. | 9,600 | 422,400 | |||||||||
Carlsberg A/S, Class B | 499 | 38,323 | |||||||||
Carrefour SA | 2,736 | 83,260 | |||||||||
Clorox Co., The | 517 | 53,877 | |||||||||
Coca-Cola Amatil, Ltd. | 2,481 | 18,732 | |||||||||
Coca-Cola Co., The | 17,373 | 733,488 | |||||||||
Coca-Cola Enterprises, Inc. | 30,878 | 1,365,425 | |||||||||
Colgate-Palmolive Co. | 3,769 | 260,777 | |||||||||
ConAgra Foods, Inc. | 1,707 | 61,930 | |||||||||
Danone SA | 2,522 | 164,883 | |||||||||
Delhaize Group SA | 418 | 30,441 | |||||||||
Diageo PLC | 19,875 | 569,360 | |||||||||
Dr. Pepper Snapple Group, Inc. | 830 | 59,494 | |||||||||
Estee Lauder Cos, Inc., Class A | 16,867 | 1,285,265 | |||||||||
General Mills, Inc. | 2,594 | 138,338 | |||||||||
Henkel AG & Co. KGaA | 1,199 | 123,925 | |||||||||
Imperial Tobacco Group PLC | 4,091 | 180,084 | |||||||||
J Sainsbury PLC | 5,165 | 19,724 | |||||||||
JM Smucker Co., The | 419 | 42,311 | |||||||||
Kellogg Co. | 20,681 | 1,353,365 | |||||||||
Unilever PLC | 5,450 | 221,424 | |||||||||
Whole Foods Market, Inc. | 1,495 | 75,378 | |||||||||
Woolworths, Ltd. | 6,151 | 152,850 | |||||||||
Keurig Green Mountain, Inc. | 560 | 74,141 |
SEE NOTES TO FINANCIAL STATEMENTS
68
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Consumer Staples, continued | |||||||||||
Kimberly-Clark Corp. | 1,594 | $ | 184,171 | ||||||||
Koninklijke Ahold NV | 3,577 | 63,574 | |||||||||
Kraft Foods Group, Inc. | 2,327 | 145,810 | |||||||||
L'Oreal SA | 1,049 | 175,573 | |||||||||
Mead Johnson Nutrition Co. | 862 | 86,665 | |||||||||
Mondelez International, Inc., Class A | 7,297 | 265,064 | |||||||||
Nestle SA | 13,579 | 989,922 | |||||||||
Orkla ASA | 3,643 | 24,800 | |||||||||
PepsiCo, Inc. | 13,897 | 1,314,100 | |||||||||
Procter & Gamble Co., The | 14,995 | 1,365,894 | |||||||||
Remy Cointreau SA | 99 | 6,605 | |||||||||
SABMiller PLC | 4,153 | 216,501 | |||||||||
Svenska Cellulosa AB SCA, Class B | 2,601 | 56,074 | |||||||||
Swedish Match AB | 836 | 26,196 | |||||||||
Tate & Lyle PLC | 1,838 | 17,221 | |||||||||
Tesco PLC | 33,696 | 98,247 | |||||||||
Tiger Brands, Ltd. | 652 | 20,664 | |||||||||
Unilever NV | 6,960 | 272,259 | |||||||||
12,958,994 | |||||||||||
Energy: 1.3% | |||||||||||
ConocoPhillips | 5,053 | 348,959 | |||||||||
Core Laboratories NV | 191 | 22,985 | |||||||||
Delek Group, Ltd. | 19 | 4,766 | |||||||||
Encana Corp. | 3,514 | 48,908 | |||||||||
Energen Corp. | 328 | 20,913 | |||||||||
Grupa Lotos SA (a) | 242 | 1,743 | |||||||||
Lundin Petroleum AB (a) | 1,068 | 15,283 | |||||||||
Neste Oil OYJ | 486 | 11,797 | |||||||||
Noble Corp PLC | 1,145 | 18,973 | |||||||||
Petronas Dagangan Bhd | 900 | 4,411 | |||||||||
Phillips 66 | 2,340 | 167,778 | |||||||||
Statoil ASA | 4,647 | 81,819 | |||||||||
Technip SA | 479 | 28,533 | |||||||||
TransCanada Corp. | 3,040 | 149,410 | |||||||||
926,278 | |||||||||||
Financials: 22.1% | |||||||||||
3i Group PLC | 3,889 | 27,117 | |||||||||
Aberdeen Asset Management PLC | 3,684 | 24,616 | |||||||||
Alior Bank SA (a) | 181 | 3,968 | |||||||||
Allianz SE | 1,912 | 316,677 | |||||||||
Allstate Corp., The | 1,741 | 122,305 | |||||||||
American Tower Corp., REIT | 1,722 | 170,220 | |||||||||
AMP, Ltd. | 13,130 | 58,478 | |||||||||
Aon PLC | 1,098 | 104,123 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Financials, continued | |||||||||||
Assicurazioni Generali SpA | 5,022 | $ | 103,116 | ||||||||
Australia & New Zealand Banking Group, Ltd | 12,311 | 320,331 | |||||||||
AXA SA | 7,648 | 176,233 | |||||||||
Banca Monte dei Paschi di Siena SpA (a) | 22,430 | 12,778 | |||||||||
Bank Hapoalim BM | 4,440 | 20,877 | |||||||||
Bank Leumi Le-Israel BM (a) | 5,647 | 19,291 | |||||||||
Bank of Montreal | 2,842 | 201,029 | |||||||||
Bank of Nova Scotia, The | 5,578 | 318,366 | |||||||||
Bank of Queensland, Ltd. | 1,592 | 15,684 | |||||||||
Bank of the Philippine Islands | 2,880 | 6,025 | |||||||||
Bank Pekao SA | 515 | 25,882 | |||||||||
Barclays Africa Group, Ltd. | 1,229 | 19,218 | |||||||||
Barclays PLC | 70,982 | 266,845 | |||||||||
BDO Unibank, Inc. | 5,830 | 14,262 | |||||||||
Bendigo & Adelaide Bank, Ltd. | 5,637 | 58,613 | |||||||||
Berkshire Hathaway, Inc., Class B (a) | 4,645 | 697,447 | |||||||||
BNP Paribas SA | 4,720 | 278,641 | |||||||||
Canadian Imperial Bank of Commerce | 1,825 | 156,833 | |||||||||
China CITIC Bank Corp., Ltd. | 30,000 | 23,879 | |||||||||
Chubb Corp., The | 989 | 102,332 | |||||||||
CIT Group, Inc. | 801 | 38,312 | |||||||||
CNP Assurances | 25,096 | 444,906 | |||||||||
Comerica, Inc. | 776 | 36,348 | |||||||||
Commonwealth Bank of Australia | 10,416 | 723,691 | |||||||||
DBS Group Holdings, Ltd. | 8,094 | 125,306 | |||||||||
Delta Lloyd NV | 837 | 18,406 | |||||||||
Deutsche Bank AG | 6,075 | 181,912 | |||||||||
Deutsche Boerse AG | 802 | 56,992 | |||||||||
Dexus Property Group, REIT | 3,825 | 21,653 | |||||||||
Digital Realty Trust, Inc., REIT | 595 | 39,449 | |||||||||
Direct Line Insurance Group PLC | 6,297 | 28,485 | |||||||||
DNB ASA | 24,446 | 360,594 | |||||||||
Duke Realty Corp., REIT | 1,309 | 26,442 | |||||||||
Eaton Vance Corp. | 493 | 20,178 | |||||||||
Eurazeo SA | 167 | 11,696 | |||||||||
Federal Realty Investment Trust, REIT | 276 | 36,835 | |||||||||
First Capital Realty, Inc. | 400 | 6,425 |
SEE NOTES TO FINANCIAL STATEMENTS
69
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Financials, continued | |||||||||||
First Republic Bank | 542 | $ | 28,249 | ||||||||
Genworth Financial, Inc., Class A (a) | 3,096 | 26,316 | |||||||||
Gjensidige Forsikring ASA | 5,404 | 88,179 | |||||||||
GPT Group, The, REIT | 6,782 | 24,002 | |||||||||
Haci Omer Sabanci Holding AS | 3,810 | 16,538 | |||||||||
Hang Seng Bank, Ltd. | 3,300 | 54,848 | |||||||||
Hartford Financial Services Group | 1,816 | 75,709 | |||||||||
HCP, Inc., REIT | 1,853 | 81,588 | |||||||||
Hong Leong Bank Bhd | 2,200 | 8,796 | |||||||||
Host Hotels & Resorts, Inc., REIT | 2,980 | 70,835 | |||||||||
Hysan Development Co, Ltd. | 3,000 | 13,314 | |||||||||
ICADE, REIT | 151 | 12,082 | |||||||||
ING Groep NV (a) | 17,698 | 228,652 | |||||||||
Insurance Australia Group, Ltd. | 9,903 | 50,283 | |||||||||
Intact Financial Corp | 12,948 | 934,489 | |||||||||
Investment AB Kinnevik, Class B | 1,096 | 35,641 | |||||||||
Investor AB, Class B | 1,859 | 67,589 | |||||||||
Keppel Land, Ltd. | 3,000 | 7,728 | |||||||||
KeyCorp. | 100,384 | 1,395,337 | |||||||||
Klepierre, REIT | 397 | 17,046 | |||||||||
Land Securities Group PLC, REIT | 3,202 | 57,558 | |||||||||
Lend Lease Group | 2,283 | 30,407 | |||||||||
Liberty Property Trust, REIT (a) | 567 | 21,336 | |||||||||
Link REIT, The | 10,000 | 62,543 | |||||||||
Macquarie Group, Ltd. | 1,315 | 62,011 | |||||||||
Manulife Financial Corp. | 8,042 | 153,530 | |||||||||
MetLife, Inc. | 4,069 | 220,092 | |||||||||
Mirvac Group, REIT | 15,328 | 22,173 | |||||||||
Mizrahi Tefahot Bank, Ltd. (a) | 565 | 5,913 | |||||||||
National Bank of Canada | 1,520 | 64,683 | |||||||||
Nordea Bank AB | 13,664 | 158,172 | |||||||||
Novion Property Group, REIT | 8,883 | 15,268 | |||||||||
Old Mutual PLC | 21,525 | 63,438 | |||||||||
Principal Financial Group, Inc. | 1,224 | 63,575 | |||||||||
Prudential Financial, Inc. | 1,983 | 179,382 | |||||||||
Public Bank Bhd | 10,900 | 56,945 | |||||||||
QBE Insurance Group, Ltd. | 6,048 | 54,918 | |||||||||
Rayonier, Inc., REIT | 654 | 18,273 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Financials, continued | |||||||||||
Realogy Holdings Corp. (a) | 638 | $ | 28,385 | ||||||||
Royal Bank of Canada | 6,388 | 441,189 | |||||||||
Sampo OYJ, Class A | 1,910 | 89,415 | |||||||||
Sanlam, Ltd. | 7,502 | 45,142 | |||||||||
Siam Commercial Bank PCL, The | 6,300 | 34,698 | |||||||||
Societe Generale SA | 3,512 | 146,978 | |||||||||
Sun Life Financial, Inc. | 2,616 | 94,390 | |||||||||
Svenska Handelsbanken AB, Class A | 2,141 | 100,173 | |||||||||
Swedbank AB, Class A | 25,645 | 636,276 | |||||||||
Toronto-Dominion Bank, The | 8,259 | 394,609 | |||||||||
Travelers Cos., Inc., The | 1,412 | 149,460 | |||||||||
Tryg A/S | 77 | 8,604 | |||||||||
UDR, Inc., REIT | 1,019 | 31,406 | |||||||||
UniCredit SpA | 20,612 | 132,032 | |||||||||
Unione di Banche Italiane SCpA | 3,633 | 25,984 | |||||||||
Vienna Insurance Group AG Wiener Versicher | 158 | 7,062 | |||||||||
Voya Financial, Inc. | 836 | 35,430 | |||||||||
Wendel SA | 132 | 14,790 | |||||||||
Westpac Banking Corp. | 22,244 | 598,270 | |||||||||
Weyerhaeuser Co., REIT | 38,239 | 1,372,397 | |||||||||
Willis Group Holdings PLC | 636 | 28,499 | |||||||||
Zurich Insurance Group AG (a) | 612 | 191,251 | |||||||||
Unibail-Rodamco SE, REIT | 407 | 104,410 | |||||||||
15,101,104 | |||||||||||
Health Care: 9.8% | |||||||||||
Abbott Laboratories | 6,179 | 278,179 | |||||||||
Aetna, Inc. | 14,071 | 1,249,926 | |||||||||
AmerisourceBergen Corp. | 918 | 82,767 | |||||||||
AstraZeneca PLC | 5,454 | 385,220 | |||||||||
Becton Dickinson & Co. | 794 | 110,493 | |||||||||
Biogen Idec, Inc. (a) | 1,039 | 352,689 | |||||||||
Boston Scientific Corp. (a) | 5,345 | 70,821 | |||||||||
Bristol-Myers Squibb Co. | 6,852 | 404,474 | |||||||||
Bumrungrad Hospital PCL | 1,300 | 5,547 | |||||||||
Cardinal Health, Inc. | 1,380 | 111,407 | |||||||||
Catamaran Corp (a) | 900 | 46,573 | |||||||||
Celesio AG | 203 | 6,543 | |||||||||
CIGNA Corp. | 1,093 | 112,481 | |||||||||
CSL, Ltd. | 2,059 | 144,636 | |||||||||
Elekta AB, Class B | 1,563 | 15,980 | |||||||||
Eli Lilly & Co. | 4,177 | 288,171 | |||||||||
Essilor International SA | 851 | 94,903 |
SEE NOTES TO FINANCIAL STATEMENTS
70
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Gilead Sciences, Inc. (a) | 7,152 | $ | 674,148 | ||||||||
GlaxoSmithKline PLC | 21,340 | 457,820 | |||||||||
Hologic, Inc. (a) | 911 | 24,360 | |||||||||
Mallinckrodt PLC (a) | 486 | 48,129 | |||||||||
Medtronic, Inc. | 3,994 | 288,367 | |||||||||
Netcare, Ltd. | 3,274 | 10,700 | |||||||||
Novo Nordisk A/S, Class B | 8,617 | 364,497 | |||||||||
Patterson Cos., Inc. | 324 | 15,584 | |||||||||
Perrigo Co. PLC | 576 | 96,284 | |||||||||
Quest Diagnostics, Inc. | 594 | 39,834 | |||||||||
Sanofi | 5,143 | 468,890 | |||||||||
Seek, Ltd. | 1,317 | 18,364 | |||||||||
Shandong Weigao Group Medical Polymer Co L | 8,000 | 6,489 | |||||||||
Shire PLC | 2,394 | 169,735 | |||||||||
Smith & Nephew PLC | 3,685 | 66,450 | |||||||||
St. Jude Medical, Inc. | 1,187 | 77,191 | |||||||||
UCB SA | 547 | 41,592 | |||||||||
Varian Medical Systems, Inc. (a) | 413 | 35,729 | |||||||||
Waters Corp. (a) | 349 | 39,339 | |||||||||
6,704,312 | |||||||||||
Industrials: 9.4% | |||||||||||
ADT Corp., The (b) | 722 | 26,158 | |||||||||
Aeroports de Paris | 119 | 14,390 | |||||||||
Alfa Laval AB | 1,305 | 24,677 | |||||||||
Atlantia SpA | 1,676 | 38,954 | |||||||||
Atlas Copco AB, Class A | 2,716 | 75,574 | |||||||||
Atlas Copco AB, Class B | 1,568 | 40,137 | |||||||||
Auckland International Airport, Ltd. | 3,568 | 11,740 | |||||||||
Avery Dennison Corp. | 381 | 19,766 | |||||||||
Bidvest Group, Ltd., The | 1,219 | 31,869 | |||||||||
Bouygues SA | 731 | 26,395 | |||||||||
Brambles, Ltd. | 6,554 | 56,458 | |||||||||
Canadian Pacific Railway, Ltd. | 800 | 154,071 | |||||||||
Capita PLC | 4,835 | 81,072 | |||||||||
CH Robinson Worldwide, Inc. | 586 | 43,886 | |||||||||
Cie de St-Gobain | 2,017 | 85,442 | |||||||||
CNH Industrial NV | 3,852 | 31,182 | |||||||||
Cummins, Inc. | 733 | 105,677 | |||||||||
Deutsche Lufthansa AG | 20,293 | 336,274 | |||||||||
Deutsche Post AG | 4,022 | 130,562 | |||||||||
Dialog Group Bhd | 13,400 | 5,737 | |||||||||
DSV A/S | 702 | 21,375 | |||||||||
Dun & Bradstreet Corp., The | 158 | 19,112 | |||||||||
easyJet PLC | 605 | 15,657 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Industrials, continued | |||||||||||
Edenred | 826 | $ | 22,844 | ||||||||
Experian PLC | 4,208 | 70,934 | |||||||||
FedEx Corp. | 1,137 | 197,451 | |||||||||
Fraport AG Frankfurt Airport Svc Worldwide | 156 | 9,001 | |||||||||
General Electric Co. | 46,175 | 1,166,842 | |||||||||
Groupe Eurotunnel SA | 1,834 | 23,677 | |||||||||
Hertz Global Holdings, Inc. (a) | 1,931 | 48,159 | |||||||||
Honeywell International, Inc. | 3,044 | 304,156 | |||||||||
Intertek Group PLC | 769 | 27,832 | |||||||||
Kone OYJ, Class B | 1,288 | 58,640 | |||||||||
Koninklijke Philips NV | 4,101 | 118,872 | |||||||||
Legrand SA | 1,057 | 55,448 | |||||||||
Lockheed Martin Corp. | 7,124 | 1,371,869 | |||||||||
Malaysia Airports Holdings Bhd | 2,900 | 5,640 | |||||||||
Manpowergroup, Inc. | 325 | 22,155 | |||||||||
Masco Corp. | 1,530 | 38,556 | |||||||||
Metso OYJ | 478 | 14,311 | |||||||||
MISC Bhd | 4,500 | 9,284 | |||||||||
MTR Corp. Ltd. | 6,039 | 24,707 | |||||||||
Pall Corp. | 434 | 43,925 | |||||||||
Qantas Airways, Ltd. (a) | 4,337 | 8,424 | |||||||||
Randstad Holding NV | 526 | 25,309 | |||||||||
Rexel SA | 1,045 | 18,722 | |||||||||
Royal Mail PLC | 2,891 | 19,265 | |||||||||
Siemens AG | 3,406 | 382,166 | |||||||||
SKF AB, Class B | 1,640 | 34,547 | |||||||||
Societe BIC SA | 118 | 15,685 | |||||||||
Southwest Airlines Co. | 733 | 31,021 | |||||||||
Sydney Airport | 4,625 | 17,707 | |||||||||
Thales SA | 408 | 22,076 | |||||||||
TNT Express NV | 1,878 | 12,520 | |||||||||
Towers Watson & Co., Class A | 285 | 32,253 | |||||||||
Transurban Group | 7,419 | 51,701 | |||||||||
United Parcel Service, Inc., Class B | 2,890 | 321,281 | |||||||||
United Technologies Corp. | 3,583 | 412,045 | |||||||||
Vallourec SA | 519 | 14,066 | |||||||||
Vestas Wind Systems A/S (a) | 1,000 | 36,317 | |||||||||
6,485,573 | |||||||||||
Information Technology: 14.6% | |||||||||||
Accenture PLC, Class A | 2,571 | 229,616 | |||||||||
ARM Holdings PLC | 5,860 | 90,024 | |||||||||
ASML Holding NV | 1,453 | 156,993 |
SEE NOTES TO FINANCIAL STATEMENTS
71
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Information Technology, continued | |||||||||||
AtoS | 331 | $ | 26,300 | ||||||||
Autodesk, Inc. (a) | 967 | 58,078 | |||||||||
Cap Gemini SA | 628 | 44,913 | |||||||||
Cisco Systems, Inc. | 20,998 | 584,059 | |||||||||
Computershare, Ltd. | 2,023 | 19,351 | |||||||||
Dassault Systemes SA | 512 | 31,222 | |||||||||
Ericsson, Class B | 69,445 | 840,847 | |||||||||
F5 Networks, Inc. (a) | 300 | 39,140 | |||||||||
Facebook, Inc., Class A (a) | 8,450 | 659,269 | |||||||||
Gemalto NV | 310 | 25,300 | |||||||||
Google, Inc., Class A | 1,233 | 654,304 | |||||||||
Google, Inc., Class C (a) | 1,260 | 663,264 | |||||||||
Hewlett-Packard Co. | 7,585 | 304,386 | |||||||||
Hexagon AB, Class B | 990 | 30,541 | |||||||||
IBM | 4,078 | 654,274 | |||||||||
Intuit, Inc. | 1,111 | 102,423 | |||||||||
MasterCard, Inc., Class A | 4,169 | 359,201 | |||||||||
Microsoft Corp. | 29,085 | 1,350,997 | |||||||||
NetSuite, Inc. (a) | 150 | 16,376 | |||||||||
Open Text Corp. | 600 | 34,917 | |||||||||
Oracle Corp. | 14,063 | 632,413 | |||||||||
Symantec Corp. | 2,873 | 73,707 | |||||||||
Texas Instruments, Inc. | 4,412 | 235,888 | |||||||||
Visa, Inc., Class A | 2,011 | 527,284 | |||||||||
Western Union Co., The | 2,253 | 40,351 | |||||||||
Xerox Corp | 99,233 | 1,375,369 | |||||||||
Yahoo!, Inc. (a) | 3,958 | 199,919 | |||||||||
10,060,726 | |||||||||||
Materials: 2.0% | |||||||||||
Air Liquide SA | 1,443 | 178,556 | |||||||||
Albemarle Corp. (b) | 322 | 19,362 | |||||||||
Boliden AB | 1,069 | 17,088 | |||||||||
Boral, Ltd. | 3,308 | 14,196 | |||||||||
Ecolab, Inc. | 1,135 | 118,630 | |||||||||
EI du Pont de Nemours & Co. | 3,682 | 272,247 | |||||||||
EMS-Chemie Holding AG | 37 | 14,978 | |||||||||
Gold Fields, Ltd. | 2,915 | 13,178 | |||||||||
International Flavors & Fragrances, Inc. | 338 | 34,260 | |||||||||
Kumba Iron Ore, Ltd. | 264 | 5,460 | |||||||||
Lafarge SA | 781 | 54,826 | |||||||||
Newmont Mining Corp. | 2,041 | 38,575 | |||||||||
Norsk Hydro ASA | 5,288 | 29,787 | |||||||||
Novozymes A/S, Class B | 935 | 39,357 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 3,658 | 129,311 | |||||||||
Praxair, Inc. | 1,193 | 154,565 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Materials, continued | |||||||||||
Rexam PLC | 2,930 | $ | 20,627 | ||||||||
Stora Enso OYJ, Class R | 2,144 | 19,169 | |||||||||
Syngenta AG | 383 | 123,195 | |||||||||
Umicore SA | 471 | 18,953 | |||||||||
UPM-Kymmene OYJ | 2,018 | 33,071 | |||||||||
Yara International ASA | 781 | 34,780 | |||||||||
1,384,171 | |||||||||||
Telecommunication Services: 5.5% | |||||||||||
Advanced Info Service PLC | 3,800 | 28,977 | |||||||||
AT&T, Inc. | 22,530 | 756,783 | |||||||||
Belgacom SA | 572 | 20,754 | |||||||||
Chunghwa Telecom Co., Ltd. | 15,000 | 44,461 | |||||||||
Deutsche Telekom AG | 13,676 | 218,821 | |||||||||
Elisa OYJ | 5,731 | 156,428 | |||||||||
Frontier Communications Corp. (b) | 35,752 | 238,466 | |||||||||
Orange SA | 7,720 | 131,292 | |||||||||
Singapore Telecommunications, Ltd. | 34,000 | 99,800 | |||||||||
Spark New Zealand, Ltd. | 7,093 | 17,195 | |||||||||
Tele2 AB, Class B | 1,198 | 14,517 | |||||||||
Telefonica Deutschland Holding AG (a) | 59,161 | 313,544 | |||||||||
Telekom Malaysia Bhd | 4,455 | 8,746 | |||||||||
Telenor ASA | 2,981 | 60,301 | |||||||||
TeliaSonera AB | 91,202 | 586,371 | |||||||||
Telstra Corp., Ltd. | 18,147 | 88,101 | |||||||||
Verizon Communications, Inc. | 18,368 | 859,254 | |||||||||
Vivendi SA (a) | 5,142 | 127,987 | |||||||||
Vodacom Group, Ltd. | 1,483 | 16,410 | |||||||||
3,788,208 | |||||||||||
Utilities: 3.5% | |||||||||||
AGL Energy, Ltd. | 2,740 | 29,885 | |||||||||
Alliant Energy Corp. | 429 | 28,494 | |||||||||
American Electric Power Co., Inc. | 2,097 | 127,330 | |||||||||
American Water Works Co., Inc. | 766 | 40,828 | |||||||||
Atco., Ltd., Class I | 400 | 16,409 | |||||||||
AusNet Services | 7,528 | 8,133 | |||||||||
Canadian Utilities, Ltd., Class A | 532 | 18,733 | |||||||||
CenterPoint Energy, Inc. | 1,722 | 40,346 | |||||||||
Centrica PLC | 22,743 | 98,510 | |||||||||
Cheung Kong Infrastructure Holdings, Ltd. | 3,000 | 22,119 |
SEE NOTES TO FINANCIAL STATEMENTS
72
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Utilities, continued | |||||||||||
Cia de Saneamento Basico do Estado de Sao | 1,300 | $ | 8,373 | ||||||||
Consolidated Edison Inc. | 1,255 | 82,843 | |||||||||
Contact Energy, Ltd. | 1,316 | 6,535 | |||||||||
Dominion Resources, Inc. | 2,375 | 182,638 | |||||||||
Duke Energy Corp. | 3,075 | 256,886 | |||||||||
Edison International | 1,305 | 85,451 | |||||||||
Electricite de France SA | 1,084 | 29,841 | |||||||||
Enea SA | 798 | 3,433 | |||||||||
Enel Green Power SpA | 7,280 | 15,253 | |||||||||
Fortum OYJ | 2,074 | 45,030 | |||||||||
GDF Suez | 6,062 | 141,360 | |||||||||
Integrys Energy Group, Inc. | 308 | 23,978 | |||||||||
National Grid PLC | 15,675 | 222,417 | |||||||||
NiSource, Inc. | 1,302 | 55,231 | |||||||||
Pepco Holdings, Inc. | 1,064 | 28,654 | |||||||||
Pinnacle West Capital Corp. | 417 | 28,485 | |||||||||
Public Service Enterprise Group, Inc. | 2,148 | 88,949 | |||||||||
Red Electrica Corp. SA | 423 | 37,288 | |||||||||
Sempra Energy | 974 | 108,465 | |||||||||
Snam SpA | 8,801 | 43,558 | |||||||||
Suez Environnement Co. | 1,130 | 19,688 | |||||||||
Tenaga Nasional Bhd | 11,200 | 44,111 | |||||||||
TransAlta Corp. | 36,813 | 333,338 | |||||||||
United Utilities Group PLC | 2,729 | 38,762 | |||||||||
Xcel Energy, Inc. | 1,996 | 71,696 | |||||||||
2,433,050 | |||||||||||
TOTAL COMMON STOCKS (Cost $66,134,497) | 68,842,124 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
EXCHANGE-TRADED FUNDS: 1.4% | |||||||||||
iShares MSCI EAFE ETF | 4,156 | $ | 252,851 | ||||||||
SPDR S&P 500 ETF Trust | 3,401 | 698,906 | |||||||||
TOTAL EXCHANGE-TRADED FUNDS (Cost $947,689) | 951,757 | ||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 0.6% | |||||||||||
State Street Navigator Securities Lending Prime Portfolio | 384,724 | 384,724 | |||||||||
(Cost $384,724) | |||||||||||
TOTAL INVESTMENTS: 102.2% (Cost $67,466,910) | 70,178,605 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -0.6% | (384,724 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | (1,100,519 | ) | |||||||||
(NET): -1.6% | |||||||||||
NET ASSETS: 100.0% | $ | 68,693,362 |
(a) Non-income producing security.
(b) Security or partial position of this security was on loan as of December 31, 2014. The total market value of securities on loan as of December 31, 2014 was $459,321.
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
73
December 31, 2014
Schedule of Investments, continued
Pax Ellevate Global Women's Index Fund, continued
SUMMARY OF INVESTMENTS BY COUNTRY | |||||||||||
Percent of Net Assets | Value | Percent of Net Assets | |||||||||
Australia | $ | 2,695,539 | 3.9 | % | |||||||
Austria | 7,062 | 0.0 | %* | ||||||||
Belgium | 111,740 | 0.2 | % | ||||||||
Brazil | 8,373 | 0.0 | % | ||||||||
Canada | 3,697,213 | 5.4 | % | ||||||||
Chile | 24,147 | 0.0 | % | ||||||||
China | 53,071 | 0.1 | % | ||||||||
Denmark | 508,473 | 0.7 | % | ||||||||
Finland | 427,861 | 0.6 | % | ||||||||
France | 4,885,561 | 7.1 | % | ||||||||
Germany | 2,405,228 | 3.5 | % | ||||||||
Greece | 7,019 | 0.0 | %* | ||||||||
Hong Kong | 188,640 | 0.3 | % | ||||||||
Indonesia | 4,656 | 0.0 | %* | ||||||||
Ireland | 374,029 | 0.5 | % | ||||||||
Israel | 50,847 | 0.1 | % | ||||||||
Italy | 371,675 | 0.5 | % | ||||||||
Malaysia | 159,796 | 0.2 | % | ||||||||
Netherlands | 1,013,341 | 1.5 | % | ||||||||
New Zealand | 35,470 | 0.1 | % | ||||||||
Norway | 680,260 | 1.0 | % | ||||||||
Philippines | 20,287 | 0.0 | %* | ||||||||
Poland | 35,026 | 0.1 | % | ||||||||
Singapore | 232,834 | 0.3 | % | ||||||||
South Africa | 796,175 | 1.2 | % | ||||||||
Spain | 37,288 | 0.1 | % | ||||||||
Sweden | 3,819,071 | 5.6 | % | ||||||||
Switzerland | 1,397,953 | 2.0 | % | ||||||||
Taiwan | 44,461 | 0.1 | % | ||||||||
Thailand | 74,639 | 0.1 | % | ||||||||
Turkey | 16,538 | 0.0 | %* | ||||||||
United Kingdom | 4,050,770 | 5.9 | % | ||||||||
United States | 40,607,081 | 59.1 | % | ||||||||
Exchange-traded funds | 951,757 | 1.4 | % | ||||||||
Other assets and liabilities - (Net) | (1,100,519 | ) | -1.6 | % | |||||||
Total | $ | 68,693,362 | 100.0 | % |
*Rounds to less than 0.05%.
SEE NOTES TO FINANCIAL STATEMENTS
74
THIS PAGE INTENTIONALLY LEFT BLANK
December 31, 2014
Statements of Assets and Liabilities
Balanced Fund | Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||
Assets | |||||||||||||||||||
Investments, at cost—Note A | $ | 1,724,448,112 | $ | 132,662,245 | $ | 202,874,753 | $ | 587,857,951 | |||||||||||
Investments in unaffiliated issuers, at value | $ | 1,979,858,940 | $ | 201,500,190 | $ | 210,969,295 | $ | 570,802,452 | |||||||||||
Investments in affiliated issuers, at value | 17,753,158 | — | — | — | |||||||||||||||
Total investments, at value—Note A1 | 1,997,612,098 | 201,500,190 | 210,969,295 | 570,802,452 | |||||||||||||||
Cash | 837 | 875 | 848 | 4,914,785 | |||||||||||||||
Foreign currency at value (cost $380,422; $6 and $130,373, respectively) | — | — | — | 361,440 | |||||||||||||||
Prepaid Expenses | 1,828 | 1,759 | 3,333 | 251 | |||||||||||||||
Receivables: | |||||||||||||||||||
Capital stock sold | 1,911,476 | 226,568 | 3,005,058 | 1,069,825 | |||||||||||||||
Dividends and interest—Note A | 6,060,389 | 153,411 | 165,239 | 8,837,919 | |||||||||||||||
Investment securities sold | — | 524,227 | — | 8,608,897 | |||||||||||||||
Investment Adviser Reimbursement | — | 365 | — | — | |||||||||||||||
Other | 14,026 | 26,221 | 19,896 | 11,681 | |||||||||||||||
Total Assets | 2,005,600,654 | 202,433,616 | 214,163,669 | 594,607,250 | |||||||||||||||
Liabilities | |||||||||||||||||||
Collateral on Securities Loaned, at value | 5,043,105 | 1,731,135 | 6,899,006 | 27,392,530 | |||||||||||||||
Payables: | |||||||||||||||||||
Capital stock reacquired | 472,292 | 32,597 | 389,375 | 1,829,743 | |||||||||||||||
Investment securities purchased | 3,644,089 | 217,157 | 4,602,286 | 7,604,825 | |||||||||||||||
Dividend payable—Note A | — | — | — | 441,522 | |||||||||||||||
Payable to bank | — | — | — | — | |||||||||||||||
Payable to foreign banks (cost $138,914) | — | — | — | — | |||||||||||||||
Accrued expenses: | |||||||||||||||||||
Investment advisory fees—Note B | 846,747 | 127,925 | 118,447 | 243,867 | |||||||||||||||
Distribution expense | 386,206 | 35,206 | 26,465 | 76,434 | |||||||||||||||
Trustees fees and expenses | — | — | — | 354 | |||||||||||||||
Compliance expense | 5,204 | 3,417 | 3,197 | 3,752 | |||||||||||||||
Transfer agent fees | 341,573 | 46,876 | 17,212 | 127,116 | |||||||||||||||
Printing and other shareholder communication fees | 9,367 | 1,914 | — | — | |||||||||||||||
Custodian fees | 33,671 | 7,943 | 2,462 | 17,679 | |||||||||||||||
Legal and audit fees | 70,494 | 41,462 | 18,936 | 49,455 | |||||||||||||||
Other accrued expenses | 26,832 | 20,232 | 27,806 | 28,755 | |||||||||||||||
Total Liabilities | 10,879,580 | 2,265,864 | 12,105,192 | 37,816,032 | |||||||||||||||
Net Assets | $ | 1,994,721,074 | $ | 200,167,752 | $ | 202,058,477 | $ | 556,791,218 |
1Total investments, at value include securities loaned. At December 31, 2014, the Balanced Fund, Growth Fund, Small Cap Fund, High Yield Bond Fund and Global Women's Index Fund had a total market value of securities on loan of $36,395,176; $1,719,632; $6,699,228; $26,671,268 and $459,321, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
76
December 31, 2014
Global Environmental Markets Fund | Int'l ESG Index Fund | Global Women's Index Fund | |||||||||||||
Assets | |||||||||||||||
Investments, at cost—Note A | $ | 172,708,341 | $ | 131,589,702 | $ | 67,466,910 | |||||||||
Investments in unaffiliated issuers, at value | $ | 194,491,559 | $ | 129,202,472 | $ | 70,178,605 | |||||||||
Investments in affiliated issuers, at value | — | — | — | ||||||||||||
Total investments, at value—Note A1 | 194,491,559 | 129,202,472 | 70,178,605 | ||||||||||||
Cash | 2,844,200 | 450 | — | ||||||||||||
Foreign currency at value (cost $380,422; $6 and $130,373, respectively) | 6 | 129,692 | — | ||||||||||||
Prepaid Expenses | 4,711 | — | — | ||||||||||||
Receivables: | |||||||||||||||
Capital stock sold | 366,616 | 560,772 | 164,936 | ||||||||||||
Dividends and interest—Note A | 146,915 | 154,215 | 82,703 | ||||||||||||
Investment securities sold | — | 430,033 | 948 | ||||||||||||
Investment Adviser Reimbursement | 298 | — | — | ||||||||||||
Other | 36,134 | 108,990 | 18,817 | ||||||||||||
Total Assets | 197,890,439 | 130,586,624 | 70,446,009 | ||||||||||||
Liabilities | |||||||||||||||
Collateral on Securities Loaned, at value | — | — | 384,724 | ||||||||||||
Payables: | |||||||||||||||
Capital stock reacquired | 1,493,921 | 521,508 | 15,934 | ||||||||||||
Investment securities purchased | — | 2,493,353 | 699,967 | ||||||||||||
Dividend payable—Note A | — | — | — | ||||||||||||
Payable to bank | — | — | 464,658 | ||||||||||||
Payable to foreign banks (cost $138,914) | — | — | 127,303 | ||||||||||||
Accrued expenses: | |||||||||||||||
Investment advisory fees—Note B | 153,714 | 59,639 | 43,235 | ||||||||||||
Distribution expense | 23,906 | 8,283 | 16,826 | ||||||||||||
Trustees fees and expenses | — | — | — | ||||||||||||
Compliance expense | 3,166 | — | — | ||||||||||||
Transfer agent fees | 26,434 | — | — | ||||||||||||
Printing and other shareholder communication fees | — | — | — | ||||||||||||
Custodian fees | 11,541 | — | — | ||||||||||||
Legal and audit fees | 21,104 | — | — | ||||||||||||
Other accrued expenses | 32,675 | — | — | ||||||||||||
Total Liabilities | 1,766,461 | 3,082,783 | 1,752,647 | ||||||||||||
Net Assets | $ | 196,123,978 | $ | 127,503,841 | $ | 68,693,362 |
SEE NOTES TO FINANCIAL STATEMENTS
77
December 31, 2014
Statements of Assets and Liabilities, continued
Balanced Fund | Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||
Net Assets Represented By | |||||||||||||||||||
Paid in Capital | $ | 1,703,903,271 | $ | 128,816,596 | $ | 194,066,779 | $ | 588,725,578 | |||||||||||
Undistributed (distributions in excess of) net investment income | 3,450,443 | 122,705 | — | (167,448 | ) | ||||||||||||||
Accumulated net realized gain (loss) | 14,224,257 | 2,392,759 | (102,844 | ) | (14,692,431 | ) | |||||||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments | 273,163,986 | 68,837,945 | 8,094,542 | (17,055,499 | ) | ||||||||||||||
Foreign currency translations | (20,883 | ) | (2,253 | ) | — | (18,982 | ) | ||||||||||||
Net Assets | $ | 1,994,721,074 | $ | 200,167,752 | $ | 202,058,477 | $ | 556,791,218 | |||||||||||
Individual Investor Class | |||||||||||||||||||
Net assets | $ | 1,740,413,506 | $ | 159,793,596 | $ | 103,508,061 | $ | 351,179,586 | |||||||||||
Capital Shares Outstanding | 73,447,684 | 8,752,654 | 7,434,348 | 49,941,173 | |||||||||||||||
Net asset value per share | $ | 23.70 | $ | 18.26 | $ | 13.92 | $ | 7.03 | |||||||||||
Class A | |||||||||||||||||||
Net assets | $ | 1,729,136 | $ | 19,698,151 | $ | 3,061,391 | |||||||||||||
Capital Shares Outstanding | 94,861 | 1,417,588 | 434,894 | ||||||||||||||||
Net asset value per share | $ | 18.23 | $ | 13.90 | $ | 7.04 | |||||||||||||
Institutional Class | |||||||||||||||||||
Net assets | $ | 248,979,126 | $ | 37,628,557 | $ | 77,468,598 | $ | 201,434,873 | |||||||||||
Capital Shares Outstanding | 10,387,335 | 2,016,258 | 5,531,882 | 28,752,092 | |||||||||||||||
Net asset value per share | $ | 23.97 | $ | 18.66 | $ | 14.00 | $ | 7.01 | |||||||||||
Class R | |||||||||||||||||||
Net assets | $ | 5,328,442 | $ | 1,016,463 | $ | 1,383,667 | $ | 1,115,368 | |||||||||||
Capital Shares Outstanding | 223,500 | 55,911 | 100,173 | 158,575 | |||||||||||||||
Net asset value per share | $ | 23.84 | $ | 18.18 | $ | 13.81 | $ | 7.03 |
SEE NOTES TO FINANCIAL STATEMENTS
78
December 31, 2014
Global Environmental Markets Fund | Int'l ESG Index Fund | Global Women's Index Fund | |||||||||||||
Net Assets Represented By | |||||||||||||||
Paid in Capital | $ | 174,626,456 | $ | 130,584,427 | $ | 65,501,673 | |||||||||
Undistributed (distributions in excess of) net investment income | — | 435,565 | 52,070 | ||||||||||||
Accumulated net realized gain (loss) | (281,085 | ) | (1,116,602 | ) | 427,292 | ||||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||
Investments | 21,783,218 | (2,387,230 | ) | 2,711,695 | |||||||||||
Foreign currency translations | (4,611 | ) | (12,319 | ) | 632 | ||||||||||
Net Assets | $ | 196,123,978 | $ | 127,503,841 | $ | 68,693,362 | |||||||||
Individual Investor Class | |||||||||||||||
Net assets | $ | 96,255,427 | $ | 37,602,820 | $ | 55,547,655 | |||||||||
Capital Shares Outstanding | 7,859,910 | 4,589,252 | 2,719,296 | ||||||||||||
Net asset value per share | $ | 12.25 | $ | 8.19 | $ | 20.43 | |||||||||
Class A | |||||||||||||||
Net assets | $ | 9,762,816 | |||||||||||||
Capital Shares Outstanding | 798,541 | ||||||||||||||
Net asset value per share | $ | 12.23 | |||||||||||||
Institutional Class | |||||||||||||||
Net assets | $ | 87,604,618 | $ | 89,097,692 | $ | 13,145,707 | |||||||||
Capital Shares Outstanding | 7,118,476 | 11,066,990 | 640,687 | ||||||||||||
Net asset value per share | $ | 12.31 | $ | 8.05 | $ | 20.52 | |||||||||
Class R | |||||||||||||||
Net assets | $ | 2,501,117 | $ | 803,329 | |||||||||||
Capital Shares Outstanding | 205,666 | 98,757 | |||||||||||||
Net asset value per share | $ | 12.16 | $ | 8.13 |
SEE NOTES TO FINANCIAL STATEMENTS
79
For the Year Ended December 31, 2014
Statements of Operations
Balanced Fund | Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||
Investment Income | |||||||||||||||||||
Income | |||||||||||||||||||
Dividends (net of foreign withholding tax of $136,107; $20,898; $3,396; $0; $134,228; $220,155; and $67,136; respectively) | $ | 21,308,620 | $ | 3,507,550 | $ | 2,389,278 | $ | 1,401,824 | |||||||||||
Dividends from affiliate—Note C | 630,861 | — | — | — | |||||||||||||||
Interest | 13,786,303 | 511 | 527 | 44,254,823 | |||||||||||||||
Income from securities lending—Note A | 254,819 | 25,046 | 118,287 | 162,756 | |||||||||||||||
Total Income | 35,980,603 | 3,533,107 | 2,508,092 | 45,819,403 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees—Note B | 9,966,216 | 1,366,922 | 886,505 | 3,371,626 | |||||||||||||||
Distribution expenses—Individual Investor (Note B) | 4,358,477 | 369,553 | 182,606 | 1,135,016 | |||||||||||||||
Distribution expenses—Class A (Note B) | — | 2,654 | 30,241 | 5,212 | |||||||||||||||
Distribution expenses—Class R (Note B) | 24,887 | 4,399 | 4,517 | 4,763 | |||||||||||||||
Transfer agent fees—Note A | 1,906,825 | 248,484 | 163,000 | 761,371 | |||||||||||||||
Printing and other shareholder communication fees | 197,432 | 50,237 | 24,266 | 77,667 | |||||||||||||||
Custodian fees | 381,433 | 54,944 | 41,984 | 301,206 | |||||||||||||||
Legal fees and related expenses | 187,842 | 38,073 | 31,280 | 80,139 | |||||||||||||||
Trustees' fees and expenses—Note B | 169,111 | 31,606 | 26,062 | 67,908 | |||||||||||||||
Compliance expense | 33,034 | 14,604 | 12,914 | 18,791 | |||||||||||||||
Audit fees | 84,530 | 54,632 | 25,521 | 62,437 | |||||||||||||||
Registration fees | 54,204 | 83,461 | 97,610 | 102,377 | |||||||||||||||
Other expenses | 154,385 | 15,101 | 10,374 | 86,638 | |||||||||||||||
Total Expenses | 17,518,376 | 2,334,670 | 1,536,880 | 6,075,151 | |||||||||||||||
Less: Advisory fee waiver—Note B | (94,036 | ) | — | — | — | ||||||||||||||
Expenses assumed by Adviser—Note B | — | (125,473 | ) | (153,154 | ) | — | |||||||||||||
Net expenses | 17,424,340 | 2,209,197 | 1,383,726 | 6,075,151 | |||||||||||||||
Net investment income | 18,556,263 | 1,323,910 | 1,124,366 | 39,744,252 | |||||||||||||||
Realized and Unrealized Gain (Loss)—Notes A and C | |||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments in unaffiliated issuers (including premium on options exercised)1 | 172,864,542 | 8,800,533 | 5,296,430 | (11,431,592 | ) | ||||||||||||||
Investment in affiliated issuers | 137,803 | — | — | — | |||||||||||||||
Net increase from reimbursement by investment adviser2 | — | — | — | 90,278 | |||||||||||||||
Closed short positions | — | — | — | 486,700 | |||||||||||||||
Option contracts written | 748,612 | 30,554 | — | — | |||||||||||||||
Foreign currency transactions | (55,927 | ) | (4,681 | ) | — | (375,210 | ) | ||||||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments in unaffiliated issuers | (42,615,024 | ) | 10,504,573 | 3,684,784 | (33,096,670 | ) | |||||||||||||
Investment in affiliated issuers | (2,253,641 | ) | — | — | — | ||||||||||||||
Securities sold short | — | — | — | (131,957 | ) | ||||||||||||||
Option contracts written | 5,026,388 | (30,598 | ) | — | — | ||||||||||||||
Foreign currency translation | (24,668 | ) | (3,320 | ) | — | (30,404 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 133,828,085 | 19,297,061 | 8,981,214 | (44,488,855 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 152,384,348 | $ | 20,620,971 | $ | 10,105,580 | $ | (4,744,603 | ) |
1Includes loss of $90,278 due to trading error caused by Investment Adviser. See Note B in Notes to the Financial Statements.
2See Note B in the Notes to Financial Statements.
SEE NOTES TO FINANCIAL STATEMENTS
80
For the Year Ended December 31, 2014
Global Environmental Markets Fund | Int'l ESG Index Fund | Global Women's Index Fund | |||||||||||||
Investment Income | |||||||||||||||
Income | |||||||||||||||
Dividends (net of foreign withholding tax of $136,107; $20,898; $3,396; $0; $134,228; $220,155; and $67,136; respectively) | $ | 3,378,672 | $ | 4,328,825 | $ | 1,705,097 | |||||||||
Dividends from affiliate—Note C | — | — | — | ||||||||||||
Interest | — | — | 276 | ||||||||||||
Income from securities lending—Note A | — | 66 | 8,537 | ||||||||||||
Total Income | 3,378,672 | 4,328,891 | 1,713,910 | ||||||||||||
Expenses | |||||||||||||||
Investment advisory fees—Note B | 1,619,763 | 578,446 | 405,870 | ||||||||||||
Distribution expenses—Individual Investor (Note B) | 245,737 | 63,387 | 121,894 | ||||||||||||
Distribution expenses—Class A (Note B) | 16,490 | — | — | ||||||||||||
Distribution expenses—Class R (Note B) | 12,766 | 2,029 | — | ||||||||||||
Transfer agent fees—Note A | 205,275 | — | 37,850 | ||||||||||||
Printing and other shareholder communication fees | 29,782 | — | 14,139 | ||||||||||||
Custodian fees | 100,527 | — | 16,868 | ||||||||||||
Legal fees and related expenses | 37,400 | — | 11,028 | ||||||||||||
Trustees' fees and expenses—Note B | 31,091 | — | 9,500 | ||||||||||||
Compliance expense | 12,914 | — | 5,523 | ||||||||||||
Audit fees | 28,333 | — | 10,655 | ||||||||||||
Registration fees | 92,535 | — | 6,246 | ||||||||||||
Other expenses | 14,565 | — | 2,305 | ||||||||||||
Total Expenses | 2,447,178 | 643,862 | 641,878 | ||||||||||||
Less: Advisory fee waiver—Note B | — | — | — | ||||||||||||
Expenses assumed by Adviser—Note B | (102,861 | ) | — | (66,388 | ) | ||||||||||
Net expenses | 2,344,317 | 643,862 | 575,490 | ||||||||||||
Net investment income | 1,034,355 | 3,685,029 | 1,138,420 | ||||||||||||
Realized and Unrealized Gain (Loss)—Notes A and C | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments in unaffiliated issuers (including premium on options exercised)1 | 2,423,256 | (248,216 | ) | 9,333,407 | |||||||||||
Investment in affiliated issuers | — | — | — | ||||||||||||
Net increase from reimbursement by investment adviser2 | — | — | — | ||||||||||||
Closed short positions | — | — | — | ||||||||||||
Option contracts written | — | — | — | ||||||||||||
Foreign currency transactions | (69,725 | ) | (60,566 | ) | (26,881 | ) | |||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||
Investments in unaffiliated issuers | (9,018,190 | ) | (10,701,263 | ) | (7,423,047 | ) | |||||||||
Investment in affiliated issuers | — | — | — | ||||||||||||
Securities sold short | — | — | — | ||||||||||||
Option contracts written | — | — | — | ||||||||||||
Foreign currency translation | (5,491 | ) | (15,035 | ) | (165 | ) | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | (6,670,150 | ) | (11,025,080 | ) | 1,883,314 | ||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (5,635,795 | ) | $ | (7,340,051 | ) | $ | 3,021,734 |
SEE NOTES TO FINANCIAL STATEMENTS
81
Statements of Changes in Net Assets
Balanced Fund | Growth Fund | ||||||||||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income, net | $ | 18,556,263 | $ | 21,882,816 | $ | 1,323,910 | $ | 331,064 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions1 | 173,695,030 | 240,793,676 | 8,826,406 | 6,953,647 | |||||||||||||||
Net increase from reimbursement from Investment Adviser2 | — | — | — | — | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | (39,866,945 | ) | 28,378,777 | 10,470,655 | 31,859,376 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 152,384,348 | 291,055,269 | 20,620,971 | 39,144,087 | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (15,369,550 | ) | (13,798,645 | ) | (877,973 | ) | (296,856 | ) | |||||||||||
Class A | (7,146 | ) | (74 | ) | |||||||||||||||
Institutional Class | (2,586,783 | ) | (2,171,251 | ) | (261,122 | ) | (80,977 | ) | |||||||||||
Class R | (33,030 | ) | (21,021 | ) | (3,767 | ) | (873 | ) | |||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (169,539,378 | ) | (187,226,952 | ) | (5,917,984 | ) | (2,996,622 | ) | |||||||||||
Class A | — | — | (60,954 | ) | (6,055 | ) | |||||||||||||
Institutional Class | (23,569,142 | ) | (23,364,926 | ) | (1,348,664 | ) | (590,465 | ) | |||||||||||
Class R | (508,406 | ) | (466,151 | ) | (36,797 | ) | (17,208 | ) | |||||||||||
Total distributions to shareholders | (211,606,289 | ) | (227,048,946 | ) | (8,514,407 | ) | (3,989,130 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 97,815,388 | 88,161,890 | 21,233,415 | 17,287,138 | |||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Proceeds from reinvestment of distributions | 178,401,155 | 192,727,793 | 6,613,253 | 3,189,935 | |||||||||||||||
Cost of shares redeemed | (255,946,424 | ) | (254,504,603 | ) | (19,496,618 | ) | (32,810,950 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | 20,270,119 | 26,385,080 | 8,350,050 | (12,333,877 | ) | ||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 1,486,670 | 270,195 | |||||||||||||||||
Proceeds from reinvestment of distributions | 65,592 | 6,129 | |||||||||||||||||
Cost of shares redeemed | (177,460 | ) | (10,241 | ) | |||||||||||||||
Net increase from Class A transactions | 1,374,802 | 266,083 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 49,468,412 | 85,541,401 | 10,197,209 | 20,501,963 | |||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Proceeds from reinvestment of distributions | 25,125,472 | 24,743,263 | 1,364,791 | 575,359 | |||||||||||||||
Cost of shares redeemed | (43,264,279 | ) | (31,828,931 | ) | (4,765,064 | ) | (3,458,419 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 31,329,605 | 78,455,733 | 6,796,936 | 17,618,903 | |||||||||||||||
Class R | |||||||||||||||||||
Proceeds from shares sold | 1,224,343 | 2,187,255 | 408,458 | 200,620 | |||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Proceeds from reinvestment of distributions | 541,436 | 487,173 | 40,111 | 18,081 | |||||||||||||||
Cost of shares redeemed | (814,140 | ) | (1,536,259 | ) | (304,665 | ) | (35,128 | ) | |||||||||||
Net increase (decrease) from Class R transactions | 951,639 | 1,138,169 | 143,904 | 183,573 | |||||||||||||||
NAV of shares issued in fund merger | |||||||||||||||||||
Net increase (decrease) from capital share transactions | 52,551,363 | 105,978,982 | 16,665,692 | 5,734,682 | |||||||||||||||
Net increase (decrease) in net assets | (6,670,578 | ) | 169,985,305 | 28,772,256 | 40,889,639 | ||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 2,001,391,652 | 1,831,406,347 | 171,395,496 | 130,505,857 | |||||||||||||||
End of period (3) | $ | 1,994,721,074 | $ | 2,001,391,652 | $ | 200,167,752 | $ | 171,395,496 | |||||||||||
(3) Includes undistributed net investment income (loss) | $ | 3,450,443 | $ | 7,468,438 | $ | 122,705 | $ | 4,094 |
1Includes loss of $90,278 due to trading error caused by Investment Adviser. See Note B in Notes to the Financial Statements.
2See Note B in the Notes to Financial Statements.
SEE NOTES TO FINANCIAL STATEMENTS
82
Small Cap Fund | High Yield Bond Fund | ||||||||||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income, net | $ | 1,124,366 | $ | 251,275 | $ | 39,744,252 | $ | 34,781,513 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions1 | 5,296,430 | 6,198,016 | (11,320,102 | ) | (870,424 | ) | |||||||||||||
Net increase from reimbursement from Investment Adviser2 | — | — | 90,278 | — | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 3,684,784 | 3,971,394 | (33,259,031 | ) | 3,632,655 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 10,105,580 | 10,420,685 | (4,744,603 | ) | 37,543,744 | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (610,225 | ) | (270,497 | ) | (26,543,325 | ) | (25,129,492 | ) | |||||||||||
Class A | (117,854 | ) | (13,525 | ) | (121,457 | ) | (8,714 | ) | |||||||||||
Institutional Class | (437,187 | ) | (59,711 | ) | (13,259,599 | ) | (9,501,589 | ) | |||||||||||
Class R | (4,742 | ) | (2,423 | ) | (53,437 | ) | (46,354 | ) | |||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (3,394,692 | ) | (4,237,883 | ) | (421,758 | ) | (394,211 | ) | |||||||||||
Class A | (643,820 | ) | (255,764 | ) | (3,496 | ) | (6 | ) | |||||||||||
Institutional Class | (2,180,509 | ) | (760,689 | ) | (241,004 | ) | (145,021 | ) | |||||||||||
Class R | (43,391 | ) | (47,171 | ) | (1,316 | ) | (852 | ) | |||||||||||
Total distributions to shareholders | (7,432,420 | ) | (5,647,663 | ) | (40,645,392 | ) | (35,226,239 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 83,067,101 | 28,357,589 | 157,676,050 | 292,457,664 | |||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Proceeds from reinvestment of distributions | 3,872,651 | 4,059,328 | 24,469,389 | 20,401,637 | |||||||||||||||
Cost of shares redeemed | (30,837,570 | ) | (6,357,076 | ) | (274,913,365 | ) | (188,104,077 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | 56,102,182 | 26,059,841 | (92,767,926 | ) | 124,755,224 | ||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 17,749,038 | 3,040,665 | 2,884,246 | 780,073 | |||||||||||||||
Proceeds from reinvestment of distributions | 693,814 | 249,793 | 103,837 | 6,866 | |||||||||||||||
Cost of shares redeemed | (2,170,364 | ) | (36,376 | ) | (481,257 | ) | (5,518 | ) | |||||||||||
Net increase from Class A transactions | 16,272,488 | 3,254,082 | 2,506,826 | 781,421 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 69,513,691 | 8,469,402 | 103,212,166 | 79,979,108 | |||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Proceeds from reinvestment of distributions | 2,360,991 | 600,980 | 9,311,428 | 5,622,939 | |||||||||||||||
Cost of shares redeemed | (3,766,406 | ) | (1,459,819 | ) | (82,075,273 | ) | (34,116,182 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 68,108,276 | 7,610,563 | 30,448,321 | 51,485,865 | |||||||||||||||
Class R | |||||||||||||||||||
Proceeds from shares sold | 951,642 | 458,746 | 540,682 | 302,947 | |||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Proceeds from reinvestment of distributions | 45,962 | 49,594 | 54,689 | 46,564 | |||||||||||||||
Cost of shares redeemed | (263,770 | ) | (37,092 | ) | (87,987 | ) | (537,454 | ) | |||||||||||
Net increase (decrease) from Class R transactions | 733,834 | 471,248 | 507,384 | (187,943 | ) | ||||||||||||||
NAV of shares issued in fund merger | |||||||||||||||||||
Net increase (decrease) from capital share transactions | 141,216,780 | 37,395,734 | (59,305,395 | ) | 176,834,567 | ||||||||||||||
Net increase (decrease) in net assets | 143,889,940 | 42,168,756 | (104,695,390 | ) | 179,152,072 | ||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 58,168,537 | 15,999,781 | 661,486,608 | 482,334,536 | |||||||||||||||
End of period (3) | $ | 202,058,477 | $ | 58,168,537 | $ | 556,791,218 | $ | 661,486,608 | |||||||||||
(3) Includes undistributed net investment income (loss) | $ | — | $ | — | $ | (167,448 | ) | $ | 747,642 |
SEE NOTES TO FINANCIAL STATEMENTS
83
Statements of Changes in Net Assets, continued
Global Environmental Markets Fund | International ESG Index Fund | ||||||||||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income, net | $ | 1,034,355 | $ | 608,038 | $ | 3,685,029 | $ | 775,106 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 2,353,531 | 3,677,916 | (308,782 | ) | (110,191 | ) | |||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | (9,023,681 | ) | 21,781,408 | (10,716,298 | ) | 6,139,468 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (5,635,795 | ) | 26,067,362 | (7,340,051 | ) | 6,804,383 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (977,158 | ) | (1,358,849 | ) | (445,526 | ) | — | ||||||||||||
Class A | (71,282 | ) | (22,513 | ) | |||||||||||||||
Institutional Class | (901,357 | ) | (575,579 | ) | (2,743,493 | ) | (761,762 | ) | |||||||||||
Class R | (18,584 | ) | (31,613 | ) | (6,075 | ) | — | ||||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (648,914 | ) | (151,631 | ) | (164,345 | ) | — | ||||||||||||
Class A | (50,078 | ) | (3,283 | ) | |||||||||||||||
Institutional Class | (501,477 | ) | (64,167 | ) | (400,513 | ) | — | ||||||||||||
Class R | (16,679 | ) | (3,936 | ) | (3,606 | ) | — | ||||||||||||
Total distributions to shareholders | (3,185,529 | ) | (2,211,571 | ) | (3,763,558 | ) | (761,762 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 35,653,183 | 40,280,687 | 19,978,468 | ||||||||||||||||
Shares issued in connection with fund acquisition1 | 30,289,296 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 1,538,727 | 1,410,861 | 567,202 | ||||||||||||||||
Cost of shares redeemed | (30,763,403 | ) | (11,505,669 | ) | (10,446,898 | ) | |||||||||||||
Net increase (decrease) from Individual Investor Class transactions | 6,428,507 | 30,185,879 | 40,388,068 | ||||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 8,225,735 | 2,045,180 | |||||||||||||||||
Proceeds from reinvestment of distributions | 108,605 | 22,677 | |||||||||||||||||
Cost of shares redeemed | (391,489 | ) | (25,303 | ) | |||||||||||||||
Net increase from Class A transactions | 7,942,851 | 2,042,554 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 63,033,677 | 27,894,535 | 40,254,577 | 39,344,324 | |||||||||||||||
Shares issued in connection with fund acquisition1 | 10,611,480 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 1,206,108 | 546,480 | 2,803,930 | — | |||||||||||||||
Cost of shares redeemed | (15,560,826 | ) | (1,785,928 | ) | (14,838,177 | ) | — | ||||||||||||
Net increase (decrease) from Institutional Class transactions | 48,678,959 | 26,655,087 | 38,831,810 | 39,344,324 | |||||||||||||||
Class R | |||||||||||||||||||
Proceeds from shares sold | 701,263 | 841,455 | 514,704 | ||||||||||||||||
Shares issued in connection with fund acquisition1 | 431,610 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 35,264 | 35,460 | 9,681 | ||||||||||||||||
Cost of shares redeemed | (598,187 | ) | (441,278 | ) | (117,353 | ) | |||||||||||||
Net increase (decrease) from Class R transactions | 138,340 | 435,637 | 838,642 | ||||||||||||||||
Net increase (decrease) from capital share transactions | 63,188,657 | 59,319,157 | 80,058,520 | 39,344,324 | |||||||||||||||
Net increase (decrease) in net assets | 54,367,333 | 83,174,948 | 68,954,911 | 45,386,945 | |||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 141,756,645 | 58,581,697 | 58,548,930 | 13,161,985 | |||||||||||||||
End of period (3) | $ | 196,123,978 | $ | 141,756,645 | $ | 127,503,841 | $ | 58,548,930 | |||||||||||
(3) Includes undistributed net investment income (loss) | $ | — | $ | (793,653 | ) | $ | 435,565 | $ | (7,811 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
84
Global Women's Index Fund | |||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||
Increase (Decrease) in Net Assets | |||||||||||
Operations | |||||||||||
Investment income, net | $ | 1,138,420 | $ | 482,026 | |||||||
Net realized gain (loss) on investments and foreign currency transactions | 9,306,526 | 731,238 | |||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | (7,423,212 | ) | 7,719,618 | ||||||||
Net increase (decrease) in net assets resulting from operations | 3,021,734 | 8,932,882 | |||||||||
Distributions to shareholders from: | |||||||||||
Net investment income | |||||||||||
Individual Investor Class | (978,471 | ) | (396,470 | ) | |||||||
Class A | |||||||||||
Institutional Class | (128,157 | ) | (15,235 | ) | |||||||
Class R | |||||||||||
Realized gains | |||||||||||
Individual Investor Class | (5,519,992 | ) | — | ||||||||
Class A | |||||||||||
Institutional Class | (1,265,637 | ) | — | ||||||||
Class R | |||||||||||
Total distributions to shareholders | (7,892,257 | ) | (411,705 | ) | |||||||
From capital share transactions: | |||||||||||
Individual Investor Class | |||||||||||
Proceeds from shares sold | 18,550,009 | 8,258,323 | |||||||||
Shares issued in connection with fund acquisition1 | |||||||||||
Proceeds from reinvestment of distributions | 5,968,333 | 358,768 | |||||||||
Cost of shares redeemed | (9,726,963 | ) | (6,319,339 | ) | |||||||
Net increase (decrease) from Individual Investor Class transactions | 14,791,379 | 2,297,752 | |||||||||
Class A | |||||||||||
Proceeds from shares sold | |||||||||||
Proceeds from reinvestment of distributions | |||||||||||
Cost of shares redeemed | |||||||||||
Net increase from Class A transactions | |||||||||||
Institutional Class | |||||||||||
Proceeds from shares sold | 11,927,266 | 938,589 | |||||||||
Shares issued in connection with fund acquisition1 | |||||||||||
Proceeds from reinvestment of distributions | 848,197 | 10,563 | |||||||||
Cost of shares redeemed | (378,300 | ) | (675,026 | ) | |||||||
Net increase (decrease) from Institutional Class transactions | 12,397,163 | 274,126 | |||||||||
Class R | |||||||||||
Proceeds from shares sold | |||||||||||
Shares issued in connection with fund acquisition1 | |||||||||||
Proceeds from reinvestment of distributions | |||||||||||
Cost of shares redeemed | |||||||||||
Net increase (decrease) from Class R transactions | |||||||||||
Net increase (decrease) from capital share transactions | 27,188,542 | 2,571,878 | |||||||||
Net increase (decrease) in net assets | 22,318,019 | 11,093,055 | |||||||||
Net assets | |||||||||||
Beginning of period | 46,375,343 | 35,282,288 | |||||||||
End of period (3) | $ | 68,693,362 | $ | 46,375,343 | |||||||
(3) Includes undistributed net investment income (loss) | $ | 52,070 | $ | 71,556 |
SEE NOTES TO FINANCIAL STATEMENTS
85
Statements of Changes in Net Assets—Shares of Beneficial Interest
Balanced Fund | Growth Fund | ||||||||||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 3,936,353 | 3,482,392 | 1,199,593 | 1,135,392 | |||||||||||||||
Shares issued in reinvestment of distributions | 7,404,458 | 7,967,290 | 362,179 | 192,787 | |||||||||||||||
Shares redeemed | (10,278,057 | ) | (10,088,835 | ) | (1,105,975 | ) | (2,206,463 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 1,062,754 | 1,360,847 | 455,797 | (878,284 | ) | ||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 84,003 | 17,206 | |||||||||||||||||
Shares issued in reinvestment of distributions | 3,590 | 366 | |||||||||||||||||
Shares redeemed | (9,682 | ) | (622 | ) | |||||||||||||||
Net increase in shares outstanding | 77,911 | 16,950 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 1,957,783 | 3,369,606 | 563,395 | 1,380,487 | |||||||||||||||
Shares issued in reinvestment of distributions | 1,031,326 | 1,012,406 | 73,094 | 34,207 | |||||||||||||||
Shares redeemed | (1,714,948 | ) | (1,235,185 | ) | (259,543 | ) | (222,038 | ) | |||||||||||
Net increase in shares outstanding | 1,274,161 | 3,146,827 | 376,946 | 1,192,656 | |||||||||||||||
Class R | |||||||||||||||||||
Shares sold | 48,857 | 84,061 | 23,020 | 13,094 | |||||||||||||||
Shares issued in reinvestment of distributions | 22,350 | 20,028 | 2,202 | 1,088 | |||||||||||||||
Shares redeemed | (32,462 | ) | (59,383 | ) | (17,401 | ) | (2,388 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 38,745 | 44,706 | 7,821 | 11,794 |
Global Environmental Markets Fund | International ESG Index Fund | ||||||||||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 2,817,753 | 3,582,082 | 2,285,239 | ||||||||||||||||
Shares issued in connection with fund acquisition | 3,426,217 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 118,951 | 118,087 | 64,492 | ||||||||||||||||
Shares redeemed | (2,439,445 | ) | (1,034,590 | ) | (1,186,696 | ) | |||||||||||||
Net increase in shares outstanding | 497,259 | 2,665,579 | 4,589,252 | ||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 650,072 | 171,557 | |||||||||||||||||
Shares issued in reinvestment of distributions | 8,459 | 1,827 | |||||||||||||||||
Shares redeemed | (31,230 | ) | (2,144 | ) | |||||||||||||||
Net increase in shares outstanding | 627,301 | 171,240 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 4,949,085 | 2,370,705 | 4,074,823 | 438,027 | |||||||||||||||
Shares issued in connection with fund acquisition | 1,200,069 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 93,430 | 44,986 | 318,300 | — | |||||||||||||||
Shares redeemed | (1,258,949 | ) | (153,963 | ) | (1,724,376 | ) | — | ||||||||||||
Net increase in shares outstanding | 3,783,566 | 2,261,728 | 3,868,816 | 438,027 | |||||||||||||||
Class R | |||||||||||||||||||
Shares sold | 55,688 | 72,817 | 61,974 | ||||||||||||||||
Shares issued in connection with fund acquisition | 49,065 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 2,735 | 2,990 | 1,118 | ||||||||||||||||
Shares redeemed | (47,609 | ) | (38,442 | ) | (13,400 | ) | |||||||||||||
Net increase in shares outstanding | 10,814 | 37,365 | 98,757 |
SEE NOTES TO FINANCIAL STATEMENTS
86
Small Cap Fund | High Yield Bond Fund | ||||||||||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 6,022,811 | 2,100,145 | 20,856,979 | 38,752,801 | |||||||||||||||
Shares issued in reinvestment of distributions | 278,142 | 304,210 | 3,252,312 | 2,705,383 | |||||||||||||||
Shares redeemed | (2,246,093 | ) | (484,576 | ) | (36,612,977 | ) | (24,961,973 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 4,054,860 | 1,919,779 | (12,503,686 | ) | 16,496,211 | ||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 1,291,929 | 216,194 | 383,168 | 103,669 | |||||||||||||||
Shares issued in reinvestment of distributions | 49,920 | 18,700 | 13,926 | 910 | |||||||||||||||
Shares redeemed | (156,612 | ) | (2,543 | ) | (66,049 | ) | (730 | ) | |||||||||||
Net increase in shares outstanding | 1,185,237 | 232,351 | 331,045 | 103,849 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 5,011,350 | 640,432 | 13,758,878 | 10,622,071 | |||||||||||||||
Shares issued in reinvestment of distributions | 168,942 | 44,813 | 1,245,965 | 748,404 | |||||||||||||||
Shares redeemed | (271,702 | ) | (103,556 | ) | (11,126,347 | ) | (4,539,173 | ) | |||||||||||
Net increase in shares outstanding | 4,908,590 | 581,689 | 3,878,496 | 6,831,302 | |||||||||||||||
Class R | |||||||||||||||||||
Shares sold | 69,965 | 34,798 | 71,387 | 39,944 | |||||||||||||||
Shares issued in reinvestment of distributions | 3,331 | 3,744 | 7,308 | 6,178 | |||||||||||||||
Shares redeemed | (19,213 | ) | (2,986 | ) | (11,835 | ) | (71,610 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 54,083 | 35,556 | 66,860 | (25,488 | ) |
Global Women's Index Fund | |||||||||||
Year Ended 12/31/14 | Year Ended 12/31/13 | ||||||||||
Individual Investor Class | |||||||||||
Shares sold | 830,918 | 429,387 | |||||||||
Shares issued in connection with fund acquisition | |||||||||||
Shares issued in reinvestment of distributions | 285,956 | 19,509 | |||||||||
Shares redeemed | (439,062 | ) | (330,967 | ) | |||||||
Net increase in shares outstanding | 677,812 | 117,929 | |||||||||
Class A | |||||||||||
Shares sold | |||||||||||
Shares issued in reinvestment of distributions | |||||||||||
Shares redeemed | |||||||||||
Net increase in shares outstanding | |||||||||||
Institutional Class | |||||||||||
Shares sold | 529,747 | 48,309 | |||||||||
Shares issued in connection with fund acquisition | |||||||||||
Shares issued in reinvestment of distributions | 40,689 | 573 | |||||||||
Shares redeemed | (17,318 | ) | (34,406 | ) | |||||||
Net increase in shares outstanding | 553,118 | 14,476 | |||||||||
Class R | |||||||||||
Shares sold | |||||||||||
Shares issued in connection with fund acquisition | |||||||||||
Shares issued in reinvestment of distributions | |||||||||||
Shares redeemed | |||||||||||
Net increase in shares outstanding |
SEE NOTES TO FINANCIAL STATEMENTS
87
December 31, 2014
Financial Highlights
Selected data for a share outstanding throughout each period
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income (loss)1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 24.47 | $ | 0.23 | $ | 1.72 | $ | 1.95 | $ | 0.22 | $ | 2.50 | $ | — | $ | 2.72 | |||||||||||||||||||
Year Ended December 31, 2013 | 23.73 | 0.28 | 3.54 | 3.82 | 0.21 | 2.87 | — | 3.08 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 21.67 | 0.34 | 2.09 | 2.43 | 0.37 | — | — | 0.37 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 22.36 | 0.34 | (0.74 | ) | (0.40 | ) | 0.29 | — | — | 0.29 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 20.30 | 0.32 | 2.06 | 2.38 | 0.32 | — | 0.006 | 0.32 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 24.73 | $ | 0.29 | $ | 1.74 | $ | 2.03 | $ | 0.29 | $ | 2.50 | $ | — | $ | 2.79 | |||||||||||||||||||
Year Ended December 31, 2013 | 23.94 | 0.35 | 3.58 | 3.93 | 0.27 | 2.87 | — | 3.14 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 21.86 | 0.41 | 2.10 | 2.51 | 0.43 | — | — | 0.43 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 22.56 | 0.40 | (0.75 | ) | (0.35 | ) | 0.35 | — | — | 0.35 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 20.47 | 0.37 | 2.09 | 2.46 | 0.37 | — | 0.006 | 0.37 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 24.62 | $ | 0.17 | $ | 1.72 | $ | 1.89 | $ | 0.17 | $ | 2.50 | $ | — | $ | 2.67 | |||||||||||||||||||
Year Ended December 31, 2013 | 23.86 | 0.22 | 3.56 | 3.78 | 0.15 | 2.87 | — | 3.02 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 21.79 | 0.29 | 2.10 | 2.39 | 0.32 | — | — | 0.32 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 22.49 | 0.29 | (0.76 | ) | (0.47 | ) | 0.23 | — | — | 0.23 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 20.42 | 0.28 | 2.07 | 2.35 | 0.28 | — | 0.006 | 0.28 | |||||||||||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 17.08 | $ | 0.12 | $ | 1.87 | $ | 1.99 | $ | 0.11 | $ | 0.70 | $ | — | $ | 0.81 | |||||||||||||||||||
Year Ended December 31, 2013 | 13.50 | 0.03 | 3.96 | 3.99 | 0.04 | 0.37 | — | 0.41 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 11.96 | 0.05 | 1.51 | 1.56 | 0.02 | — | — | 0.02 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 12.21 | — | (0.25 | ) | (0.25 | ) | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.99 | (0.03 | ) | 2.25 | 2.22 | — | — | — | — | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 17.06 | $ | 0.08 | $ | 1.91 | $ | 1.99 | $ | 0.12 | $ | 0.70 | $ | — | $ | 0.82 | |||||||||||||||||||
Period Ended December 31, 20137 | 14.39 | — | 3.09 | 3.09 | 0.05 | 0.37 | — | 0.42 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 17.44 | $ | 0.16 | $ | 1.91 | $ | 2.07 | $ | 0.15 | $ | 0.70 | $ | — | $ | 0.85 | |||||||||||||||||||
Year Ended December 31, 2013 | 13.76 | 0.07 | 4.03 | 4.10 | 0.05 | 0.37 | — | 0.42 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 12.19 | 0.08 | 1.56 | 1.64 | 0.07 | — | — | 0.07 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 12.41 | 0.04 | (0.26 | ) | (0.22 | ) | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 10.13 | — | 2.28 | 2.28 | — | — | — | — | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 17.03 | $ | 0.08 | $ | 1.85 | $ | 1.93 | $ | 0.08 | $ | 0.70 | $ | — | $ | 0.78 | |||||||||||||||||||
Year Ended December 31, 2013 | 13.48 | (0.01 | )5 | 3.95 | 3.94 | 0.02 | 0.37 | — | 0.39 | ||||||||||||||||||||||||||
Year Ended December 31, 2012 | 11.95 | 0.01 | 1.52 | 1.53 | — | — | — | — | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 12.24 | (0.02 | )5 | (0.27 | ) | (0.29 | ) | — | — | — | — | ||||||||||||||||||||||||
Year Ended December 31, 2010 | 10.04 | (0.05 | ) | 2.25 | 2.20 | — | — | — | — |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 The amount shown for a share outstanding does not correspond with the aggregate net investment income for the period due to the timing of sales and repurchases of the shares in relation to fluctuating market value of the investments of the Fund.
6 Rounds to less than $0.01.
7 Per share data is reflected from class inception date of May 1, 2013.
SEE NOTES TO FINANCIAL STATEMENTS
88
December 31, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | |||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 23.70 | 8.00 | % | $ | 1,740,414 | 0.91 | % | 0.91 | % | 0.92 | % | 52 | % | |||||||||||||||||
Year Ended December 31, 2013 | 24.47 | 16.34 | % | 1,771,519 | 0.91 | % | 1.12 | % | 0.92 | % | 62 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 23.73 | 11.28 | % | 1,685,217 | 0.94 | % | 1.50 | % | 0.94 | % | 31 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 21.67 | (1.83 | %) | 1,669,361 | 0.95 | % | 1.51 | % | 0.95 | % | 38 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 22.36 | 11.83 | % | 1,872,287 | 0.96 | % | 1.55 | % | 0.96 | % | 36 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 23.97 | 8.21 | % | $ | 248,979 | 0.66 | % | 1.16 | % | 0.67 | % | 52 | % | |||||||||||||||||
Year Ended December 31, 2013 | 24.73 | 16.70 | % | 225,325 | 0.66 | % | 1.37 | % | 0.67 | % | 62 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 23.94 | 11.56 | % | 142,848 | 0.69 | % | 1.75 | % | 0.69 | % | 31 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 21.86 | (1.61 | %) | 116,204 | 0.70 | % | 1.77 | % | 0.70 | % | 38 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 22.56 | 12.16 | % | 110,437 | 0.71 | % | 1.81 | % | 0.71 | % | 36 | % | |||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 23.84 | 7.68 | % | $ | 5,328 | 1.16 | % | 0.66 | % | 1.17 | % | 52 | % | |||||||||||||||||
Year Ended December 31, 2013 | 24.62 | 16.09 | % | 4,548 | 1.16 | % | 0.86 | % | 1.17 | % | 62 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 23.86 | 11.02 | % | 3,341 | 1.19 | % | 1.25 | % | 1.19 | % | 31 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 21.79 | (2.09 | %) | 2,791 | 1.20 | % | 1.27 | % | 1.20 | % | 38 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 22.49 | 11.58 | % | 2,629 | 1.21 | % | 1.36 | % | 1.21 | % | 36 | % | |||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 18.26 | 11.66 | % | $ | 159,794 | 1.26 | % | 0.69 | % | 1.32 | % | 29 | % | |||||||||||||||||
Year Ended December 31, 2013 | 17.08 | 29.61 | % | 141,698 | 1.29 | % | 0.18 | % | 1.35 | % | 27 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 13.50 | 13.08 | % | 123,870 | 1.29 | % | 0.36 | % | 1.44 | % | 21 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 11.96 | (2.05 | %) | 112,042 | 1.32 | % | 0.04 | % | 1.47 | % | 20 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 12.21 | 22.22 | % | 111,403 | 1.41 | % | (0.28 | %) | 1.57 | % | 25 | % | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 18.23 | 11.68 | % | $ | 1,729 | 1.26 | % | 0.47 | % | 1.33 | % | 29 | % | |||||||||||||||||
Period Ended December 31, 20137 | 17.06 | 21.58 | % | 289 | 1.29 | % | 0.02 | % | 1.35 | % | 27 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 18.66 | 11.91 | % | $ | 37,629 | 1.01 | % | 0.91 | % | 1.07 | % | 29 | % | |||||||||||||||||
Year Ended December 31, 2013 | 17.44 | 29.93 | % | 28,590 | 1.04 | % | 0.48 | % | 1.10 | % | 27 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 13.76 | 13.35 | % | 6,147 | 1.04 | % | 0.63 | % | 1.19 | % | 21 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 12.19 | (1.77 | %) | 4,883 | 1.07 | % | 0.31 | % | 1.22 | % | 20 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 12.41 | 22.51 | % | 3,231 | 1.16 | % | (0.04 | %) | 1.32 | % | 25 | % | |||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 18.18 | 11.37 | % | $ | 1,016 | 1.51 | % | 0.47 | % | 1.57 | % | 29 | % | |||||||||||||||||
Year Ended December 31, 2013 | 17.03 | 29.30 | % | 819 | 1.54 | % | (0.07 | %) | 1.60 | % | 27 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 13.48 | 12.80 | % | 489 | 1.54 | % | 0.11 | % | 1.69 | % | 21 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 11.95 | (2.37 | %) | 421 | 1.57 | % | (0.13 | %) | 1.72 | % | 20 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 12.24 | 21.91 | % | 53 | 1.66 | % | (0.49 | %) | 1.82 | % | 25 | % |
SEE NOTES TO FINANCIAL STATEMENTS
89
December 31, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Small Cap Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.58 | $ | 0.12 | $ | 0.83 | $ | 0.95 | $ | 0.10 | $ | 0.51 | $ | — | $ | 0.61 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.58 | 0.10 | 4.43 | 4.53 | 0.11 | 1.42 | — | 1.53 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 9.65 | 0.19 | 1.09 | 1.28 | 0.10 | 0.25 | — | 0.35 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 11.05 | 0.04 | (0.39 | ) | (0.35 | ) | 0.09 | 0.96 | — | 1.05 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.29 | 0.08 | 2.68 | 2.76 | 0.07 | 0.93 | — | 1.00 | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.56 | $ | 0.13 | $ | 0.83 | $ | 0.96 | $ | 0.11 | $ | 0.51 | $ | — | $ | 0.62 | |||||||||||||||||||
Period Ended December 31, 20135 | 11.83 | 0.13 | 3.15 | 3.28 | 0.13 | 1.42 | — | 1.55 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.65 | $ | 0.16 | $ | 0.83 | $ | 0.99 | $ | 0.13 | $ | 0.51 | $ | — | $ | 0.64 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.62 | 0.15 | 4.44 | 4.59 | 0.14 | 1.42 | — | 1.56 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 9.69 | 0.17 | 1.13 | 1.30 | 0.12 | 0.25 | — | 0.37 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 11.08 | 0.07 | (0.38 | ) | (0.31 | ) | 0.12 | 0.96 | — | 1.08 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.31 | 0.15 | 2.64 | 2.79 | 0.09 | 0.93 | — | 1.02 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.48 | $ | 0.09 | $ | 0.82 | $ | 0.91 | $ | 0.07 | $ | 0.51 | $ | — | $ | 0.58 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.52 | 0.08 | 4.39 | 4.47 | 0.09 | 1.42 | — | 1.51 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 9.61 | 0.21 | 1.03 | 1.24 | 0.08 | 0.25 | — | 0.33 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.99 | 0.02 | (0.39 | ) | (0.37 | ) | 0.05 | 0.96 | — | 1.01 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.26 | 0.16 | 2.57 | 2.73 | 0.07 | 0.93 | — | 1.00 | |||||||||||||||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.57 | $ | 0.44 | $ | (0.53 | ) | $ | (0.09 | ) | $ | 0.44 | $ | 0.01 | $ | — | $ | 0.45 | |||||||||||||||||
Year Ended December 31, 2013 | 7.53 | 0.46 | 0.07 | 0.53 | 0.48 | 0.01 | — | 0.49 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 7.20 | 0.53 | 0.40 | 0.93 | 0.53 | 0.07 | — | 0.60 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 7.74 | 0.57 | (0.41 | ) | 0.16 | 0.58 | 0.12 | — | 0.70 | ||||||||||||||||||||||||||
Year Ended December 31, 2010 | 7.74 | 0.66 | 0.10 | 0.76 | 0.65 | 0.11 | — | 0.76 | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.57 | $ | 0.43 | $ | (0.51 | ) | $ | (0.08 | ) | $ | 0.44 | �� | $ | 0.01 | $ | — | $ | 0.45 | ||||||||||||||||
Period Ended December 31, 20135 | 7.67 | 0.29 | (0.08 | ) | 0.21 | 0.30 | 0.01 | — | 0.31 | ||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.54 | $ | 0.46 | $ | (0.52 | ) | $ | (0.06 | ) | $ | 0.46 | $ | 0.01 | $ | — | $ | 0.47 | |||||||||||||||||
Year Ended December 31, 2013 | 7.50 | 0.47 | 0.05 | 0.52 | 0.47 | 0.01 | — | 0.48 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 7.17 | 0.55 | 0.40 | 0.95 | 0.55 | 0.07 | — | 0.62 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 7.72 | 0.59 | (0.43 | ) | 0.16 | 0.59 | 0.12 | — | 0.71 | ||||||||||||||||||||||||||
Year Ended December 31, 2010 | 7.70 | 0.67 | 0.13 | 0.80 | 0.67 | 0.11 | — | 0.78 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.57 | $ | 0.42 | $ | (0.53 | ) | $ | (0.11 | ) | $ | 0.42 | $ | 0.01 | $ | — | $ | 0.43 | |||||||||||||||||
Year Ended December 31, 2013 | 7.53 | 0.44 | 0.05 | 0.49 | 0.44 | 0.01 | — | 0.45 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 7.19 | 0.52 | 0.41 | 0.93 | 0.52 | 0.07 | — | 0.59 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 7.72 | 0.55 | (0.40 | ) | 0.15 | 0.56 | 0.12 | — | 0.68 | ||||||||||||||||||||||||||
Year Ended December 31, 2010 | 7.71 | 0.63 | 0.12 | 0.75 | 0.63 | 0.11 | — | 0.74 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 Per share data is reflected from class inception date of May 1, 2013.
6 Before the reimbursement from Investment adviser for the loss on trading error, the difference in the total return for the year would have been less than 0.005% for each class of shares. (See Note B).
SEE NOTES TO FINANCIAL STATEMENTS
90
December 31, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | |||||||||||||||||||||||||
Small Cap Fund | |||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.92 | 7.06 | % | $ | 103,508 | 1.24 | % | 0.88 | % | 1.37 | % | 167 | % | |||||||||||||||||
Year Ended December 31, 2013 | 13.58 | 43.24 | % | 45,890 | 1.24 | % | 0.75 | % | 1.66 | % | 162 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 10.58 | 13.55 | % | 15,447 | 1.24 | % | 1.89 | % | 2.20 | % | 166 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 9.65 | (3.50 | %) | 13,290 | 1.24 | % | 0.40 | % | 2.71 | % | 161 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 11.05 | 30.17 | % | 9,192 | 1.24 | % | 0.80 | % | 4.47 | % | 179 | % | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.90 | 7.10 | % | $ | 19,698 | 1.24 | % | 0.91 | % | 1.37 | % | 167 | % | |||||||||||||||||
Period Ended December 31, 20135 | 13.56 | 28.10 | % | 3,151 | 1.24 | % | 1.36 | % | 1.66 | % | 162 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 14.00 | 7.31 | % | $ | 77,469 | 0.99 | % | 1.14 | % | 1.11 | % | 167 | % | |||||||||||||||||
Year Ended December 31, 2013 | 13.65 | 43.64 | % | 8,507 | 0.99 | % | 1.10 | % | 1.41 | % | 162 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 10.62 | 13.75 | % | 442 | 0.99 | % | 1.69 | % | 1.95 | % | 166 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 9.69 | (3.17 | %) | 627 | 0.99 | % | 0.67 | % | 2.46 | % | 161 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 11.08 | 30.44 | % | 283 | 0.99 | % | 1.41 | % | 4.22 | % | 179 | % | |||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 13.81 | 6.79 | % | $ | 1,384 | 1.49 | % | 0.63 | % | 1.62 | % | 167 | % | |||||||||||||||||
Year Ended December 31, 2013 | 13.48 | 42.90 | % | 621 | 1.49 | % | 0.58 | % | 1.91 | % | 162 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 10.52 | 13.24 | % | 111 | 1.49 | % | 2.12 | % | 2.45 | % | 166 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 9.61 | (3.74 | %) | 46 | 1.49 | % | 0.15 | % | 2.96 | % | 161 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 10.99 | 29.94 | % | 15 | 1.49 | % | 1.62 | % | 4.72 | % | 179 | % | |||||||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.03 | (1.41 | %)6 | $ | 351,180 | 0.98 | % | 5.81 | % | 0.98 | % | 74 | % | |||||||||||||||||
Year Ended December 31, 2013 | 7.57 | 6.91 | % | 472,484 | 0.96 | % | 6.05 | % | 0.96 | % | 58 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 7.53 | 13.41 | % | 346,071 | 0.98 | % | 7.20 | % | 0.98 | % | 73 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.20 | 2.00 | % | 295,597 | 0.97 | % | 7.54 | % | 0.97 | % | 49 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 7.74 | 10.35 | % | 296,349 | 0.99 | % | 8.45 | % | 0.99 | % | 70 | % | |||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.04 | (1.27 | %)6 | $ | 3,061 | 0.98 | % | 5.80 | % | 0.98 | % | 74 | % | |||||||||||||||||
Period Ended December 31, 20135 | 7.57 | 2.78 | % | 786 | 0.96 | % | 5.87 | % | 0.96 | % | 58 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.01 | (1.05 | %)6 | $ | 201,435 | 0.73 | % | 6.07 | % | 0.73 | % | 74 | % | |||||||||||||||||
Year Ended December 31, 2013 | 7.54 | 7.18 | % | 187,522 | 0.71 | % | 6.32 | % | 0.71 | % | 58 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 7.50 | 13.72 | % | 135,382 | 0.73 | % | 7.46 | % | 0.73 | % | 73 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.17 | 2.10 | % | 146,810 | 0.72 | % | 7.78 | % | 0.72 | % | 49 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 7.72 | 10.92 | % | 119,258 | 0.74 | % | 8.70 | % | 0.74 | % | 70 | % | |||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 7.03 | (1.64 | %)6 | $ | 1,115 | 1.23 | % | 5.56 | % | 1.23 | % | 74 | % | |||||||||||||||||
Year Ended December 31, 2013 | 7.57 | 6.63 | % | 694 | 1.21 | % | 5.82 | % | 1.21 | % | 58 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 7.53 | 13.29 | % | 882 | 1.23 | % | 6.96 | % | 1.23 | % | 73 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.19 | 1.87 | % | 452 | 1.22 | % | 7.30 | % | 1.22 | % | 49 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 7.72 | 10.23 | % | 214 | 1.24 | % | 8.21 | % | 1.24 | % | 70 | % |
SEE NOTES TO FINANCIAL STATEMENTS
91
December 31, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 12.80 | $ | 0.07 | $ | (0.42 | ) | $ | (0.35 | ) | $ | 0.12 | $ | 0.08 | $ | — | $ | 0.20 | |||||||||||||||||
Year Ended December 31, 2013 | 9.88 | 0.07 | 3.07 | 3.14 | 0.20 | 0.02 | — | 0.22 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 8.42 | 0.06 | 1.55 | 1.61 | 0.15 | — | — | 0.15 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 9.63 | 0.04 | (1.04 | ) | (1.00 | ) | — | 0.21 | — | 0.21 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.69 | 0.01 | 0.96 | 0.97 | 0.03 | — | — | 0.03 | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 12.78 | $ | 0.04 | $ | (0.38 | ) | $ | (0.34 | ) | $ | 0.13 | $ | 0.08 | $ | — | $ | 0.21 | |||||||||||||||||
Period Ended December 31, 20135 | 10.75 | (0.02 | ) | 2.29 | 2.27 | 0.22 | 0.02 | — | 0.24 | ||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 12.86 | $ | 0.08 | $ | (0.40 | ) | $ | (0.32 | ) | $ | 0.15 | $ | 0.08 | $ | — | $ | 0.23 | |||||||||||||||||
Year Ended December 31, 2013 | 9.92 | 0.09 | 3.10 | 3.19 | 0.23 | 0.02 | — | 0.25 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 8.46 | 0.08 | 1.56 | 1.64 | 0.18 | — | — | 0.18 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 9.64 | 0.07 | (1.04 | ) | (0.97 | ) | — | 0.21 | — | 0.21 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.69 | 0.03 | 0.97 | 1.00 | 0.05 | — | — | 0.05 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 12.71 | $ | 0.04 | $ | (0.42 | ) | $ | (0.38 | ) | $ | 0.09 | $ | 0.08 | $ | — | $ | 0.17 | |||||||||||||||||
Year Ended December 31, 2013 | 9.81 | 0.05 | 3.05 | 3.10 | 0.18 | 0.02 | — | 0.20 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 8.37 | 0.04 | 1.54 | 1.58 | 0.14 | — | — | 0.14 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 9.60 | 0.02 | (1.04 | ) | (1.02 | ) | — | 0.21 | — | 0.21 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.66 | (0.02 | )6 | 0.97 | 0.95 | 0.01 | — | — | 0.01 | ||||||||||||||||||||||||||
International ESG Index Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended December 31, 20146 | $ | 8.84 | $ | 0.20 | $ | (0.70 | ) | $ | (0.50 | ) | $ | 0.11 | $ | 0.04 | $ | — | $ | 0.15 | |||||||||||||||||
Institutional Class7 | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 8.84 | $ | 0.34 | $ | (0.80 | ) | $ | (0.46 | ) | $ | 0.29 | $ | 0.04 | $ | — | $ | 0.33 | |||||||||||||||||
Year Ended December 31, 2013 | 7.23 | 0.19 | 1.51 | 1.70 | 0.17 | — | — | 0.17 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 6.36 | 0.22 | 0.76 | 0.98 | 0.19 | — | — | 0.19 | |||||||||||||||||||||||||||
Period Ended December 31, 20118 | 7.57 | 0.19 | (1.30 | ) | (1.11 | ) | 0.17 | — | — | 0.17 | |||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended December 31, 20146 | $ | 8.80 | $ | 0.16 | $ | (0.67 | ) | $ | (0.51 | ) | $ | 0.12 | $ | 0.04 | $ | — | $ | 0.16 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 Per share data is reflected from class inception date of May 1, 2013.
6 Per share data is reflected from class inception date of March 31, 2014.
7 Pax MSCI International ESG Index Fund acquired the assets of Pax World International Fund, a series of Pax World Funds Series Trust I, and the assets of Pax MSCI EAFE ESG Index ETF, a series of Pax World Funds Trust II, on March 31, 2014 (the "Reorganizations"). Pax MSCI EAFE ESG Index ETF (the "Predecessor Fund") is treated as the survivor of the Reorganizations for accounting and performance reporting purposes. Accordingly, performance information shown for International ESG Index Fund is that of the Predecessor Fund. Per share data shown for periods prior to the Reorganization has been restated to reflect the share conversion that occurred upon completion of the Reorganizations.
8 Per share data is reflected from class inception date of January 27, 2011.
9 For the purposes of calculating the turnover ratio for the International Index Fund, transactions related to the International Reorganization have been excluded (Note A).
SEE NOTES TO FINANCIAL STATEMENTS
92
December 31, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | — | $ | 12.25 | (2.78 | %) | $ | 96,255 | 1.40 | % | 0.56 | % | 1.46 | % | 27 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 12.80 | 32.01 | % | 94,214 | 1.40 | % | 0.65 | % | 1.54 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 9.88 | 19.27 | % | 46,392 | 1.40 | % | 0.64 | % | 1.81 | % | 46 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 8.42 | (10.39 | %) | 33,444 | 1.40 | % | 0.44 | % | 1.99 | % | 79 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 9.63 | �� | 11.20 | % | 28,210 | 1.40 | % | 0.09 | % | 2.38 | % | 62 | % | |||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | — | $ | 12.23 | (2.73 | %) | $ | 9,763 | 1.40 | % | 0.31 | % | 1.46 | % | 27 | % | |||||||||||||||||||
Period Ended December 31, 20135 | — | 12.78 | 21.32 | % | 2,188 | 1.40 | % | (0.23 | %) | 1.54 | % | 20 | % | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | — | $ | 12.31 | (2.53 | %) | $ | 87,605 | 1.15 | % | 0.63 | % | 1.21 | % | 27 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 12.86 | 32.37 | % | 42,898 | 1.15 | % | 0.78 | % | 1.29 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 9.92 | 19.47 | % | 10,644 | 1.15 | % | 0.90 | % | 1.56 | % | 46 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 8.46 | (10.07 | %) | 2,511 | 1.15 | % | 0.73 | % | 1.74 | % | 79 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 9.64 | 11.56 | % | 1,767 | 1.15 | % | 0.32 | % | 2.13 | % | 62 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | — | $ | 12.16 | (3.04 | %) | $ | 2,501 | 1.65 | % | 0.30 | % | 1.71 | % | 27 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 12.71 | 31.72 | % | 2,476 | 1.65 | % | 0.42 | % | 1.79 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 9.81 | 18.95 | % | 1,545 | 1.65 | % | 0.42 | % | 2.06 | % | 46 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 8.37 | (10.63 | %) | 658 | 1.65 | % | 0.18 | % | 2.24 | % | 79 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 9.60 | 11.01 | % | 653 | 1.65 | % | (0.18 | %) | 2.63 | % | 62 | % | ||||||||||||||||||||||
International ESG Index Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended December 31, 20146 | $ | — | $ | 8.19 | (5.75 | %) | $ | 37,603 | 0.80 | % | 2.27 | % | 0.80 | % | 36 | %9 | |||||||||||||||||||
Institutional Class7 | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | — | $ | 8.05 | (5.49 | %) | $ | 89,098 | 0.55 | % | 3.91 | % | 0.55 | % | 36 | %9 | |||||||||||||||||||
Year Ended December 31, 2013 | 0.08 | 8.84 | 24.96 | % | 58,549 | 0.55 | % | 2.34 | % | 0.55 | % | 12 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | 0.08 | 7.23 | 16.98 | % | 13,162 | 0.55 | % | 3.21 | % | 0.55 | % | 8 | % | ||||||||||||||||||||||
Period Ended December 31, 20118 | 0.07 | 6.36 | (14.04 | %) | 4,207 | 0.55 | % | 2.91 | % | 0.55 | % | 11 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended December 31, 20146 | $ | — | $ | 8.13 | (5.96 | %) | $ | 803 | 1.05 | % | 1.86 | % | 1.05 | % | 36 | %9 |
SEE NOTES TO FINANCIAL STATEMENTS
93
December 31, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Global Women's Index Fund4 | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 21.78 | $ | 0.47 | $ | 0.84 | $ | 1.31 | $ | 0.45 | $ | 2.21 | $ | — | $ | 2.66 | |||||||||||||||||||
Year Ended December 31, 2013 | 17.67 | 0.23 | 4.07 | 4.30 | 0.19 | — | — | 0.19 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 15.90 | 0.23 | 1.76 | 1.99 | 0.22 | — | — | 0.22 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 17.58 | 0.21 | (1.71 | ) | (1.50 | ) | 0.18 | — | — | 0.18 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 15.99 | 0.10 | 1.58 | 1.68 | 0.09 | — | — | 0.09 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 21.86 | $ | 0.39 | $ | 0.99 | $ | 1.38 | $ | 0.51 | $ | 2.21 | $ | — | $ | 2.72 | |||||||||||||||||||
Year Ended December 31, 2013 | 17.71 | 0.29 | 4.08 | 4.37 | 0.22 | — | — | 0.22 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 15.94 | 0.27 | 1.77 | 2.04 | 0.27 | — | — | 0.27 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 17.62 | 0.25 | (1.71 | ) | (1.46 | ) | 0.22 | — | — | 0.22 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 16.03 | 0.14 | 1.58 | 1.72 | 0.13 | — | — | 0.13 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Not annualized
4 Effective June 4, 2014, the Global Women's Index Fund acquired the assets of the Pax World Global Women's Equality Fund, Pax World Global Women's Equality Fund (the "Predecessor Fund") is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for periods prior to June 4, 2014 is that of the Predecessor Fund.
SEE NOTES TO FINANCIAL STATEMENTS
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Ratios to average net assets3 | |||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover3 | |||||||||||||||||||||||||
Global Women's Index Fund4 | |||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 20.43 | 5.95 | % | $ | 55,548 | 1.09 | % | 2.13 | % | 1.22 | % | 134 | % | |||||||||||||||||
Year Ended December 31, 2013 | 21.78 | 24.56 | % | 44,461 | 1.24 | % | 1.17 | % | 1.59 | % | 28 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 17.67 | 12.67 | % | 33,988 | 1.24 | % | 1.37 | % | 1.69 | % | 35 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 15.90 | (8.60 | %) | 33,034 | 1.24 | % | 1.20 | % | 1.68 | % | 114 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 17.58 | 10.54 | % | 35,147 | 1.24 | % | 0.63 | % | 1.90 | % | 116 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | $ | 20.52 | 6.21 | % | $ | 13,146 | 0.78 | % | 1.73 | % | 0.84 | % | 134 | % | |||||||||||||||||
Year Ended December 31, 2013 | 21.86 | 24.88 | % | 1,914 | 0.99 | % | 1.51 | % | 1.34 | % | 28 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 17.71 | 12.92 | % | 1,295 | 0.99 | % | 1.56 | % | 1.44 | % | 35 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 15.94 | (8.35 | %) | 2,719 | 0.99 | % | 1.47 | % | 1.43 | % | 114 | % | |||||||||||||||||||
Year Ended December 31, 2010 | 17.62 | 10.78 | % | 2,495 | 0.99 | % | 0.86 | % | 1.65 | % | 116 | % |
SEE NOTES TO FINANCIAL STATEMENTS
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December 31, 2014
Notes to Financial Statements
Pax World Funds Series Trust I and Pax World Funds Series Trust III
NOTE A—Organization and Summary of Significant Accounting Policies
Organization Pax World Funds Series Trust I ("Trust I"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), is an open-end management investment company organized under the laws of the Commonwealth of Massachusetts on May 25, 2006. As of December 31, 2014, Trust I offered ten investment funds.
Pax World Funds Series Trust III ("Trust III") is an open-end management investment company that was organized under the laws of the Commonwealth of Massachusetts on December 4, 2013 and registered under the Investment Company Act of 1940, as amended (the "1940 Act"). Pax Ellevate Global Women's Index Fund (the "Global Women's Index Fund") is a diversified series of Trust III.
Effective March 31, 2014 the Pax MSCI International ESG Index Fund ("International Index Fund") acquired the assets of Pax World International Fund, a series of Trust I, and of Pax MSCI EAFE ESG Index ETF, a series of Pax World Funds Trust II, (the "Target Funds"), based on the respective valuations as of the close of business on March 28, 2014, pursuant to an Agreement and Plan of Reorganization dated December 13, 2013 (the "International Reorganizations"). The purpose of the International Reorganizations was to enhance efficiency by combining the international funds advised by Pax World Management LLC, so that management, administration, distribution and other resources can be focused more effectively. The International Reorganizations will result in reduced operating expenses for shareholders of the Pax World International Fund, and enable shareholders of each Target Fund to invest in a larger, potentially more efficient portfolio. The International Reorganizations were accomplished by tax-free exchanges of shares. For financial reporting purposes, assets received and shares issued by the International Index Fund were recorded at fair value; however, the cost basis of the investments received from the Target Funds were carried forward to align ongoing reporting of realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
Shares and values for the Pax World International Fund were exchanged for shares and value of the International Index Fund's corresponding classes of shares on a 1:1 basis. At the close of business on March 28, 2014 the Pax World International Fund had $41,332,388 in net assets, including fair value
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of security investments of $41,235,001, identified cost of security investments of $39,573,455 and resulting unrealized appreciation of $1,661,546.
Because the International Index Fund had no investment operations prior to the closing of the International Reorganizations, and based on the similarity of the International Index Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the "Predecessor International Fund") is treated as the survivor of the International Reorganizations for accounting and performance reporting purposes. Accordingly, all performance and other information shown herein for the International Index Fund prior to March 31, 2014 is that of Predecessor International Fund. All shares and values of the Predecessor International Fund were exchanged for Institutional shares of the International Index Fund. Shareholders received identical value, but the number of shares exchanged were subject to a conversion ratio of 3.31029957 shares of the International Index Fund for every 1 share of the Predecessor International Fund. At the close of business on March 28, 2014 the Predecessor International Fund had $65,859,734 in net assets, including fair value of security investments of $65,523,411, identified cost of security investments of $60,349,234 and resulting unrealized appreciation of $5,174,177.
Shares and net assets of the Target Funds immediately prior to the International Reorganizations were as follows:
Shares Outstanding | NAV Per Share | Total Net Assets | |||||||||||||
Pax World International Fund | |||||||||||||||
Individual Investor Shares | 3,426,217 | $ | 8.84 | $ | 30,289,297 | ||||||||||
Institutional Shares | 1,200,069 | $ | 8.84 | $ | 10,611,481 | ||||||||||
Class R Shares | 49,065 | $ | 8.80 | $ | 431,610 | ||||||||||
Pax MSCI EAFE ESG Index ETF | 2,250,000 | $ | 29.27 | $ | 65,859,734 |
Shares and net assets of the International Index Fund immediately after the International Reorganizations were as follows:
Shares Outstanding | NAV Per Share | Total Net Assets | |||||||||||||
Pax MSCI International ESG Index Fund | |||||||||||||||
Individual Investor Shares | 3,426,217 | $ | 8.84 | $ | 30,289,297 | ||||||||||
Institutional Shares | 8,648,243 | $ | 8.84 | $ | 76,471,215 | ||||||||||
Class R Shares | 49,065 | $ | 8.80 | $ | 431,610 |
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December 31, 2014
Notes to Financial Statements, continued
Assuming the International Reorganizations had been completed on January 1, 2014, the International Index Fund's pro forma results of operations for the year ended December 31, 2014, are as follows:
Net investment income1 | $ | 3,908,123 | |||||
Net realized and unrealized gain (loss)2 | (10,779,960 | ) | |||||
Net increase (decrease) in net assets resulting from operations | $ | (6,871,837 | ) |
1Represented by $3,685,029 as reported, plus $30,179 for the International Fund pre-reorganization, plus approximately $192,915 of estimated pro-forma eliminated expenses.
2Represented by ($9,361,748) as reported, plus approximately ($1,418,212) for the International Fund pre-reorganization.
Because the combined investment portfolios have been managed as a single integrated portfolio since the International Reorganizations were completed, it is not practicable to separate the amounts of revenue and earnings of the Predecessor International Fund that have been included in the Statement of Operations of the International Index Fund since March 31, 2014.
Effective June 4, 2014, the Global Women's Index Fund, a series of Trust III, acquired the assets of Pax World Global Women's Equality Fund ("Target Fund"), a series of Trust I, based on the respective valuations as of the close of business on June 3, 2014, pursuant to an Agreement and Plan of Reorganization dated as of March 4, 2014 (the "Global Women's Reorganization"). The purpose of the Global Women's Reorganization was to permit the Target Fund's shareholders to continue to invest in companies that demonstrate a commitment to advancing and empowering women through gender diversity on their boards, in management or through other policies and programs, and an understanding of the potential business advantages associated with greater gender diversity, as rated by Pax World Gender Analytics, but at lower cost and through an index-based strategy rather than an actively-managed strategy. Because the Global Women's Index Fund had no investment operations prior to the closing of the Global Women's Reorganization, Pax World Global Women's Equality Fund (the "Predecessor Global Women's Fund") is treated as the survivor of the Global Women's Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown herein for the Global Women's Index Fund for periods prior to June 4, 2014 is that of the Predecessor Global Women's Fund.
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The Global Women's Reorganization was accomplished by tax-free exchanges of shares. For financial reporting purposes, assets received and shares issued by the Global Women's Index Fund were recorded at fair value; however, the cost basis of the investments received from the Predecessor Global Women's Fund were carried forward to align ongoing reporting of realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Shares and net assets of the Predecessor Global Women's Fund immediately prior to reorganization were as follows:
Shares Outstanding | NAV Per Share | Total Net Assets | |||||||||||||
Global Women's Equality Fund | |||||||||||||||
Individual Investor Shares | 1,996,478 | $ | 22.85 | $ | 45,609,710 | ||||||||||
Institutional Shares | 135,679 | $ | 22.95 | $ | 3,114,426 |
Shares and values for the Global Women's Index Fund were exchanged for shares and value of the Predecessor Global Women's Fund's corresponding classes of shares on a 1:1 basis. At the close of business on June 3, 2014, the Predecessor Global Women's Fund had $48,724,136 in net assets, including fair value of security investments of $48,510,468, identified cost of security investments of $37,388,747 and resulting unrealized appreciation of $11,121,721.
These financial statements relate only to the Pax World Balanced Fund (the "Balanced Fund"), Pax World Growth Fund (the "Growth Fund"), Pax World Small Cap Fund (the "Small Cap Fund"), Pax World High Yield Bond Fund (the "High Yield Bond Fund"), Pax World Global Environmental Markets Fund (the "Global Environmental Markets Fund"), the International Index Fund, and the Global Women's Index Fund, (each a "Fund", collectively, the "Funds").
The Global Women's Index Fund offers two classes of shares—Individual Investor Class shares and Institutional Class shares. The Balanced Fund and International Index Fund each offer three classes of shares—Individual Investor Class shares, Institutional Class shares and Class R shares. The Growth Fund, Small Cap Fund, High Yield Bond Fund and Global Environmental Markets Fund each offer four classes of shares—Individual Investor Class shares, Class A shares, Institutional Class shares and Class R shares. Although all share classes generally have identical voting, dividend and liquidation rights, each class votes separately when required by law. Different share classes pay different distribution amounts to the extent the expenses of
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Notes to Financial Statements, continued
such classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense structure and sales charges, as applicable.
The Funds seek to invest in forward-thinking companies with sustainable business models that meet positive environmental, social and governance standards. The Funds avoid investing in companies that their investment adviser determines are significantly involved in the manufacture of weapons or weapons-related products, manufacture tobacco products or engage in unethical business practices.
The Balanced Fund's primary investment objective is to seek income and conservation of principal. As a secondary investment objective, the Fund seeks long-term growth of capital. The Fund seeks to achieve its investment objective by investing approximately 60%-75% of its assets in equity securities (such as common stocks, preferred stocks and equity securities convertible into common or preferred stocks) and 25%-40% of the assets in debt securities (including but not limited to debt securities convertible into equity securities).
The Growth Fund's investment objective is to seek long-term growth of capital. The Fund seeks to achieve this objective by investing, under normal market conditions, primarily in equity securities (such as common stock, preferred stock and securities convertible into common stock and preferred stock) of companies that the Growth Fund's portfolio manager believes will have above-average growth prospects.
The Small Cap Fund's investment objective is to seek long-term growth of capital. The Fund seeks to achieve this objective by investing, under normal market conditions, at least 80% of its assets in equity securities (such as common stocks and securities convertible into common or preferred stocks and warrants) of companies that, when purchased, have capitalizations within the range of the Russell 2000 Index as measured by market capitalization.
The High Yield Bond Fund's primary investment objective is to seek high current income. As a secondary objective, the High Yield Bond Fund seeks capital appreciation. The Fund seeks to achieve this objective by investing, under normal market conditions, at least 80% of its total assets in high-yield, fixed income securities (such as bonds, notes and debentures) that are rated below BBB- by Standard & Poor's Ratings Group or below Baa3 by Moody's Investors Service and other fixed income securities that are determined by the
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High Yield Bond Fund's investment adviser to be of comparable quality (commonly referred to as "junk bonds").
The Global Environmental Markets Fund's investment objective is to seek long term growth of capital by investing in innovative companies around the world whose businesses and technologies focus on environmental markets, including alternative energy and energy efficiency; water infrastructure technologies and pollution control; environmental support services and waste management technologies; and sustainable food, agriculture and forestry. Under normal market conditions the Fund will primarily invest in equity securities (such as common stocks, preferred stocks and securities convertible into common or preferred stocks) of companies located around the world including at least 40% of its net assets in the securities of non-U.S. issuers.
The International Index Fund's investment objective is to seek investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index. The Fund seeks to achieve this objective by investing, under normal market conditions, more than 80% of its total assets in the component securities, or a representative sampling of the component securities, of the MSCI EAFE ESG Index.
The Global Women's Index Fund's investment objective is to seek investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women's Leadership Index (the "Women's Index"), while maintaining risk characteristics that the Adviser believes are generally similar to those of the Women's Index. The Fund seeks to achieve this objective by investing, under normal market conditions, more than 80% of its total assets in the component securities, or an enhanced, optimized or representative sampling of the component securities, of the Women's Index, including at least 40% of its net assets in the securities of non-U.S. issuers.
Under the Trusts' organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. Additionally, in the normal course of business, the Trusts enter into contracts with service providers that contain general indemnification clauses. The Trusts' maximum exposure under these arrangements is unknown as this could involve future claims that may be made against the Trusts that have not yet occurred. However, based on experience, the Trusts expect this risk of loss to be remote.
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Notes to Financial Statements, continued
Accounting Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Funds apply Investment Company accounting and reporting guidance.
Valuation of Investments For purposes of calculating the net asset value ("NAV"), determined ordinarily as of the close of regular trading (normally 4:00 p.m. Eastern time) (the "NYSE Close") on the New York Stock Exchange ("NYSE") on each day (a "Business Day") that the NYSE is open for trading, the Funds normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. U.S. and non-U.S. securities are normally priced using data reflecting the earlier closing of the principal markets for those securities, subject to possible fair value adjustments. Information that becomes known to the Funds or their agents after NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or NAV determined earlier that day.
For the purpose of these financial statements, fair values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or pricing services. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair value.
Investments denominated in currencies other than the U.S. dollar are converted to U.S. dollars using daily exchange rates obtained from pricing services. As a result, the NAV of a Fund's shares may be affected by changes in the value of currencies in relation to the U.S. dollar.
If market quotations are not readily available (including in cases when available market quotations are deemed to be unreliable), the Funds' investments will be valued as determined in good faith pursuant to policies and procedures approved by the Boards of Trustees (so called "evaluated pricing"). The Boards have delegated to the Advisers' Best Execution and Valuation Committee the day-to-day responsibility for making evaluated
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pricing determinations with respect to Fund holdings. The Best Execution and Valuation Committee is comprised of representatives of the Advisers, including several members of the Portfolio Management team, the Director of Trading, the Chief Compliance Officer and the Chief Financial Officer. One of the functions of the Best Execution and Valuation Committee is to value securities where current and reliable market quotations are not readily available. The Committee meets periodically and reports to the Board at each quarterly meeting regarding any securities for which evaluated pricing was employed during the previous quarter. All actions taken by the Best Execution and Valuation Committee are reviewed and ratified by the Boards.
The Funds may determine that market quotations are not readily available due to events relating to a single issuer (e.g., corporate actions or announcements) or events relating to multiple issuers (e.g., governmental actions or natural disasters). The Funds may determine the fair value of investments based on information provided by pricing services and other third-party vendors, which may recommend fair value prices or adjustments with reference to other securities, indices or assets. Various factors may be considered in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time at which Funds' net asset value is determined; and changes in overall market conditions. At December 31, 2014, five securities were fair valued in good faith pursuant to policies and procedures approved by the Boards of Trustees. The Balanced Fund held two securities fair valued at $756,253 representing 0.04% of the Fund's net asset value, the High Yield Bond Fund held two securities fair valued at $0, representing 0.00% of the Fund's net asset value, and the International Index Fund held one security fair valued at $19,877 representing 0.02% of the Fund's net asset value.
For those Funds that invest in non-U.S. securities, investors should be aware that many securities markets and exchanges outside the U.S. close prior to the close of the NYSE, and the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE. As a result, the Funds' fair value pricing procedures require the Funds to consider changes in the fair value of non-U.S. securities between the time of the closing of the local market's exchange and
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Notes to Financial Statements, continued
the close of the NYSE. Generally, if there has been a movement in the U.S. market that exceeds a specified threshold, the Funds will assess whether the closing price on the local exchange is still appropriate. Although the threshold may be revised from time to time and the number of days on which fair value prices will be used will depend on market activity, it is possible that fair value prices will be used by the Funds to a significant extent. The value determined for an investment using the Funds' fair value pricing procedures may differ from recent market prices for the investment.
Fair Value Measurements Fair value is defined as the price that the Fund would receive upon selling an investment in orderly transaction between market participants. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a general summary of valuation inputs and classifications for different categories of securities.
Equity Securities Equity securities, including common stocks, preferred stocks and exchange-traded funds, for which market quotations are readily available, valued at the last reported sale price or official closing price as reported by an independent pricing service, are generally categorized as Level 1 in the hierarchy. Non-U.S. equity securities may also be valued at official close, or may be valued based on the fair value pricing procedures noted above. When third-party fair value pricing of foreign securities methods are applied, they are generally categorized as Level 2. To the extent that inputs for equity securities are unobservable, values are categorized as Level 3 in the hierarchy.
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Fixed Income Securities Fixed income securities, including corporate Bonds (both investment-grade and high-yield), U.S. Treasury Obligations, Government Bonds, Mortgage-Backed and Asset-Backed Securities and Municipal Bonds, are valued at evaluated prices received from independent pricing services, which are evaluated using various inputs and techniques which may include trade activity, broker-dealer quotes, yield curves, coupon rates, default rates, cash flows, models and other inputs, and are generally categorized as Level 2 in the hierarchy. To the extent that inputs for fixed income securities are unobservable, values are categorized as Level 3 in the hierarchy.
Affiliated and Unaffiliated Investment Companies Investments in investment companies are valued at the Funds' closing net asset value and are generally categorized as Level 1.
Short-term Investments Short-term securities, including repurchase agreements, with remaining maturities of 60 days or less, which are valued at amortized cost, are generally categorized as Level 2 in the hierarchy.
Option Contracts Options on equity securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service, and are generally categorized as Level 1 in the hierarchy.
The following is a summary of the inputs used to value the Funds' net assets as of December 31, 2014:
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
Balanced | |||||||||||||||||||
Common Stocks | $ | 1,232,594,577 | $ | — | $ | — | $ | 1,232,594,577 | |||||||||||
Affiliated Investment Companies | 17,753,158 | — | — | 17,753,158 | |||||||||||||||
Community Investment Notes | — | 3,000,000 | 756,253 | 3,756,253 | |||||||||||||||
Corporate Bonds | — | 187,959,282 | — | 187,959,282 | |||||||||||||||
U.S. Gov't Agency Bonds | — | 160,886,903 | — | 160,886,903 | |||||||||||||||
Government Bonds | — | 11,219,868 | — | 11,219,868 | |||||||||||||||
Municipal Bonds | — | 26,306,771 | — | 26,306,771 | |||||||||||||||
U.S. Treasury Notes | — | 197,282,714 | — | 197,282,714 | |||||||||||||||
Mortgage-Backed Securities | — | 131,067,839 | — | 131,067,839 | |||||||||||||||
Cash Equivalents | 5,460,733 | 23,324,000 | — | 28,784,733 | |||||||||||||||
Total | $ | 1,255,808,468 | $ | 741,047,377 | $ | 756,253 | $ | 1,997,612,098 |
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December 31, 2014
Notes to Financial Statements, continued
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
Growth | |||||||||||||||||||
Common Stocks | $ | 192,487,496 | $ | 1,598,559 | $ | — | $ | 194,086,055 | |||||||||||
Cash Equivalents | 1,731,135 | 5,683,000 | — | 7,414,135 | |||||||||||||||
Total | $ | 194,218,631 | $ | 7,281,559 | $ | — | $ | 201,500,190 | |||||||||||
Small Cap | |||||||||||||||||||
Common Stocks | $ | 193,132,289 | $ | — | $ | — | $ | 193,132,289 | |||||||||||
Cash Equivalents | 6,899,006 | 10,938,000 | — | 17,837,006 | |||||||||||||||
Total | $ | 200,031,295 | $ | 10,938,000 | $ | — | $ | 210,969,295 | |||||||||||
High Yield Bond | |||||||||||||||||||
Common Stocks | $ | 1,454,760 | $ | — | $ | 0 | $ | 1,454,760 | |||||||||||
Preferred Stocks | 9,938,247 | — | 0 | 9,938,247 | |||||||||||||||
Exchange-Traded Funds | 2,161,000 | — | — | 2,161,000 | |||||||||||||||
Corporate Bonds | — | 477,951,674 | — | 477,951,674 | |||||||||||||||
Loans | — | 51,003,602 | — | 51,003,602 | |||||||||||||||
Cash Equivalents | 27,392,530 | 900,639 | — | 28,293,169 | |||||||||||||||
Total | $ | 40,946,537 | $ | 529,855,915 | $ | 0 | $ | 570,802,452 | |||||||||||
Global Environmental Markets | |||||||||||||||||||
Common Stocks | $ | 96,337,716 | $ | 98,153,843 | $ | — | $ | 194,491,559 | |||||||||||
Total | $ | 96,337,716 | $ | 98,153,843 | $ | — | $ | 194,491,559 | |||||||||||
International Index | |||||||||||||||||||
Common Stocks | $ | 621,389 | $ | 125,121,651 | $ | 19,877 | $ | 125,762,917 | |||||||||||
Rights | 21,405 | — | — | 21,405 | |||||||||||||||
Exchange Traded Funds | 2,285,150 | — | — | 2,285,150 | |||||||||||||||
Cash Equivalents | — | 1,133,000 | — | 1,133,000 | |||||||||||||||
Total | $ | 2,927,944 | $ | 126,254,651 | $ | 19,877 | $ | 129,202,472 | |||||||||||
Global Women's Index | |||||||||||||||||||
Common Stocks | $ | 45,079,608 | $ | 23,762,516 | $ | — | $ | 68,842,124 | |||||||||||
Exchange-Traded Funds | 951,757 | — | — | 951,757 | |||||||||||||||
Cash Equivalents | 384,724 | — | — | 384,724 | |||||||||||||||
Total | $ | 46,416,089 | $ | 23,762,516 | $ | — | $ | 70,178,605 |
106
December 31, 2014
Following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
International Index | High Yield Bond | ||||||||||
Stocks | |||||||||||
Balance as of December 31, 2013 | $ | — | $ | — | |||||||
Realized gain (loss) | — | — | |||||||||
Amortization of premium | — | — | |||||||||
Change in unrealized appreciation (depreciation) | — | — | |||||||||
Purchases/Received In-kind | 19,877 | 0 | |||||||||
Sales | — | — | |||||||||
Transfers in to and/or out of Level Three | — | — | |||||||||
Balance as of December 31, 2014 | $ | 19,877 | $ | 0 | |||||||
Balanced | High Yield Bond | ||||||||||
Bonds and Notes | |||||||||||
Balance as of December 31, 2013 | $ | 748,566 | $ | 0 | |||||||
Realized gain (loss) | — | — | |||||||||
Amortization of premium | — | (28,221 | ) | ||||||||
Change in unrealized appreciation (depreciation) | 7,687 | 28,221 | |||||||||
Purchases | — | — | |||||||||
Sales/Delivered in Exchange | — | 0 | |||||||||
Transfers in to and/or out of Level Three | — | — | |||||||||
Balance as of December 31, 2014 | $ | 756,253 | $ | — |
Transfers in and out of Levels during the period are assumed to be transferred on the last day of the period at their current value. During the year, Level 1 to Level 2 transfers were: $3,872,450 for the Global Environmental Markets Fund; $79,071,110 for the International Index Fund; and $385,220 for the Global Women's Index Fund. All such transfers were due to utilization of the pricing vendor's fair value pricing of foreign securities. The predecessor to the International Index Fund, the Pax MSCI EAFE ESG Index ETF, did not utilize fair value pricing of foreign securities.
Significant unobservable inputs were used by three Funds for Level 3 fair value measurements. The Balanced Fund holds positions in Community Investment notes which are valued based on quarterly financial statements adjusted for any changes in credit quality indicated in such financial statements. The International Index Fund holds an equity security which has been delisted from the Hong Kong exchange. The security is valued based on the Hong Kong
107
December 31, 2014
Notes to Financial Statements, continued
equivalent value of an affiliated U.S. dollar-denominated security which continues to trade in a secondary market.
Investment Transactions Investment transactions are recorded as of the date of purchase, sale or maturity. Net realized gains and losses from the sale or disposition of securities are determined on the identified cost basis, which is also used for federal income tax purposes. Corporate actions (including cash dividends) are recorded net of foreign tax withholdings.
Investment Income Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discount and amortization of premiums, if any. The value of additional securities received as dividend payments is recorded as income and as an increase to the cost basis of such securities. The Funds amortize purchase price premium and accrete discount on bonds, if any, over the remaining life of the bonds using the effective interest method of amortization; for callable bonds, the amortization period is to the most likely call date.
Distributions to Shareholders Distributions to shareholders are recorded by each of the Funds on the ex-dividend dates. The Balanced Fund, Growth Fund, Small Cap Fund, Global Environmental Markets Fund, International Index Fund and Global Women's Index Fund expect to pay dividends of net investment income, if any, semiannually and to make distributions of capital gains, if any, at least annually. The High Yield Bond Fund expects to pay dividends of net investment income, if any, monthly and to make distributions of capital gains, if any, at least annually. A shareholder begins earning dividends on High Yield Bond Fund shares the day after the Fund receives his or her purchase payment. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
Class Accounting Expenses directly attributable to a class of shares, such as 12b-1 distribution fees, are charged to that class. Each Fund has adopted a 12b-1 plan, applicable to certain classes of each of the Funds. Expenses of the Funds that are directly identifiable to a specific Fund, such as transfer agent fees, custody fees and registration fees, are applied to that Fund. Expenses that are not readily identifiable to a specific Fund, such as printing expense, Trustees' fees and legal fees, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of the Funds. Investment income, realized and unrealized gains and losses are allocated based upon the relative daily net assets of each class of shares.
108
December 31, 2014
Federal Income Taxes Each of the Funds intends to elect to be treated and qualify each year as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). If a Fund so qualifies and satisfies certain distribution requirements, such Fund will ordinarily not be subject to federal income tax on its net investment income (which includes short-term capital gains) and net capital gains that it distributes to shareholders. Each Fund expects to distribute all or substantially all of its income and gains to shareholders every year. Therefore, no Federal income or excise tax provision is required. The Funds are treated as separate entities for U.S. Federal income tax purposes.
Foreign Currency Transactions The accounting records of the Funds are maintained in U.S. dollars. In addition, purchases and sales of investment securities, dividend and interest income, and certain expenses are translated at the rates of exchange prevailing on the respective dates of such transactions. Net realized and unrealized foreign currency exchange gains or losses occurring during the holding period of investment securities are a component of realized gain (loss) on investment transactions and unrealized appreciation (depreciation) on investments, respectively. These appear on the Statement of Operations as Net realized gain (loss) on Foreign currency transactions and Change in unrealized appreciation (depreciation) in foreign currency translations; and are included on the Statement of Changes in Net Assets within the Change in unrealized appreciation (depreciation) on investments and foreign currency translations.
Non-U.S. Securities Non-U.S. markets can be significantly more volatile than domestic markets, causing the prices of some of the Fund's investments to fluctuate significantly, rapidly and unpredictably. Non-U.S. securities may be less liquid than domestic securities; consequently, the Fund may at times be unable to sell non-U.S. securities at desirable times or prices. Other risks related to non-U.S. securities include delays in the settlement of transactions; less publicly available information about issuers; different reporting, accounting and auditing standards; the effect of political, social, diplomatic or economic events; seizure, expropriation or nationalization of the issuer or its assets; fluctuation in foreign currency exchange rates and the possible imposition of currency exchange controls. If the Fund invests substantially in securities of non-U.S. issuers tied economically to a particular country or geographic region, it will be subject to the risks associated with such country or geographic region to a greater extent than a fund that is more diversified across countries or geographic regions.
109
December 31, 2014
Notes to Financial Statements, continued
Securities Lending Each of the Funds may lend their securities pursuant to a securities lending agreement (Lending Agreement) with State Street Bank and Trust Company. Initial security loans made pursuant to the Lending Agreement are required to be secured by collateral not less than the percentage specified in the agreement, ranging from 102% to 105%, depending on the types of securities. Cash collateral received is invested in the State Street Institutional U.S. Government Money Market Fund, a registered Rule 2a-7 money market fund. Borrowers may also pledge non-cash collateral within the guidelines for acceptable forms of non-cash collateral approved by the Boards of Trustees. At December 31, 2014, non-cash collateral consisted of U.S. Treasuries and short-term U.S. Government Agency obligations.
The Funds have the right under the Lending Agreement to recover the securities from the borrower on demand. The primary risk associated with securities lending is if the Borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons. The Funds could experience delays and costs in recovering securities loaned or in gaining access to the collateral. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Funds, or at the discretion of the lending agent, replace the loaned securities.
A portion of the income generated upon investment of the collateral is remitted to the borrower and the remainder is allocated between the Funds and the lending agent. The Funds record security lending income net of such allocation. The Funds continue to receive dividends on the securities loaned, which are accounted for in the same manner as other dividend and interest income.
As of December 31, 2014, the value of securities loaned, payable on collateral due to brokers and non-cash collateral pledged by brokers were as follows:
Fund | Market Value of Securities Loaned | Payable on Collateral Due to Broker | Non-Cash Collateral Value | Over Collateralized | |||||||||||||||
Balanced | $ | 36,395,176 | $ | 5,043,105 | $ | 32,063,625 | $ | 711,554 | |||||||||||
Growth | 1,719,632 | 1,731,135 | 16,459 | 27,962 | |||||||||||||||
Small Cap | 6,699,228 | 6,899,006 | — | 199,778 | |||||||||||||||
High Yield Bond | 26,671,268 | 27,392,530 | — | 721,262 | |||||||||||||||
Global Women's Index | 459,321 | 384,724 | 87,276 | 12,679 |
110
December 31, 2014
Short Sales A Fund may engage in short sales, whereby it sells a security it generally does not own (the security is borrowed) when a portfolio manager anticipates that the security's market purchase price will be less than its borrowing price. To complete a short sale transaction, the Fund will borrow the security to deliver it to the purchaser and buy that same security in the market at a later time to return it to the lender. A Fund will not make short sales of securities or maintain a short position if doing so could create liabilities or require collateral deposits and segregation of assets aggregating more than 25% of the value of the Fund's total assets.
The initial amount of a short sale is recorded as a liability, which is marked to market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. For a short against the box, as the security's price declines, the short position increases in value, offsetting the long position's decrease in value. The opposite effect occurs if the security's price rises. The Fund realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Fund will be able to close out a short position at a particular time or at an acceptable price.
The Fund is liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are recorded as an expense of the Fund. Short sales held by the Fund are fully collateralized by restricted cash or other securities. At December 31, 2014, there were no short positions held in the Funds.
NOTE B—Investment Advisory Fee and Transactions with Affiliated and Other Parties
Trust I and Trust III have entered into Investment Advisory Contracts (the "Agreements") with Pax World Management LLC and Pax Ellevate Management LLC, respectively (each, the "Adviser", and collectively, the "Advisers"). Pursuant to the terms of the agreements, the Advisers, subject to the supervision of the Boards of Trustees of the Trusts, are responsible for managing the assets of the Funds in accordance with the Funds' investment objective, investment programs and policies.
111
December 31, 2014
Notes to Financial Statements, continued
Pursuant to the Agreements, the Advisers have contracted to furnish the Funds continuously with an investment program, determining what investments to purchase, sell and exchange for the Funds and what assets to hold uninvested. The Advisers also have contracted to provide office space and certain management and administrative facilities for the Funds. In return for such services, the Funds pay an advisory fee to the Advisers at the following annual rates (expressed as a percentage of the average daily net assets of such Fund):
Average Net Asset Value of Fund | |||||||||||
Fund | Up to $25M | Over $25M | |||||||||
Balanced | 0.75 | % | 0.50 | % | |||||||
Fund | Annual Rate | ||||||||||
Growth | 0.75 | % | |||||||||
Small Cap | 0.75 | % | |||||||||
High Yield Bond | 0.50 | % | |||||||||
Global Environmental Markets | 0.90 | % | |||||||||
International Index | 0.55 | %1 | |||||||||
Global Women's Index | 0.74 | %1,2 |
1The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of 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, The Advisers do not consider acquired fund fees and expenses to be operating costs and expenses of the Fund.)
2Effective June 4, 2014, the Global Women's Index Fund acquired the assets of the Pax World Global Women's Equality Fund, a series of Pax World Funds Series Trust I, pursuant to an Agreement and Plan of Reorganization dated March 4, 2014 (the "Reorganization"). Because the Global Women's Index Fund had no investment operations prior to the closing of the Reorganization, Pax World Global Women's Equality Fund (the "Predecessor Fund") is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Ratios shown in the tables reflect amounts charged to the Fund after the Reorganization. The advisory fee of the Predecessor Fund was 0.75%.
For the period ended December 31, 2014, the Funds incurred the following advisory fees:
Fund | Amount | ||||||
Balanced | $ | 9,966,216 | |||||
Growth | 1,366,922 | ||||||
Small Cap | 886,505 | ||||||
High Yield Bond | 3,371,626 | ||||||
Global Environmental Markets | 1,619,763 | ||||||
International Index | 578,446 | ||||||
Global Women's Index | 405,870 |
112
December 31, 2014
The Adviser has contractually agreed to reimburse the Funds to the extent that each Fund's respective expenses (excluding acquired fund fees and expenses) exceed, on an annual basis, the following percentages of average daily net assets:
Total Expenses Reimbursed by Adviser | |||||||||||||||||||
Fund | Individual Investor | Class A | Institutional | Class R | |||||||||||||||
Growth1,2 | 1.24 | % | 1.24 | % | 0.99 | % | 1.49 | % | |||||||||||
Small Cap2 | 1.24 | % | 1.24 | % | 0.99 | % | 1.49 | % | |||||||||||
Global Environmental Markets2 | 1.40 | % | 1.40 | % | 1.15 | % | 1.65 | % | |||||||||||
International Index3 | 0.80 | % | 0.55 | % | 1.05 | % | |||||||||||||
Global Women's Index3,4 | 0.99 | % | 0.74 | % |
1Effective May 1, 2014, the Adviser has contractually agreed to reduce the expense caps. Prior to that date, expenses were capped at 1.29%, 1.29%, 1.04% and 1.54%, respectively.
2The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31, 2015.
3Expense caps for index funds represent their respective unified management fees plus distribution and/or service fees payable under a plan pursuant to Rule 12b-1, as applicable to particular classes of shares.
4Prior to June 4, 2014, the effective date of the Reorganization, expenses of the Predecessor Global Women's Fund were capped at 1.24% and 0.99%, respectively.
In addition, the Adviser voluntarily waived $94,036 of its management fee from the Balanced Fund related to the Fund's investment in an affiliate.
Such expenses include (i) management and distribution fees; (ii) the fees of affiliated and unaffiliated Trustees; (iii) the fees of the Funds' custodian and transfer agent; (iv) the fees of the Funds' legal counsel and independent registered public accounting firm; (v) the reimbursement of organizational expenses; and (vi) expenses related to shareholder communications including all expenses of shareholders' and Boards of Trustees' meetings and of preparing, printing and mailing reports, proxy statements and prospectuses to shareholders.
During the fiscal year ended December 31, 2014, the Adviser incorrectly oversold its position in a fixed income security in the High Yield Bond Fund. To correct the error, a subsequent purchase was executed, although at a higher price than the original sale price, resulting in a loss of $90,278 to the Fund. The Adviser has reimbursed the Fund for the total amount of the loss.
113
December 31, 2014
Notes to Financial Statements, continued
For the year ended December 31, 2014, the dollar amount of expense reimbursements and fee waivers for each of the Funds were as follows:
Total Expenses Reimbursed by Adviser | |||||||||||||||||||
Fund | Individual Investor | Class A | Institutional | Class R | |||||||||||||||
Growth | $ | 101,847 | $ | 717 | $ | 22,305 | $ | 604 | |||||||||||
Small Cap | 96,402 | 15,666 | 39,903 | 1,183 | |||||||||||||||
Global Environmental Markets | 56,895 | 3,692 | 40,797 | 1,477 | |||||||||||||||
Global Women's Index | 62,999 | — | 3,389 | — |
The Trusts have adopted a plan ("Plan") pursuant to Rule 12b-1 under the Act that allows the Funds to pay distribution fees for the sale and distribution of certain shares as described below and for personal services rendered to the Fund shareholders in connection with the maintenance of shareholder accounts. Under the Plan, each Fund will pay its Distributor a Distribution Fee equal to 0.25% of the annual average daily net assets attributable to the Individual Investor Class shares and 0.50% of the annual average daily net assets attributable to the Class R shares. The Distributor may pay all or any portion of the Distribution Fee to securities dealers or other organizations (including, but not limited to, any affiliate of the Distributor) as commissions, asset-based sales charges or other compensation with respect to the sale of indicated shares of such Fund, or for providing personal services to investors in the indicated shares of such Fund and/or the maintenance of shareholder accounts, and may retain all or any portion of the Distribution Fee as compensation for the Distributor's services as principal underwriter of the indicated shares of such Fund.
Several individuals who are officers and/or Trustees of the Trusts are also employees of the Adviser.
NOTE C—Investment Information
Purchases and proceeds from sales of investments for the Funds for the period ended December 31, 2014 were as follows:
Purchases | Sales | ||||||||||||||||||
Fund | Investments* | U.S. Govt Bonds | Investments* | U.S. Govt Bonds | |||||||||||||||
Balanced | $ | 844,044,572 | $ | 175,415,223 | $ | 993,279,485 | $ | 161,386,797 | |||||||||||
Growth | 56,487,407 | — | 51,542,052 | — | |||||||||||||||
Small Cap | 320,305,033 | — | 192,178,212 | — |
114
December 31, 2014
Purchases | Sales | ||||||||||||||||||
Fund | Investments* | U.S. Govt Bonds | Investments* | U.S. Govt Bonds | |||||||||||||||
High Yield Bond | $ | 482,989,080 | $ | — | $ | 533,809,449 | $ | — | |||||||||||
Global Environmental Markets | 111,387,579 | — | 46,737,765 | — | |||||||||||||||
International Index | 68,486,814 | — | 37,687,250 | — | |||||||||||||||
Global Women's Index | 95,851,033 | — | 72,954,410 | — |
*Excluding short-term investments and transactions relating to the International Reorganization.
For federal income tax purposes, the identified cost of investments owned at December 31, 2014 as well as the gross unrealized appreciation (depreciation) of investments and resulting net unrealized appreciation (depreciation) as of December 31, 2014 were as follows for the Funds:
Identified cost of investments for Federal income tax basis | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | ||||||||||||||||
Balanced | $ | 1,724,546,734 | $ | 282,380,153 | $ | 9,314,789 | $ | 273,065,364 | |||||||||||
Growth | 132,766,311 | 69,447,410 | 713,531 | 68,733,879 | |||||||||||||||
Small Cap | 203,100,659 | 15,261,315 | 7,392,679 | 7,868,636 | |||||||||||||||
High Yield Bond | 588,673,297 | 5,300,464 | 23,171,309 | (17,870,845 | ) | ||||||||||||||
Global Environmental Markets | 173,115,419 | 30,536,368 | 9,160,228 | 21,376,140 | |||||||||||||||
International ESG Index | 132,783,746 | 7,285,797 | 10,867,071 | (3,581,274 | ) | ||||||||||||||
Global Women's Index | 67,544,259 | 5,214,927 | 2,580,581 | 2,634,346 |
At December 31, 2014, the Balanced Fund, Growth Fund, High Yield Bond Fund, Global Environmental Markets Fund, International Index Fund and Global Women's Index Fund had unrealized foreign currency gains (losses) of $(20,883); $(2,253); $(18,982); $(4,611); $(12,319) and $632, respectively.
Options Transactions The Funds may buy and sell put and call options, or write put and covered call options on portfolio securities in order to produce incremental earnings or protect against changes in the value of portfolio securities. The Funds generally purchase put options or write covered call options to hedge against adverse movements in the value of portfolio holdings. When an option is written, the Fund receives a premium and becomes obligated to sell or purchase the underlying security at a fixed price, upon the exercise of the option.
115
December 31, 2014
Notes to Financial Statements, continued
Options are valued daily based upon the last sale price of the principal exchange on which the option is traded and unrealized appreciation or depreciation is recorded. The Fund will realize a gain or loss upon the expiration or closing of the option transaction. When an option is exercised, the proceeds on sale for a written call option, the purchase cost for a written put option, or the cost of the security for a purchased put or call option is adjusted by the amount of premium received or paid.
Securities designated to cover outstanding call or put options are noted in the Schedules of Investments. Contracts subject to call or put, expiration date, exercise price, premium received and market value are detailed in the notes to the Schedules of Investments. Options written are reported as a liability in the Statements of Assets and Liabilities. Realized gains and losses are reported in the Statements of Operations.
There are risks associated with transactions in options on securities. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases above the exercise price and the option is exercised. The risk in writing a put option is that the Fund may incur a loss if the market price of the security continues to decrease after the option is exercised. The risk in buying an option is that the Funds pay a premium whether or not the option is exercised. The Funds also have the additional risk of not being able to enter into a closing transaction before the exercise date if a liquid secondary market does not exist.
Written option activity for the period ended December 31, 2014 is as follows:
Outstanding at 12/31/13 | Written | Closed | Expired | Exercised | Outstanding at 12/31/14 | ||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||
Call Options | |||||||||||||||||||||||||||
Number of contracts | 1,800 | — | — | — | (1,800 | ) | — | ||||||||||||||||||||
Premiums received | $ | 748,612 | $ | — | $ | — | $ | — | $ | (748,612 | ) | $ | — | ||||||||||||||
Growth Fund | |||||||||||||||||||||||||||
Put Options | |||||||||||||||||||||||||||
Number of contracts | 11 | — | (11 | ) | — | — | |||||||||||||||||||||
Premiums received | $ | 30,642 | $ | — | $ | (30,642 | ) | $ | — | $ | — | $ | — |
116
December 31, 2014
Affiliated Investments The term "affiliated company" includes other investment companies that are managed by a Fund's Adviser. At December 31, 2014, the Balanced Fund held 2,205,361 shares of the International Index Fund, valued at $17,753,158. During the period, including investment activity of the Predecessor International Fund, gross additions to the affiliated position were $711,436 and gross reductions were $427,237. The Fund received $711,436 in income distributions from this affiliated investment during the period. Income distributions from affiliates are included as dividend income on the Statement of Operations. Gross Additions include reinvestment of dividends.
Restricted and Illiquid Securities The Funds may purchase certain restricted securities and limited amounts of illiquid securities. The Funds may invest in securities exempt from registration under Rule 144A of the Securities Act of 1933 ("the Act") which are restricted from sale to the public and may only be sold to a qualified institutional buyer. The Funds do not have the right to demand that such securities be registered. The value of such securities is determined by valuations supplied by a pricing service or, if not available, in good faith by or at the direction of the Boards of Trustees. At December 31, 2014, the Balanced Fund held $13,259,408 or 0.66% of net assets and the High Yield Bond Fund held $304,924,330 or 54.76% of net assets in securities exempt from registration under Rule 144A of the Act.
At December 31, 2014, the Balanced Fund held $499,988 of illiquid securities, representing 0.02% of net assets, the High Yield Bond Fund held $71,007,870 of illiquid securities, representing 12.75% of net assets and the International Index Fund held $19,877 of illiquid securities representing 0.02% of net assets. The Fund will classify as "illiquid" all securities that may no longer be disposed of within seven days in the ordinary course of business at approximately the amount at which the Fund has valued such security for the purpose of calculating the Fund's net asset value. Illiquid investments may include restricted securities, repurchase agreements that mature in more than seven days or that have a notice or demand feature more than seven days, certain over-the counter option contracts and participation interests in loans. Because illiquid securities trade less frequently and in smaller volume than liquid securities, the Fund may experience difficulty in closing out positions at prevailing market prices.
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December 31, 2014
Notes to Financial Statements, continued
Additional information on illiquid securities held at December 31, 2014, is as follows:
Security | Acquisition Date Range | Cost | Market Value | ||||||||||||
Balanced Fund | |||||||||||||||
Enterprise Community Impact, 1.500%, 12/11/15 | 12/11/13-12/11/13 | $ | 500,000 | $ | 499,988 | ||||||||||
High Yield Bond Fund | |||||||||||||||
Bank of America Corp., 1.350%, 11/21/16 | 03/14/14-03/14/14 | $ | 2,004,154 | $ | 1,995,234 | ||||||||||
Charlotte Russe, Inc., Term B, 6.750%, 05/21/19 | 05/21/13-11/20/13 | 9,774,891 | 9,642,162 | ||||||||||||
FPL Energy National Wind Portfolio LLC, 144A, 6.125%, 03/25/19 | 02/16/05-06/28/05 | 43,101 | 43,753 | ||||||||||||
Green Plains Processing LLC, 6.500%, 6/30/20 | 06/03/14-06/03/14 | 4,707,090 | 4,679,297 | ||||||||||||
Hercules Tech Growth Capital, Inc. 6.250% | 07/09/14-07/09/14 | 6,903,125 | 6,969,395 | ||||||||||||
Hercules Tech Growth Capital, Inc. 7.000% | 04/12/12-05/17/12 | 1,800,925 | 1,847,362 | ||||||||||||
Hyva Global BV, 144A, 8.625%, 03/24/16 | 01/10/13-07/16/14 | 4,045,122 | 3,850,000 | ||||||||||||
Interactive Health, Inc. | 03/19/04-10/01/13 | 178,981 | — | ||||||||||||
Interactive Health, Inc., 0.000% | 03/19/04-10/01/13 | 357,962 | — | ||||||||||||
Isola USA Corp., 9.250%, 11/29/18 | 11/26/13-1/24/14 | 6,837,994 | 6,517,875 | ||||||||||||
Lee Enterprises, Inc., 7.250%, 3/31/19 | 03/21/14-03/21/14 | 211,638 | 214,423 | ||||||||||||
Light Tower Rentals, Inc., 8.125%, 8/01/19 | 07/16/14-11/25/14 | 3,558,532 | 2,973,500 | ||||||||||||
Maxcom Telecomunicaciones SAB de CV, 6.000%, 06/15/20 | 07/09/09-07/09/09 | 963,842 | 861,000 | ||||||||||||
Nexeo Solutions LLC/Finance Corp., 8.375%, 03/01/18 | 02/28/11-01/11/13 | 8,002,755 | 7,800,000 | ||||||||||||
Ormat Funding Corp., 8.250%, 12/30/20 | 02/06/04-01/06/05 | 424,878 | 428,366 | ||||||||||||
Pacnet, Ltd., 144A, 9.000%, 12/12/18 | 12/10/13-03/11/14 | 3,645,244 | 3,915,625 | ||||||||||||
PRWireless, Inc., 1.000%, 6/29/2020 | 06/27/14-06/27/14 | 2,930,115 | 2,686,500 | ||||||||||||
Ridgebury Crude Tankers LLC, 144A, 7.625%, 3/20/17 | 03/10/14-03/21/14 | 803,801 | 808,250 | ||||||||||||
Sanjel Corp., 144A, 7.500%, 6/19/19 | 06/11/14-06/11/14 | 7,000,000 | 5,355,000 | ||||||||||||
SITV LLC/Finance, 144A, 10.375%, 7/1/19 | 06/18/14-06/18/14 | 2,000,000 | 1,865,000 | ||||||||||||
Stuart Weitzman Acq Co., LLC, 4.500%, 03/04/20 | 03/04/14-03/04/14 | 3,962,489 | 3,928,598 | ||||||||||||
TOMS Shoes LLC, 1.000%, 10/31/2020 | 10/31/14-10/31/14 | 7,200,000 | 7,355,040 | ||||||||||||
Vanguard Natural Resources LLC, 7.625% | 04/30/14-05/15/14 | 1,427,680 | 1,121,490 | ||||||||||||
International Fund | |||||||||||||||
Chaoda Modern Agriculture (Holdings), Ltd. | 03/22/11-07/19/11 | $ | 377,812 | $ | 19,877 |
NOTE D—Tax Information
For financial reporting purposes, the capital accounts are adjusted to reflect the tax character of permanent book/tax differences. Reclassifications are primarily due to tax equalization, tax treatment of gain (loss) on foreign
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currency transactions and tax treatment related to investments in REITs, partnerships, ETFs and PFICs.
For the year ended December 31, 2014, the Funds recorded the following reclassifications:
Undistributed Net Investment Income | Accumulated Net Realized Gain (Loss) | Paid In Capital | |||||||||||||
Balanced | $ | (4,584,894 | ) | $ | 4,584,894 | $ | — | ||||||||
Growth | (55,291 | ) | 55,291 | — | |||||||||||
Small Cap | 45,642 | (166,832 | ) | 121,190 | |||||||||||
High Yield Bond | (681,524 | ) | 681,524 | — | |||||||||||
Global Environmental Markets | 1,727,679 | (1,727,679 | ) | — | |||||||||||
International Index | (46,559 | ) | (47,705 | ) | 94,264 | ||||||||||
Global Women's Index | (51,278 | ) | 51,278 | — |
Net assets were not affected by these reclassifications.
The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations, which may differ from GAAP. In addition to permanent differences previously noted, temporary differences may arise from recognition of certain items of income, expense, gain or loss in different periods for financial reporting and tax purposes. Such differences will reverse at some time in the future. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. For tax purposes, short-term capital gains are considered ordinary income.
The tax character of distributions paid during 2014 and 2013 was as follows:
Distributions paid in 2014 | Distributions paid in 2013 | ||||||||||||||||||
Fund | Ordinary income | Long-term capital gains | Ordinary income | Long-term capital gains | |||||||||||||||
Balanced | $ | 35,750,109 | $ | 175,856,180 | $ | 31,603,300 | $ | 195,445,646 | |||||||||||
Growth | 2,426,398 | 6,088,009 | 378,780 | 3,610,350 | |||||||||||||||
Small Cap | 6,550,510 | 881,910 | 4,996,573 | 651,090 | |||||||||||||||
High Yield Bond | 39,977,818 | 667,574 | 35,226,239 | — | |||||||||||||||
Global Environmental Markets | 1,431,292 | 1,754,237 | 1,988,554 | 223,017 | |||||||||||||||
International Index | 3,703,451 | 60,107 | 761,762 | — | |||||||||||||||
Global Women's Index | 1,106,628 | 6,785,629 | 411,705 | — |
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Notes to Financial Statements, continued
As of December 31, 2014, the components of distributable earnings on a tax basis were as follows:
Undistributed Ordinary Income | Undistributed Long-Term Capital Gain | Other Temporary Differences | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
Balanced | $ | 3,450,443 | $ | 14,322,879 | $ | — | $ | 273,044,480 | |||||||||||
Growth | 296,349 | 2,323,181 | — | 68,731,626 | |||||||||||||||
Small Cap | 94,994 | 28,068 | — | 7,868,636 | |||||||||||||||
High Yield Bond | — | — | (14,044,533 | ) | (17,889,828 | ) | |||||||||||||
Global Environmental Markets | — | 125,993 | — | 21,371,529 | |||||||||||||||
International Index | 510,657 | 2,350 | — | (3,593,593 | ) | ||||||||||||||
Global Women's Equality | 55,949 | 500,762 | — | 2,634,978 |
The RIC Modernization Act of 2010 (the "Act") was signed into law on December 22, 2010. Under the Act, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, losses incurred post-enactment will be required to be utilized prior to the losses incurred in pre-enactment years. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment losses that are carried forward will retain their character as either short-term or long-term capital losses, rather than being considered as all short-term as under previous law.
As of December 31, 2014, the Funds utilized prior period carryforward losses as follows:
Fund | Capital Loss Carryforwards Utilized in 2014 | ||||||
High Yield Bond | $ | 3,483,107 | |||||
International Index | 191,331 | ||||||
Global Women's Index | 1,900,259 |
During the period from November 1, 2014 through December 31, 2014, the High Yield Bond Fund incurred a late-year capital loss of $13,877,085. This loss is treated for federal income tax purposes as if it had occurred on January 1, 2015.
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Uncertain Tax Position Management has analyzed the Funds' tax positions taken for all open tax years which remain subject to examination by the Funds' major tax jurisdictions (years 2010 through 2014). The Funds recognize interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. Management has concluded that, as of and during the period ended December 31, 2014, no provision for federal income tax is necessary and, therefore, the Funds did not have a liability for any unrecognized tax expenses.
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Report of Independent Registered Public Accounting Firm
The Boards of Trustees and Shareholders of Pax World Funds Series Trust I and Pax World Funds Series Trust III:
We have audited the accompanying statements of assets and liabilities of Pax World Balanced Fund, Pax World Growth Fund, Pax World Small Cap Fund, Pax World High Yield Bond Fund, Pax World Global Environmental Markets Fund, Pax MSCI International ESG Index Fund (six of the ten funds constituting the Pax World Funds Series Trust I) and Pax Ellevate Global Women's Index Fund (a series of Pax World Funds Series Trust III) (collectively, the "Funds") including the schedules of investments, as of December 31, 2014, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Funds' internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Pax World Balanced Fund, Pax World Growth Fund, Pax World Small Cap Fund, Pax World High Yield Bond Fund, Pax World Global Environmental Markets Fund, and Pax MSCI International ESG Index Fund of Pax World Funds Series Trust I and Pax Ellevate Global Women's Index Fund of Pax World Funds Series Trust III at December 31, 2014, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.
Boston, Massachusetts
February 20, 2015
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Proxy Voting (Unaudited)
You may obtain a description of the Funds' policies and procedures that the Funds use to determine how to vote proxies relating to their portfolio securities, without charge, upon request by contacting the Funds at 800.767.1729 or on the SEC's website at www.sec.gov.
The information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by telephoning Pax World (toll-free) at 800.767.1729 or visiting Pax World's website at www.paxworld.com and will be available without charge by visiting the SEC's website at www.sec.gov.
Quarterly Portfolio Holdings Disclosure (Unaudited)
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Fund's Form N-Qs are available on the SEC website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800.SEC.0330. Information contained in each Fund's Form N-Qs may also be obtained by visiting Pax World's website at www.paxworld.com or telephoning Pax World (toll-free) at 800.767.1729.
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Federal Tax Information (Unaudited)
The percentages of ordinary income distributed by each of the Funds that is Qualified Dividend Income (QDI) and that qualifies for the corporate dividends received deduction (DRD) are as follows:
QDI % | DRD % | ||||||||||
Balanced | 97.40 | % | 87.09 | % | |||||||
Growth | 100.00 | % | 100.00 | % | |||||||
Small Cap | 100.00 | % | 100.00 | % | |||||||
High Yield Bond | 2.57 | % | 2.55 | % | |||||||
Global Environmental Markets | 100.00 | % | 36.57 | % | |||||||
International Index | 96.19 | % | 0.00 | % | |||||||
Global Women's Index | 100.00 | % | 47.08 | % |
For the fiscal year ended December 31, 2014, the Pax MSCI International ESG Index Fund earned foreign source income totaling $4,785,823 and paid $231,203 in foreign taxes which it intends to pass through to its shareholders.
Management of the Funds (Unaudited)
The business of the Trust is managed under the direction of the Trusts' Board of Trustees. The Adviser serves as investment adviser to the Funds pursuant to an investment advisory agreement between the Adviser and the Trusts. The Trusts' Boards of Trustees oversees the Adviser and decides upon matters of general policy. The Boards of Trustees meets at least four (4) times per year, and reviews the performance and operations of the Funds. The Adviser, either directly or through others selected by the Adviser, furnishes daily investment advisory services.
Officers/Trustees
The following table reflects the name and age, position(s) held with the Trust, the term of office and length of time served, the principal occupation(s) during the past five (5) years, other directorships held, and the number of portfolios overseen in the Pax World Fund Family of those persons who were the trustees and/or officers of the Funds on December 31, 2014. The trustees and officers set forth in the first table below (Interested Trustees and Officers) are considered interested persons under the 1940 Act by virtue of their position or affiliation with the Adviser. The trustees in the second table (Disinterested Trustees) are not considered interested persons and have no affiliation with
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the Adviser. The business address of each trustee and officer is 30 Penhallow Street, Suite 400, Portsmouth, NH 03801.
None of the officers or trustees of the Funds are related to one another by blood, marriage or adoption. The aggregate remuneration paid directly by each Fund during the period covered by the report to (i) all Trustees and all members of any advisory board for regular compensation; (ii) each Trustee and each member of an advisory board for special compensation; (iii) all officers; and (iv) each person of whom any officer or Trustee of the Fund is an affiliated person is as follows: Pax World Balanced Fund, $144,225; Pax World Growth Fund, $27,646; Pax World Small Cap Fund, $23,456; Pax World High Yield Bond Fund, $56,070; and Pax World Global Environmental Markets Fund, $27,263; and Pax Ellevate Global Women's Index Fund, $5,852. And the aggregate of such remuneration paid by the Adviser on behalf of the following Funds during the period covered by the report is as follows: Pax MSCI International ESG Index Fund, $22,943; and Pax Ellevate Global Women's Index Fund, $14,407.
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Interested Trustees and Officers
Name and Age | Position(s) Held With the Trust; Term of Office1; and Length of Time Served | Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee or Officer | Number of Funds in the Pax World Fund Family Overseen by Trustee | ||||||||||||
Laurence A. Shadek (65) | Trust I: Trustee (since 2006) | Chair of PWM (1996-present); Executive Vice-President of Wellington Shields & Co. LLC or its predecessor organization (1986-present); Trustee of Pax World Funds Trust II (2008-2014); member of the Board of Trustees of Franklin & Marshall College (1998-present). | 10 | ||||||||||||
Joseph Keefe (61) | Trust I: Trustee, Chief Executive Officer (since 2006) Trust III: Trustee, Chief Executive Officer (since 2013) | Chief Executive Officer (2005-present) and President (2006-present) of PWM; Chief Executive Officer of PEM (2014-present); Trustee and Chief Executive Officer of Pax World Funds Trust II (2008-2014); member of the Boards of Directors of On Belay (2006-2011), and Americans for Campaign Reform (2003-2014); Chair of the Board of Women Thrive Worldwide (2009-present); Co-Chair of the Leadership Group of the Women's Empowerment Principles (2014-present); Co-Chair of the Advisory Board of the Rudman Center for Justice, Leadership and Public Policy, University of New Hampshire School of Law (2015-present). | 11 | ||||||||||||
Sallie Krawcheck (50) | Trust III: Trustee (since 2014) | Chair of PEM (2014-present); Owner, Ellevate Network (2013-present); Director, 2U (2014-present); Director, Motif Investing (2012-2014); President, Bank of America Wealth Management (2009-2011); Chief Executive Officer, Citi Wealth Management (2007-2008); Chief Financial Officer, Citi (2005-2007); Chief Executive Officer, Smith Barney (2002-2005); Chief Executive Officer, Sanford C. Bernstein & Co. (2001-2002). | 1 | ||||||||||||
John Boese (51) | Trust I: Chief Compliance Officer (since 2006) Trust III: Chief Compliance Officer (since 2013) | Chief Compliance Officer of PWM (2006-present) and of PEM (2014-present); Chief Compliance Officer of Pax World Funds Trust II (2008-2014); Vice President and Chief Regulatory Officer of the Boston Stock Exchange, Boston, MA (2000-2006). | N/A | ||||||||||||
Maureen Conley (52) | Trust I: Secretary (since 2006) Trust III: Secretary (since 2013) | Senior Vice President of Shareholder Services/Operations (2005-present) for PWM; Secretary of Pax World Funds Trust 11 (2008-2014). | N/A |
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Interested Trustees and Officers, continued
Name and Age | Position(s) Held With the Trust; Term of Office1; and Length of Time Served | Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee or Officer | Number of Funds in the Pax World Fund Family Overseen by Trustee | ||||||||||||
Alicia K. DuBois (55) | Trust I: Treasurer (since 2006) Trust III: Treasurer (since 2013) | Chief Financial Officer for PWM (2006-present) and for PEM (2014-present); Treasurer for Pax World Funds Trust II (2008-2014); Assistant Treasurer for both Jefferson Pilot Investment Advisory Corp. and Jefferson Pilot Variable Fund, Inc. (2001-2006); and Assistant Vice President at Lincoln Financial Group (formerly Jefferson-Pilot Corp.) (2005-2006) | N/A |
Disinterested Trustees
Name and Age | Position(s) Held With the Trust; Term of Office1; and Length of Time Served | Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee or Officer | Number of Funds in the Pax World Fund Family Overseen by Trustee2 | ||||||||||||
Adrian P. Anderson (60)2 | Trust I: Trustee (since 2007) Trust III: Trustee (since 2013) | Trustee of Pax World Funds Trust II (2008-2014); Chief Executive Officer of North Point Advisers, LLC (2004-present); Consultant of Gray and Co. (1999-2004). | 11 | ||||||||||||
Carl H. Doerge, Jr. (76)2 | Trust I: Trustee (since 2006) Trust III: Trustee (since 2013) | Chairman of the Board of Trust I (2006-2014) and of Trust III (2013-2014); Trustee and Chairman of the Board of Pax World Funds Trust II (2008-2014); Private Investor (1995-present); member of the Board of Trustees and Finance Committee for Hobe Sound Nature Center (2010-present); member of the Board of Directors (1998-present) and Chairman of the Investment Committee (1999-present) of St. Johnland Nursing Home in Kings Park, NY. | 11 | ||||||||||||
Cynthia Hargadon (59)3 | Trust I: Trustee (since 2006) Trust III: Trustee (since 2013) | Trustee of Pax World Funds Trust II (2008-2014); Senior Consultant and Partner of North Point Advisers, LLC (2010-present); Managing Director of CRA Rogers Casey (2006-2010). | 11 | ||||||||||||
Louis F. Laucirica (73)2 | Trust I: Trustee (since 2006) Trust III: Trustee (since 2013) | Trustee of Pax World Funds Trust II (2008-2014); Associate Dean and Director of Undergraduate Studies of Stevens Institute of Technology, Howe School (1999-2010). | 11 |
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Disinterested Trustees, continued
Name and Age | Position(s) Held With the Trust; Term of Office1; and Length of Time Served | Principal Occupation(s) During Past Five Years and Other Directorships Held by Trustee or Officer | Number of Funds in the Pax World Fund Family Overseen by Trustee | ||||||||||||
John L. Liechty (60)3 | Trust I: Chairman of the Board of Trustees (since 2014); Trustee (since 2009) Trust III: Chairman of the Board of Trustees (since 2014); Trustee (since 2013) | Trustee of Pax World Funds Trust II (2009-2014); Principal, Integrated Investment Solutions (2009-present); Principal, Integrated Financial Planning (2010-present); President and CEO, MMA Praxis Mutual Funds (1995-2008). | 11 | ||||||||||||
Nancy S. Taylor (59)3 | Trust I: Trustee (since 2006) Trust III: Trustee (since 2013) | Trustee of Pax World Funds Trust II (2008-2014); Senior Minister & CEO, Old South Church in Boston. Advisory Board, Yale Divinity School (2010-present); Advisory Board, Idaho Human Rights Education Center (2009-present); Board of Managers, Old South Meeting House (2005-present); Trustee Emeritus, Benjamin Franklin Institute of Technology. | 11 |
1Trustees of the Funds hold office until a successor is chosen and qualifies. Officers of the Funds are appointed by the Board of Trustees and hold office until a successor is chosen and qualifies.
2Designates a member of the Audit Committee. The Audit Committee has the responsibility of overseeing the establishment and maintenance of an effective financial control environment, for overseeing the procedures for evaluating the system of internal accounting control and for evaluating audit performance. The Audit Committee meets on at least a quarterly basis.
3Designates a member of the Nomination, Compensation & Compliance Committee. The Nomination, Compensation & Compliance Committee is responsible for considering and recommending Board candidates, reviewing and recommending Board compensation, and overseeing regulatory and fiduciary compliance matters. The Nomination, Compensation & Compliance Committee meets on at least a quarterly basis.
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Board Considerations in Approving the New Sub-Advisory Agreement (Unaudited)
Impax Asset Management Ltd. ("Impax") serves as investment sub-adviser to the Global Environmental Markets Fund (the "Fund"). Impax is a wholly-owned subsidiary of Impax Asset Management Group plc ("IAMG"), which is publicly traded on the Alternative Investment Market ("AIM") of the London Stock Exchange. Prior to December 22, 2014, BNP Paribas Investment Partners ("BNP PIP") owned greater than 25% of the voting securities of IAMG and was presumed to "control" IAMG as such term is defined under the 1940 Act. On December 22, 2014, BNP PIP sold a portion of its shares of IAMG at market value on the AIM (the "Transaction") such that immediately after the Transaction its ownership in IAMG decreased below 25%, effectively terminating BNP PIP's controlling interest in IAMG. By law, the investment sub-advisory agreement pursuant to which Impax provided investment sub-advisory services to the Fund (the "Prior Agreement") may be deemed to have terminated upon consummation of the Transaction (the "Transaction Date"). The Transaction was not, and is not in the future, expected to result in any changes to the portfolio managers of the Fund.
At a meeting of the Board of Trustees for the Trust I held December 3-4, 2014, the Board unanimously approved a new subadvisory agreement between Impax and the Adviser that will become effective upon shareholder approval at a Special Meeting to be held on March 27, 2015. In considering whether to approve the New Agreement, the Board took into account that they had recently approved the annual continuation of the Prior Agreement with respect to the Fund on June 12, 2014. That approval followed a process during which the Board, including the Independent Trustees, met with representatives of, and considered information provided by, the Adviser and Impax. In their deliberations, the Trustees did not identify any particular information that was all-important or controlling. Some of the factors that figured particularly in Trustees' deliberations are described below, although individual Trustees may have evaluated the information presented differently from one another, or given different weights to various factors in reaching their unanimous conclusion. The Trustees' conclusions were based, in part, on their consideration of the Prior Agreement during the course of the year and in prior years. The Board noted that the terms of the New Agreement, including the scope of services provided and fees payable thereunder, were identical to those of the Prior Agreement, and that that change of control triggered by a sale by
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BNP PIP of a portion of its interest in IAMG, was not expected to affect Impax's provision of services to the Fund.
Nature, Extent and Quality of Services. In considering the Prior Agreement and the New Agreement, the Trustees, including the Independent Trustees, evaluated the nature, extent and quality of the advisory services provided to the Fund by Impax. They considered the terms of the Prior Agreement and the New Agreement and received and considered information provided by management that described, among other matters:
• the nature and scope of the advisory services provided to the Fund and information regarding the experience, qualifications and adequacy of the personnel providing those services,
• the investment program used by Impax to subadvise the Fund;
• possible conflicts of interest and fall-out benefits, and
• brokerage practices.
In addition to considering the Funds investment performance, The Trustees considered, among other matters, information concerning the investment philosophies and investment processes used by Impax in managing the Fund as well as its in-house investment and sustainable research capabilities.
The Trustees concluded, within the context of their overall conclusions regarding the Prior Agreement and the New Agreement, that the scope of the services provided to the Fund under the Prior Agreement and the New Agreement by Impax was consistent with such Fund's operational requirements; and that, overall, the nature, extent and quality of the services provided by Impax to the Fund were sufficient to warrant approval of the New Agreement.
Fund Performance. In connection with the review of the Prior Agreement, the Trustees, including the Independent Trustees, reviewed information prepared by Lipper, Inc. ("Lipper") regarding the total return investment performance of the Fund, comparing the Fund's investment results with those of other mutual funds within its Lipper performance universe over the 1-, 3-, and 5- year periods ended March 31, 2014. The Independent Trustees considered that the Global Environmental Markets Fund had outperformed its Lipper performance universe average for the 1- and 3-year periods, and had underperformed its performance universe average for the 5-year period ended March 31, 2014. The Trustees, including the Independent Trustees, considered
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the extent to which the performance of the Fund might be comparable to that of other mutual funds in its Lipper performance universe.
The Trustees also considered the performance of the Fund for the 1-, 3-, and 5-year periods ended September 30, 2014 relative to a peer group of U.S. and foreign-domiciled funds identified by Impax as having investment strategies similar to those of the Fund. The Independent Trustees noted that the Fund had outperformed that peer group for the 3- and 5-year periods and underperformed that peer group for the 1-year period ended September 30, 2014.
Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Prior Agreement and the New Agreement, that the relevant performance record and process in managing the Fund was sufficient to support approval of the New Agreement.
Fees and Other Expenses. The Trustees considered subadvisory fees paid to Impax by the Adviser, as well as the Fund's distribution and service (Rule 12b-1) fees, "other expenses" and total expenses. In doing so, the Trustees reviewed information provided by management and information prepared by Lipper regarding the expenses of the Fund relative to a peer group identified by the Adviser as emphasizing clean technology investments. The Independent Trustees noted that the total expenses of the Fund (after giving effect to the expense reimbursements described below, if applicable) were below the median total expenses of the peer group identified by the Adviser. In connection with their review of the Prior Agreement and New Agreement, the Trustees considered the Adviser's agreement to reimburse the Global Environmental Markets Fund to the extent the Fund's total operating expenses (with certain exceptions) exceed a percentage of the average daily net assets per annum of each share class as follows: 1.15% for Institutional Class shares, 1.40% for Individual Investor Class shares and Class A shares, and 1.65% for Class R shares through December 31, 2015. The Trustees observed that the Fund's advisory fees and total expenses remained generally in line with those of other mutual funds identified by the Adviser.
Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Prior Agreement and the New Agreement, that the fees and expenses to be charged represented reasonable compensation to Impax in light of the services provided. In coming
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to this conclusion, the Trustees took into account, among other factors, the fee waiver and reimbursement agreements described above.
Costs of Services Provided and Profitability. The Trustees did not consider the profitability of the Prior Agreement and the New Agreement to Impax because the structure of the Prior Agreement and the New Agreement is such that any profits to Impax reduce the profitability of the Adviser, and the fees payable under the Prior Agreement and the New Agreement are the product of arm's-length bargaining between Impax and the Adviser.
Possible Fall-Out Benefits. The Trustees, including the Independent Trustees, considered information regarding the direct and indirect benefits to Impax from its relationship with the Trust, including reputational and other "fall out" benefits.
Possible Economies of Scale. The Trustees, including the Independent Trustees, considered the extent to which Impax may realize economies of scale or other efficiencies in managing and supporting the Fund. They noted that as assets increase, certain fixed costs may be spread across a larger asset base.
The Trustees concluded that the Fund's overall fee arrangements represent an appropriate sharing at the present time between Fund shareholders and Impax of any economies of scale or other efficiencies in the management of the Fund at current asset levels.
Conclusions. Based on their evaluation of factors that they deemed to be material, including the factors described above, the Board, including the Independent Trustees, unanimously concluded that approval of the New Agreement with respect to the Fund was in the best interests of the Fund.
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The Statement of Additional Information includes additional information about the trustees and is available upon request without charge by calling 800.767.1729 between the hours of 9:00 a.m. and 5:30 p.m. Eastern time or by visiting our website at www.paxworld.com.
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Account Options and Services
At Pax World, we are pleased to offer a variety of account options and shareholder services to help meet your investment needs.
Types of Accounts
Regular Accounts: Individual, business and trust accounts are available for all Pax World Funds.
Traditional IRA Contributions to an IRA may be tax-deductible. Taxes are paid only when funds are withdrawn, when investors may be in a lower tax bracket.
Roth IRA Contributions to a Roth IRA are not deductible, but after five years some types of withdrawals are tax-free.
SIMPLE IRA This is an easy-to maintain retirement plan designed for small businesses.
SEP IRA This is an employer funded retirement plan popular with small businesses and self-employed persons.
Education Savings Account & Uniform Gift to Minors Account (UGMA) These plans provide excellent ways to save for a child's education.
Services
Automatic Investment Plan You may arrange to have a fixed amount automatically deducted from your checking or savings account and invested in your Pax World account on a monthly or quarterly basis. Automatic investment plans do not assure a profit and do not protect against loss in declining markets.
Online Account Access Utilizing a unique ID number and PIN, you can access your Pax World account balances or histories; purchase or redeem fund shares; or make exchanges between different Pax World Funds.
www.paxworld.com Learn all about Pax World through our web site! You can check Fund performance, read about our portfolio managers, view Connection—our quarterly newsletter, and see how Pax World voted on various proxies for the companies in our portfolios.
Please note that the information contained herein does not constitute tax advice. Always consult your tax advisor before making any tax-related investment decisions.
This annual report is intended for shareholders of the Pax World Funds only, and is not authorized for distribution to other persons unless accompanied or preceded by a prospectus. Please consider the Funds' investment objectives, risks and charges and expenses carefully before investing. The Funds' prospectus contains this and other information about the Funds and may be obtained by calling 800.767.1729, emailing info@paxworld.com or visiting www.paxworld.com. The performance data quoted herein represents 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. In addition, current performance may be lower or higher than the performance data quoted herein. For more recent month-end performance information, please call 800.767.1729 or visit www.paxworld.com.
Distributor: ALPS Distributors, Inc. member of FINRA (2/15).
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30 Penhallow Street, Suite 400
Portsmouth NH 03801
800.767.1729
www.paxworld.com
PAX004869
30 Penhallow Street, Suite 400
Portsmouth NH 03801
800.767.1729
www.paxworld.com
PAX004869
Item 2. Code of Ethics.
As of December 31, 2014, the Registrant has adopted a “code of ethics,” as such term is defined in paragraph (b) of this Item 2, that applies to all officers of the Registrant, including Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Registrant or by a third party. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has determined that Louis F. Laucirica, Carl H. Doerge, Jr. and Adrian Anderson, who each serve on the Board’s Audit Committee, qualify as “audit committee financial experts,” as such term is defined in paragraph (b) of this Item 3. The Board also has determined that Messrs. Laucirica, Doerge and Anderson are “independent,” as such term is interpreted by subparagraph (a)(2) of this Item 3. The Securities and Exchange Commission has stated that the designation of a person as an audit committee financial expert pursuant to this Item 3 of the Form N-CSR does not impose on such a person any duties, obligations or liability that are greater than the duties, obligations or liability imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $20,000 and $0 for the fiscal years ended December 31, 2014 and 2013, respectively.
(b) Audit-Related Fees. The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 and $0 for the fiscal years ended December 31, 2014 and 2013, respectively.
(c) Tax Fees. The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $10,467 and $0 for the fiscal years ended December 31, 2014 and 2013, respectively. Fees disclosed under this category are for professional services related to review and execution of federal, state and excise tax returns and advice concerning tax compliance and planning.
(d) All Other Fees. The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item, are $15,000 and $0 for the fiscal years ended December 31, 2014 and 2013, respectively.
(e) (1) To the extent required by applicable regulations, the Audit Committee approves in advance all audit and non-audit services rendered to the Registrant by the independent registered public accounting firm and all non-audit services to the Registrant’s investment adviser and any entity controlling, controlled by or under common control with the Registrant’s investment adviser that provide ongoing services to the Registrant, if the engagement relates directly to the operations and financial reporting of the Registrant.
(2) With respect to the services described in paragraphs (b) through (d) of this Item, no amount was approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of
Regulation S-X and no amount was required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate non-audit fees billed by the Registrant’s accountant for services rendered to the Registrant, or to the Registrant’s investment adviser, or to any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the Registrant totaled $0 and $0, for the fiscal years ended December 31, 2014 and 2013, respectively.
(h) Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
A complete series of schedules of investments is included as part of the report to shareholders filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that have been implemented since the Registrant last provided disclosure in response to the requirements of this Item.
Item 11. Controls and Procedures.
(a) It is the conclusion of the Registrant’s principal executive officer and principal financial officer (or persons performing similar functions), based on an evaluation of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) (the “Disclosure Controls”) as of a date within 90 days of the filing date of this report on Form N-CSR, that the design and operation of the Disclosure Controls are effective to reasonably ensure that information required to be disclosed by the Registrant in this report on Form N-CSR has been recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.
(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the
second fiscal quarter of the period covered by this report on Form N-CSR that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. | Exhibits. |
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(a) | (1) | The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR. | ||
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| (2) | Certifications of the principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached. | ||
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| (3) | Written solicitation to repurchase securities issued by closed-end companies: not applicable. | ||
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(b) | Certification of the principal executive officer and principal financial officer of the Registrant required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended. | |||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Pax World Funds Series Trust III | ||
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By (Signature and Title) | /s/ Joseph F. Keefe | ||
| Joseph F. Keefe, President | ||
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Date | February 23, 2015 | ||
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. | |||
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By (Signature and Title) | /s/ Joseph F. Keefe | ||
| Joseph F. Keefe, President (Principal Executive Officer) | ||
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Date | February 23, 2015 | ||
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By (Signature and Title) | /s/ Alicia K. DuBois | ||
| Alicia K. DuBois, Treasurer (Principal Financial Officer) | ||
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Date | February 23, 2015 | ||