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 | 811-02064 | |||||||
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PAX WORLD FUNDS SERIES TRUST I | ||||||||
(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 30 Penhallow Street, Suite 400, Portsmouth, NH 03801 Attn.: Joseph Keefe | ||||||||
(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: | 06/30/12 |
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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. Semi-Annual Report to Shareholders
PAX WORLD BALANCED FUND | |||
Individual Investor Class (PAXWX) Institutional Class (PAXIX) R Class (PAXRX) | |||
PAX WORLD GROWTH FUND | |||
Individual Investor Class (PXWGX) Institutional Class (PWGIX) R Class (PXGRX) | |||
PAX WORLD SMALL CAP FUND | |||
Individual Investor Class (PXSCX) Institutional Class (PXSIX) R Class (PXSRX) | |||
PAX WORLD INTERNATIONAL FUND | |||
Individual Investor Class (PXINX) Institutional Class (PXNIX) R Class (PXIRX) | |||
PAX WORLD HIGH YIELD BOND FUND | |||
Individual Investor Class (PAXHX) Institutional Class (PXHIX) R Class (PXHRX) | |||
PAX WORLD GLOBAL WOMEN'S EQUALITY FUND | |||
Individual Investor Class (PXWEX) Institutional Class (PXWIX) | |||
PAX WORLD GLOBAL ENVIRONMENTAL MARKETS FUND | |||
Individual Investor Class (PGRNX) Institutional Class (PGINX) R Class (PGRGX) |
SEMI-ANNUAL REPORT
June 30, 2012
Table of Contents
Letter to Shareholders | 1 | ||||||
Portfolio Manager Comments and Highlights | |||||||
Pax World Balanced Fund | 5 | ||||||
Pax World Growth Fund | 8 | ||||||
Pax World Small Cap Fund | 12 | ||||||
Pax World International Fund | 15 | ||||||
Pax World High Yield Bond Fund | 20 | ||||||
Pax World Global Women's Equality Fund | 25 | ||||||
Pax World Global Environmental Markets Fund | 31 | ||||||
Sustainability Update | 37 | ||||||
Shareholder Expense Examples | 39 | ||||||
Schedule of Investments | 42 | ||||||
Statements of Assets and Liabilities | 64 | ||||||
Statements of Operations | 68 | ||||||
Statements of Changes in Net Assets | 70 | ||||||
Statement of Changes—Shares of Beneficial Interest | 74 | ||||||
Financial Highlights | 76 | ||||||
Notes to Financial Statements | 84 | ||||||
Account Options and Services | 113 | ||||||
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
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,
As I write, the economic recovery in the U.S. has slowed and our nation's capital is not only mired in its now customary partisan gridlock but election-year politics provide added incentive to do nothing. The European crisis continues, the China boom is slowing and financial markets remain volatile and unpredictable. What some call a risk-on/risk-off market—a very volatile, short-term focused, directionless market—has continued to characterize the first six months of 2012. This is not the most favorable climate for sustainable investors, or for long-term investors more generally. One could say that we are long investors in a very short market.
At Pax World, despite all this volatility, we have tried to remain focused on constructing durable investment portfolios that deliver long-term value. That is our investment philosophy, and we believe it remains the best investment approach for investors even in challenging markets. But it can sometimes require patience—and a strong stomach.
During the first half of 2012, our portfolio managers continued to pursue a set of strategies that seek to capitalize on certain global themes and secular trends that we hope will best serve our investors over the long term. For example, we continue to be overweight in areas such as technology, energy services, agriculture, commodities and export industries that we believe will continue to benefit from growing demand in emerging market economies. Likewise, we tend to be underweight the financial sector because we believe the big banks and other large financial institutions continue to take on manifold, often opaque risks that may continue to be problematic. We remain optimistic that an investment approach focused on identifying and investing in the most sustainable companies is the best strategy for our shareholders, and the right strategy for our times.
Speaking of our times, the sustainability agenda has never been more important. Mother Nature has certainly been sending signals of late in the form of the warmest year, the hottest summer and one of the worst droughts in many, many decades. As ecologist Bill McKibben recently wrote:
"If the pictures of those towering wildfires in Colorado haven't convinced you, or the size of your AC bill this summer, here are some hard numbers about climate change: June broke or tied 3,215 high-temperature records
1
across the United States. That followed the warmest May on record for the Northern Hemisphere—the 327th consecutive month in which the temperature of the entire globe exceeded the 20th-century average, the odds of which occurring by simple chance were 3.7 x 10-99, a number considerably larger than the number of stars in the universe.
"Meteorologists reported that this spring was the warmest ever recorded for our nation—in fact, it crushed the old record by so much that it represented the 'largest temperature departure from average of any season on record.' The same week, Saudi authorities reported that it had rained in Mecca despite a temperature of 109 degrees, the hottest downpour in the planet's history."1
We have just learned as well that July was the hottest month on record in the U.S. What we are witnessing is not only a prolonged crisis in the global economy but a tectonic shift in the global ecology as well—and the two, of course, are intimately related. The current model of global capitalism is premised upon a perpetual economic growth paradigm that must ultimately invade all accessible habitat and consume all available resources. Climate change may be the most urgent challenge but is in a sense only a symptom. "The problem is the delusion that we can have infinite quantitative economic growth, that we can keep having more and more stuff, on a finite planet."2 Unfortunately, this elemental truth is something that neither policy makers nor average citizens have an easy time getting their arms around. As Jeremy Grantham has written, "[t]he problems of compounding growth in the face of finite resources are not easily understood by optimistic, short-term-oriented, and relatively innumerate humans (especially the political variety)."3
There are many potential strategies for addressing this challenge but surely sustainable investing is one of them. Sustainable investing can be thought of as an investment approach wherein the connections between economic output and ecological/societal health are no longer obscured but are expressly linked. The goal, over time, should be for the quality of output to replace the quantity of output as the true measure of economic well-being. In a sense, what we are trying to do is to invest in solutions rather than perpetuating the dominant, increasingly problematic growth paradigm.
In this regard, I want to call your attention to a recent change at Pax World, where what was formerly called the Global Green Fund has been renamed the Global Environmental Markets Fund (PGRNX). This Fund is all about solutions. We changed the name to underscore this fact, and to clarify that the Fund has a much broader mandate than alternative energy—which, by the way, accounted for only about 4% of Fund holdings as of June 30th. By contrast, energy efficiency accounted for approximately 33% of Fund holdings,
2
water infrastructure 25% of Fund holdings and waste management and pollution control another 26% of Fund holdings.4
As its new name states, the Fund invests in environmental markets, including energy (energy efficiency and renewables), water (water infrastructure & technologies, pollution control) and waste (waste management & technologies, environmental support services). Environmental markets are a much broader, more diversified investment universe than alternative energy, and in our view, much less volatile. This Fund is really about investing in efficiency solutions, which we believe are becoming a major driver of global economic growth and must of necessity continue to be so for the foreseeable future. With global population exceeding 7 billion, emerging nations rising in affluence and consumption, and increased concerns about energy security, resource scarcity, pollution and of course climate change, we believe efficiency solutions will be an ever more important key to sustainable global growth.
The Pax World Global Environmental Markets Fund continues to be sub-advised by Impax Asset Management (Impax) in London, UK, an investment manager specializing in environmental and resource scarcity markets.
It's only a name change, but in a way it represents something larger than that. At least we hope it does. We want to invest in solutions. We want to invest in a sustainable future. Markets go up and down but we can't lose sight of the fact that investing should be about the long term. At Pax World, we are doing what we can to make sure it is.
I hope you enjoyed your summer.
Peace.
Joseph F. Keefe
President and CEO
1Bill McKibben, "Global Warming's Terrifying New Math," Rolling Stone, July 19, 2012.
2Paul Gilding, The Great Disruption, Bloomsbury Press, 2011, p. 186.
3Jeremy Grantham, "Time to Wake Up: Days of Abundant Resources and Falling Prices Are Over Forever," April 2011 GMO Quarterly Letter.
4Holdings percentages are as-of 6/30/2012; holdings are subject to change.
3
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).
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June 30, 2012
Pax World Balanced Fund
Portfolio Manager
Christopher Brown
Portfolio Manager's Comments
How did the Pax World Balanced Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class, Institutional Class and R Class of the Fund had total returns of 4.84%, 4.97% and 4.70% respectively, versus 6.73% for the Blended Index. For the same period the Lipper Balanced Funds Index had a total return of 5.74%.
What factors contributed to the Fund's performance? Equities were the primary driver of our underperformance versus our benchmark and peers. In particular, weak stock selection and an overweight of the energy sector and weak stock selection and an underweight of the consumer discretionary sector contributed to our relative underperformance. On a positive note, the fixed income portfolio outperformed the Barclay's Capital U.S. Aggregate Bond Index.
Can you discuss any significant changes to the Fund's positioning throughout the period? There were no significant changes in the Fund's positioning. The Fund continues to be positioned for higher stock prices and muted bond returns. We continue to seek out income producing stocks as bond yields in general remain unattractive.
What portfolio holdings contributed positively to performance? American Tower Corp., a real estate investment trust that owns and operates wireless towers, was a strong contributor to the Fund's performance. Demand growth continues to be strong for wireless towers. EMC Corp., a data storage and software company, performed positively for the period. Despite a cloudy "macro" environment, storage demand is expected to be strong as information technology departments are making storage a high priority in their spending budgets.
What portfolio holdings detracted from performance? Baker Hughes, Inc., an energy service company, declined significantly during the period. Concerns over supply chain issues and lower natural gas prices pressured the stock. ONEOK, Inc., a diversified energy company, also declined during the period. Weak natural gas demand led to a surprise revenue drop.
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June 30, 2012
Pax World Balanced Fund, continued
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2012
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | 5 year | 10 year | |||||||||||||||||||||
Individual Investor Class1 | PAXWX | 4.84 | % | -2.58 | % | 9.48 | % | -0.22 | % | 8.31 | % | ||||||||||||||||
Institutional Class1, 2 | PAXIX | 4.97 | % | -2.35 | % | 9.76 | % | 0.03 | % | 8.34 | % | ||||||||||||||||
R Class1, 3 | PAXRX | 4.70 | % | -2.83 | % | 9.20 | % | -0.46 | % | 8.28 | % | ||||||||||||||||
S&P 500 Index4, 8 | 9.49 | % | 5.45 | % | 16.40 | % | 0.22 | % | 5.33 | % | |||||||||||||||||
Blended Index5, 6, 8 | 6.73 | % | 6.70 | % | 12.90 | % | 3.26 | % | 5.80 | % | |||||||||||||||||
Lipper Balanced Funds Index7, 8 | 5.74 | % | 1.77 | % | 11.54 | % | 1.81 | % | 5.37 | % |
Total returns for periods of less than one year have not been annualized.
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 R Class shares is April 2, 2007. The performance information shown for R Class shares includes the performance of Individual Investor Class shares for the period prior to R Class inception. Expenses have not been adjusted to reflect the expenses allocable to R Class 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 Capital U.S. Aggregate Bond Index.
6The Barclays Capital 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 Capital 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.
6
June 30, 2012
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 55.3 | % | |||||
U.S. Bonds | 26.5 | % | |||||
Foreign Stocks | 13.7 | % | |||||
Foreign Bonds | 3.5 | % | |||||
Exchange Traded Funds | 0.5 | % | |||||
Cash & Cash Equivalents | 0.5 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Apple, Inc. | 3.6 | % | |||||
American Tower Corp., Class A | 3.2 | % | |||||
EMC Corp. | 2.9 | % | |||||
Qualcomm, Inc. | 2.7 | % | |||||
Intuit, Inc. | 2.6 | % | |||||
Deere & Co. | 2.6 | % | |||||
ONEOK, Inc. | 2.4 | % | |||||
Becton Dickinson & Co. | 2.2 | % | |||||
EQT Corp | 1.9 | % | |||||
America Movil SAB de CV, Series L, ADR | 1.8 | % | |||||
Total | 25.9 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Fixed Income | 30.1 | % | |||||
Corporate Bonds 13.0%, Mortgage Backed Bonds 6.9%, Agency/Gov't Related Bonds 5.6%, Treasury Bonds 2.5%, Municipal Bonds 1.3% and Gov't Bonds 0.8% | |||||||
Information Technology | 17.2 | % | |||||
Industrials | 10.2 | % | |||||
Energy | 8.7 | % | |||||
Financials | 8.6 | % | |||||
Consumer Discretionary | 5.3 | % | |||||
Health Care | 5.2 | % | |||||
Materials | 4.4 | % | |||||
Telecommunication Services | 3.4 | % | |||||
Utilities | 3.0 | % | |||||
Consumer Staples | 2.9 | % | |||||
Exchange Traded Funds | 0.5 | % | |||||
Other | 0.5 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
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June 30, 2012
Pax World Growth Fund
Portfolio Manager
Anthony Trzcinka, CFA
Portfolio Manager's Comments
How did the Pax World Growth Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class, Institutional Class and R Class of the Fund had total returns of 4.77%, 4.84% and 4.60%, respectively, versus 9.98% for the Russell 3000 Growth Index. For the same period the Lipper Multi-Cap Growth Funds Index had a total return of 9.30%.
What factors contributed to the Fund's performance? Stock selection within the information technology, health care and consumer discretionary sectors detracted from relative Fund performance for the period. Within information technology, a number of companies including NetApp, Inc., Aruba Networks, Inc., Juniper Networks, Inc., Cisco Systems, Inc. and Acme Packet, Inc. underperformed. They were all negatively impacted by Cisco Systems' quarterly call, which hinted at a slowdown of carrier and enterprise spending and signaled European weakness. The negative report was worse than expected and reminiscent of 2008 when Cisco was one of the first companies to warn of a protracted downturn. While we do believe that there may be a global slowdown, we also believe that the dynamics are very different today and we therefore still hold all of these names.
Within the consumer discretionary sector a number of more cyclically exposed companies, such as auto part companies—Borg Warner, Inc., Valeo SA and Autoliv, Inc., were weak due to European exposure. While we believe that the long-term secular demand for their products is still attractive, they are more volatile than some other consumer discretionary companies and may have short-term underperformance.
A number of health care companies, including Agilent Technologies, Inc. and Thermo Fisher Scientific, Inc., continue to be plagued by the ongoing austerity within the U.S. and European governments.
Can you discuss any significant changes to the Fund's positioning throughout the period? We have slowed our modest cyclical repositioning of the portfolio in light of the weakening of economic indicators within the U.S. and continued problems in Europe. These issues have caused us to put on hold additions to more
8
June 30, 2012
economically sensitive sectors such as energy and financials. We are now slightly overweight those sectors.
What portfolio holdings contributed positively to performance? Whole Foods Market, Inc., Terex Corp. and Marriot International, Inc. helped the Fund during the period. Whole Foods continued to outperform and its stores showed none of the signs of weakness that some of its competitors exhibited.
Terex Corp., which sells cranes and other construction equipment, started the year performing very well on the thought that the global slowdown would be avoided. However, due to valuation and our global economic concerns, we sold out of the company.
Marriott International, the hotel operator, performed well after a difficult couple of years. Room rates and occupancy seem to be stabilizing or increasing in many markets. In addition, their aggressive expansion into China was seen as a positive.
What portfolio holdings detracted from performance? Hess Corp., Noble Energy, Inc., Acme Packet, Inc. and Juniper Networks, Inc. hurt performance for the period. Acme Packet and Juniper Networks were impacted by the general sell-off of communication equipment stock mentioned earlier. Hess and Noble Energy were impacted by oil prices dropping below $80 per barrel.
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June 30, 2012
Pax World Growth Fund, continued
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2012
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | 5 year | 10 year | |||||||||||||||||||||
Individual Investor Class1 | PXWGX | 4.77 | % | -4.86 | % | 15.51 | % | 0.60 | % | 5.87 | % | ||||||||||||||||
Institutional Class1, 2 | PWGIX | 4.84 | % | -4.63 | % | 15.80 | % | 0.82 | % | 5.98 | % | ||||||||||||||||
R Class1, 3 | PXGRX | 4.60 | % | -5.16 | % | 15.23 | % | 0.38 | % | 5.75 | % | ||||||||||||||||
Russell 3000 Growth Index4, 6 | 9.98 | % | 5.05 | % | 17.55 | % | 2.79 | % | 6.13 | % | |||||||||||||||||
Lipper Multi-Cap Growth Funds Index5, 6 | 9.30 | % | -1.79 | % | 16.01 | % | 0.86 | % | 6.05 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's 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.
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 R Class shares is April 2, 2007. The performance information shown for R Class shares includes the performance of Individual Investor Class shares for the period prior to R Class inception. Expenses have not been adjusted to reflect the expenses allocable to R Class shares. If such expenses were reflected, the returns would be lower than those shown.
4The 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.
5The 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.
6Unlike the Growth Fund, the 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.
10
June 30, 2012
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 83.1 | % | |||||
Foreign Stocks | 13.5 | % | |||||
Cash & Cash Equivalents | 3.4 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Apple, Inc. | 2.6 | % | |||||
Google, Inc., Class A | 2.1 | % | |||||
PepsiCo, Inc. | 1.9 | % | |||||
General Mills, Inc. | 1.9 | % | |||||
Whole Foods Market, Inc. | 1.8 | % | |||||
Qualcomm, Inc. | 1.7 | % | |||||
3M Co. | 1.7 | % | |||||
Intuit, Inc. | 1.6 | % | |||||
EMC Corp. | 1.6 | % | |||||
United Parcel Service, Inc., Class B . | 1.5 | % | |||||
Total | 18.4 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Information Technology | 27.2 | % | |||||
Consumer Discretionary | 14.1 | % | |||||
Industrials | 12.4 | % | |||||
Health Care | 10.5 | % | |||||
Energy | 9.8 | % | |||||
Consumer Staples | 8.5 | % | |||||
Financials | 7.7 | % | |||||
Materials | 4.1 | % | |||||
Telecommunications Services | 1.4 | % | |||||
Utilities | 1.1 | % | |||||
Other | 3.2 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
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June 30, 2012
Pax World Small Cap Fund
Portfolio Manager
Nathan Moser, CFA
Portfolio Manager's Comments
How did the Pax World Small Cap Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class, Institutional Class and R Class of the Fund had total returns of 3.92%, 4.00% and 3.83%, respectively, versus the 8.53% return of the Russell 2000 Index. For the same period the Lipper Small Cap Core Funds Index had a total return of 6.24%.
What factors contributed to the Fund's performance? Our shift to overweight cyclical sectors such as information technology and energy during the latter part of the period negatively impacted performance. Concerns over a global slowdown intensified, leading to weakness in economically sensitive sectors.
Can you discuss any significant changes to the Fund's positioning throughout the period? We used the market weakness late in the period to increase the Fund's exposure to the energy sector. Oil prices and energy-related equities declined significantly, presenting us with compelling opportunities, in our view, to deploy cash in the sector. To that end, we established positions in several energy holdings. One company we are quite positive on is Oasis Petroleum, Inc., an exploration and production company focused on drilling for oil in North Dakota's Bakken shale.
What portfolio holdings contributed positively to performance? Vascular Solutions, Inc., a diversified medical device company, increased sharply during the period. Strong financial results coupled with positive forward guidance likely led to the gains. Cinemark, a movie theater operator, increased due to better than expected box office results. In addition, the continued popularity of 3D movies has favorably impacted margins, as these films typically carry premium pricing versus their 2D counterparts.
What portfolio holdings detracted from performance? Acme Packet, Inc., a technology equipment company, declined sharply during the period. Weak financial results and lowered guidance were likely the cause. We added to our position as the company's results can be volatile from quarter to quarter and, in our view, the stock's valuation more than adequately reflects a potential customer slowdown. The Street, a financial media company, declined sharply during the period. Investors have become increasingly concerned with management's ability to achieve profitability. We continue to hold shares, finding the stock very inexpensive relative to peers.
12
June 30, 2012
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2012
Total Return | Average Annual Return | ||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | Since Inception | ||||||||||||||||||
Individual Investor Class1 | PXSCX | 3.92 | % | -7.30 | % | 15.21 | % | 4.68 | % | ||||||||||||||
Institutional Class1 | PXSIX | 4.00 | % | -7.05 | % | 15.53 | % | 4.96 | % | ||||||||||||||
R Class1 | PXSRX | 3.83 | % | -7.41 | % | 14.94 | % | 4.43 | % | ||||||||||||||
Russell 2000 Index2, 4 | 8.53 | % | -2.08 | % | 17.80 | % | 4.88 | % | |||||||||||||||
Lipper Small-Cap Core Funds Index3, 4 | 6.24 | % | -3.75 | % | 16.87 | % | 4.81 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is March 27, 2008. The Fund's 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.
2The 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.
3The 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.
4Unlike 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.
13
June 30, 2012
Pax World Small Cap Fund, continued
Portfolio Highlights (Unaudited), continued
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 95.3 | % | |||||
Foreign Stocks | 3.4 | % | |||||
Cash & Cash Equivalents | 1.3 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Jamba, Inc. | 5.0 | % | |||||
Westell Technologies, Inc., Class A . | 5.0 | % | |||||
Natus Medical, Inc. | 4.8 | % | |||||
Vascular Solutions, Inc. | 4.4 | % | |||||
GameStop Corp., Class A | 4.1 | % | |||||
ProAssurance Corp. | 4.1 | % | |||||
Cinemark Holdings, Inc. | 3.7 | % | |||||
TheStreet, Inc. | 3.4 | % | |||||
AMERISAFE, Inc. | 3.4 | % | |||||
Best Buy Co., Inc. | 3.1 | % | |||||
Total | 41.0 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Information Technology | 22.0 | % | |||||
Consumer Discretionary | 19.5 | % | |||||
Financials | 19.2 | % | |||||
Energy | 16.4 | % | |||||
Health Care | 13.6 | % | |||||
Utilities | 5.8 | % | |||||
Industrials | 3.7 | % | |||||
Other | -0.2 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
14
June 30, 2012
Pax World International Fund
Portfolio Manager
Ivka Kalus-Bystricky
Portfolio Manager's Comments
How did the Pax World International Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class, Institutional Class and R Class of the Fund had total returns of 1.70%, 1.68% and 1.51%, respectively, versus 2.96% for the MSCI EAFE (Net) Index. For the same period the Lipper International Large-Cap Core Funds Index had a total return of 3.72%.
What factors contributed to the Fund's performance? Volatility remained prominent during the first half of 2012 as optimism on Europe rose and then faded; the market calm engendered by the European Central Bank's long-term refinancing operation (LTRO) program earlier in the year dissipated, and investors returned to speculating about Greece leaving/being kicked out of the Eurozone, to Spain being unable to rollover short-term sovereign debt due to capital inadequacy among Spanish banks, and to Italy being unable to service its debt burden despite having a primary surplus. Fears were not limited to Europe, however. In China, economic growth slowed due to a deflating property market bubble and slower growth in investment and exports. North African and Middle Eastern geopolitical risks also remained at the forefront of investors' minds. On the other side of the globe, the U.S. market was perceived as a relatively safe place for investors, as economic indicators such as unemployment and housing starts seemed to indicate that conditions were improving or at least not deteriorating. Indeed, the U.S. market and the U.S. dollar outperformed quite significantly most other global markets and currencies during the first half of 2012.
With this market backdrop, the Fund benefited from regional allocation decisions, particularly from the Fund's large (10%) exposure to outperforming emerging markets. The Fund also benefited from strong stock selection in the financials and materials sectors. However, the Fund lost ground from sector allocation decisions, mostly from an overweight position in energy, which was the worst performing sector during the first half of the year, along with an underweight to the three best performing sectors, namely financials, consumer discretionary, and consumer staples. Overall, stock selection was also a detractor from performance, particularly in Europe and in the energy and industrials sectors. The international markets during the first six months of 2012 were characterized by macro-driven buying
15
June 30, 2012
Pax World International Fund, continued
and selling, market conditions under which the International Fund's long-term, fundamentally-focused strategy went mostly unrewarded.
Can you discuss any significant changes to the Fund's positioning throughout the period? There were no sizeable sector or regional allocation changes in the portfolio during the period. The portfolio remains overweight in energy, industrials, telecommunications, information technology, emerging markets, Canada and precious metals, and remains underweight in financials, consumer discretionary, health care, utilities, Japan, the UK, Australasia and Europe.
During the first six months of the year, the Fund purchased new positions in Japanese software company Trend Micro, Inc., Swiss industrials company ABB Ltd., ADR, Spanish and Latin American telecom Telefonica SA, ADR, UK telecom Vodafone Group PLC, ADR, the iShares Silver ETF, Japanese pharmaceutical company Astellas Pharma, Inc., French dairy product company Danone SA, German insurer Munich Re, Dutch stainless steel manufacturer APERAM SA, and UK food and apparel retailer Marks & Spencer Group PLC. The Fund liquidated positions in Japanese glass producer Nippon Electric Glass Co., Ltd., Dutch telecom Koninklijke KPN NV, Hong Kong property developer Sun Hung Kai Properties, Ltd., Dutch household electronics and medical equipment maker Royal Philips, French postal technology company Neopost SA, German retailer Metro AG, and Chinese solar panel company Trina Solar, Ltd., ADR.
What portfolio holdings contributed positively to performance? The largest positive contributors to performance during the first half of the year include Turkish bank Turkiye Halk Bankasi AS, which benefited from better sovereign and balance sheet fundamentals relative to banks in developed markets; Brazilian cosmetics company Natura Cosmeticos SA, which continued its growth trajectory by ramping up operations in Latin America outside Brazil, and global brewer Anheuser-Busch InBev NV, whose announced acquisition of Grupo Modelo at the end of June was perceived favorably by the market.
What portfolio holdings detracted from performance? The largest detractors from performance during the first half include Spanish integrated oil producer Repsol YPF SA, which suffered both from the expatriation by the Argentine government of its YPF assets and from sovereign fears over its Spanish domicile; Spanish telecom company Telefonica SA, ADR, which was also tainted with Spanish sovereign fears; and Swiss private and investment bank Credit Suisse Group AG, ADR, which was cited for insufficient capital by the Swiss Central Bank.
16
June 30, 2012
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2012
Total Return | Average Annual Return | ||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | Since Inception | ||||||||||||||||||
Individual Investor Class1 | PXINX | 1.70 | % | -17.83 | % | 2.76 | % | -5.26 | % | ||||||||||||||
Institutional Class1 | PXNIX | 1.68 | % | -17.58 | % | 3.02 | % | -4.99 | % | ||||||||||||||
R Class1 | PXIRX | 1.51 | % | -17.96 | % | 2.50 | % | -5.53 | % | ||||||||||||||
MSCI EAFE (Net) Index2,4 | 2.96 | % | -13.83 | % | 5.96 | % | -5.27 | % | |||||||||||||||
Lipper International Large-Cap Core Funds Index3,4 | 3.72 | % | -14.49 | % | 5.84 | % | -5.57 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is March 27, 2008. The Fund's 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.
2The MSCI EAFE (Europe, Australasia, Far East) 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 Index consisted of the following 22 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, 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 Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax. Investors cannot invest directly in any index.
3The Lipper International Large-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper International Large-Cap Core Funds Average. The Lipper International Large-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 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 their large-cap-specific subset of 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.
4Unlike the International Fund, the MSCI EAFE (Net) Index and the Lipper International Large-Cap Core Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper International Large-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes.
17
June 30, 2012
Pax World International Fund, continued
Portfolio Highlights (Unaudited), continued
Asset Allocation | Percent of Investments | ||||||
Foreign Stocks | 97.3 | % | |||||
Exchange Traded Funds: Commodity | 2.6 | % | |||||
Other | 0.1 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Statoil ASA, ADR | 2.8 | % | |||||
Turkiye Halk Bankasi AS | 2.6 | % | |||||
Anheuser-Busch InBev NV | 2.6 | % | |||||
Teva Pharmaceutical Industries, Ltd., ADR | 2.5 | % | |||||
BG Group PLC | 2.5 | % | |||||
Hennes & Mauritz AB, B Shares | 2.3 | % | |||||
Reed Elsevier PLC | 2.2 | % | |||||
HSBC Holdings PLC, ADR | 2.1 | % | |||||
Fortum Oyj | 2.1 | % | |||||
National Australia Bank, Ltd. | 2.1 | % | |||||
Total | 23.8 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 19.5 | % | |||||
Industrials | 12.5 | % | |||||
Energy | 11.8 | % | |||||
Consumer Discretionary | 9.7 | % | |||||
Consumer Staples | 9.4 | % | |||||
Materials | 8.5 | % | |||||
Health Care | 8.0 | % | |||||
Information Technology | 6.8 | % | |||||
Telecommunication Services | 6.8 | % | |||||
Utilities | 4.3 | % | |||||
Exchange Traded Funds: Commodity | 2.6 | % | |||||
Other | 0.1 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
18
June 30, 2012
Geographical Diversification
Country | Percent of Net Assets | ||||||
United Kingdom | 18.2 | % | |||||
Japan | 17.0 | % | |||||
Switzerland | 6.4 | % | |||||
France | 5.6 | % | |||||
Germany | 5.3 | % | |||||
Australia | 5.0 | % | |||||
Singapore | 4.4 | % | |||||
Sweden | 3.7 | % | |||||
Canada | 3.5 | % | |||||
Turkey | 3.3 | % | |||||
Spain | 2.9 | % | |||||
Brazil | 2.9 | % | |||||
Norway | 2.8 | % | |||||
Belgium | 2.6 | % | |||||
Israel | 2.5 | % | |||||
Finland | 2.1 | % | |||||
Poland | 2.0 | % | |||||
Luxembourg | 2.0 | % | |||||
Austria | 1.5 | % | |||||
Portugal | 0.9 | % | |||||
Taiwan | 0.9 | % | |||||
Philippines | 0.8 | % | |||||
Ireland | 0.6 | % | |||||
Hong Kong | 0.4 | % | |||||
Exchange Traded Funds: Commodity | 2.6 | % | |||||
Other | 0.1 | % | |||||
Total | 100.0 | % |
19
June 30, 2012
Pax World High Yield Bond Fund
Portfolio Manager
Mary Austin, CFA
Portfolio Manager's Comments
How did the Pax World High Yield Bond Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class, Institutional Class and R Class of the Fund had total returns of 5.64%, 5.92% and 5.66%, respectively, versus 6.45% for the BofA Merrill Lynch U.S. High Yield BB-B (Constrained 2%) Index. For the same time period, the Lipper High Current Yield Bond Funds Index had a total return of 6.91%.
What factors contributed to the Fund's performance? The Fund's performance was aided by our selections in consumer cyclical, media and technology and electronics sectors and was hindered by our selection in telecommunications and our selections and allocations in the automotive sectors. With regard to ratings, we benefitted from our selections in B and BB rated categories. However, our overweighting in CCC rated bonds detracted from performance as this category did not perform as well as the overall high yield market.
Can you discuss any significant changes to the Fund's positioning throughout the period? We decreased our weightings in some of our cyclical names due to slower global growth. We lightened up on some of our specialty retail names and decreased our technology holdings with the sale of Spansion LLC, a leading designer, manufacturer and developer of flash memory semiconductors. We also lowered our basic industry holdings, as we took profits and sold our position in Ply Gem Industries. We increased our holdings in capital goods with the purchase of Ardagh Packaging Finance PLC, a defensive metal and glass container company; and increased our financial services, and media as we had been underweight in these sectors.
What portfolio holdings contributed positively to performance? One of our top performing bonds was Equinix, Inc., which operates colocation internet business exchange centers in several countries, where customers interconnect with telecommunications and internet providers. The convertible bond benefited from good quarterly results and the company's stock appreciation of over 11% in the quarter.
20
June 30, 2012
Navios Maritime Acquisition Corp. was also one of our top performers. The company is an owner and operator of tanker vessels—transporting crude oil and refined petroleum products. It also has a successful history of obtaining financing during economic slowdowns which is very important in the shipping industry. We own the first-lien bonds that were used to finance the purchase of new ships. The bonds have appreciated as Navios has been on schedule with its roll-out of additional new-builds and the contracts that it has in place for the new ships.
Ply Gem, manufacturer of building products, including #1 in vinyl siding and #2 in vinyl windows, was our third best performer. The company had a very strong first quarter as it continued to take market share from its competitors and benefitted from price increases that increased its gross profit margin.
What portfolio holdings detracted from performance? Mirabela Nickel Ltd., a mineral exploration company with a portfolio of prospective nickel and other base metal targets in Brazil, reported weaker than expected quarterly results due to lower grade nickel ore out of its primary central pit mine and a further decline in nickel prices of 9% due to the economic slow-down during the second quarter. During the period, the company successfully raised over $100 million Australian dollars through both a strategic placement and institutional entitlement offer which should improve liquidity concerns for the next six months.
Knowledge Universe Education LLC, the largest provider of private early childhood education, was our next biggest detractor to Fund performance for the period. The bonds weakened shortly after Moody's downgraded them to B3. Profits have been negatively affected by decreased enrollment and center revenues resulting from the poor economic environment and high unemployment rate. In addition, the company could be vulnerable to potential reductions in federal and state funding.
Another worst performer was our equity holding in Windstream Corp., a rural telecommunications services company composed of local telephone, high speed internet, long distance and video services. The stock underperformed due to weaker than expected quarterly results and lower financial results from its recent Paetec acquisition. Concerns surrounding the company maintaining its dividend policy also contributed to the stock's underperformance.
21
June 30, 2012
Pax World High Yield Bond Fund, continued
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2012
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | 5 year | 10 year | |||||||||||||||||||||
Individual Investor Class1 | PAXHX | 5.64 | % | 3.56 | % | 10.63 | % | 5.79 | % | 7.65 | % | ||||||||||||||||
Institutional Class1, 2 | PXHIX | 5.92 | % | 3.95 | % | 10.96 | % | 6.00 | % | 7.86 | % | ||||||||||||||||
R Class1, 3 | PXHRX | 5.66 | % | 3.45 | % | 10.51 | % | 5.51 | % | 7.52 | % | ||||||||||||||||
BofA Merrill Lynch U.S. High Yield BB-B (Constrained 2%) Index4, 6 | 6.45 | % | 7.07 | % | 14.27 | % | 7.65 | % | 8.85 | % | |||||||||||||||||
Lipper High Current Yield Bond Funds Index5, 6 | 6.91 | % | 5.09 | % | 15.02 | % | 5.85 | % | 8.38 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's 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.
2Inception 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.
3Inception of R Class shares is April 2, 2007. The performance information shown for R Class shares includes the performance of Individual Investor Class shares for the period prior to R Class inception. Expenses have not been adjusted to reflect the expenses allocable to R Class shares. If such expenses were reflected, the returns would be lower than those shown.
4The BofA Merrill Lynch U.S. High Yield 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%.
5The Lipper High Current Yield Bond Funds Index tracks the results of the 30 largest mutual funds in the Lipper High Current Yield Bond Funds Average. The Lipper High Current 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 Current 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.
6Unlike the High Yield Bond Fund, the BofA Merrill Lynch U.S. High Yield BB-B (Constrained 2%) Index, and the Lipper High Current 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 Current Yield Bond Funds Index) do not reflect deductions for fees, expenses or taxes.
22
June 30, 2012
Asset Allocation | Percent of Investments | ||||||
U.S. Bonds | 72.3 | % | |||||
Foreign Bonds | 18.6 | % | |||||
U.S. Stocks | 2.2 | % | |||||
Exchange Traded Funds | 1.3 | % | |||||
Cash & Cash Equivalents | 5.6 | % | |||||
Total | 100.0 | % |
Credit Quality
Bond Rating | Percent of Bonds | ||||||
A | 0.5 | % | |||||
BBB | 1.1 | % | |||||
BB | 17.5 | % | |||||
B | 62.7 | % | |||||
CCC | 16.7 | % | |||||
Not Rated | 1.5 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Goodrich Petroleum Corp., 8.875%, 03/15/19 | 1.7 | % | |||||
Kennedy-Wilson, Inc., 8.750%, 04/01/19 | 1.7 | % | |||||
Syniverse Holdings, Inc., 9.125%, 01/15/19 | 1.7 | % | |||||
HCA Holdings, Inc., 7.750%, 05/15/21 | 1.6 | % | |||||
Park-Ohio Industries, Inc., 8.125%, 04/01/21 | 1.6 | % | |||||
Rosetta Resources, Inc., 9.500%, 04/15/18 | 1.5 | % | |||||
Marquette Transportation Co./Finance, 10.875%, 01/15/17 | 1.5 | % | |||||
PHI, Inc., 8.625%, 10/15/18 | 1.5 | % | |||||
Samson Investment Co., 144A, 9.750%, 02/15/20 | 1.5 | % | |||||
Alta Mesa Holdings, LP, 9.625%, 10/15/18 | 1.4 | % | |||||
Total | 15.7 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
23
June 30, 2012
Pax World High Yield Bond Fund, continued
Portfolio Highlights (Unaudited), continued
Fixed Income Sector Diversification
Sector | Percent of Net Assets | ||||||
Energy | 14.5 | % | |||||
Health Care | 12.9 | % | |||||
Real Estate | 11.9 | % | |||||
Telecommunication Services | 10.7 | % | |||||
Media | 9.8 | % | |||||
Consumer Cyclical | 7.4 | % | |||||
Capital Goods | 6.2 | % | |||||
Technology & Electronics | 5.8 | % | |||||
Basic Industry | 3.3 | % | |||||
Consumer Non-Cyclical | 2.7 | % | |||||
Financial Services | 2.2 | % | |||||
Insurance | 1.8 | % | |||||
Preferred Banking | 1.7 | % | |||||
Automotive | 1.1 | % | |||||
Utility | 0.9 | % | |||||
Exchange Traded Funds | 1.3 | % | |||||
Other | 5.8 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries with a single "sector".
Geographic Diversification | Percent of Net Assets | ||||||
United States | 76.6 | % | |||||
Mexico | 3.1 | % | |||||
Canada | 1.5 | % | |||||
Hong Kong | 1.4 | % | |||||
Puerto Rico | 1.4 | % | |||||
South Africa | 1.3 | % | |||||
Luxembourg | 1.3 | % | |||||
Netherlands | 1.2 | % | |||||
Bahamas | 1.0 | % | |||||
Chile | 0.9 | % | |||||
Australia | 0.9 | % | |||||
United Kingdom | 0.6 | % | |||||
Ireland | 0.6 | % | |||||
Bermuda | 0.5 | % | |||||
France | 0.3 | % | |||||
Germany | 0.3 | % | |||||
Malaysia | 0.2 | % | |||||
Norway | 0.2 | % | |||||
Cayman Islands | 0.1 | % | |||||
Austria | 0.1 | % | |||||
Other | 6.5 | % | |||||
Total | 100.0 | % |
24
June 30, 2012
Pax World Global Women's Equality Fund
Portfolio Manager
Ivka Kalus-Bystricky
Portfolio Manager's Comments
How did the Pax World Global Women's Equality Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class and the Institutional Class of the Fund had total returns of 3.77% and 3.82%, respectively, versus 5.91% for the MSCI World (Net) Index. For the same six-month period the Lipper Global Large-Cap Core Funds Index had a total return of 6.40%.
What factors contributed to the Fund's performance? Volatility remained prominent during the first half of 2012 as optimism on Europe rose and then faded; the market calm engendered by the European Central Bank's long-term refinancing operation (LTRO) program earlier in the year dissipated, and investors returned to speculating about Greece leaving/being kicked out of the Eurozone, to Spain being unable to rollover short-term sovereign debt due to capital inadequacy among Spanish banks, and to Italy being unable to service its debt burden despite having a primary surplus. Fears were not limited to Europe, however. In China, economic growth slowed due to a deflating property market bubble and slower growth in investment and exports. North African and Middle Eastern geopolitical risks also remained at the forefront of investors' minds. On the other side of the globe, the U.S. market was perceived as a relatively safe place for investors, as economic indicators such as unemployment and housing starts seemed to indicate that conditions were improving or at least not deteriorating. Indeed, the U.S. market and the U.S. dollar outperformed quite significantly most other global markets and currencies during the first half of 2012.
From a sector perspective, the biggest beneficiaries of improvement in U.S. investor sentiment were information technology, financials and consumer discretionary. Meanwhile, energy, materials and utilities underperformed due to global slowdown fears. On a regional basis, in addition to strong U.S. performance, emerging markets outperformed, while Japan and Europe were the worst performing regional markets.
With this market backdrop, the Global Women's Equality Fund benefited from regional allocation decisions, particularly from the Fund's exposure to outperforming emerging markets and from its underexposure to Japan. The Fund lost ground from sector allocation decisions, mostly from an underweight to
25
June 30, 2012
Pax World Global Women's Equality Fund, continued
outperforming financials and an overweight to underperforming energy. Stock selection was also a detractor from performance, particularly in the U.S. and Japan and in the telecommunications and consumer staples sectors. The global markets during the first six months of 2012 were characterized by macro-driven buying and selling, market conditions under which the Fund's long-term, fundamentally-focused strategy went mostly unrewarded.
Can you discuss any significant changes to the Fund's positioning throughout the period? On a regional basis, we increased exposure to Europe and emerging markets in the Fund at the expense of exposure to the UK and Canada. From a sector perspective, we increased exposure to energy and financials mostly at the expense of telecommunications and healthcare. Part of the shift from telecommunications into financials was due to the reclassification of American Tower Corp. from telecommunications to financials.
During the first six months of 2012, new positions in the Fund include handbag designer and retailer Vera Bradley, Inc., French insurer AXA SA, Spanish and German telecommunications companies Telefonica SA, ADR and Deutsche Telekom AG, Japanese software maker Trend Micro, Inc., Turkiye Halk Bankasi, and technology company Xerox Corp.
During the first half the Fund liquidated positions in software patent company Interdigital, Dutch telecom Koninklijke KPN NA, Taiwanese telecom Chunghwa Telecom Co., Ltd., ADR, UK retailer Marks & Spencer Group PLC, Japanese disc and optical equipment manufacturer Hoya Corp., agricultural equipment supplier Deere & Co., medical equipment company St. Jude Medical, Inc., and German retailer Metro AG.
What portfolio holdings contributed positively to performance? Time Warner Cable, Inc., Turkiye Halk Bankasi and Natura Cosmeticos SA were among the top contributors to performance for the period.
Time Warner Cable, a leading diversified media company, rose over 30% during the first six months based on expectations of high price increases for commercial time for the second half 2012 TV season. The company also benefited from an attractive stock buyback announced in late January as well as from a stable-to-improving pay TV video subscriber market in the first half of the year.
26
June 30, 2012
Turkiye Halk Bankasi is a Turkish bank that focuses on banking to small- and medium-sized Turkish enterprises. The stock returned almost 16% during the first half and this strong performance, along with a large holding in the Fund, made Halkbank the largest positive contributor to returns. Much of this performance was based on investor appreciation of Halkbank's strong balance sheet, high capital ratio, strongly growing loan portfolio, high returns on assets and equity, and lack of exposure to non-Turkish sovereign financial instruments.
Natura Cosmeticos SA is a Brazilian cosmetics company that employs a direct selling model for all of its cosmetics sales. The company has over 1 million sales associates in Brazil and over 200,000 in other Latin American markets. Despite the decline in the Brazilian Real during the first half, Natura returned over a 23% return due to the growth the company is experiencing in Latin America, along with high returns on equity and assets and a 4% dividend yield.
What portfolio holdings detracted from performance? Among the companies that hurt Fund performance most during the period were Baker Hughes, Inc., Statoil ASA, ADR and Shiseido, Co., Ltd..
Baker Hughes is an energy service company. They provide products and services for oil and gas exploration. In March the company preannounced a profit warning. Natural gas rig counts continued to decline, which hurt first half revenues. In addition, the company's international expansion, which was supposed to provide better growth and profitability, progressed more slowly than expected. The stock declined about 15% during the first half of the year.
Statoil is a Norwegian integrated oil producer. The stock declined over 3% during the first half of the year due to global growth slowdown concerns that had a disproportionate impact on the energy sector.
Shiseido is a leading global player in cosmetics with favorable trends including a rising standard of living tailwind in the developing economies. During the first half of the year, Shiseido lost about 13%, lagging the Japanese and global markets due to continuation of declining sales in Japan and uncertainty in the market regarding the success of Shiseido's cost cutting plan.
27
June 30, 2012
Pax World Global Women's Equality Fund, continued
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2012
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | 5 year | 10 year | |||||||||||||||||||||
Individual Investor Class1 | PXWEX | 3.77 | % | -7.94 | % | 6.65 | % | -3.66 | % | 1.88 | % | ||||||||||||||||
Institutional Class1, 2 | PXWIX | 3.82 | % | -7.79 | % | 6.88 | % | -3.42 | % | 2.05 | % | ||||||||||||||||
MSCI World (Net) Index3, 6 | 5.91 | % | -4.98 | % | 10.97 | % | -2.96 | % | 5.18 | % | |||||||||||||||||
MSCI World Large Cap (Net) Index4, 6 | 6.18 | % | -4.13 | % | 10.52 | % | -2.89 | % | 4.71 | % | |||||||||||||||||
Lipper Global Large-Cap Core Funds Index5, 6 | 6.40 | % | -4.15 | % | 11.73 | % | -1.73 | % | 4.80 | % |
Total returns for periods of less than one year have not been annualized.
1Pax 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 Global Women's Equality Fund; if such expense adjustments were reflected, the returns would be higher than those shown. The Fund's 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.
2Inception 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 Equality Fund. If such expense adjustments and allocable expenses were reflected, the returns would be higher than those shown.
3Effective January 1, 2012, the performance benchmark of the Global Women's Equality Fund changed from the MSCI World Large Cap (Net) Index to the MSCI World (Net) Index. The Fund believes that the MSCI World Index better represents the investment strategies of the Global Women's Equality Fund and its global focus. 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 Index consists of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, 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 taxes. Investors cannot invest directly in any index.
4The MSCI World Large Cap Index is a subset of the MSCI World Index, and has a target coverage range of approximately 70% of the free float-adjusted market capitalization within the MSCI World 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 Index consisted of the following 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore,
28
June 30, 2012
Spain, Sweden, Switzerland, the United Kingdom and the United States. Performance for the MSCI World Large Cap Index is shown "net," which includes dividend reinvestments after deduction of foreign withholding taxes.
5The 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 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. Global 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 their large-cap-specific subset of the S&P/Citigroup World BMI. 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.
6Unlike the Global Women's Equality Fund, the MSCI World (Net) Index, the MSCI World Large Cap (Net) Index and the Lipper Global Large-Cap Core Funds Index are not investments, are not professionally managed, have 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.
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 51.4 | % | |||||
Foreign Stocks | 46.3 | % | |||||
Exchange Traded Funds: Commodity | 2.3 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Statoil ASA, ADR | 3.2 | % | |||||
Pfizer, Inc. | 2.4 | % | |||||
National Australia Bank, Ltd. | 2.2 | % | |||||
Teva Pharmaceutical Industries, Ltd., ADR | 2.1 | % | |||||
3M Co. | 2.1 | % | |||||
Bayerische Motoren Werke AG | 2.0 | % | |||||
General Mills, Inc. | 2.0 | % | |||||
Bank of New York Mellon Corp., The | 2.0 | % | |||||
Fortum Oyj | 1.9 | % | |||||
Hennes & Mauritz AB, B Shares | 1.9 | % | |||||
Total | 21.8 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
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June 30, 2012
Pax World Global Women's Equality Fund, continued
Portfolio Highlights (Unaudited), continued
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 18.2 | % | |||||
Information Technology | 13.7 | % | |||||
Energy | 12.2 | % | |||||
Health Care | 11.2 | % | |||||
Consumer Discretionary | 10.8 | % | |||||
Consumer Staples | 10.6 | % | |||||
Industrials | 10.3 | % | |||||
Materials | 5.5 | % | |||||
Telecommunication Services | 3.4 | % | |||||
Utilities | 1.9 | % | |||||
Exchange Traded Funds | 2.3 | % | |||||
Other | -0.1 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
Geographic Diversification
Country | Percent of Net Assets | ||||||
United States | 51.5 | % | |||||
United Kingdom | 7.9 | % | |||||
Canada | 5.1 | % | |||||
Japan | 4.8 | % | |||||
Switzerland | 4.5 | % | |||||
Australia | 4.1 | % | |||||
Germany | 3.3 | % | |||||
Norway | 3.2 | % | |||||
Israel | 2.1 | % | |||||
Finland | 1.9 | % | |||||
Sweden | 1.9 | % | |||||
Brazil | 1.6 | % | |||||
Turkey | 1.6 | % | |||||
Poland | 1.4 | % | |||||
Spain | 1.0 | % | |||||
France | 1.0 | % | |||||
South Africa | 0.9 | % | |||||
Exchange Traded Funds | 2.3 | % | |||||
Other | -0.1 | % | |||||
Total | 100.0 | % |
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June 30, 2012
Pax World Global Environmental Markets Fund (Formerly the Pax World Global Green Fund)
Co-Portfolio Managers
Bruce Jenkyn-Jones
& Ian Simm
Sub-Adviser
Impax Asset
Management Ltd.
Portfolio Managers' Comments
How did the Pax World Global Environmental Markets Fund perform for the period? For the six-month period ended June 30, 2012, the Individual Investor Class, Institutional Class and R Class of the Fund had total returns of 5.24%, 5.22% and 5.07%, respectively, versus 5.91% for the MSCI World (Net) Index and 2.59% for the FTSE Environmental Opportunities Index Series.
What factors contributed to the Fund's performance? The first half of 2012 (the "Period") saw a volatile macro environment, with strong performance in Q1 being overshadowed by a weaker environment in Q2. This was driven by the on-going Eurozone crisis, uncertainty about the strength of the U.S. recovery, and weaker economic data from China. This drove a market preference for high quality, more defensive business models with strong earnings visibility.
Within the portfolio, high quality, niche companies with good pricing power or an operating expenditure (rather than a capital expenditure) focus held up well in the market volatility. Those reporting Q1 results that exceeded market expectations also drove performance. A relatively healthy macro environment in the U.S. with generally positive industrial data aided performance, particularly in Q1. Recovery was noted in the pollution monitoring and testing sub-sector following a weak second half of 2011 and better than expected federal budget allocations to key end markets. Global water utilities performed well due to their defensive characteristics.
Merger and acquisition ("M&A") activity and associated sentiment continued to be a positive contributor to performance throughout the Period, with acquisitions completed at full valuations.
Can you discuss any significant changes to the Fund's positioning throughout the period? Over the Period we reduced our positions in cyclical stocks relating to consumer electronics and exposures where sovereign risks are of particular concern. Positions that were reduced included Epistar Corp. (LED manufacturer, Taiwan)
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June 30, 2012
Pax World Global Environmental Markets Fund, continued
and Prysmian SPA (industrial energy efficiency, Italy) respectively; the latter we also eliminated due to balance sheet concerns. We reduced our exposure to renewable energy companies such as EDP Renovaveis S/A (renewable IPP, Spain) due to a lack of visibility on global growth and on-going negative momentum in government subsidy schemes for the industry in key geographies.
We increased our exposure to high quality, more defensive companies with good earnings visibility. These included water utility companies Pennon Group PLC (UK), China Everbright International LLC (Hong Kong) and American Water Works Co. (U.S.), and in the pollution monitoring and testing sub-sector, Agilent Technologies, Inc. (environmental testing & gas sensing, U.S.), Thermo Fisher Scientific, Inc. (analytical instruments, U.S.) and Campbell Brothers, Ltd. (environmental testing, Australia).
What portfolio holdings contributed positively to performance? The top performing stock over the period was China Everbright (water and waste treatment, Hong Kong), which outperformed on an improving project pipeline, good earnings visibility and high growth prospects. Improving industrial data drove performance of Ecolab, Inc. (water treatment equipment, U.S.), Roper Industries, Inc. (automated meter reading technology, U.S.), LeGrand SA (buildings energy efficiency, France) and Stericycle, Inc. (medical waste treatment, U.S.).
Cooper Industries PLC, Class A (electrical equipment, U.S.) performed well on the announcement of a proposed acquisition by Eaton, whilst ENN Energy Holding, Ltd. (natural gas distribution, China) rose when a deal to purchase China Gas, which had proved unpopular with investors, did not go ahead.
IMI PLC (water and energy management, UK) and Delta Electronics, Inc. (power electronics, Taiwan) both rose following strong Q1 results that beat market expectations.
What portfolio holdings detracted from performance? Stocks with exposure to sovereign risk and the reduction in renewable energy subsidies weighed on performance, impacting EDP Renovaveis S/A (renewable IPP, Spain) and Abengoa SA (bioethanol & recycling, Spain).
The late Q2 deterioration in industrial manufacturing data led to underperformance of Johnson Controls, Inc. (building controls, U.S.), Agilent (environmental testing & gas sensing, U.S.), Watts Water Technologies, Inc. (water
32
June 30, 2012
control pumps, U.S.), Pall Corp. (filtration, U.S.) and Air Products & Chemicals, Inc. (industrial gases, U.S.).
Fears over a deceleration in Chinese growth caused China Longyuan Power Group Corp. (renewable IPP, China) and Yingde Gases Group Co., Ltd. (industrial gases, Hong Kong) to fall.
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June 30, 2012
Pax World Global Environmental Markets Fund, continued
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2011
Total Return | Average Annual Return | ||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 year | Since Inception | ||||||||||||||||||
Individual Investor Class1 | PGRNX | 5.24 | % | -9.82 | % | 7.33 | % | -1.83 | % | ||||||||||||||
Institutional Class1 | PGINX | 5.22 | % | -9.68 | % | 7.60 | % | -1.60 | % | ||||||||||||||
R Class1 | PGRGX | 5.07 | % | -10.13 | % | 7.07 | % | -2.11 | % | ||||||||||||||
MSCI World (Net) Index2, 4 | 5.91 | % | -4.98 | % | 10.97 | % | -1.36 | % | |||||||||||||||
FTSE Environmental Opportunities Index Series3, 4 | 2.59 | % | -18.17 | % | 9.48 | % | N/A |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is March 27, 2008. The Fund's 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.
2The 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 24 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, 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.
3The 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.
4Unlike 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.
Asset Allocation | Percent of Investments | ||||||
Foreign Stocks | 52.9 | % | |||||
U.S. Stocks | 44.2 | % | |||||
Cash & Cash Equivalents | 2.9 | % | |||||
Total | 100.0 | % |
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June 30, 2012
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Air Products & Chemicals, Inc. | 3.6 | % | |||||
China Everbright International, Ltd. | 3.6 | % | |||||
Johnson Controls, Inc. | 3.5 | % | |||||
GEA Group AG | 3.5 | % | |||||
Emerson Electric Co. | 3.4 | % | |||||
Legrand SA | 3.3 | % | |||||
Pall Corp. | 3.2 | % | |||||
ENN Energy Holdings, Ltd. | 3.2 | % | |||||
Pennon Group PLC | 3.1 | % | |||||
Xylem, Inc. | 3.0 | % | |||||
Total | 33.4 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Environmental Markets Classification System (EMCS)
Sector | Sub Sector | Percent of Net Assets | |||||||||
Renewable & Alternative Energy | 4.3 | % | |||||||||
Other Renewables Equipment | 1.5 | % | |||||||||
Renewable Energy Developers & IPPs* | 1.8 | % | |||||||||
Biofuels | 1.0 | % | |||||||||
Energy Efficiency | 32.5 | % | |||||||||
Power Network Efficiency | 7.0 | % | |||||||||
Industrial Energy Efficiency | 10.5 | % | |||||||||
Buildings Energy Efficiency | 10.4 | % | |||||||||
Diversified Energy Efficiency | 4.6 | % | |||||||||
Water Infrastructure & Technologies | 24.4 | % | |||||||||
Water Infrastructure | 11.7 | % | |||||||||
Water Treatment Equipment | 6.3 | % | |||||||||
Water Utilities | 6.4 | % | |||||||||
Pollution Control | 16.4 | % | |||||||||
Pollution Control Solutions | 6.5 | % | |||||||||
Environmental Testing & Gas Sensing | 9.9 | % | |||||||||
Waste Management & Technologies | 10.2 | % | |||||||||
Waste Technology Equipment | 3.6 | % | |||||||||
Hazardous Waste Management | 2.7 | % | |||||||||
General Waste Management | 3.9 | % | |||||||||
Diversified Environmental | 9.9 | % | |||||||||
Diversified Environmental | 9.9 | % | |||||||||
Other | 2.3 | % | |||||||||
Total | 100.0 | % |
*IPPs: Independent Power Producers
May include companies representing multiple industries within a single "Sector".
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June 30, 2012
Pax World Global Environmental Markets Fund, continued
Portfolio Highlights (Unaudited), continued
Geographic Diversification
Country | Percent of Net Assets | ||||||
United States | 44.5 | % | |||||
Germany | 8.7 | % | |||||
United Kingdom | 8.5 | % | |||||
Japan | 7.7 | % | |||||
France | 5.7 | % | |||||
Hong Kong | 5.5 | % | |||||
China | 5.0 | % | |||||
Taiwan | 3.6 | % | |||||
Belgium | 1.7 | % | |||||
Finland | 1.6 | % | |||||
Australia | 1.6 | % | |||||
Ireland | 1.6 | % | |||||
Philippines | 1.0 | % | |||||
Spain | 1.0 | % | |||||
Cash & Other Assets and Liabilities | 2.3 | % | |||||
Total | 100.0 | % |
36
June 30, 2012
Sustainable Investing
Senior Vice President for
Sustainable Investing
Julie Gorte, Ph.D.
Sustainability Update
2012 has been a very active year for shareowner activists. There were nearly 400 shareholder resolutions filed, over half of them in just two areas: political spending and environment. Pax World was active in both areas, filing three resolutions on corporate governance issues (two on corporate political activity and one on board diversity) and one on an environmental issue.
Pax World has a strong history of using the tools at our disposal to support women's empowerment, and nowhere is this more needed than in the boardroom and executive suite. We were pleased that we were able to withdraw our shareholder proposal with Roper Industries, a manufacturer of high-tech, customized electronic equipment, after the company agreed to modify its nominating committee charter for directors to include making gender diversity a part of every director search.
This year, as a Presidential election year, is also going to bring intense focus to corporate political spending, both on campaigns and lobbying. Even without the campaign, 2012 has already been a landmark year for corporate political activity due to the killing of Trayvon Martin in Florida. This dreadful incident brought into sharp focus the activities of the American Legislative Exchange Council (ALEC), which advocated that states adopt so-called Stand Your Ground laws, which allow people to use deadly force to defend themselves if they believe that there is a threat without a duty to retreat. Florida, where Mr. Martin was killed, had passed a Stand Your Ground statute. ALEC's legislative activities began to come under the spotlight after Mr. Martin was killed. Investor attention focused on companies that funded ALEC, and Pax World signed on to a letter sent to companies that were members of ALEC, but whose own policies were inconsistent with the positions taken by ALEC. By the end of May, sixteen companies had announced that they had ended their membership.
Pax World also filed two resolutions asking companies to disclose on what and with whom they spent money on lobbying. Pax World's resolution at Target Corp (TGT) sought increased disclosure of Target's lobbying priorities and its position
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June 30, 2012
Sustainability Update, continued
on several public policy issues. After discussion, Target agreed to provide statements detailing its position on its top lobbying priorities. Target also agreed to include a statement about how it determined what its top lobbying priorities were, and the company has committed to updating its position statements on its top lobbying priorities each year, making changes as its lobbying priorities change.
We filed a similar resolution with Amgen, which appeared on the company's proxy and was voted on by its shareholders at its annual meeting. This resolution got a vote in favor of nearly 25% (not counting abstentions and broker non-votes). While it did not pass, the results show that a significant proportion of the company's shareholders are interested in the company being more transparent about its lobbying expenditures.
Finally, Pax World co-filed with Calvert a shareholder proposal at Amazon asking the company to report on climate change and energy use. Amazon, like other major providers of web content, operates large server farms that, according to Greenpeace, may consume as much electricity as a small city.1 Our proposal received a vote of 21% in favor, not counting abstentions and broker non-votes.
This is what successful advocacy often looks like: a couple of productive negotiations with companies and a couple of respectable votes. The reality is that advocacy rarely, if ever, achieves instant and total success. The private sector is a big ship, and big ships don't turn on a dime. But they do turn, and it's good to have a hand on the wheel.
1Greenpeace, "How Clean is Your Cloud?" April 27, 2012, http://www.greenpeace.org/international/en/publications/ Campaign-reports/Climate-Reports/How-Clean-is-Your-Cloud/.
Pax World ESG Criteria
Pax World Funds takes into consideration the following ESG criteria when looking at all potential investments:
Environment
• Air, water & soil emissions
• Pollution prevention
• Recycling & waste reduction
• Energy & resource efficiency
• Use of clean & renewable energy
• Climate change initiatives
• Promoting sustainable development
Workplace
• Diversity
• Equal opportunity
• Workplace health & safety
• Labor-management relations
• Vendor standards
• Human rights
Corporate Governance
• Board independence & diversity
• Executive compensation
• Auditor independence
• Shareholder rights
• Disclosure & transparency
• Business ethics
• Legal & regulatory compliance
Product Integrity
• Product health & safety
• Animal welfare
• Consumer issues
• Emerging technology issues
Community
• Community commitment & relationships
• Philanthropic activities
• Responsible lending practices
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June 30, 2012
Shareholder Expense Examples (Unaudited)
Examples As a shareholder of the Pax World Balanced, Growth, Small Cap, International, High Yield Bond, Global Women's Equality, or Global Environmental Markets 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 January 1, 2012 and ending on June 30, 2012.
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 $12. If you are invested in one of these account types, you should add an additional $6 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.
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June 30, 2012
Shareholder Expense Examples (Unaudited), continued
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Based on Actual Fund Return | Beginning Account Value (1/1/12) | Ending Account Value (6/30/12) | Annualized Expense Ratio | Expenses Paid During Period1 | |||||||||||||||
Balanced Fund - Individual Investor | $ | 1,000.00 | $ | 1,048.40 | 0.94 | % | $ | 4.79 | |||||||||||
Balanced Fund - Institutional | 1,000.00 | 1,049.70 | 0.69 | % | 3.52 | ||||||||||||||
Balanced Fund - R | 1,000.00 | 1,047.00 | 1.19 | % | 6.06 | ||||||||||||||
Growth Fund - Individual Investor | 1,000.00 | 1,047.70 | 1.29 | % | 6.57 | ||||||||||||||
Growth Fund - Institutional | 1,000.00 | 1,048.40 | 1.04 | % | 5.30 | ||||||||||||||
Growth Fund - R | 1,000.00 | 1,046.00 | 1.54 | % | 7.83 | ||||||||||||||
Small Cap Fund - Individual Investor | 1,000.00 | 1,039.20 | 1.24 | % | 6.29 | ||||||||||||||
Small Cap Fund - Institutional | 1,000.00 | 1,040.00 | 0.99 | % | 5.02 | ||||||||||||||
Small Cap Fund - R | 1,000.00 | 1,038.30 | 1.49 | % | 7.55 | ||||||||||||||
International Fund - Individual Investor | 1,000.00 | 1,017.00 | 1.40 | % | 7.02 | ||||||||||||||
International Fund - Institutional | 1,000.00 | 1,016.80 | 1.15 | % | 5.77 | ||||||||||||||
International Fund - R | 1,000.00 | 1,015.10 | 1.65 | % | 8.27 | ||||||||||||||
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,056.40 | 0.96 | % | 4.91 | ||||||||||||||
High Yield Bond Fund - Institutional | 1,000.00 | 1,059.20 | 0.71 | % | 3.64 | ||||||||||||||
High Yield Bond Fund - R | 1,000.00 | 1,056.60 | 1.21 | % | 6.19 | ||||||||||||||
Global Women's Equality Fund - Individual Investor | 1,000.00 | 1,037.70 | 1.24 | % | 6.28 | ||||||||||||||
Global Women's Equality Fund - Institutional | 1,000.00 | 1,038.20 | 0.99 | % | 5.02 | ||||||||||||||
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,052.40 | 1.40 | % | 7.14 | ||||||||||||||
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,052.20 | 1.15 | % | 5.87 | ||||||||||||||
Global Environmental Markets Fund - R | 1,000.00 | 1,050.70 | 1.65 | % | 8.41 |
1Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period beginning on January 1, 2012 and ending on June 30, 2012).
40
June 30, 2012
Shareholder Expense Examples (Unaudited), continued
Based on Hypothetical 5% Return (before expenses) | Beginning Account Value (1/1/12) | Ending Account Value (6/30/12) | Annualized Expense Ratio | Expenses Paid During Period1 | |||||||||||||||
Balanced Fund - Individual Investor | $ | 1,000.00 | $ | 1,020.19 | 0.94 | % | $ | 4.72 | |||||||||||
Balanced Fund - Institutional | 1,000.00 | 1,021.43 | 0.69 | % | 3.47 | ||||||||||||||
Balanced Fund - R | 1,000.00 | 1,018.95 | 1.19 | % | 5.97 | ||||||||||||||
Growth Fund - Individual Investor | 1,000.00 | 1,018.45 | 1.29 | % | 6.47 | ||||||||||||||
Growth Fund - Institutional | 1,000.00 | 1,019.69 | 1.04 | % | 5.22 | ||||||||||||||
Growth Fund - R | 1,000.00 | 1,017.21 | 1.54 | % | 7.72 | ||||||||||||||
Small Cap Fund - Individual Investor | 1,000.00 | 1,018.70 | 1.24 | % | 6.22 | ||||||||||||||
Small Cap Fund - Institutional | 1,000.00 | 1,019.94 | 0.99 | % | 4.97 | ||||||||||||||
Small Cap Fund - R | 1,000.00 | 1,017.45 | 1.49 | % | 7.47 | ||||||||||||||
International Fund - Individual Investor | 1,000.00 | 1,017.90 | 1.40 | % | 7.02 | ||||||||||||||
International Fund - Institutional | 1,000.00 | 1,019.14 | 1.15 | % | 5.77 | ||||||||||||||
International Fund - R | 1,000.00 | 1,016.66 | 1.65 | % | 8.27 | ||||||||||||||
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,020.09 | 0.96 | % | 4.82 | ||||||||||||||
High Yield Bond Fund - Institutional | 1,000.00 | 1,021.33 | 0.71 | % | 3.57 | ||||||||||||||
High Yield Bond Fund - R | 1,000.00 | 1,018.85 | 1.21 | % | 6.07 | ||||||||||||||
Global Women's Equality Fund - Individual Investor | 1,000.00 | 1,018.70 | 1.24 | % | 6.22 | ||||||||||||||
Global Women's Equality Fund - Institutional | 1,000.00 | 1,019.94 | 0.99 | % | 4.97 | ||||||||||||||
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,017.90 | 1.40 | % | 7.02 | ||||||||||||||
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,019.41 | 1.15 | % | 5.77 | ||||||||||||||
Global Environmental Markets Fund - R | 1,000.00 | 1,016.66 | 1.65 | % | 8.27 |
1Expenses are equal to each Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period beginning on January 1, 2012 and ending on June 30, 2012).
41
June 30, 2012
Schedule of Investments (Unaudited)
Pax World Balanced Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 68.9% | |||||||||||
Consumer Discretionary: 5.3% | |||||||||||
BorgWarner, Inc. (a)(f) | 166,098 | $ | 10,894,368 | ||||||||
Comcast Corp., Class A (d) | 200,000 | 6,394,000 | |||||||||
Darden Restaurants, Inc. | 130,000 | 6,581,900 | |||||||||
Ethan Allen Interiors, Inc. (f) | 235,000 | 4,683,550 | |||||||||
Ford Motor Co. (f) | 1,250,000 | 11,987,500 | |||||||||
Hennes & Mauritz AB, B Shares | 135,000 | 4,845,678 | |||||||||
Johnson Controls, Inc. (f) | 370,000 | 10,252,700 | |||||||||
Macy's, Inc. | 160,000 | 5,496,000 | |||||||||
Starbucks Corp. | 210,000 | 11,197,200 | |||||||||
Target Corp. (d) | 160,000 | 9,310,400 | |||||||||
Time Warner, Inc. (d) | 340,000 | 13,090,000 | |||||||||
94,733,296 | |||||||||||
Consumer Staples: 2.9% | |||||||||||
Ingredion, Inc. | 588,860 | 29,160,347 | |||||||||
Natura Cosmeticos SA | 210,000 | 4,914,115 | |||||||||
PepsiCo, Inc. | 40,000 | 2,826,400 | |||||||||
Procter & Gamble Co., The | 250,000 | 15,312,500 | |||||||||
52,213,362 | |||||||||||
Energy: 8.7% | |||||||||||
Baker Hughes, Inc. | 720,410 | 29,608,851 | |||||||||
Ensco PLC, Class A, ADR, ADR | 449,300 | 21,103,621 | |||||||||
EQT Corp. (f) | 645,300 | 34,607,439 | |||||||||
Noble Energy, Inc. | 149,800 | 12,706,036 | |||||||||
Penn West Petroleum, Ltd. | 280,000 | 3,756,802 | |||||||||
Rosetta Resources, Inc. (a) | 295,725 | 10,835,364 | |||||||||
Sasol Ltd., ADR | 149,900 | 6,363,255 | |||||||||
Statoil ASA, ADR | 921,825 | 21,994,745 | |||||||||
Suncor Energy, Inc. (f) | 558,200 | 16,159,889 | |||||||||
157,136,002 | |||||||||||
Financials: 8.6% | |||||||||||
ACE, Ltd. | 90,000 | 6,671,700 | |||||||||
American Express Co. | 260,000 | 15,134,600 | |||||||||
American Tower Corp., REIT | 811,867 | 56,757,622 | |||||||||
Bank of New York Mellon Corp., The | 421,300 | 9,247,535 | |||||||||
BlackRock, Inc. | 77,500 | 13,161,050 | |||||||||
Charles Schwab Corp., The | 616,882 | 7,976,284 | |||||||||
Digital Realty Trust, Inc., REIT (f) | 150,000 | 11,260,500 | |||||||||
Hospitality Properties Trust, REIT | 200,000 | 4,954,000 | |||||||||
JPMorgan Chase & Co. | 241,725 | 8,636,834 | |||||||||
Plum Creek Timber Co., Inc., REIT (f) | 239,579 | 9,511,286 | |||||||||
State Street Corp. | 270,600 | 12,079,585 | |||||||||
155,390,996 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care: 5.2% | |||||||||||
Amgen, Inc. | 302,371 | $ | 22,085,178 | ||||||||
Becton Dickinson & Co. (f) | 523,530 | 39,133,868 | |||||||||
Pfizer, Inc. (d) | 370,000 | 8,510,000 | |||||||||
Roche Holding AG | 122,500 | 21,159,782 | |||||||||
Thermo Fisher Scientific, Inc. | 50,000 | 2,595,500 | |||||||||
93,484,328 | |||||||||||
Industrials: 10.2% | |||||||||||
3M Co. | 30,000 | 2,688,000 | |||||||||
ABB, Ltd., ADR (a) | 540,000 | 8,812,800 | |||||||||
Bombardier, Inc., Class B | 862,100 | 3,404,029 | |||||||||
Chicago Bridge & Iron Co. NV | 70,000 | 2,657,200 | |||||||||
Cummins, Inc. | 228,698 | 22,163,123 | |||||||||
Deere & Co. | 568,900 | 46,006,943 | |||||||||
Eaton Corp. (f) | 185,000 | 7,331,550 | |||||||||
Emerson Electric Co. (d) | 516,534 | 24,060,154 | |||||||||
FTI Consulting, Inc. (a) | 10,000 | 287,500 | |||||||||
Genesee & Wyoming, Inc., Class A (a) | 170,000 | 8,982,800 | |||||||||
Nordson Corp. | 258,800 | 13,273,852 | |||||||||
Pentair, Inc. (f) | 190,000 | 7,273,200 | |||||||||
Stericycle, Inc. (a) | 85,000 | 7,791,950 | |||||||||
Timken Co. | 373,800 | 17,116,302 | |||||||||
United Parcel Service, Inc., Class B | 80,000 | 6,300,800 | |||||||||
United Rentals, Inc. (a) | 10,000 | 340,400 | |||||||||
Xylem, Inc. | 225,000 | 5,663,250 | |||||||||
184,153,853 | |||||||||||
Information Technology: 17.2% | |||||||||||
Apple, Inc. (a)(d) | 110,000 | 64,240,000 | |||||||||
Citrix Systems, Inc. (a) | 10,000 | 839,400 | |||||||||
Cognizant Technology Solutions, Class A (a) | 140,594 | 8,435,640 | |||||||||
Corning, Inc. (f) | 525,000 | 6,788,250 | |||||||||
EMC Corp. (a) | 2,031,899 | 52,077,571 | |||||||||
Facebook, Inc., Class B (a)(b)(c) | 405,000 | 11,635,650 | |||||||||
Google, Inc., Class A (a) | 27,760 | 16,102,743 | |||||||||
IBM | 115,000 | 22,491,700 | |||||||||
Intuit, Inc. | 795,000 | 47,183,250 | |||||||||
Nintendo Co., Ltd. | 42,500 | 4,963,191 | |||||||||
Oracle Corp. | 360,000 | 10,692,000 | |||||||||
Paychex, Inc. | 135,000 | 4,240,350 | |||||||||
Qualcomm, Inc. | 880,900 | 49,048,513 | |||||||||
Taiwan Semiconductor Manu. Co., Ltd., ADR (f) | 430,399 | 6,008,370 | |||||||||
Teradata Corp. (a) | 75,000 | 5,400,750 | |||||||||
310,147,378 |
SEE NOTES TO FINANCIAL STATEMENTS
42
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Materials: 4.4% | |||||||||||
Air Products & Chemicals, Inc. (f) | 65,000 | $ | 5,247,450 | ||||||||
Ecolab, Inc. | 110,000 | 7,538,300 | |||||||||
Nucor Corp. | 370,000 | 14,023,000 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 210,000 | 9,174,900 | |||||||||
Rio Tinto PLC, ADR (f) | 357,200 | 17,077,732 | |||||||||
Syngenta AG, ADR | 330,000 | 22,585,200 | |||||||||
Vale SA, ADR (f) | 200,000 | 3,970,000 | |||||||||
79,616,582 | |||||||||||
Telecommunication Services: 3.4% | |||||||||||
America Movil SAB de CV, Series L, ADR | 1,221,334 | 31,827,964 | |||||||||
AT&T, Inc. | 25,000 | 891,500 | |||||||||
Vodafone Group PLC, ADR | 1,003,700 | 28,284,265 | |||||||||
61,003,730 | |||||||||||
Utilities: 3.0% | |||||||||||
CenterPoint Energy, Inc. | 365,100 | 7,546,617 | |||||||||
ONEOK, Inc. | 1,014,256 | 42,913,171 | |||||||||
Xcel Energy, Inc. | 95,000 | 2,698,950 | |||||||||
53,158,738 | |||||||||||
TOTAL COMMON STOCKS (Cost $1,051,232,522) | 1,241,038,265 | ||||||||||
EXCHANGE TRADED FUNDS: 0.5% | |||||||||||
iShares Barclays TIPS Bond Fund | 50,100 | 5,996,970 | |||||||||
SPDR Gold Shares (a) | 15,250 | 2,366,648 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $6,431,144) | 8,363,618 | ||||||||||
BONDS: 30.1% | |||||||||||
Community Investment Notes: 0.3% | |||||||||||
Calvert Social Investment Foundation, 1.000%, 01/15/15 | $ | 3,000,000 | 3,000,000 | ||||||||
CINI Investment Note, 2.000%, 10/18/14 (c) | 250,000 | 250,005 | |||||||||
Self Help Venture Note, 4.228%, 01/28/15 (c) | 2,000,000 | 2,000,354 | |||||||||
Total Community Investment Notes (Cost $5,250,000) | 5,250,359 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS: 12.7% | |||||||||||
Consumer Discretionary: 0.8% | |||||||||||
Best Buy Co., Inc., 3.750%, 03/15/16 (f) | $ | 2,396,000 | $ | 2,341,235 | |||||||
Harley-Davidson Funding Corp., 144A, 5.250%, 12/15/12 (e) | 3,000,000 | 3,049,731 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc., 7.875%, 10/15/14 | 2,321,000 | 2,634,697 | |||||||||
Time Warner Cable, Inc., 6.750%, 07/01/18 | 3,000,000 | 3,659,178 | |||||||||
VF Corp., 5.950%, 11/01/17 | 2,235,000 | 2,650,484 | |||||||||
14,335,325 | |||||||||||
Consumer Staples: 1.4% | |||||||||||
Anheuser-Busch InBev Worldwide, 5.375%, 11/15/14 | 3,052,000 | 3,366,469 | |||||||||
Anheuser-Busch InBev Worldwide, 3.625%, 04/15/15 | 1,175,000 | 1,258,976 | |||||||||
Estee Lauder Co., Inc., 7.750%, 11/01/13 | 5,000,000 | 5,465,080 | |||||||||
Ingredion, Inc., 3.200%, 11/01/15 | 500,000 | 521,990 | |||||||||
Kellogg Co., 4.150%, 11/15/19 | 2,000,000 | 2,231,254 | |||||||||
Kimberly-Clark Corp., 5.000%, 08/15/13 | 3,150,000 | 3,306,454 | |||||||||
Kimberly-Clark Corp., 6.125%, 08/01/17 | 5,000,000 | 6,131,895 | |||||||||
Kraft Foods, Inc., 6.125%, 08/23/18 | 2,000,000 | 2,437,004 | |||||||||
24,719,122 | |||||||||||
Energy: 0.8% | |||||||||||
ONEOK Partners, LP, 8.625%, 03/01/19 | 3,775,000 | 4,905,401 | |||||||||
Southern Union Co., 3.483%, 11/01/66 | 2,600,000 | 2,128,750 | |||||||||
Southwestern Energy Co., 7.500%, 02/01/18 | 3,000,000 | 3,603,291 | |||||||||
Statoil ASA, 144A, 5.125%, 04/30/14 (e) | 3,000,000 | 3,228,693 | |||||||||
Talisman Energy, Inc., 3.750%, 02/01/21 | 1,000,000 | 1,003,988 | |||||||||
14,870,123 |
SEE NOTES TO FINANCIAL STATEMENTS
43
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Financials: 4.5% | |||||||||||
American Express Bank, FSB, 5.500%, 04/16/13 | $ | 2,000,000 | $ | 2,075,042 | |||||||
American Express Centurion Bank, 5.550%, 10/17/12 | 2,000,000 | 2,028,250 | |||||||||
American Express Co., 7.000%, 03/19/18 | 1,000,000 | 1,239,288 | |||||||||
American Honda Finance Corp., 144A, 6.700%, 10/01/13 (e) | 3,000,000 | 3,220,011 | |||||||||
American Tower Corp., REIT, 7.250%, 05/15/19 | 1,665,000 | 1,955,666 | |||||||||
Bank of New York Mellon Corp., The, 4.300%, 05/15/14 | 4,000,000 | 4,266,464 | |||||||||
Bank of New York Mellon Corp., The, 2.950%, 06/18/15 | 3,000,000 | 3,164,481 | |||||||||
BB&T Corp., 2.050%, 04/28/14 | 3,000,000 | 3,062,697 | |||||||||
BB&T Corp., 1.166%, 04/28/14 | 500,000 | 503,000 | |||||||||
BB&T Corp., 6.850%, 04/30/19 | 2,000,000 | 2,525,798 | |||||||||
Bear Stearns Cos. LLC, 6.950%, 08/10/12 | 2,000,000 | 2,012,624 | |||||||||
Branch Banking & Trust Co./Wilson NC, 0.788%, 09/13/16 | 2,000,000 | 1,892,592 | |||||||||
Credit Suisse New York, 5.000%, 05/15/13 | 4,855,000 | 5,007,656 | |||||||||
Fifth Third Bank, 0.576%, 05/17/13 | 1,347,000 | 1,342,426 | |||||||||
HSBC Holdings, PLC, 5.100%, 04/05/21 | 2,000,000 | 2,236,892 | |||||||||
International Finance Corp., 2.250%, 04/28/14 | 2,000,000 | 2,063,728 | |||||||||
JPMorgan Chase & Co., 5.125%, 09/15/14 | 2,000,000 | 2,125,876 | |||||||||
JPMorgan Chase & Co., 3.700%, 01/20/15 | 2,000,000 | 2,087,430 | |||||||||
JPMorgan Chase & Co., 3.400%, 06/24/15 | 2,000,000 | 2,075,690 | |||||||||
JPMorgan Chase & Co., 7.000%, 03/16/16 (i)(US) | 3,000,000 | 3,210,894 | |||||||||
JPMorgan Chase & Co., 3.250%, 11/23/16 | 2,000,000 | 1,992,294 | |||||||||
JPMorgan Chase & Co., 1.467%, 05/27/21 | 2,000,000 | 2,002,686 | |||||||||
JPMorgan Chase Bank N.A., 0.798%, 06/13/16 | 2,000,000 | 1,864,488 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Financials, continued | |||||||||||
Monumental Global Funding, Ltd., 144A, 5.500%, 04/22/13 (e) | $ | 2,000,000 | $ | 2,070,650 | |||||||
PNC Bank NA, 6.875%, 04/01/18 | 2,000,000 | 2,388,676 | |||||||||
PNC Funding Corp., 5.250%, 11/15/15 | 2,000,000 | 2,204,804 | |||||||||
Prudential Financial, Inc., 4.750%, 04/01/14 | 3,000,000 | 3,156,528 | |||||||||
Prudential Financial, Inc., 7.375%, 06/15/19 | 2,000,000 | 2,444,380 | |||||||||
Prudential Financial, Inc., 4.300%, 11/02/20 | 3,000,000 | 3,095,100 | |||||||||
State Street Corp., 4.956%, 03/15/18 | 4,010,000 | 4,299,855 | |||||||||
Toyota Motor Credit Corp., 3.800%, 01/18/15 | 2,000,000 | 1,995,480 | |||||||||
Willis North America, Inc., 5.625%, 07/15/15 | 4,895,000 | 5,314,638 | |||||||||
80,926,084 | |||||||||||
Health Care: 1.9% | |||||||||||
Agilent Technologies, Inc., 5.500%, 09/14/15 | 3,000,000 | 3,359,673 | |||||||||
Becton, Dickinson & Co., 3.250%, 11/12/20 | 3,000,000 | 3,165,126 | |||||||||
Biogen Idec, Inc., 6.875%, 03/01/18 | 2,500,000 | 3,054,788 | |||||||||
Celgene Corp., 2.450%, 10/15/15 | 2,000,000 | 2,050,242 | |||||||||
Celgene Corp., 3.950%, 10/15/20 | 2,000,000 | 2,104,530 | |||||||||
Express Scripts, Inc., 6.250%, 06/15/14 | 3,000,000 | 3,281,694 | |||||||||
Teva Pharmaceutical Finance Co. LLC, 5.550%, 02/01/16 | 2,000,000 | 2,270,594 | |||||||||
Teva Pharmaceutical Finance III, 0.968%, 03/21/14 | 3,000,000 | 3,006,684 | |||||||||
Thermo Fisher Scientific, Inc., 3.200%, 03/01/16 | 2,000,000 | 2,142,920 | |||||||||
UnitedHealth Group, Inc., 4.875%, 02/15/13 | 2,500,000 | 2,563,973 | |||||||||
UnitedHealth Group, Inc., 4.875%, 03/15/15 | 119,000 | 130,462 | |||||||||
UnitedHealth Group, Inc., 5.375%, 03/15/16 | 4,000,000 | 4,592,892 |
SEE NOTES TO FINANCIAL STATEMENTS
44
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Health Care, continued | |||||||||||
UnitedHealth Group, Inc., 6.000%, 02/15/18 | $ | 2,500,000 | $ | 3,028,807 | |||||||
34,752,385 | |||||||||||
Industrials: 1.1% | |||||||||||
Atlas Copco AB, 144A, 5.600%, 05/22/17 (e) | 2,505,000 | 2,844,971 | |||||||||
CSX Corp., 7.375%, 02/01/19 | 2,000,000 | 2,554,712 | |||||||||
Emerson Electric Co., 5.250%, 10/15/18 | 1,000,000 | 1,206,142 | |||||||||
Ingersoll-Rand Co., 6.443%, 11/15/27 | 2,000,000 | 2,453,886 | |||||||||
Pentair, Inc., 5.000%, 05/15/21 | 4,050,000 | 4,497,833 | |||||||||
Ryder System, Inc., 6.000%, 03/01/13 | 2,000,000 | 2,058,940 | |||||||||
Ryder System, Inc., 5.850%, 11/01/16 | 2,000,000 | 2,273,148 | |||||||||
United Parcel Service, Inc., 5.500%, 01/15/18 | 1,000,000 | 1,202,834 | |||||||||
19,092,466 | |||||||||||
Information Technology: 1.0% | |||||||||||
Adobe Systems, Inc., 3.250%, 02/01/15 | 2,000,000 | 2,103,064 | |||||||||
Adobe Systems, Inc., 4.750%, 02/01/20 | 1,150,000 | 1,286,634 | |||||||||
CA, Inc., 5.375%, 12/01/19 | 3,000,000 | 3,381,786 | |||||||||
Corning, Inc., 8.875%, 08/15/21 | 2,000,000 | 2,750,216 | |||||||||
IBM Corp., 2.100%, 05/06/13 | 1,435,000 | 1,454,358 | |||||||||
IBM Corp., 2.000%, 01/05/16 | 1,750,000 | 1,808,452 | |||||||||
IBM Corp., 5.700%, 09/14/17 | 5,000,000 | 6,018,360 | |||||||||
18,802,870 | |||||||||||
Materials: 0.3% | |||||||||||
Potash Corp of Saskatchewan, Inc., 3.250%, 12/01/17 | 2,000,000 | 2,149,146 | |||||||||
Rio Tinto Finance USA, Ltd., 8.950%, 05/01/14 | 3,000,000 | 3,427,104 | |||||||||
5,576,250 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Telecommunication Services: 0.7% | |||||||||||
America Movil SAB de CV, 9.000%, 01/15/16 (b)(h)(MX) | $ | 52,000,000 | $ | 4,284,475 | |||||||
AT&T, Inc., 4.850%, 02/15/14 | 2,500,000 | 2,664,195 | �� | ||||||||
Virgin Media Finance PLC, 6.500%, 01/15/18 | 1,000,000 | 1,092,500 | |||||||||
Vodafone Group PLC, 6.750%, 01/10/13 (i)(UK) | 3,000,000 | 3,106,807 | |||||||||
Vodafone Group PLC, 5.625%, 02/27/17 | 3,000,000 | 3,513,976 | |||||||||
14,661,953 | |||||||||||
Utilities: 0.2% | |||||||||||
American Water Capital Corp., 6.085%, 10/15/17 | 3,000,000 | 3,516,237 | |||||||||
TOTAL CORPORATE BONDS (Cost $216,140,390) | 231,252,815 | ||||||||||
U.S. GOVERNMENT AGENCY BONDS: 5.6% | |||||||||||
Federal Farm Credit Bank (Agency): 1.0% | |||||||||||
3.850%, 02/11/15 | 4,000,000 | 4,350,440 | |||||||||
5.500%, 08/22/19 | 1,900,000 | 2,401,762 | |||||||||
2.540%, 11/21/19 | 4,000,000 | 4,017,920 | |||||||||
2.150%, 02/14/20 | 3,000,000 | 3,000,324 | |||||||||
2.800%, 11/09/20 | 4,000,000 | 4,027,048 | |||||||||
17,797,494 | |||||||||||
Federal Home Loan Bank System (Agency): 0.6% | |||||||||||
5.000%, 09/14/12 | 2,500,000 | 2,523,848 | |||||||||
4.110%, 09/27/13 | 4,000,000 | 4,188,928 | |||||||||
5.625%, 06/13/16 | 2,000,000 | 2,307,030 | |||||||||
1.000%, 10/11/19 | 2,500,000 | 2,500,342 | |||||||||
11,520,148 | |||||||||||
Freddie Mac (Agency): 1.2% | |||||||||||
1.375%, 01/09/13 | 1,000,000 | 1,006,078 | |||||||||
0.600%, 01/24/14 | 3,000,000 | 3,003,495 | |||||||||
1.000%, 12/19/14 | 2,000,000 | 2,003,382 | |||||||||
0.550%, 02/27/15 | 3,000,000 | 3,003,225 | |||||||||
1.150%, 12/30/15 | 2,000,000 | 2,016,120 | |||||||||
1.000%, 01/27/16 | 2,000,000 | 2,015,100 | |||||||||
0.500%, 09/28/16 | 3,000,000 | 3,002,706 | |||||||||
1.250%, 06/27/18 | 3,000,000 | 2,999,289 | |||||||||
2.000%, 11/29/18 | 2,000,000 | 2,031,972 | |||||||||
21,081,367 |
SEE NOTES TO FINANCIAL STATEMENTS
45
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | |||||||||||
Fannie Mae (Agency): 2.8% | |||||||||||
4.000%, 01/28/13 | $ | 7,000,000 | $ | 7,145,306 | |||||||
4.000%, 04/02/13 | 3,000,000 | 3,084,579 | |||||||||
1.000%, 11/07/14 | 3,325,000 | 3,331,803 | |||||||||
0.750%, 01/30/15 | 3,000,000 | 3,008,820 | |||||||||
1.100%, 12/28/15 | 3,000,000 | 3,007,611 | |||||||||
2.000%, 03/10/16 | 3,000,000 | 3,143,097 | |||||||||
1.500%, 10/26/16 | 3,000,000 | 3,011,043 | |||||||||
1.750%, 11/14/16 | 2,000,000 | 2,008,502 | |||||||||
1.300%, 01/30/17 | 6,000,000 | 6,027,474 | |||||||||
1.100%, 02/21/17 | 4,000,000 | 4,005,744 | |||||||||
2.200%, 10/27/17 | 5,000,000 | 5,299,295 | |||||||||
2.000%, 03/26/19 | 3,000,000 | 3,023,913 | |||||||||
3.000%, 06/27/19 | 2,000,000 | 2,063,936 | |||||||||
2.000%, 10/30/19 | 2,000,000 | 2,012,832 | |||||||||
50,173,955 | |||||||||||
TOTAL U.S. GOVERNMENT AGENCY BONDS (Cost $98,438,418) | 100,572,964 | ||||||||||
GOVERNMENT BONDS: 0.8% | |||||||||||
Canadian Government, 2.500%, 06/01/15 (g)(CA) | 3,000,000 | 3,064,237 | |||||||||
Private Export Funding Corp., 4.974%, 08/15/13 | 2,000,000 | 2,105,246 | |||||||||
U.S. Dept of Housing & Urban Development, 4.330%, 08/01/15 | 3,000,000 | 3,340,770 | |||||||||
U.S. Dept of Housing & Urban Development, 4.620%, 08/01/18 | 5,000,000 | 5,992,485 | |||||||||
TOTAL GOVERNMENT BONDS (Cost $12,879,515) | 14,502,738 | ||||||||||
MUNICIPAL BONDS: 21.3% | |||||||||||
Alderwood Washington Water & Waste. Distr., 5.150%, 12/01/25 | 2,435,000 | 2,733,945 | |||||||||
Florida State Board of Education, 5.250%, 06/01/16 | 1,180,000 | 1,386,984 | |||||||||
Georgia, The State G.O., 5.000%, 05/01/23 | 2,000,000 | 2,417,660 | |||||||||
Illinois State Toll Highway Authority, 5.000%, 01/01/23 | 4,000,000 | 4,413,880 | |||||||||
Illinois State Toll Highway Authority, Series A-1, 5.000%, 01/01/23 | 2,000,000 | 2,262,580 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MUNICIPAL BONDS, continued | |||||||||||
Iowa Finance Authority, 3.430%, 08/01/19 | $ | 2,000,000 | $ | 2,179,440 | |||||||
Metropolitan Washington DC Airport Authority, 4.625%, 10/01/24 | 3,000,000 | 3,293,280 | |||||||||
Portland Oregon Urban Renewal & Redevelopment, 6.031%, 06/15/18 | 3,800,000 | 4,421,603 | |||||||||
TOTAL MUNICIPAL BONDS (Cost $20,823,068) | 23,109,372 | ||||||||||
U.S. TREASURY NOTE: 2.5% | |||||||||||
3.375%, 06/30/13 | 1,000,000 | 1,031,055 | |||||||||
1.875%, 07/15/13 (TIPS) | 2,505,240 | 2,567,089 | |||||||||
3.125%, 08/31/13 | 5,000,000 | 5,166,210 | |||||||||
3.125%, 09/30/13 (f) | 3,000,000 | 3,106,407 | |||||||||
2.750%, 10/31/13 | 7,000,000 | 7,228,872 | |||||||||
2.000%, 01/15/14 (TIPS) | 3,735,300 | 3,880,626 | |||||||||
1.875%, 07/15/15 (TIPS) | 2,956,950 | 3,217,531 | |||||||||
2.000%, 01/15/16 (TIPS) | 2,318,260 | 2,566,386 | |||||||||
3.375%, 11/15/19 | 5,000,000 | 5,785,550 | |||||||||
3.625%, 02/15/20 | 2,000,000 | 2,352,970 | |||||||||
1.250%, 07/15/20 (TIPS) | 4,219,680 | 4,904,720 | |||||||||
2.000%, 11/15/21 | 3,000,000 | 3,110,859 | |||||||||
TOTAL U.S. TREASURY NOTES (Cost $42,714,670) | 44,918,275 | ||||||||||
MORTGAGE-BACKED SECURITIES: 6.9% | |||||||||||
Ginnie Mae (Mortgage-Backed): 0.7% | |||||||||||
6.000%, 02/15/19 | 275,764 | 304,226 | |||||||||
4.000%, 05/15/19 | 689,586 | 749,323 | |||||||||
6.000%, 05/15/21 | 376,429 | 415,320 | |||||||||
6.000%, 07/15/21 | 53,947 | 59,515 | |||||||||
6.000%, 02/15/22 | 573,301 | 632,025 | |||||||||
4.500%, 11/20/33 | 1,601,380 | 1,776,832 | |||||||||
1.625%, 11/20/33 | 2,894,608 | 3,001,776 | |||||||||
1.750%, 05/20/34 | 1,231,789 | 1,281,397 | |||||||||
6.000%, 08/15/35 | 957,412 | 1,077,604 | |||||||||
6.000%, 05/20/36 | 420,245 | 472,511 | |||||||||
6.000%, 01/15/38 | 1,202,788 | 1,361,678 | |||||||||
6.000%, 01/15/38 | 551,629 | 620,019 | |||||||||
6.000%, 08/20/38 | 341,809 | 383,466 | |||||||||
12,135,692 |
SEE NOTES TO FINANCIAL STATEMENTS
46
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Freddie Mac (Mortgage-Backed): 1.5% | |||||||||||
4.000%, 05/01/14 | $ | 216,499 | $ | 223,610 | |||||||
5.000%, 08/01/18 | 804,092 | 863,616 | |||||||||
4.500%, 09/01/18 | 266,012 | 286,562 | |||||||||
4.000%, 09/01/18 | 194,010 | 207,088 | |||||||||
5.500%, 10/01/18 | 285,686 | 312,766 | |||||||||
5.500%, 10/01/18 | 193,265 | 210,196 | |||||||||
5.000%, 10/01/18 | 385,324 | 414,871 | |||||||||
5.000%, 11/01/18 | 227,073 | 244,521 | |||||||||
5.000%, 11/01/18 | 197,304 | 211,910 | |||||||||
3.500%, 11/01/25 | 2,303,361 | 2,424,834 | |||||||||
3.500%, 05/01/26 | 2,226,559 | 2,343,981 | |||||||||
3.500%, 03/01/27 | 2,923,585 | 3,116,138 | |||||||||
5.500%, 12/01/27 | 1,554,429 | 1,698,708 | |||||||||
2.525%, 05/01/36 | 88,109 | 90,430 | |||||||||
2.397%, 11/01/36 | 2,085,818 | 2,215,893 | |||||||||
3.180%, 04/01/37 | 891,000 | 958,647 | |||||||||
7.462%, 09/01/37 | 282,891 | 310,541 | |||||||||
2.535%, 01/01/38 | 2,311,592 | 2,453,866 | |||||||||
5.000%, 07/01/39 | 2,151,325 | 2,334,973 | |||||||||
5.000%, 08/01/39 | 1,550,012 | 1,682,310 | |||||||||
5.500%, 10/01/39 | 1,910,744 | 2,090,185 | |||||||||
3.500%, 01/01/41 | 1,761,833 | 1,850,911 | |||||||||
26,546,557 | |||||||||||
Fannie Mae (Mortgage-Backed): 4.4% | |||||||||||
5.000%, 01/01/14 | 129,441 | 135,816 | |||||||||
5.000%, 02/01/14 | 86,123 | 87,842 | |||||||||
4.500%, 07/01/18 | 978,997 | 1,054,473 | |||||||||
3.500%, 09/01/18 | 579,013 | 611,620 | |||||||||
3.500%, 10/01/18 | 78,822 | 83,260 | |||||||||
3.500%, 10/01/18 | 370,782 | 391,662 | |||||||||
5.000%, 11/01/18 | 32,268 | 34,943 | |||||||||
5.000%, 11/01/18 | 226,872 | 246,387 | |||||||||
5.000%, 11/01/18 | 307,268 | 334,467 | |||||||||
5.000%, 02/01/19 | 844,365 | 914,357 | |||||||||
4.500%, 11/01/19 | 618,914 | 666,243 | |||||||||
5.000%, 03/01/20 | 496,784 | 538,042 | |||||||||
5.000%, 10/01/20 | 1,100,054 | 1,201,727 | |||||||||
3.500%, 01/01/21 | 2,169,100 | 2,301,127 | |||||||||
5.000%, 10/01/23 | 530,292 | 576,921 | |||||||||
3.500%, 10/01/25 | 1,980,286 | 2,095,241 | |||||||||
3.500%, 01/01/26 | 2,600,582 | 2,784,052 | |||||||||
3.500%, 02/01/26 | 2,226,590 | 2,355,843 | |||||||||
3.500%, 08/01/26 | 5,480,342 | 5,873,828 | |||||||||
3.500%, 08/01/26 | 3,132,240 | 3,341,472 | |||||||||
3.000%, 11/01/26 | 1,925,166 | 2,033,944 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Fannie Mae (Mortgage-Backed), continued | |||||||||||
3.500%, 12/01/26 | $ | 3,839,574 | $ | 4,110,455 | |||||||
3.000%, 01/01/27 | 2,846,264 | 2,986,630 | |||||||||
2.500%, 03/01/27 | 2,938,465 | 3,034,345 | |||||||||
4.000%, 01/01/32 | 2,348,227 | 2,529,594 | |||||||||
6.500%, 06/01/32 | 272,650 | 312,133 | |||||||||
5.000%, 12/01/33 | 2,593,498 | 2,822,567 | |||||||||
2.763%, 12/01/33 | 180,651 | 192,593 | |||||||||
2.430%, 12/01/33 | 440,481 | 469,837 | |||||||||
6.000%, 02/01/34 | 574,767 | 647,313 | |||||||||
2.160%, 05/01/34 | 1,421,952 | 1,505,131 | |||||||||
2.373%, 07/01/34 | 2,625,384 | 2,790,788 | |||||||||
2.620%, 01/01/35 | 902,128 | 961,676 | |||||||||
1.870%, 03/01/35 | 778,276 | 810,036 | |||||||||
2.690%, 06/01/35 | 373,896 | 399,614 | |||||||||
5.500%, 10/01/35 | 1,421,078 | 1,558,974 | |||||||||
6.000%, 04/01/36 | 211,815 | 233,944 | |||||||||
2.595%, 05/01/36 | 374,010 | 400,106 | |||||||||
5.287%, 06/01/37 | 593,997 | 632,520 | |||||||||
2.688%, 09/01/37 | 5,012,250 | 5,346,640 | |||||||||
6.000%, 03/01/39 | 1,429,955 | 1,572,904 | |||||||||
5.000%, 03/01/39 | 2,503,675 | 2,803,050 | |||||||||
4.500%, 09/01/40 | 1,677,762 | 1,806,224 | |||||||||
4.500%, 01/01/41 | 2,536,582 | 2,753,417 | |||||||||
4.000%, 02/01/41 | 2,841,515 | 3,094,724 | |||||||||
4.000%, 03/01/41 | 3,557,518 | 3,793,376 | |||||||||
3.500%, 10/01/41 | 2,895,164 | 3,071,510 | |||||||||
78,303,368 | |||||||||||
Commercial Mortgage-Backed: 0.3% | |||||||||||
JP Morgan Chase Commercial Mtg Sec Corp., 4.738%, 07/15/42 | 2,000,000 | 2,178,074 | |||||||||
Morgan Stanley Capital I, Inc., 4.989%, 08/13/42 | 2,000,000 | 2,195,856 | |||||||||
4,373,930 | |||||||||||
TOTAL MORTGAGE-BACKED SECURITIES (Cost $116,542,000) | 121,359,547 | ||||||||||
TOTAL BONDS (Cost $512,788,061) | 540,966,070 |
SEE NOTES TO FINANCIAL STATEMENTS
47
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
CERTIFICATES OF DEPOSIT: 0.0% | |||||||||||
Hope Community Credit Union, 9.000%, 05/07/13 | $ | 100,000 | $ | 100,000 | |||||||
Urban Partnership Bank, 0.350%, 09/25/12 | 248,000 | 248,000 | |||||||||
TOTAL CERTIFICATES OF DEPOSIT (Cost $348,000) | 348,000 | ||||||||||
MONEY MARKET: 0.0% | |||||||||||
Self Help Credit Union Money Market Account | |||||||||||
(Cost $264,060) | 264,060 | 264,060 | |||||||||
TIME DEPOSIT: 0.4% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/02/12 | 6,396,000 | 6,396,000 | |||||||||
(Cost $6,396,000) | |||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 1.8% | |||||||||||
SSgA Institutional U.S. Government Money Market Fund | 33,015,157 | 33,015,157 | |||||||||
(Cost $33,015,157) | |||||||||||
TOTAL INVESTMENTS: 101.7% (Cost $1,610,474,944) | 1,830,391,170 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -1.8% | (33,015,157 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 2,190,095 | ||||||||||
(NET): -0.1% | |||||||||||
NET ASSETS: 100.0% | $ | 1,799,566,108 |
(a) Non income producing security.
(b) Illiquid security.
(c) Fair Valued security.
(d) Security or partial position of this security has been segregated by the custodian to cover options contracts.
(e) Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers.
(f) Security or partial position of this security was on loan as of June 30, 2012. The total market value of securities on loan as of June 30, 2012 was $53,630,485 (Note A).
(g) Principal amount is in Canadian dollars; value is in U.S. dollars.
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value |
(h) Principal amount is in Mexican pesos; value is in U.S. dollars.
(i) Principal amount is in Australian dollars; value is in U.S. dollars.
ADR American Depository Receipt
CA Canada
LP Limited Partnership
MX Mexico
REIT Real Estate Investment Trust
TIPS Treasury Inflation Protected Securities
US United States
SCHEDULE OF WRITTEN OPTIONS | |||||||||||
CALLS: | |||||||||||
Apple, Inc. expires January 2013, exercise price $550.00 | 100 | $ | (730,700 | ) | |||||||
Apple, Inc. expires January 2013, exercise price $600.00 | 100 | (472,300 | ) | ||||||||
Apple, Inc. expires January 2013, exercise price $27.00 | 50 | (40,050 | ) | ||||||||
Comcast Corp., Class A expires January 2013, exercise price $60.00 | 300 | (168,750 | ) | ||||||||
Emerson Electric Co. expires January 2013, exercise price $22.00 | 305 | (3,050 | ) | ||||||||
Pfizer, Inc. expires December 2012, exercise price $62.50 | 1,500 | (220,500 | ) | ||||||||
Target Corp. expires January 2013, exercise price $40.00 | 300 | (36,900 | ) | ||||||||
Time Warner, Inc. expires January 2013, exercise price $40.00 | 300 | (47,400 | ) | ||||||||
TOTAL WRITTEN CALL OPTIONS (Premiums Received $1,405,872) | $ | (1,719,650 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
48
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Growth Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 96.8% | |||||||||||
Consumer Discretionary: 14.1% | |||||||||||
Amazon.com, Inc. (a) | 5,000 | $ | 1,141,750 | ||||||||
Autoliv, Inc. (c) | 14,900 | 814,434 | |||||||||
BorgWarner, Inc. (a) | 21,800 | 1,429,862 | |||||||||
Coach, Inc. | 20,500 | 1,198,840 | |||||||||
Comcast Corp., Class A | 53,000 | 1,694,410 | |||||||||
Darden Restaurants, Inc. | 30,000 | 1,518,900 | |||||||||
Ford Motor Co. (c) | 97,500 | 935,025 | |||||||||
Macy's, Inc. | 52,000 | 1,786,200 | |||||||||
Marriott International, Inc., Class A | 44,000 | 1,724,800 | |||||||||
NIKE, Inc., Class B | 18,210 | 1,598,474 | |||||||||
Starbucks Corp. | 20,900 | 1,114,388 | |||||||||
Valeo SA | 17,500 | 722,994 | |||||||||
VF Corp. | 13,200 | 1,761,540 | |||||||||
17,441,617 | |||||||||||
Consumer Staples: 8.5% | |||||||||||
General Mills, Inc. | 61,500 | 2,370,210 | |||||||||
Kimberly-Clark Corp. | 22,000 | 1,842,940 | |||||||||
PepsiCo, Inc. | 33,680 | 2,379,829 | |||||||||
Procter & Gamble Co., The | 29,100 | 1,782,375 | |||||||||
Whole Foods Market, Inc. | 23,350 | 2,225,721 | |||||||||
10,601,075 | |||||||||||
Energy: 9.8% | |||||||||||
Baker Hughes, Inc. | 29,750 | 1,222,725 | |||||||||
Devon Energy Corp. | 27,794 | 1,611,774 | |||||||||
Ensco PLC, Class A | 18,000 | 845,460 | |||||||||
Hess Corp. | 26,250 | 1,140,563 | |||||||||
Lufkin Industries, Inc. | 9,984 | 542,331 | |||||||||
Noble Corp. (a) | 40,000 | 1,301,200 | |||||||||
Noble Energy, Inc. | 16,600 | 1,408,012 | |||||||||
Southwestern Energy Co. (a) | 42,000 | 1,341,060 | |||||||||
Statoil ASA, ADR | 73,000 | 1,741,779 | |||||||||
Talisman Energy, Inc. | 92,500 | 1,060,050 | |||||||||
12,214,954 | |||||||||||
Financials: 7.7% | |||||||||||
ACE, Ltd. | 23,700 | 1,756,881 | |||||||||
CBRE Group, Inc., Class A (a) | 56,500 | 924,340 | |||||||||
Digital Realty Trust, Inc., REIT (c) | 11,600 | 870,812 | |||||||||
JPMorgan Chase & Co. | 27,125 | 969,176 | |||||||||
Plum Creek Timber Co., Inc., REIT (c) | 45,250 | 1,796,424 | |||||||||
PNC Financial Services Group, Inc. | 25,000 | 1,527,750 | |||||||||
State Street Corp. | 38,000 | 1,696,320 | |||||||||
9,541,703 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care: 10.5% | |||||||||||
Agilent Technologies, Inc. | 36,750 | $ | 1,442,070 | ||||||||
Alexion Pharmaceuticals, Inc. (a) | 4,766 | 473,264 | |||||||||
Celgene Corp. (a) | 16,250 | 1,042,600 | |||||||||
Express Scripts Holding Co. (a) | 27,250 | 1,521,368 | |||||||||
Laboratory Corp of America Holdings (a) | 10,650 | 986,297 | |||||||||
Mylan, Inc. (a) | 35,000 | 747,950 | |||||||||
Roche Holding AG | 10,650 | 1,839,605 | |||||||||
Teva Pharmaceutical Industries, Ltd., ADR | 29,250 | 1,153,620 | |||||||||
Thermo Fisher Scientific, Inc. | 33,962 | 1,762,967 | |||||||||
Thoratec Corp. (a) | 15,000 | 503,700 | |||||||||
United Therapeutics Corp. (a) | 14,950 | 738,231 | |||||||||
Volcano Corp. (a) | 27,500 | 787,875 | |||||||||
12,999,547 | |||||||||||
Industrials: 12.4% | |||||||||||
3M Co. | 23,900 | 2,141,439 | |||||||||
Cummins, Inc. | 13,950 | 1,351,895 | |||||||||
Eaton Corp. | 23,050 | 913,472 | |||||||||
Expeditors International of Washington, Inc | 40,000 | 1,550,000 | |||||||||
Landstar System, Inc. | 22,000 | 1,137,840 | |||||||||
Pall Corp. | 31,875 | 1,747,069 | |||||||||
Quanta Services, Inc. (a) | 47,200 | 1,136,104 | |||||||||
Roper Industries, Inc. | 18,250 | 1,799,085 | |||||||||
Stanley Black & Decker, Inc. | 26,500 | 1,705,540 | |||||||||
United Parcel Service, Inc., Class B | 24,251 | 1,910,009 | |||||||||
15,392,453 | |||||||||||
Information Technology: 27.2% (b) | |||||||||||
Acme Packet, Inc. (a)(c) | 47,500 | 885,875 | |||||||||
Apple, Inc. (a)(d) | 5,625 | 3,284,999 | |||||||||
Aruba Networks, Inc. (a)(c) | 70,500 | 1,061,025 | |||||||||
ASML Holding NV | 33,500 | 1,722,570 | |||||||||
BMC Software, Inc. (a) | 31,200 | 1,331,616 | |||||||||
Brocade Communications Systems, Inc. (a)(c) | 216,000 | 1,064,880 | |||||||||
Cisco Systems, Inc. | 74,000 | 1,270,580 | |||||||||
Cognizant Technology Solutions, Class A (a) | 24,250 | 1,455,000 | |||||||||
EMC Corp. (a) | 77,000 | 1,973,510 | |||||||||
Facebook, Inc., Class B (a)(e)(f) | 15,000 | 430,950 | |||||||||
Google, Inc., Class A (a) | 4,465 | 2,590,013 | |||||||||
IBM | 9,367 | 1,831,998 | |||||||||
Intuit, Inc. | 33,400 | 1,982,290 | |||||||||
Juniper Networks, Inc. (a) | 57,750 | 941,903 | |||||||||
MasterCard, Inc., Class A | 1,700 | 731,187 |
SEE NOTES TO FINANCIAL STATEMENTS
49
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Growth Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Information Technology, continued | |||||||||||
NetApp, Inc. (a) | 38,350 | $ | 1,220,297 | ||||||||
NETGEAR, Inc. (a) | 32,250 | 1,112,948 | |||||||||
Nuance Communications, Inc. (a)(c) | 40,000 | 952,800 | |||||||||
Oracle Corp. | 40,750 | 1,210,275 | |||||||||
Qualcomm, Inc. | 39,000 | 2,171,519 | |||||||||
Red Hat, Inc. (a) | 25,000 | 1,412,000 | |||||||||
SAP AG, ADR (c) | 6,500 | 385,840 | |||||||||
Texas Instruments, Inc. | 48,500 | 1,391,465 | |||||||||
Trimble Navigation, Ltd. (a) | 29,875 | 1,374,549 | |||||||||
33,790,089 | |||||||||||
Materials: 4.1% | |||||||||||
Air Products & Chemicals, Inc. | 8,500 | 686,205 | |||||||||
Nucor Corp. | 33,000 | 1,250,700 | |||||||||
Praxair, Inc. | 5,350 | 581,706 | |||||||||
Rio Tinto PLC, ADR (c) | 19,500 | 932,295 | |||||||||
Syngenta AG, ADR | 24,150 | 1,652,826 | |||||||||
5,103,732 | |||||||||||
Telecommunication Services: 1.4% | |||||||||||
Vodafone Group PLC, ADR | 59,838 | 1,686,235 | |||||||||
Utilities: 1.1% | |||||||||||
American Water Works Co., Inc. | 38,904 | 1,333,629 | |||||||||
TOTAL COMMON STOCKS (Cost $101,444,474) | 120,105,034 | ||||||||||
TIME DEPOSIT: 3.4% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/02/12 | $ | 4,205,000 | 4,205,000 | ||||||||
(Cost $4,205,000) | |||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 3.1% | |||||||||||
SSgA Institutional U.S.Government Money Market Fund | 3,848,325 | 3,848,325 | |||||||||
(Cost $3,848,325) | |||||||||||
TOTAL INVESTMENTS: 103.3% (Cost $109,497,799) | 128,158,359 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -3.1% | (3,848,325 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | (191,650 | ) | |||||||||
(NET): -0.2% | |||||||||||
NET ASSETS: 100.0% | $ | 124,118,384 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value |
(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 June 30, 2012. The total market value of securities on loan as of June 30, 2012 was $6,488,175 (Note A).
(d) Security or partial position of this security has been segregated by the custodian to cover options contracts.
(e) Illiquid security.
(f) Fair Valued security.
ADR American Depository Receipt
REIT Real Estate investment Trust
SCHEDULE OF WRITTEN OPTIONS | |||||||||||
CALLS: | |||||||||||
Apple, Inc. expires January 2013, exercise price $550.00 | 5 | $ | (36,535 | ) | |||||||
Apple, Inc. expires January 2013, exercise price $600.00 | 5 | (23,615 | ) | ||||||||
TOTAL WRITTEN CALL OPTIONS (Premiums Received $41,844) | $ | (60,150 | ) | ||||||||
PUTS: | |||||||||||
Apple, Inc. expires January 2013, exercise price $450.00 | 5 | $ | (6,800 | ) | |||||||
Apple, Inc. expires October 2012, exercise price $500.00 | 5 | (5,700 | ) | ||||||||
TOTAL WRITTEN PUT OPTIONS (Premiums Received $30,645) | $ | (12,500 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
50
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Small Cap Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 100.2% | |||||||||||
Consumer Discretionary: 19.5% | |||||||||||
Best Buy Co., Inc. | 23,000 | $ | 482,080 | ||||||||
Cinemark Holdings, Inc. | 25,000 | 571,250 | |||||||||
Core-Mark Holding Co., Inc. | 4,000 | 192,560 | |||||||||
Dunkin' Brands Group, Inc. | 500 | 17,170 | |||||||||
GameStop Corp., Class A | 35,000 | 642,600 | |||||||||
HomeAway, Inc. (a) | 2,000 | 43,480 | |||||||||
Jamba, Inc. (a) | 396,920 | 777,963 | |||||||||
Ruth's Hospitality Group, Inc. (a) | 37,100 | 244,860 | |||||||||
Skullcandy, Inc. (a) | 5,000 | 70,750 | |||||||||
3,042,713 | |||||||||||
Energy: 16.4% | |||||||||||
Cimarex Energy Co. | 7,000 | 385,840 | |||||||||
Contango Oil & Gas Co. (a) | 7,000 | 414,400 | |||||||||
Energy XXI Bermuda, Ltd. | 6,000 | 187,740 | |||||||||
Helix Energy Solutions Group, Inc. (a) | 5,000 | 82,050 | |||||||||
Kodiak Oil & Gas Corp. (a) | 10,000 | 82,100 | |||||||||
McDermott International, Inc. (a) | 40,000 | 445,600 | |||||||||
Natural Gas Services Group, Inc. (a) | 9,367 | 138,819 | |||||||||
Oasis Petroleum, Inc. (a) | 17,000 | 411,060 | |||||||||
Rosetta Resources, Inc. (a) | 2,000 | 73,280 | |||||||||
SM Energy Co. | 7,000 | 343,770 | |||||||||
2,564,659 | |||||||||||
Financials: 19.2% | |||||||||||
AMERISAFE, Inc. (a) | 20,276 | 526,162 | |||||||||
Ares Capital Corp. | 10,000 | 159,600 | |||||||||
CBOE Holdings, Inc. | 5,000 | 138,400 | |||||||||
F.N.B. Corp. | 10,000 | 108,700 | |||||||||
Hercules Technology Growth Capital, Inc. | 7,009 | 79,482 | |||||||||
Horizon Technology Finance Corp. | 10,000 | 164,900 | |||||||||
National Financial Partners Corp. (a) | 300 | 4,020 | |||||||||
OmniAmerican Bancorp, Inc. (a) | 1,000 | 21,430 | |||||||||
Oritani Financial Corp. | 22,000 | 316,580 | |||||||||
ProAssurance Corp. | 7,148 | 636,815 | |||||||||
Rockville Financial, Inc. | 6,000 | 69,420 | |||||||||
Territorial Bancorp, Inc. | 8,515 | 193,887 | |||||||||
United Financial Bancorp, Inc. | 22,557 | 324,370 | |||||||||
Westwood Holdings Group, Inc. | 6,507 | 242,451 | |||||||||
2,986,217 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care: 13.6% | |||||||||||
CardioNet, Inc. (a) | 84,696 | $ | 171,933 | ||||||||
Ligand Pharmaceuticals, Inc., Class B (a) | 11,000 | 186,340 | |||||||||
Natus Medical, Inc. (a) | 63,860 | 742,053 | |||||||||
Owens & Minor, Inc. | 5,000 | 153,150 | |||||||||
PDL BioPharma, Inc. | 26,640 | 176,623 | |||||||||
Vascular Solutions, Inc. (a) | 54,631 | 686,165 | |||||||||
2,116,264 | |||||||||||
Industrials: 3.7% | |||||||||||
Pentair, Inc. | 11,000 | 421,080 | |||||||||
UniFirst Corp. | 2,500 | 159,375 | |||||||||
580,455 | |||||||||||
Information Technology: 22.0% | |||||||||||
Acme Packet, Inc. (a) | 19,000 | 354,350 | |||||||||
Dice Holdings, Inc. (a) | 50,000 | 469,500 | |||||||||
ePlus, Inc. (a) | 8,991 | 290,859 | |||||||||
Finisar Corp. (a) | 21,000 | 314,160 | |||||||||
Open Text Corp. (a) | 7,000 | 349,300 | |||||||||
Riverbed Technology, Inc. (a) | 21,000 | 339,150 | |||||||||
TheStreet, Inc. | 358,078 | 537,117 | |||||||||
Westell Technologies, Inc., Class A (a) | 326,439 | 776,925 | |||||||||
3,431,361 | |||||||||||
Utilities: 5.8% | |||||||||||
CenterPoint Energy, Inc. | 23,000 | 475,410 | |||||||||
MDU Resources Group, Inc. | 20,000 | 432,200 | |||||||||
907,610 | |||||||||||
TOTAL COMMON STOCKS (Cost $16,280,521) | 15,629,279 | ||||||||||
TIME DEPOSIT: 1.2% | |||||||||||
State Street Euro Dollar Time Deposit, | 183,000 | 183,000 | |||||||||
(Cost $183,000) | |||||||||||
TOTAL INVESTMENTS: 101.4% (Cost $16,463,521) | 15,812,279 | ||||||||||
OTHER ASSETS AND LIABILITIES— | (220,214 | ) | |||||||||
(Net): -1.4% | |||||||||||
NET ASSETS: 100.0% | $ | 15,592,065 |
(a) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
51
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World International Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 97.3% | |||||||||||
Australia: 5.0% | |||||||||||
Cochlear, Ltd. | 6,600 | $ | 448,225 | ||||||||
National Australia Bank, Ltd. | 36,000 | 876,873 | |||||||||
Woodside Petroleum, Ltd. | 24,630 | 789,293 | |||||||||
2,114,391 | |||||||||||
Austria: 1.5% | |||||||||||
OMV AG | 20,200 | 635,283 | |||||||||
Belgium: 2.6% | |||||||||||
Anheuser-Busch InBev NV | 13,700 | 1,080,124 | |||||||||
Brazil: 2.9% | |||||||||||
CCR SA | 51,200 | 416,279 | |||||||||
Natura Cosmeticos SA | 33,800 | 790,939 | |||||||||
1,207,218 | |||||||||||
Canada: 3.5% | |||||||||||
Bombardier, Inc., Class B | 170,300 | 672,435 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 10,400 | 454,376 | |||||||||
Rogers Communications, Inc., Class B | 9,600 | 348,037 | |||||||||
1,474,848 | |||||||||||
Finland: 2.1% | |||||||||||
Fortum Oyj | 47,000 | 892,549 | |||||||||
France: 5.6% | |||||||||||
AXA SA | 60,100 | 803,459 | |||||||||
Danone | 7,000 | 435,026 | |||||||||
LVMH Moet Hennessy Louis Vuitton | 5,250 | 798,996 | |||||||||
Mersen | 11,960 | 299,665 | |||||||||
2,337,146 | |||||||||||
Germany: 5.3% | |||||||||||
Bayerische Motoren Werke AG | 11,700 | 846,704 | |||||||||
Linde AG | 4,000 | 622,962 | |||||||||
Muenchener Rueckversicherungs AG | 3,000 | 423,312 | |||||||||
Wacker Chemie AG | 4,700 | 323,779 | |||||||||
2,216,757 | |||||||||||
Hong Kong: 0.4% | |||||||||||
Chaoda Modern Agriculture (Holdings), Ltd. (a)(b)(c) | 710,000 | 56,797 | |||||||||
Esprit Holdings, Ltd. | 100,000 | 128,868 | |||||||||
185,665 | |||||||||||
Ireland: 0.6% | |||||||||||
Kingspan Group PLC | 28,600 | 232,098 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Israel: 2.5% | |||||||||||
Teva Pharmaceutical industries, Ltd., ADR | 27,000 | $ | 1,064,880 | ||||||||
Japan: 17.0% | |||||||||||
Astellas Pharma, Inc. | 14,000 | 610,942 | |||||||||
Canon, Inc., ADR | 17,100 | 682,974 | |||||||||
Central Japan Railway Co. | 90 | 708,828 | |||||||||
Daiseki Co., Ltd. | 17,000 | 295,571 | |||||||||
Eisai Co., Ltd. | 11,300 | 494,838 | |||||||||
Hoya Corp. | 14,600 | 321,638 | |||||||||
Kao Corp. | 27,300 | 752,890 | |||||||||
Komatsu, Ltd. | 35,700 | 852,207 | |||||||||
Kurita Water Industries, Ltd. | 15,700 | 363,156 | |||||||||
Nintendo Co., Ltd. | 2,300 | 268,596 | |||||||||
Nippon Building Fund, Inc., REIT | 49 | 473,765 | |||||||||
Resona Holdings, Inc. | 183,100 | 754,295 | |||||||||
Tokuyama Corp. | 69,000 | 170,441 | |||||||||
Trend Micro, Inc. | 12,900 | 380,039 | |||||||||
7,130,179 | |||||||||||
Luxembourg: 2.0% | |||||||||||
APERAM | 17,000 | 224,433 | |||||||||
Tenaris SA, ADR | 17,600 | 615,472 | |||||||||
839,905 | |||||||||||
Norway: 2.8% | |||||||||||
Statoil ASA, ADR | 49,700 | 1,185,842 | |||||||||
Philippines: 0.8% | |||||||||||
Philippine Long Distance Telephone, ADR | 5,500 | 349,800 | |||||||||
Poland: 2.0% | |||||||||||
Powszechny Zaklad Ubezpieczen SA | 8,420 | 846,717 | |||||||||
Portugal: 0.9% | |||||||||||
Portugal Telecom SGPS SA, ADR | 84,700 | 376,915 | |||||||||
Singapore: 4.4% | |||||||||||
DBS Group Holdings, Ltd. | 68,000 | 751,107 | |||||||||
Hyflux, Ltd. | 279,000 | 298,824 | |||||||||
SingTel | 303,000 | 793,484 | |||||||||
1,843,415 | |||||||||||
Spain: 2.9% | |||||||||||
Repsol YPF SA | 42,300 | 679,976 | |||||||||
Telefonica SA, ADR | 40,200 | 526,620 | |||||||||
1,206,596 |
SEE NOTES TO FINANCIAL STATEMENTS
52
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World International Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Sweden: 3.7% | |||||||||||
Hennes & Mauritz AB, B Shares | 27,000 | $ | 969,136 | ||||||||
SKF AB, B Shares | 29,100 | 573,619 | |||||||||
1,542,755 | |||||||||||
Switzerland: 6.4% | |||||||||||
ABB, Ltd., ADR (a) | 49,650 | 810,288 | |||||||||
Credit Suisse Group AG, ADR | 25,100 | 460,083 | |||||||||
Roche Holding AG | 4,350 | 751,388 | |||||||||
Syngenta AG, ADR | 9,550 | 653,602 | |||||||||
2,675,361 | |||||||||||
Taiwan: 0.9% | |||||||||||
Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 27,276 | 380,773 | |||||||||
Turkey: 3.3% | |||||||||||
Mardin Cimento Sanayii ve Tica AS | 93,000 | 287,488 | |||||||||
Turkiye Halk Bankasi AS | 140,600 | 1,103,077 | |||||||||
1,390,565 | |||||||||||
United Kingdom: 18.2% | |||||||||||
BG Group PLC | 51,300 | 1,050,187 | |||||||||
Game Group PLC (b)(c) | 1,574,000 | 0 | |||||||||
HSBC Holdings PLC, ADR | 20,400 | 900,252 | |||||||||
Marks & Spencer Group PLC | 77,000 | 392,672 | |||||||||
Pennon Group PLC | 51,800 | 620,051 | |||||||||
Reckitt Benckiser Group PLC | 15,800 | 835,140 | |||||||||
Reed Elsevier PLC | 117,306 | 940,225 | |||||||||
Rio Tinto PLC, ADR | 17,500 | 836,675 | |||||||||
Sage Group PLC, The | 96,000 | 417,819 | |||||||||
Spectris PLC | 15,614 | 375,377 | |||||||||
Standard Chartered PLC | 37,500 | 814,612 | |||||||||
Vodafone Group PLC, ADR | 16,000 | 450,880 | |||||||||
7,633,890 | |||||||||||
TOTAL COMMON STOCKS (Cost $44,283,952) | 40,843,672 | ||||||||||
RIGHTS: 0.1% | |||||||||||
Repsol YPF SA, 07/05/12 | 42,300 | 29,656 | |||||||||
(Cost: $29,061) |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
EXCHANGE TRADED FUNDS: 2.6% | |||||||||||
United States: 2.6% | |||||||||||
iShares Silver Trust (a) | 9,700 | $ | 258,505 | ||||||||
SPDR Gold Shares (a) | 5,450 | 845,786 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $946,658) | 1,104,291 | ||||||||||
TOTAL INVESTMENTS: 100.0% (Cost $45,259,671) | 41,977,619 | ||||||||||
OTHER ASSETS AND LIABILITIES— | 20,057 | ||||||||||
(Net): 0.0% | |||||||||||
NET ASSETS: 100.0% | $ | 41,997,676 |
(a) Non-income producing security.
(b) Fair Value security.
(c) Illiquid security.
ADR American Depository Receipt
REIT Real Estate Investment Trust
SUMMARY OF INVESTMENTS BY SECTOR | |||||||||||
Sector | Value | Percent of Net Assets | |||||||||
Consumer Discretionary | $ | 4,076,601 | 9.7 | % | |||||||
Consumer Staples | 3,950,916 | 9.4 | % | ||||||||
Energy | 4,956,054 | 11.8 | % | ||||||||
Financials | 8,207,552 | 19.5 | % | ||||||||
Health Care | 3,370,273 | 8.0 | % | ||||||||
Industrials | 5,224,146 | 12.5 | % | ||||||||
Information Technology | 2,827,215 | 6.8 | % | ||||||||
Materials | 3,573,755 | 8.5 | % | ||||||||
Telecommunications Services | 2,845,736 | 6.8 | % | ||||||||
Utilities | 1,811,424 | 4.3 | % | ||||||||
Exchange Traded Funds | 1,104,291 | 2.6 | % | ||||||||
Rights | 29,656 | 0.1 | % | ||||||||
Other assets and liabilities - (Net) | 20,057 | 0.0 | % | ||||||||
Total | $ | 41,997,676 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
53
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
STOCKS: 2.2% | |||||||||||
COMMON STOCKS: 1.6% | |||||||||||
Consumer Cyclical: 0.0% | |||||||||||
Game Group PLC (b)(e) | 1,286,902 | $ | 0 | ||||||||
Energy: 0.3% | |||||||||||
Rosetta Resources, Inc. (g) | 40,000 | 1,465,600 | |||||||||
Financial Services: 0.6% | |||||||||||
Hercules Technology Growth Capital, Inc. (f) | 234,011 | 2,653,685 | |||||||||
Telecommunications: 0.7% | |||||||||||
Windstream Corp. (f) | 325,000 | 3,139,500 | |||||||||
TOTAL COMMON STOCKS (Cost $8,897,423) | 7,258,785 | ||||||||||
PREFERRED STOCKS: 0.6% | |||||||||||
Financial Services: 0.6% | |||||||||||
Hercules Technology Growth Capital, Inc. 7.000% (g) | 110,000 | 2,787,950 | |||||||||
TOTAL PREFERRED STOCKS (Cost $2,745,866) | 2,787,950 | ||||||||||
TOTAL STOCKS (Cost $11,643,289) | 10,046,735 | ||||||||||
EXCHANGE TRADED FUNDS: 1.3% | |||||||||||
ProShares UltraShort Euro (g)(h) | 198,131 | 4,140,938 | |||||||||
SPDR Gold Shares (g) | 12,000 | 1,862,280 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $5,828,428) | 6,003,218 | ||||||||||
BONDS: 90.7% | |||||||||||
CORPORATE BONDS: 90.5% | |||||||||||
Automotive: 1.1% | |||||||||||
Tomkins, Ltd., 9.000%, 10/01/18 | $ | 4,590,000 | 5,129,325 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Basic Industry: 3.3% | |||||||||||
Longview Fibre Paper & Packaging, Inc., 144A, 8.000%, 06/01/16 (a)(f) | $ | 3,600,000 | $ | 3,618,000 | |||||||
Mirabela Nickel, Ltd, 144A, 8.750%, 04/15/18 (a)(f) | 6,000,000 | 4,140,000 | |||||||||
Nexeo Solutions LLC/Corp, 8.375%, 03/01/18 | 6,000,000 | 5,850,000 | |||||||||
Orion Engineered Carbons Bondco GmbH, 144A, 9.625%, 06/15/18 (a) | 1,349,000 | 1,396,215 | |||||||||
Sappi Papier Holding GmbH, 7.750%, 07/15/17 | 250,000 | 252,500 | |||||||||
15,256,715 | |||||||||||
Capital Goods: 6.2% | |||||||||||
Altra Holdings, Inc., 8.125%, 12/01/16 | 3,530,000 | 3,807,988 | |||||||||
Ardagh Packaging Finance PLC., 144A, 9.125%, 10/15/20 (a) | 2,500,000 | 2,637,500 | |||||||||
Coleman Cable, Inc., 9.000%, 02/15/18 | 4,000,000 | 4,140,000 | |||||||||
Hyva Global BV, 144A, 8.625%, 03/24/16 (a) | 3,000,000 | 2,580,000 | |||||||||
J.B. Poindexter & Co, Inc., 144A, 9.000%, 04/01/22 (a) | 6,250,000 | 6,281,250 | |||||||||
Mcron Finance Sub LLC/ Finance Corp., 144A, 8.375%, 05/15/19 (a) | 2,250,000 | 2,238,750 | |||||||||
Park-Ohio Industries, Inc., 8.125%, 04/01/21 | 7,000,000 | 7,192,500 | |||||||||
28,877,988 | |||||||||||
Consumer Cyclical: 7.4% | |||||||||||
Brown Shoe Co., Inc., 7.125%, 05/15/19 | 3,000,000 | 2,966,250 | |||||||||
Burlington Coat Factory Warehouse Corp., 10.000%, 02/15/19 (f) | 4,750,000 | 5,058,750 | |||||||||
Fiesta Restaurant Group., 144A, 8.875%, 08/15/16 (a) | 1,000,000 | 1,055,000 | |||||||||
Human Touch LLC, 144A, 15.000%, 03/30/14 (a)(b)(e) | 399,086 | 0 | |||||||||
Icon Health & Fitness, Inc., 144A, 11.875%, 10/15/16 (a) | 6,950,000 | 6,098,625 | |||||||||
Levi Strauss & Co., 7.625%, 05/15/20 (f) | 5,100,000 | 5,444,250 |
SEE NOTES TO FINANCIAL STATEMENTS
54
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Consumer Cyclical, continued | |||||||||||
Levi Strauss & Co., 144A, 6.875%, 05/01/22 (a)(f) | $ | 200,000 | $ | 206,250 | |||||||
Logan's Roadhouse, Inc., 10.750%, 10/15/17 | 4,500,000 | 4,331,250 | |||||||||
Perry Ellis International, Inc., 7.875%, 04/01/19 | 4,500,000 | 4,556,250 | |||||||||
Quiksilver, Inc., 6.875%, 04/15/15 (f) | 3,150,000 | 3,055,500 | |||||||||
Sally Holdings LLC/Capital, Inc., 6.875%, 11/15/19 (f) | 250,000 | 273,125 | |||||||||
Sally Holdings LLC/Capital, Inc., 5.750%, 06/01/22 | 100,000 | 105,125 | |||||||||
Wok Acquisition Corp., 144A, 10.250%, 06/30/20 (a) | 1,250,000 | 1,293,750 | |||||||||
34,444,125 | |||||||||||
Consumer Non-Cyclical: 2.7% | |||||||||||
Fage Dairy Industry SA, 144A, 9.875%, 02/01/20 (a) | 4,250,000 | 3,761,250 | |||||||||
Foodcorp, Ltd., 144A, 8.750%, 03/01/18 (a)(c)(SA) | 5,000,000 | 6,224,674 | |||||||||
Libbey Glass, Inc., 144A, 6.875%, 05/15/20 (a) | 2,250,000 | 2,323,125 | |||||||||
12,309,049 | |||||||||||
Energy: 14.1% | |||||||||||
Alta Mesa Holdings, LP, 9.625%, 10/15/18 | 6,750,000 | 6,699,375 | |||||||||
Atwood Oceanics, Inc., 6.500%, 02/01/20 | 500,000 | 525,000 | |||||||||
CGG Veritas, 9.500%, 05/15/16 | 1,000,000 | 1,097,500 | |||||||||
CGG Veritas, 6.500%, 06/01/21 | 500,000 | 502,500 | |||||||||
Chaparral Energy, Inc., 9.875%, 10/01/20 | 4,000,000 | 4,465,000 | |||||||||
Chaparral Energy, Inc., 144A, 7.625%, 11/15/22 (a) | 250,000 | 256,250 | |||||||||
Crosstex Energy, LP, 8.875%, 02/15/18 | 1,000,000 | 1,058,125 | |||||||||
EP Energy LLC/Finance, Inc., 144A, 6.875%, 05/01/19 (a) | 250,000 | 261,563 | |||||||||
EV Energy Partner, LP, 8.000%, 04/15/19 | 500,000 | 498,750 | |||||||||
Goodrich Petroleum Corp., 8.875%, 03/15/19 (f) | 8,000,000 | 7,660,000 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Energy, continued | |||||||||||
Halcon Resources Corp., 144A, 9.750%, 07/15/20 (a) | $ | 600,000 | $ | 603,646 | |||||||
Helix Energy Solutions Group, Inc., 144A, 9.500%, 01/15/16 (a) | 3,473,000 | 3,642,309 | |||||||||
Hercules Offshore, Inc., 144A, 7.125%, 04/01/17 (a) | 2,500,000 | 2,428,125 | |||||||||
Hercules Offshore, Inc., 144A, 10.250%, 04/01/19 (a) | 4,500,000 | 4,308,750 | |||||||||
Kodiak Oil & Gas Corp., 144A, 8.125%, 12/01/19 (a) | 250,000 | 257,813 | |||||||||
Parker Drilling Co., 9.125%, 04/01/18 | 500,000 | 531,250 | |||||||||
Penn Virginia Corp., 10.375%, 06/15/16 (f) | 5,000,000 | 4,825,000 | |||||||||
Penn Virginia Corp., 7.250%, 04/15/19 (f) | 1,500,000 | 1,245,000 | |||||||||
PetroBakken Energy, Ltd., 144A, 8.625%, 02/01/20 (a) | 100,000 | 99,750 | |||||||||
Petroleum Geo-Services ASA, 144A, 7.375%, 12/15/18 (a) | 1,000,000 | 1,032,500 | |||||||||
PHI, Inc., 8.625%, 10/15/18 | 6,875,000 | 6,978,124 | |||||||||
Quicksilver Resources, Inc., 9.125%, 08/15/19 (f) | 3,000,000 | 2,625,000 | |||||||||
Rosetta Resources, Inc., 9.500%, 04/15/18 | 6,500,000 | 7,117,500 | |||||||||
Samson Investment Co., 144A, 9.750%, 02/15/20 (a) | 7,000,000 | 6,973,750 | |||||||||
65,692,580 | |||||||||||
Financial Services: 1.0% | |||||||||||
Ares Capital Corp., 144A, 5.125%, 06/01/16 (a) | 2,200,000 | 2,191,750 | |||||||||
CIT Group, Inc., 5.000%, 05/15/17 | 250,000 | 257,656 | |||||||||
CIT Group, Inc., 5.250%, 03/15/18 | 1,000,000 | 1,033,750 | |||||||||
Hercules Technology Growth Capital, Inc., 6.000%, 04/15/16 | 1,000,000 | 1,030,000 | |||||||||
4,513,156 | |||||||||||
Health Care: 12.9% | |||||||||||
Alere, Inc., 8.625%, 10/01/18 | 1,000,000 | 1,015,000 | |||||||||
Alliance Healthcare Services, Inc., 8.000%, 12/01/16 (b) | 4,985,000 | 3,751,213 |
SEE NOTES TO FINANCIAL STATEMENTS
55
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Health Care, continued | |||||||||||
AMGH Merger Sub, Inc., 144A, 9.250%, 11/01/18 (a) | $ | 6,100,000 | $ | 6,374,500 | |||||||
Biomet, Inc., 11.625%, 10/15/17 | 6,000,000 | 6,502,500 | |||||||||
Bioscrip, Inc., 10.250%, 10/01/15 | 6,019,000 | 6,560,710 | |||||||||
CHS/Community Health Systems, Inc., 8.000%, 11/15/19 | 750,000 | 802,500 | |||||||||
Community Health Systems, Inc., 8.875%, 07/15/15 | 592,000 | 608,280 | |||||||||
Endo Pharmaceuticals Holdings, Inc., 7.250%, 01/15/22 | 500,000 | 544,375 | |||||||||
ExamWorks Group, Inc., 9.000%, 07/15/19 | 250,000 | 258,438 | |||||||||
Fresenius Medical Care US Finance II, Inc., 144A, 5.875%, 01/31/22 (a) | 1,000,000 | 1,043,750 | |||||||||
Hanger Orthopedic Group, Inc., 7.125%, 11/15/18 | 4,830,000 | 4,999,050 | |||||||||
HCA Holdings, Inc., 7.750%, 05/15/21 (f) | 7,000,000 | 7,542,500 | |||||||||
Health Management Association, Inc., 6.125%, 04/15/16 | 4,000,000 | 4,260,000 | |||||||||
Health Management Association, Inc., 144A, 7.375%, 01/15/20 (a) | 4,000,000 | 4,275,000 | |||||||||
Inventiv Health, Inc., 144A, 10.000%, 08/15/18 (a) | 6,250,000 | 5,375,000 | |||||||||
OMEGA Healthcare Investors, Inc., 144A, 5.875%, 03/15/24 (a) | 2,500,000 | 2,512,500 | |||||||||
PSS World Medical, Inc., 144A, 6.375%, 03/01/22 (a) | 3,250,000 | 3,347,500 | |||||||||
59,772,816 | |||||||||||
Insurance: 1.8% | |||||||||||
HUB International Holdings, Inc., 144A, 9.000%, 12/15/14 (a) | 3,000,000 | 3,056,250 | |||||||||
HUB International Holdings, Inc., 144A, 10.250%, 06/15/15 (a)(f) | 5,264,000 | 5,389,020 | |||||||||
8,445,270 | |||||||||||
Media: 9.8% | |||||||||||
AMC Networks, Inc., 144A, 7.750%, 07/15/21 (a) | 250,000 | 276,875 | |||||||||
American Reprographics Co., 10.500%, 12/15/16 (b) | 5,275,000 | 5,327,750 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Media, continued | |||||||||||
Gannett Co, Inc., 7.125%, 09/01/18 | $ | 5,500,000 | $ | 5,912,500 | |||||||
Harron Communications, LP, 144A, 9.125%, 04/01/20 (a) | 2,435,000 | 2,532,400 | |||||||||
Lamar Media Corp., 144A, 5.875%, 02/01/22 (a)(f) | 250,000 | 257,500 | |||||||||
McClatchy Co., The, 11.500%, 02/15/17 | 5,500,000 | 5,733,750 | |||||||||
MDC Partners, Inc., 11.000%, 11/01/16 | 6,000,000 | 6,420,000 | |||||||||
Nielsen Finance LLC, 11.500%, 05/01/16 | 3,575,000 | 4,084,438 | |||||||||
Spanish Broadcasting System, Inc., 144A, 12.500%, 04/15/17 (a) | 1,000,000 | 1,040,000 | |||||||||
Townsquare Radio, LLC, 144A, 9.000%, 04/01/19 (a) | 4,000,000 | 4,200,000 | |||||||||
UPCB Finance VI, Ltd., 144A, 6.875%, 01/15/22 (a) | 250,000 | 256,250 | |||||||||
Valassis Communications, Inc., 6.625%, 02/01/21 (f) | 6,000,000 | 5,850,000 | |||||||||
Virgin Media Finance PLC, 8.375%, 10/15/19 | 2,500,000 | 2,821,875 | |||||||||
WMG Acquisition Corp., 11.500%, 10/01/18 | 500,000 | 555,000 | |||||||||
45,268,338 | |||||||||||
Real Estate: 1.7% | |||||||||||
Kennedy-Wilson, Inc., 144A, 8.750%, 04/01/19 | 7,400,000 | 7,659,000 | |||||||||
Services: 11.9% | |||||||||||
Alliance Data Systems Co., 144A, 6.375%, 04/01/20 (a)(f) | 500,000 | 515,000 | |||||||||
Carmike Cinemas, Inc., 7.375%, 05/15/19 | 2,000,000 | 2,080,000 | |||||||||
Cinemark USA, Inc., 7.375%, 06/15/21 (f) | 1,000,000 | 1,090,000 | |||||||||
Desarrolladora Homex SAB de CV, 144A, 9.500%, 12/11/19 (a) | 3,000,000 | 3,150,000 | |||||||||
Hertz Corp., The, 7.375%, 01/15/21 | 1,000,000 | 1,075,000 | |||||||||
Interactive Data Corp., 10.250%, 08/01/18 | 4,000,000 | 4,469,999 | |||||||||
Inversiones Alsacia SA, 144A, 8.000%, 08/18/18 (a) | 4,344,828 | 4,205,028 |
SEE NOTES TO FINANCIAL STATEMENTS
56
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Services, continued | |||||||||||
Knowledge Learning Corp., Inc., 144A, 7.750%, 02/01/15 (a)(b) | $ | 5,050,000 | $ | 4,090,500 | |||||||
Marquette Transportation Co./Finance, 10.875%, 01/15/17 | 6,700,000 | 7,085,250 | |||||||||
Mobile Mini, Inc., 7.875%, 12/01/20 | 750,000 | 796,875 | |||||||||
Navios Maritime Acquisition Corp., 8.625%, 11/01/17 | 5,600,000 | 5,236,000 | |||||||||
Sabre, Inc., 144A, 8.500%, 05/15/19 (a)(f) | 1,500,000 | 1,526,250 | |||||||||
Stream Global Services, Inc., 11.250%, 10/01/14 | 6,260,000 | 6,416,500 | |||||||||
Ultrapetrol Bahamas, Ltd., 9.000%, 11/24/14 | 5,310,000 | 4,513,500 | |||||||||
United Maritime LLC/Corp., 11.750%, 06/15/15 | 2,500,000 | 2,743,750 | |||||||||
Urbi Desarrollos Urbanos SAB de CV, 144A, 8.500%, 04/19/16 (a) | 2,500,000 | 2,550,000 | |||||||||
Urbi Desarrollos Urbanos SAB de CV, 144A, 9.750%, 02/03/22 (a) | 1,000,000 | 1,057,500 | |||||||||
Wallace Theater Holdings, Inc., 144A, 12.500%, 06/15/13 (a) | 2,500,000 | 2,365,625 | |||||||||
54,966,777 | |||||||||||
Technology & Electronics: 5.8% | |||||||||||
Advanced Micro Devices, Inc., 5.750%, 08/15/12 | 3,000,000 | 3,022,500 | |||||||||
Epicore Software Corp., 8.625%, 05/01/19 | 6,250,000 | 6,406,250 | |||||||||
Evertec, Inc., 11.000%, 10/01/18 | 6,000,000 | 6,345,000 | |||||||||
MMI International, Ltd., 144A, 8.000%, 03/01/17 (a) | 1,000,000 | 1,035,000 | |||||||||
NetApp, Inc., 1.750%, 06/01/13 | 2,000,000 | 2,295,000 | |||||||||
Syniverse Holdings, Inc., 9.125%, 01/15/19 | 7,013,000 | 7,644,170 | |||||||||
26,747,920 | |||||||||||
Telecommunications: 9.9% | |||||||||||
America Movil SAB de CV, 9.000%, 01/15/16 (b)(d)(MX) | 25,000,000 | 2,059,844 | |||||||||
Axtel SAB de CV, 144A, 9.000%, 09/22/19 (a) | 3,000,000 | 2,010,000 | |||||||||
CenturyLink, Inc., 7.600%, 09/15/39 | 6,000,000 | 5,810,514 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Telecommunications, continued | |||||||||||
Cricket Communications, Inc., 10.000%, 07/15/15 (f) | $ | 2,000,000 | $ | 2,070,000 | |||||||
Digicel, Ltd., 144A, 12.000%, 04/01/14 (a)(f) | 2,000,000 | 2,230,000 | |||||||||
Equinix, Inc., 3.000%, 10/15/14 | 2,000,000 | 3,385,000 | |||||||||
Intelsat Luxembourg SA, 11.250%, 02/04/17 | 6,000,000 | 6,202,500 | |||||||||
InterDigital, Inc., 2.500%, 03/15/16 | 2,000,000 | 1,952,500 | |||||||||
Maxcom Telecomunicacione SA, 11.000%, 12/15/14 | 6,000,000 | 3,600,000 | |||||||||
MetroPCS Wireless, Inc., 7.875%, 09/01/18 | 5,100,000 | 5,316,750 | |||||||||
NII Capital Corp., 8.875%, 12/15/19 | 2,000,000 | 1,822,500 | |||||||||
NII Capital Corp., 7.625%, 04/01/21 | 500,000 | 431,250 | |||||||||
Pacnet, Ltd., 144A, 9.250%, 11/09/15 (a) | 6,745,000 | 6,542,650 | |||||||||
Sable International Finance, Ltd., 144A, 8.750%, 02/01/20 (a)(f) | 200,000 | 215,000 | |||||||||
Windstream Corp., 7.500%, 04/01/23 | 2,000,000 | 2,060,000 | |||||||||
45,708,508 | |||||||||||
Utility: 0.9% | |||||||||||
Atlantic Power Corp., 144A, 9.000%, 11/15/18 (a) | 250,000 | 256,875 | |||||||||
FPL Energy National Wind Portfolio, 144A, 6.125%, 03/25/19 (a)(b) | 439,220 | 436,676 | |||||||||
Intergen NV, 144A, 9.000%, 06/30/17 (a) | 3,000,000 | 2,955,000 | |||||||||
Ormat Funding Corp., 8.250%, 12/30/20 (b) | 528,430 | 487,024 | |||||||||
4,135,575 | |||||||||||
TOTAL CORPORATE BONDS (Cost $421,552,029) | 418,927,142 | ||||||||||
LOANS: 0.2% | |||||||||||
Energy: 0.1% | |||||||||||
EP Energy LLC, 5.711%, 05/24/18 | 250,000 | 253,124 |
SEE NOTES TO FINANCIAL STATEMENTS
57
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
LOANS, continued | |||||||||||
Telecommunications: 0.1% | |||||||||||
Zayo Group, LLC, 7.125%, 07/02/19 | $ | 503,000 | $ | 503,125 | |||||||
TOTAL LOANS (Cost $738,098) | 756,249 | ||||||||||
TOTAL BONDS (Cost $422,290,127) | 419,683,391 | ||||||||||
WARRANTS: 0.0% | |||||||||||
Interactive Health, 04/01/11 (b)(e) | 2,495 | 0 | |||||||||
TOTAL WARRANTS: 0.0% (Cost $0) | 0 | ||||||||||
CERTIFICATES OF DEPOSIT: 0.2% | |||||||||||
One PacificCoast Bank, 1.250%, 05/10/13 | 100,000 | 100,000 | |||||||||
One PacificCoast Bank, 1.100%, 01/21/15 | 200,000 | 200,000 | |||||||||
One PacificCoast Bank, FSB CDARS, 0.200%, 11/24/12 | 100,019 | 100,019 | |||||||||
One PacificCoast Bank, FSB CDARS, 0.490%, 07/05/12 | 200,912 | 200,912 | |||||||||
Self Help Credit Union, 1.050%, 01/04/13 | 100,000 | 100,000 | |||||||||
Urban Partnership Bank, 0.650%, 07/01/12 | 100,564 | 100,564 | |||||||||
Urban Partnership Bank, 0.650%, 08/03/12 | 100,000 | 100,000 | |||||||||
TOTAL CERTIFICATES OF DEPOSIT (Cost $901,495) | 901,495 | ||||||||||
TIME DEPOSIT: 4.7% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/02/12 | 21,843,000 | 21,843,000 | |||||||||
(Cost $21,843,000) | |||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 7.6% | |||||||||||
SSgA Institutional U.S. Government Money Market Fund | 34,942,268 | 34,942,268 | |||||||||
(Cost $34,942,268) |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
TOTAL INVESTMENTS: 106.7% (Cost $497,448,657) | $ | 493,420,107 | |||||||||
PAYABLE UPON RETURN OF SECUTITIES LOANED— (NET): -7.6% | (34,942,268 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 4,289,996 | ||||||||||
(NET): 0.9% | |||||||||||
NET ASSETS: 100.0% | $ | 462,767,835 |
(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 (Note C).
(c) Principal amount is in Euro Dollars; value is in U.S. dollars.
(d) Principal amount is in Mexican pesos; value is in U.S. dollars.
(e) Fair Valued security.
(f) Security or partial position of this security was on loan as of June 30, 2012. The total market value of securities on loan as of June 30, 2012 was $34,314,930 (Note A).
(g) Non-income producing security.
(h) Security or partial position of this security has been segregated by the custodian to cover options contracts.
LP Limited Partnership
MX Mexico
SA South Africa
SCHEDULE OF SECURITIES SHORT SOLD | |||||||||||
COMMON STOCKS: | |||||||||||
Telecommunications: | |||||||||||
InterDigital, Inc. | (5,000 | ) | $ | (147,550 | ) | ||||||
Equinix, Inc. | (16,000 | ) | (2,810,400 | ) | |||||||
TOTAL SECURITIES SOLD SHORT (Cost $2,508,944) | $ | (2,957,950 | ) | ||||||||
SCHEDULE OF WRITTEN OPTIONS | |||||||||||
PUTS: | |||||||||||
AT&T, Inc. expires January 2013, exercise price $22.50 | 1,000 | $ | (16,000 | ) | |||||||
TOTAL WRITTEN PUTS OPTIONS (Premiums Received $176,198) | $ | (16,000 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
58
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Global Women's Equality Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 97.8% | |||||||||||
Consumer Discretionary: 10.8% | |||||||||||
Bayerische Motoren Werke AG | 9,100 | $ | 658,547 | ||||||||
Brown Shoe Co., Inc. | 16,600 | 214,306 | |||||||||
Hennes & Mauritz AB, B Shares | 17,600 | 631,733 | |||||||||
Johnson Controls, Inc. | 15,700 | 435,047 | |||||||||
NIKE, Inc., Class B | 4,100 | 359,898 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 9,300 | 493,272 | |||||||||
Time Warner Cable, Inc. | 7,150 | 587,015 | |||||||||
Vera Bradley, Inc. (a)(b) | 10,000 | 210,800 | |||||||||
3,590,618 | |||||||||||
Consumer Staples: 10.6% | |||||||||||
Coca-Cola Co., The | 5,450 | 426,136 | |||||||||
General Mills, Inc. | 17,250 | 664,815 | |||||||||
Natura Cosmeticos SA | 22,700 | 531,192 | |||||||||
PepsiCo, Inc. | 6,900 | 487,554 | |||||||||
Procter & Gamble Co., The | 8,800 | 539,000 | |||||||||
Reckitt Benckiser Group PLC | 9,400 | 496,856 | |||||||||
Shiseido Co., Ltd. | 25,300 | 399,223 | |||||||||
3,544,776 | |||||||||||
Energy: 12.2% | |||||||||||
Baker Hughes, Inc. | 11,000 | 452,100 | |||||||||
BG Group PLC | 30,400 | 622,333 | |||||||||
Noble Corp. (a) | 15,000 | 487,950 | |||||||||
Sasol Ltd., ADR | 7,300 | 309,885 | |||||||||
Statoil ASA, ADR | 44,800 | 1,068,928 | |||||||||
Suncor Energy, Inc. | 6,800 | 196,860 | |||||||||
Talisman Energy, Inc. | 25,300 | 289,938 | |||||||||
Woodside Petroleum, Ltd. | 19,800 | 634,511 | |||||||||
4,062,505 | |||||||||||
Financials: 18.2% | |||||||||||
American Express Co. | 10,100 | 587,921 | |||||||||
American Tower Corp., REIT | 3,900 | 272,649 | |||||||||
AXA SA | 24,000 | 320,849 | |||||||||
Bank of New York Mellon Corp., The | 30,500 | 669,474 | |||||||||
BlackRock, Inc. | 3,050 | 517,951 | |||||||||
National Australia Bank, Ltd. | 29,600 | 720,984 | |||||||||
PNC Financial Services Group, Inc. | 9,450 | 577,490 | |||||||||
Powszechny Zaklad Ubezpieczen SA | 4,780 | 480,678 | |||||||||
Resona Holdings, Inc. | 110,000 | 453,154 | |||||||||
Royal Bank of Canada (Canadian) | 7,400 | 379,122 | |||||||||
Standard Chartered PLC | 25,500 | 553,936 | |||||||||
Turkiye Halk Bankasi AS | 67,000 | 525,649 | |||||||||
6,059,857 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care: 11.2% | |||||||||||
Allergan, Inc. | 5,000 | $ | 462,850 | ||||||||
Hologic, Inc. (a) | 18,500 | 333,740 | |||||||||
Mylan, Inc. (a) | 18,000 | 384,660 | |||||||||
Pfizer, Inc. | 34,500 | 793,500 | |||||||||
Roche Holding AG | 3,040 | 525,108 | |||||||||
Teva Pharmaceutical Industries, Ltd., ADR | 18,000 | 709,920 | |||||||||
Thermo Fisher Scientific, Inc. | 10,100 | 524,291 | |||||||||
3,734,069 | |||||||||||
Industrials: 10.3% | |||||||||||
3M Co. | 7,750 | 694,399 | |||||||||
Bombardier, Inc., Class B | 116,000 | 458,030 | |||||||||
Emerson Electric Co. | 11,950 | 556,631 | |||||||||
Komatsu, Ltd. | 21,000 | 501,298 | |||||||||
Pentair, Inc. (b) | 10,000 | 382,800 | |||||||||
Timken Co. | 9,250 | 423,558 | |||||||||
Watsco, Inc. | 5,750 | 424,350 | |||||||||
3,441,066 | |||||||||||
Information Technology: 13.7% | |||||||||||
Autodesk, Inc. (a) | 7,950 | 278,171 | |||||||||
EMC Corp. (a) | 15,900 | 407,517 | |||||||||
Google, Inc., Class A (a) | 1,000 | 580,070 | |||||||||
IBM | 2,610 | 510,464 | |||||||||
Intuit, Inc. | 8,300 | 492,605 | |||||||||
MasterCard, Inc., Class A | 1,000 | 430,110 | |||||||||
Microsoft Corp. | 15,300 | 468,027 | |||||||||
Oracle Corp. | 19,000 | 564,299 | |||||||||
Qualcomm, Inc. | 6,400 | 356,352 | |||||||||
Trend Micro, Inc. | 8,900 | 262,197 | |||||||||
Xerox Corp | 28,000 | 220,360 | |||||||||
4,570,172 | |||||||||||
Materials: 5.5% | |||||||||||
Air Products & Chemicals, Inc. | 4,800 | 387,504 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 8,400 | 366,996 | |||||||||
Rio Tinto PLC, ADR (b) | 12,500 | 597,625 | |||||||||
Syngenta AG, ADR | 7,200 | 492,768 | |||||||||
1,844,893 | |||||||||||
Telecommunication Services: 3.4% | |||||||||||
Deutsche Telekom AG | 39,400 | 431,801 | |||||||||
Telefonica SA, ADR | 26,000 | 340,600 | |||||||||
Vodafone Group PLC, ADR | 12,800 | 360,704 | |||||||||
1,133,105 | |||||||||||
Utilities: 1.9% | |||||||||||
Fortum Oyj | 33,800 | 641,876 | |||||||||
TOTAL COMMON STOCKS (Cost $33,133,949) | 32,622,937 |
SEE NOTES TO FINANCIAL STATEMENTS
59
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Global Women's Equality Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
EXCHANGE TRADED FUNDS: 2.3% | |||||||||||
iShares Silver Trust (a)(b) | 6,500 | $ | 173,225 | ||||||||
SPDR Gold Shares (a) | 3,900 | 605,241 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $524,866) | 778,466 | ||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 3.7% | |||||||||||
SSgA Institutional U.S. Government Money Market Fund | 1,224,263 | 1,244,263 | |||||||||
(Cost $1,224,263) | |||||||||||
TOTAL INVESTMENTS: 103.8% (Cost $34,901,078) | 34,625,666 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -3.7% | (1,224,263 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | (23,330 | ) | |||||||||
(NET): -0.1% | |||||||||||
NET ASSETS: 100.0% | $ | 33,378,073 |
(a) Non-income producing security.
(b) Security or partial position of this security was on loan as of June 30, 2012. The total market value of securities on loan as of June 30, 2012 was $1,245,114 (Note A).
ADR American Depository Receipt
REIT Real Estate Investment Trust
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
SUMMARY OF INVESTMENTS BY COUNTRY | |||||||||||
Country | Value | Percent of Net Assets | |||||||||
Australia | $ | 1,355,495 | 4.1 | % | |||||||
Brazil | 531,192 | 1.6 | % | ||||||||
Canada | 1,690,946 | 5.1 | % | ||||||||
Finland | 641,876 | 1.9 | % | ||||||||
France | 320,849 | 1.0 | % | ||||||||
Germany | 1,090,348 | 3.3 | % | ||||||||
Israel | 709,920 | 2.1 | % | ||||||||
Japan | 1,615,872 | 4.8 | % | ||||||||
Norway | 1,068,928 | 3.2 | % | ||||||||
Poland | 480,678 | 1.4 | % | ||||||||
South Africa | 309,885 | 0.9 | % | ||||||||
Spain | 340,600 | 1.0 | % | ||||||||
Sweden | 631,733 | 1.9 | % | ||||||||
Switzerland | 1,505,826 | 4.5 | % | ||||||||
Turkey | 525,649 | 1.6 | % | ||||||||
United Kingdom | 2,631,453 | 7.9 | % | ||||||||
United States | 17,171,687 | 51.5 | % | ||||||||
Exchange Traded Funds | 778,466 | 2.3 | % | ||||||||
Other assets and liabilities - (Net):-0.1% | (23,330 | ) | -0.1 | % | |||||||
Total | $ | 33,378,073 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
60
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Global Environmental Markets Fund
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 97.7% | |||||||||||
RENEWABLE & ALTERNATIVE ENERGY: 4.3% | |||||||||||
Other Renewables Equipment: 1.5% | |||||||||||
Daiseki Co., Ltd. | 40,500 | $ | 704,156 | ||||||||
Renewable Energy Developers & Independent Power Producers (IPPs): 1.8% | |||||||||||
China Longyuan Power Group Corp. | 1,266,600 | 836,436 | |||||||||
Biofuels: 1.0% | |||||||||||
Abengoa SA | 35,889 | 475,593 | |||||||||
ENERGY EFFICIENCY: 32.5% | |||||||||||
Power Network Efficiency: 7.0% | |||||||||||
Cooper Industries PLC | 7,200 | 490,896 | |||||||||
Emerson Electric Co. | 33,200 | 1,546,456 | |||||||||
Itron, Inc. (a) | 28,285 | 1,166,473 | |||||||||
3,203,825 | |||||||||||
Industrial Energy Efficiency: 10.5% | |||||||||||
Delta Electronics, Inc. | 248,004 | 761,274 | |||||||||
GEA Group AG | 59,575 | 1,587,844 | |||||||||
Infineon Technologies AG | 157,783 | 1,067,907 | |||||||||
Murata Manufacturing Co., Ltd. | 17,200 | 904,730 | |||||||||
Rogers Corp. (a) | 11,100 | 439,671 | |||||||||
4,761,426 | |||||||||||
Buildings Energy Efficiency: 10.4% | |||||||||||
Epistar Corp. | 384,000 | 853,553 | |||||||||
Johnson Controls, Inc. | 58,100 | 1,609,951 | |||||||||
Kingspan Group PLC | 91,274 | 740,718 | |||||||||
Legrand SA | 44,871 | 1,522,937 | |||||||||
4,727,159 | |||||||||||
Diversified Energy Efficiency: 4.6% | |||||||||||
IMI PLC | 90,786 | 1,186,036 | |||||||||
Invensys PLC | 259,355 | 903,917 | |||||||||
2,089,953 | |||||||||||
WATER INFRASTRUCTURE & TECHNOLOGIES: 24.4% | |||||||||||
Water Infrastructure: 11.7% | |||||||||||
IDEX Corp. | 35,050 | 1,366,249 | |||||||||
Pentair, Inc. | 14,650 | 560,802 | |||||||||
Roper Industries, Inc. | 6,900 | 680,202 | |||||||||
Watts Water Technologies, Inc., Class A | 40,000 | 1,333,600 | |||||||||
Xylem, Inc. | 54,600 | 1,374,282 | |||||||||
5,315,135 |
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
WATER INFRASTRUCTURE & TECHNOLOGIES, continued | |||||||||||
Water Treatment Equipment: 6.3% | |||||||||||
Kemira Oyj | 62,300 | $ | 730,465 | ||||||||
Kurita Water Industries, Ltd. | 30,450 | 704,338 | |||||||||
Pall Corp. | 26,500 | 1,452,465 | |||||||||
2,887,268 | |||||||||||
Water Utilities: 6.4% | |||||||||||
American Water Works Co., Inc. | 39,100 | 1,340,348 | |||||||||
Manila Water Co., Inc. | 808,400 | 470,826 | |||||||||
Veolia Environnement SA | 85,313 | 1,080,332 | |||||||||
2,891,506 | |||||||||||
POLLUTION CONTROL: 16.4% | |||||||||||
Pollution Control Solutions: 6.5% | |||||||||||
ENN Energy Holdings, Ltd. (a) | 409,500 | 1,448,209 | |||||||||
SMC Corp./Japan | 4,100 | 710,849 | |||||||||
Umicore SA | 17,050 | 788,308 | |||||||||
2,947,366 | |||||||||||
Environmental Testing & Gas Sensing: 9.9% | |||||||||||
Agilent Technologies, Inc. | 27,000 | 1,059,480 | |||||||||
Campbell Brothers, Ltd. | 12,815 | 718,432 | |||||||||
Ecolab, Inc. | 16,500 | 1,130,745 | |||||||||
Horiba, Ltd. | 13,200 | 463,582 | |||||||||
Thermo Fisher Scientific, Inc. | 21,700 | 1,126,446 | |||||||||
4,498,685 | |||||||||||
WASTE MANAGEMENT & TECHNOLOGIES: 10.2% | |||||||||||
Waste Technology Equipment: 3.6% | |||||||||||
China Everbright International, Ltd. | 3,410,200 | 1,626,727 | |||||||||
Hazardous Waste Management: 2.7% | |||||||||||
Stericycle, Inc. (a) | 13,550 | 1,242,129 | |||||||||
General Waste Management: 3.9% | |||||||||||
Pennon Group PLC | 117,936 | 1,411,706 | |||||||||
Shanks Group PLC | 314,658 | 376,676 | |||||||||
1,788,382 | |||||||||||
DIVERSIFIED ENVIRONMENTAL: 9.9% | |||||||||||
Diversified Environmental: 9.9% | |||||||||||
3M Co. | 7,700 | 689,920 | |||||||||
Air Products & Chemicals, Inc. | 20,300 | 1,638,819 |
SEE NOTES TO FINANCIAL STATEMENTS
61
June 30, 2012
Schedule of Investments (Unaudited), continued
Pax World Global Environmental Markets Fund, continued
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
DIVERSIFIED ENVIRONMENTAL, continued | |||||||||||
Diversified Environmental, continued | |||||||||||
Linde AG | 8,485 | $ | 1,321,459 | ||||||||
Yingde Gases Group Co. | 942,600 | 862,695 | |||||||||
4,512,893 | |||||||||||
TOTAL COMMON STOCKS (Cost $42,588,471) | 44,508,639 | ||||||||||
REPURCHASE AGREEMENT: 2.8% | |||||||||||
State Street Repo (collateralized by United States Treasury Note, 2.625%, due 12/31/14, principal amount $1,220,000; market value $1,303,875) | |||||||||||
TOTAL REPURCHASE AGREEMENT (Cost $1,274,000) | $ | 1,274,000 | 1,274,000 | ||||||||
TOTAL INVESTMENTS: 100.5% (Cost $43,862,471) | 45,782,639 | ||||||||||
OTHER ASSETS AND LIABILITIES— | (248,288 | ) | |||||||||
(Net): -0.5% | |||||||||||
NET ASSETS: 100.0% | $ | 45,534,351 |
(a) Non-income producing security.
Percent of Net Assets, Name of Issuer and Title of Issuer | Shares/ Principal/ Contracts | Value | |||||||||
SUMMARY OF INVESTMENTS BY COUNTRY | |||||||||||
Country | Value | Percent of Net Assets | |||||||||
Australia | $ | 718,432 | 1.6 | % | |||||||
Belgium | 788,308 | 1.7 | % | ||||||||
China | 2,284,645 | 5.0 | % | ||||||||
Finland | 730,465 | 1.6 | % | ||||||||
France | 2,603,269 | 5.7 | % | ||||||||
Germany | 3,977,210 | 8.7 | % | ||||||||
Hong Kong | 2,489,423 | 5.5 | % | ||||||||
Ireland | 740,718 | 1.6 | % | ||||||||
Japan | 3,487,653 | 7.7 | % | ||||||||
Philippines | 470,826 | 1.0 | % | ||||||||
Spain | 475,593 | 1.0 | % | ||||||||
Taiwan | 1,614,827 | 3.6 | % | ||||||||
United Kingdom | 3,878,335 | 8.5 | % | ||||||||
United States | 20,248,935 | 44.5 | % | ||||||||
Repurchase Agreement | 1,274,000 | 2.8 | % | ||||||||
Other assets and liabilities - (Net) | (248,288 | ) | -0.5 | % | |||||||
TOTAL | $ | 45,534,351 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
62
THIS PAGE INTENTIONALLY LEFT BLANK
June 30, 2012
Statements of Assets and Liabilities (Unaudited)
Balanced Fund | Growth Fund | Small Cap Fund | International Fund | ||||||||||||||||
Assets | |||||||||||||||||||
Investments, at cost—Note A | $ | 1,610,474,944 | $ | 109,497,799 | $ | 16,463,521 | $ | 45,259,671 | |||||||||||
Investments in unaffiliated issuers, at value—Note A1 | $ | 1,830,391,170 | $ | 128,158,359 | $ | 15,812,279 | $ | 41,977,619 | |||||||||||
Cash | 2,277,490 | 21,831 | 19,729 | — | |||||||||||||||
Foreign currency at value (cost—$49,751; $16,275 $21,071; respectively) | 49,446 | — | — | 16,175 | |||||||||||||||
Prepaid Expenses | 78,627 | 6,369 | 12,542 | 12,093 | |||||||||||||||
Receivables: | |||||||||||||||||||
Capital Stock Sold | 354,831 | 129,964 | 13,070 | 51,110 | |||||||||||||||
Dividends and interest—Note B | 7,268,657 | 183,544 | 12,481 | 121,510 | |||||||||||||||
Investment securities sold | 1,041,502 | 127,747 | — | — | |||||||||||||||
Investment Adviser Reimbursement | — | 5,623 | 3,858 | 3,685 | |||||||||||||||
Other | 10,707 | 32,651 | — | 32,987 | |||||||||||||||
Total Assets | 1,841,472,430 | 128,666,088 | 15,873,959 | 42,215,179 | |||||||||||||||
Liabilities | |||||||||||||||||||
Collateral on securities loaned, at value | 33,015,157 | 3,848,325 | — | — | |||||||||||||||
Payables: | |||||||||||||||||||
Capital Stock Reacquired | 700,174 | 32,980 | 36,367 | 22,909 | |||||||||||||||
Options written, at value (premiums received $1,405,872; $72,489 and $176,198; respectively) | 1,719,650 | 72,650 | — | — | |||||||||||||||
Securities sold short (cost $2,508,944) | — | — | — | — | |||||||||||||||
Investment securities purchased | 4,905,155 | 431,723 | 205,915 | — | |||||||||||||||
Dividend payable—Note A | — | — | — | — | |||||||||||||||
Payable to bank | — | — | — | 124,542 | |||||||||||||||
Accrued expenses: | |||||||||||||||||||
Investment advisory fees—Note B | 729,044 | 74,366 | 9,257 | 27,947 | |||||||||||||||
Distribution expense | 350,078 | 23,879 | 3,037 | 6,568 | |||||||||||||||
Compliance expense | — | 2,280 | 2,482 | 2,482 | |||||||||||||||
Transfer agent fees | 358,711 | 16,728 | — | — | |||||||||||||||
Printing and other shareholder communication fees | 34,975 | 2,261 | — | — | |||||||||||||||
Custodian fees | 24,094 | 1,644 | — | — | |||||||||||||||
Legal and audit fees | 50,366 | 25,884 | 12,588 | 16,058 | |||||||||||||||
Other accrued expenses | 18,918 | 14,984 | 12,248 | 16,997 | |||||||||||||||
Total Liabilities | 41,906,322 | 4,547,704 | 281,894 | 217,503 | |||||||||||||||
Net Assets | $ | 1,799,566,108 | $ | 124,118,384 | $ | 15,592,065 | $ | 41,997,676 |
1Investments in unaffiliated issuers at market value include securities loaned. At June 30, 2012, the Balanced Fund, Growth Fund, High Yield Bond Fund and Global Women's Equality Fund had a total market value of securities on loan of $53,630,485; $6,488,175; $34,314,930; and $1,245,114, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
64
June 30, 2012
High Yield Bond Fund | Global Women's Equality Fund | Global Environmental Markets Fund | |||||||||||||
Assets | |||||||||||||||
Investments, at cost—Note A | $ | 497,448,607 | $ | 34,901,078 | $ | 43,862,471 | |||||||||
Investments in unaffiliated issuers, at value—Note A1 | $ | 493,420,107 | $ | 34,625,666 | $ | 45,782,639 | |||||||||
Cash | 3,069,321 | — | 25,495 | ||||||||||||
Foreign currency at value (cost—$49,751; $16,275 $21,071; respectively) | — | — | 20,942 | ||||||||||||
Prepaid Expenses | 36,402 | 4,971 | 6,525 | ||||||||||||
Receivables: | |||||||||||||||
Capital Stock Sold | 1,127,540 | 1,338 | 37,038 | ||||||||||||
Dividends and interest—Note B | 9,475,272 | 80,864 | 104,981 | ||||||||||||
Investment securities sold | 598,563 | — | 464,022 | ||||||||||||
Investment Adviser Reimbursement | — | 4,406 | 4,585 | ||||||||||||
Other | 15,227 | 27,198 | 5,541 | ||||||||||||
Total Assets | 507,742,432 | 34,744,443 | 46,451,768 | ||||||||||||
Liabilities | |||||||||||||||
Collateral on securities loaned, at value | 34,942,268 | 1,224,263 | — | ||||||||||||
Payables: | |||||||||||||||
Capital Stock Reacquired | 3,084,994 | 21,941 | 34,087 | ||||||||||||
Options written, at value (premiums received $1,405,872; $72,489 and $176,198; respectively) | 16,000 | — | — | ||||||||||||
Securities sold short (cost $2,508,944) | 2,957,950 | — | — | ||||||||||||
Investment securities purchased | 2,792,534 | — | 812,343 | ||||||||||||
Dividend payable—Note A | 848,498 | — | — | ||||||||||||
Payable to bank | — | 55,779 | — | ||||||||||||
Accrued expenses: | |||||||||||||||
Investment advisory fees—Note B | 187,661 | 19,850 | 32,710 | ||||||||||||
Distribution expense | 58,239 | 11,289 | 8,392 | ||||||||||||
Compliance expense | 2,113 | 2,437 | 2,482 | ||||||||||||
Transfer agent fees | 33,631 | 3,314 | — | ||||||||||||
Printing and other shareholder communication fees | — | — | — | ||||||||||||
Custodian fees | — | 1,013 | 206 | ||||||||||||
Legal and audit fees | 30,468 | 12,843 | 13,835 | ||||||||||||
Other accrued expenses | 20,241 | 13,641 | 13,362 | ||||||||||||
Total Liabilities | 44,974,597 | 1,366,370 | 917,417 | ||||||||||||
Net Assets | $ | 462,767,835 | $ | 33,378,073 | $ | 45,534,351 |
SEE NOTES TO FINANCIAL STATEMENTS
65
June 30, 2012
Statements of Assets and Liabilities (Unaudited), continued
Balanced Fund | Growth Fund | Small Cap Fund | International Fund | ||||||||||||||||
Net Assets Represented By | |||||||||||||||||||
Paid in Capital | $ | 1,610,569,029 | $ | 109,511,824 | $ | 16,184,399 | $ | 48,120,729 | |||||||||||
Undistributed (distributions in excess of) net investment income | 1,489,294 | 303,032 | 39,620 | 36,596 | |||||||||||||||
Accumulated net realized gain (loss) | (32,074,375 | ) | (4,356,271 | ) | 19,288 | (2,879,456 | ) | ||||||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments | 219,602,447 | 18,660,399 | (651,242 | ) | (3,282,052 | ) | |||||||||||||
Foreign currency translation | (20,287 | ) | (600 | ) | — | 1,859 | |||||||||||||
Net Assets | $ | 1,799,566,108 | $ | 124,118,384 | $ | 15,592,065 | $ | 41,997,676 | |||||||||||
Individual Investor Class | |||||||||||||||||||
Net assets | $ | 1,667,691,772 | $ | 116,521,366 | $ | 14,839,634 | $ | 32,826,991 | |||||||||||
Capital Shares Outstanding | 74,122,725 | 9,301,473 | 1,518,655 | 4,444,230 | |||||||||||||||
Net asset value per share | $ | 22.50 | $ | 12.53 | $ | 9.77 | $ | 7.39 | |||||||||||
Institutional Class | |||||||||||||||||||
Net assets | $ | 128,904,877 | $ | 7,117,698 | $ | 676,058 | $ | 8,850,401 | |||||||||||
Capital Shares Outstanding | 5,677,952 | 556,826 | 68,861 | 1,194,507 | |||||||||||||||
Net asset value per share | $ | 22.70 | $ | 12.78 | $ | 9.82 | $ | 7.41 | |||||||||||
R Share Class | |||||||||||||||||||
Net assets | $ | 2,969,459 | $ | 479,320 | $ | 76,373 | $ | 320,284 | |||||||||||
Capital Shares Outstanding | 131,251 | 38,330 | 7,860 | 43,533 | |||||||||||||||
Net asset value per share | $ | 22.62 | $ | 12.50 | $ | 9.72 | $ | 7.36 |
SEE NOTES TO FINANCIAL STATEMENTS
66
June 30, 2012
High Yield Bond Fund | Global Women's Equality Fund | Global Environmental Markets Fund | |||||||||||||
Net Assets Represented By | |||||||||||||||
Paid in Capital | $ | 464,677,961 | $ | 36,546,189 | $ | 45,010,530 | |||||||||
Undistributed (distributions in excess of) net investment income | (171,641 | ) | 5,388 | (128,785 | ) | ||||||||||
Accumulated net realized gain (loss) | 2,583,783 | (2,899,145 | ) | (1,266,389 | ) | ||||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||
Investments | (4,317,308 | ) | (275,412 | ) | 1,920,168 | ||||||||||
Foreign currency translation | (4,960 | ) | 1,053 | (1,173 | ) | ||||||||||
Net Assets | $ | 462,767,835 | $ | 33,378,073 | $ | 45,534,351 | |||||||||
Individual Investor Class | |||||||||||||||
Net assets | $ | 299,358,089 | $ | 31,969,958 | $ | 39,108,001 | |||||||||
Capital Shares Outstanding | 40,811,452 | 1,959,269 | 4,441,722 | ||||||||||||
Net asset value per share | $ | 7.34 | $ | 16.32 | $ | 8.80 | |||||||||
Institutional Class | |||||||||||||||
Net assets | $ | 162,500,132 | $ | 1,408,115 | $ | 5,303,968 | |||||||||
Capital Shares Outstanding | 22,238,582 | 86,100 | 599,895 | ||||||||||||
Net asset value per share | $ | 7.31 | $ | 16.35 | $ | 8.84 | |||||||||
R Share Class | |||||||||||||||
Net assets | $ | 909,614 | $ | 1,122,382 | |||||||||||
Capital Shares Outstanding | 124,093 | 128,273 | |||||||||||||
Net asset value per share | $ | 7.33 | $ | 8.75 |
SEE NOTES TO FINANCIAL STATEMENTS
67
Six-Months Ended June 30, 2012
Statements of Operations (Unaudited)
Balanced Fund | Growth Fund | Small Cap Fund | International Fund | ||||||||||||||||
Investment Income | |||||||||||||||||||
Income | |||||||||||||||||||
Dividends (net of foreign withholding tax of $607,612; $52,092; $0; $108,200; $0; $45,403; and $36,422; respectively) | $ | 13,695,688 | $ | 1,080,574 | $ | 131,008 | $ | 952,264 | |||||||||||
Interest | 9,520,470 | 169 | 51 | 14 | |||||||||||||||
Income from securities lending—Note A | 214,231 | 33,211 | — | — | |||||||||||||||
Other income | 424 | — | — | — | |||||||||||||||
Total Income | 23,430,813 | 1,113,954 | 131,059 | 952,278 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees—Note B | 4,639,729 | 474,488 | 56,609 | 172,852 | |||||||||||||||
Distribution expenses—Individual Investor (Note B) | 2,142,806 | 149,728 | 17,913 | 40,315 | |||||||||||||||
Distribution expenses—R (Note B) | 7,175 | 1,176 | 161 | 602 | |||||||||||||||
Transfer agent fees—Note A | 1,197,516 | 160,588 | 27,544 | 35,497 | |||||||||||||||
Printing and other shareholder communication fees | 97,975 | 18,839 | 3,472 | 5,367 | |||||||||||||||
Custodian fees | 177,152 | 15,687 | 4,366 | 23,904 | |||||||||||||||
Legal fees and related expenses | 53,570 | 8,337 | 5,524 | 6,115 | |||||||||||||||
Trustees' fees and expenses | 64,615 | 6,372 | 8,002 | 8,805 | |||||||||||||||
Compliance expense | 17,546 | 5,747 | 4,969 | 4,977 | |||||||||||||||
Audit fees | 36,554 | 23,639 | 11,086 | 14,480 | |||||||||||||||
Registration fees | 30,051 | 25,498 | 20,761 | 27,164 | |||||||||||||||
Other expenses | 76,143 | 6,039 | 1,272 | 2,617 | |||||||||||||||
Total Expenses | 8,540,832 | 896,138 | 161,679 | 342,695 | |||||||||||||||
Less: Fees paid indirectly—Note E | (166 | ) | (4 | ) | (1 | ) | — | ||||||||||||
Expenses assumed by Advisor—Note B | — | (87,274 | ) | (68,880 | ) | (67,919 | ) | ||||||||||||
Net expenses | 8,540,666 | 808,860 | 92,798 | 274,776 | |||||||||||||||
Net investment income (loss) | 14,890,147 | 305,094 | 38,261 | 677,502 | |||||||||||||||
Realized and Unrealized Gain (Loss)—Notes A and C | |||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments (including premium on options exercised) | 20,620,109 | 4,585,171 | 67,586 | (1,969,260 | ) | ||||||||||||||
Option contracts written | 97,055 | — | — | — | |||||||||||||||
Foreign currency transactions | (33,662 | ) | (3,400 | ) | — | (16,744 | ) | ||||||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments | 52,212,220 | 631,995 | 419,724 | 1,298,195 | |||||||||||||||
Option contracts written | (159,071 | ) | (161 | ) | — | — | |||||||||||||
Foreign currency translation | (8,080 | ) | (957 | ) | — | 1,407 | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 72,728,571 | 5,212,648 | 487,310 | (686,402 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 87,618,718 | $ | 5,517,742 | $ | 525,571 | $ | (8,900 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
68
Six-Months Ended June 30, 2012
High Yield Bond Fund | Global Women's Equality Fund | Global Environmental Markets Fund | |||||||||||||
Investment Income | |||||||||||||||
Income | |||||||||||||||
Dividends (net of foreign withholding tax of $607,612; $52,092; $0; $108,200; $0; $45,403; and $36,422; respectively) | $ | 610,340 | $ | 544,623 | $ | 547,571 | |||||||||
Interest | 19,110,558 | 8 | 53 | ||||||||||||
Income from securities lending—Note A | 110,434 | 9,272 | — | ||||||||||||
Other income | — | — | — | ||||||||||||
Total Income | 19,831,332 | 553,903 | 547,624 | ||||||||||||
Expenses | |||||||||||||||
Investment advisory fees—Note B | 1,174,991 | 131,190 | 193,894 | ||||||||||||
Distribution expenses—Individual Investor (Note B) | 385,273 | 41,007 | 47,597 | ||||||||||||
Distribution expenses—R (Note B) | 1,791 | — | 2,299 | ||||||||||||
Transfer agent fees—Note A | 278,338 | 44,916 | 51,814 | ||||||||||||
Printing and other shareholder communication fees | 40,008 | 8,581 | 6,749 | ||||||||||||
Custodian fees | 50,489 | 13,925 | 19,517 | ||||||||||||
Legal fees and related expenses | 16,540 | 6,136 | 6,138 | ||||||||||||
Trustees' fees and expenses | 19,044 | 8,745 | 8,913 | ||||||||||||
Compliance expense | 7,615 | 5,215 | 4,977 | ||||||||||||
Audit fees | 27,032 | 11,086 | 12,316 | ||||||||||||
Registration fees | 34,668 | 19,640 | 26,215 | ||||||||||||
Other expenses | 22,845 | 1,455 | 2,515 | ||||||||||||
Total Expenses | 2,058,634 | 291,896 | 382,944 | ||||||||||||
Less: Fees paid indirectly—Note E | (117 | ) | — | (1 | ) | ||||||||||
Expenses assumed by Advisor—Note B | — | (77,744 | ) | (85,293 | ) | ||||||||||
Net expenses | 2,058,517 | 214,152 | 297,650 | ||||||||||||
Net investment income (loss) | 17,772,815 | 339,751 | 249,974 | ||||||||||||
Realized and Unrealized Gain (Loss)—Notes A and C | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments (including premium on options exercised) | 4,565,078 | (344,307 | ) | (587,543 | ) | ||||||||||
Option contracts written | — | — | — | ||||||||||||
Foreign currency transactions | (8,082 | ) | (10,564 | ) | (6,896 | ) | |||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||
Investments | 3,735,889 | 1,498,474 | 1,833,536 | ||||||||||||
Option contracts written | 69,000 | — | — | ||||||||||||
Foreign currency translation | 9,643 | 1,484 | (621 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 8,371,528 | 1,145,087 | 1,238,476 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 26,144,343 | $ | 1,484,838 | $ | 1,488,450 |
SEE NOTES TO FINANCIAL STATEMENTS
69
Statements of Changes in Net Assets
Balanced Fund | Growth Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | (Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 14,890,147 | $ | 29,479,478 | $ | 305,094 | $ | 60,715 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 20,683,502 | 113,950,363 | 4,581,771 | 5,984,586 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 52,045,069 | (174,162,481 | ) | 630,877 | (9,115,741 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 87,618,718 | (30,732,640 | ) | 5,517,742 | (3,070,440 | ) | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (15,819,063 | ) | (22,939,061 | ) | — | — | |||||||||||||
Institutional Class | (1,361,606 | ) | (1,817,242 | ) | — | — | |||||||||||||
R Class | (24,836 | ) | (30,145 | ) | — | — | |||||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | — | — | — | — | |||||||||||||||
Institutional Class | — | — | — | — | |||||||||||||||
R Class | — | — | — | — | |||||||||||||||
Total distributions to shareholders | (17,205,505 | ) | (24,786,448 | ) | — | — | |||||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 45,159,289 | 111,076,277 | 12,108,921 | 26,879,153 | |||||||||||||||
Proceeds from reinvestment of distributions | 14,981,007 | 21,834,562 | — | — | |||||||||||||||
Cost of shares redeemed | (127,948,769 | ) | (284,638,096 | ) | (12,977,291 | ) | (23,364,765 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | (67,808,473 | ) | (151,727,257 | ) | (868,370 | ) | 3,514,388 | ||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 24,039,201 | 39,211,268 | 2,395,229 | 2,261,364 | |||||||||||||||
Proceeds from reinvestment of distributions | 1,323,569 | 1,766,114 | — | — | |||||||||||||||
Cost of shares redeemed | (16,844,490 | ) | (30,957,038 | ) | (313,659 | ) | (430,705 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 8,518,280 | 10,020,344 | 2,081,570 | 1,830,659 | |||||||||||||||
R Class | |||||||||||||||||||
Proceeds from shares sold | 747,430 | 873,247 | 47,237 | 501,869 | |||||||||||||||
Proceeds from reinvestment of distributions | 24,836 | 30,145 | — | — | |||||||||||||||
Cost of shares redeemed | (685,348 | ) | (675,103 | ) | (5,654 | ) | (116,471 | ) | |||||||||||
Net increase from R Class transactions | 86,918 | 228,289 | 41,583 | 385,398 | |||||||||||||||
Net increase (decrease) from capital share transactions | (59,203,275 | ) | (141,478,624 | ) | 1,254,783 | 5,730,445 | |||||||||||||
Net increase (decrease) in net assets | 11,209,938 | (196,997,712 | ) | 6,772,525 | 2,660,005 | ||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 1,788,356,170 | 1,985,353,882 | 117,345,859 | 114,685,854 | |||||||||||||||
End of period (1) | $ | 1,799,566,108 | $ | 1,788,356,170 | $ | 124,118,384 | $ | 117,345,859 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | 1,489,294 | $ | 3,804,651 | $ | 303,032 | $ | (2,062 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
70
Small Cap Fund | International Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | (Unaudited) Period End 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 38,261 | $ | 54,521 | $ | 677,502 | $ | 733,143 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 67,586 | 1,252,818 | (1,986,004 | ) | (796,917 | ) | |||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 419,724 | (1,889,554 | ) | 1,299,602 | (7,136,692 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 525,571 | (582,215 | ) | (8,900 | ) | (7,200,466 | ) | ||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | — | (119,152 | ) | (489,705 | ) | (473,796 | ) | ||||||||||||
Institutional Class | — | (6,971 | ) | (142,160 | ) | (133,233 | ) | ||||||||||||
R Class | — | (209 | ) | (4,584 | ) | (2,422 | ) | ||||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (363,756 | ) | (1,179,696 | ) | — | (45,574 | ) | ||||||||||||
Institutional Class | (16,430 | ) | (60,255 | ) | — | (11,577 | ) | ||||||||||||
R Class | (1,885 | ) | (5,034 | ) | — | (259 | ) | ||||||||||||
Total distributions to shareholders | (382,071 | ) | (1,371,317 | ) | (636,449 | ) | (666,861 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 2,467,259 | 8,158,670 | 10,048,184 | 17,060,784 | |||||||||||||||
Proceeds from reinvestment of distributions | 323,912 | 1,191,670 | 429,813 | 456,841 | |||||||||||||||
Cost of shares redeemed | (1,378,561 | ) | (3,426,304 | ) | (4,860,222 | ) | (6,930,471 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | 1,412,610 | 5,924,036 | 5,617,775 | 10,587,154 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 143,106 | 596,347 | 3,606,823 | 4,035,864 | |||||||||||||||
Proceeds from reinvestment of distributions | 3,812 | 16,187 | 102,128 | 97,250 | |||||||||||||||
Cost of shares redeemed | (106,020 | ) | (152,219 | ) | (827,046 | ) | (2,883,870 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 40,898 | 460,315 | 2,881,905 | 1,249,244 | |||||||||||||||
R Class | |||||||||||||||||||
Proceeds from shares sold | 31,994 | 78,447 | 154,647 | 90,562 | |||||||||||||||
Proceeds from reinvestment of distributions | 1,884 | 5,244 | 4,523 | 2,614 | |||||||||||||||
Cost of shares redeemed | (1,814 | ) | (42,074 | ) | (7,451 | ) | (9,689 | ) | |||||||||||
Net increase from R Class transactions | 32,064 | 41,617 | 151,719 | 83,487 | |||||||||||||||
Net increase (decrease) from capital share transactions | 1,485,572 | 6,425,968 | 8,651,399 | 11,919,885 | |||||||||||||||
Net increase (decrease) in net assets | 1,629,072 | 4,472,436 | 8,006,050 | 4,052,558 | |||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 13,962,993 | 9,490,557 | 33,991,626 | 29,939,068 | |||||||||||||||
End of period (1) | $ | 15,592,065 | $ | 13,962,993 | $ | 41,997,676 | $ | 33,991,626 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | 39,620 | $ | — | $ | 36,596 | $ | (4,457 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
71
Statements of Changes in Net Assets, continued
High Yield Bond Fund | Global Women's Equality Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | (Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 17,772,815 | $ | 33,375,931 | $ | 339,751 | $ | 474,195 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 4,556,996 | 2,292,576 | (354,871 | ) | 1,637,214 | ||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 3,814,532 | (26,992,006 | ) | 1,499,958 | (5,714,557 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 26,144,343 | 8,676,501 | 1,484,838 | (3,603,148 | ) | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (14,781,337 | ) | (22,129,221 | ) | (337,648 | ) | (396,939 | ) | |||||||||||
Institutional Class | (2,965,213 | ) | (11,489,017 | ) | (16,475 | ) | (24,923 | ) | |||||||||||
R Class | (9,526 | ) | (20,158 | ) | |||||||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | — | (4,699,316 | ) | — | — | ||||||||||||||
Institutional Class | — | (2,526,411 | ) | — | — | ||||||||||||||
R Class | — | (5,759 | ) | ||||||||||||||||
Total distributions to shareholders | (17,756,076 | ) | (40,869,882 | ) | (354,123 | ) | (421,862 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 72,336,897 | 146,368,763 | 5,161,017 | 7,745,020 | |||||||||||||||
Proceeds from reinvestment of distributions | 8,263,909 | 20,378,755 | 303,780 | 353,731 | |||||||||||||||
Cost of shares redeemed | (82,425,724 | ) | (147,285,259 | ) | (7,443,702 | ) | (6,495,352 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | (1,824,918 | ) | 19,462,259 | (1,978,905 | ) | 1,603,399 | |||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 40,832,540 | 83,572,799 | 105,424 | 633,763 | |||||||||||||||
Proceeds from reinvestment of distributions | 4,068,745 | 9,462,237 | 10,676 | 31,371 | |||||||||||||||
Cost of shares redeemed | (32,007,228 | ) | (53,528,085 | ) | (1,643,261 | ) | (131,972 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 12,894,057 | 39,506,951 | (1,527,161 | ) | 533,162 | ||||||||||||||
R Class | |||||||||||||||||||
Proceeds from shares sold | 690,277 | 490,966 | |||||||||||||||||
Proceeds from reinvestment of distributions | 26,121 | 25,511 | |||||||||||||||||
Cost of shares redeemed | (263,809 | ) | (254,777 | ) | |||||||||||||||
Net increase from R Class transactions | 452,589 | 261,700 | |||||||||||||||||
Net increase (decrease) from capital share transactions | 11,521,728 | 59,230,910 | (3,506,066 | ) | 2,136,561 | ||||||||||||||
Net increase (decrease) in net assets | 19,909,995 | 27,037,529 | (2,375,351 | ) | (1,888,449 | ) | |||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 442,857,840 | 415,820,311 | 35,753,424 | 37,641,873 | |||||||||||||||
End of period (1) | $ | 462,767,835 | $ | 442,857,840 | $ | 33,378,073 | $ | 35,753,424 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | (171,641 | ) | $ | (188,380 | ) | $ | 5,388 | $ | 19,761 |
SEE NOTES TO FINANCIAL STATEMENTS
72
Global Environmental Markets Fund | |||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||
Increase (Decrease) in Net Assets | |||||||||||
Operations | |||||||||||
Investment income (loss), net | $ | 249,974 | $ | 160,394 | |||||||
Net realized gain (loss) on investments and foreign currency transactions | (594,439 | ) | 1,130,835 | ||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 1,832,915 | (5,466,175 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | 1,488,450 | (4,174,946 | ) | ||||||||
Distributions to shareholders from: | |||||||||||
Net investment income | |||||||||||
Individual Investor Class | (222,514 | ) | — | ||||||||
Institutional Class | (34,985 | ) | — | ||||||||
R Class | (5,544 | ) | — | ||||||||
Realized gains | |||||||||||
Individual Investor Class | — | (794,394 | ) | ||||||||
Institutional Class | — | (60,882 | ) | ||||||||
R Class | — | (15,851 | ) | ||||||||
Total distributions to shareholders | (263,043 | ) | (871,127 | ) | |||||||
From capital share transactions: | |||||||||||
Individual Investor Class | |||||||||||
Proceeds from shares sold | 9,511,827 | 16,263,786 | |||||||||
Proceeds from reinvestment of distributions | 206,219 | 767,290 | |||||||||
Cost of shares redeemed | (5,332,154 | ) | (7,219,962 | ) | |||||||
Net increase (decrease) from Individual Investor Class transactions | 4,385,892 | 9,811,114 | |||||||||
Institutional Class | |||||||||||
Proceeds from shares sold | 2,904,919 | 1,615,592 | |||||||||
Proceeds from reinvestment of distributions | 27,235 | 55,347 | |||||||||
Cost of shares redeemed | (80,471 | ) | (556,880 | ) | |||||||
Net increase (decrease) from Institutional Class transactions | 2,851,683 | 1,114,059 | |||||||||
R Class | |||||||||||
Proceeds from shares sold | 511,001 | 255,325 | |||||||||
Proceeds from reinvestment of distributions | 5,475 | 15,520 | |||||||||
Cost of shares redeemed | (57,405 | ) | (167,936 | ) | |||||||
Net increase from R Class transactions | 459,071 | 102,909 | |||||||||
Net increase (decrease) from capital share transactions | 7,696,646 | 11,028,082 | |||||||||
Net increase (decrease) in net assets | 8,922,053 | 5,982,009 | |||||||||
Net assets | |||||||||||
Beginning of period | 36,612,298 | 30,630,289 | |||||||||
End of period (1) | $ | 45,534,351 | $ | 36,612,298 | |||||||
(1) Includes undistributed net investment income (loss) | $ | (128,785 | ) | $ | (115,716 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
73
Statements of Changes in Net Assets—Shares of Beneficial Interest
Balanced Fund | Growth Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | (Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 1,965,825 | 4,882,668 | 927,335 | 2,114,836 | |||||||||||||||
Shares issued in reinvestment of distributions | 680,955 | 974,324 | — | — | |||||||||||||||
Shares redeemed | (5,565,843 | ) | (12,555,762 | ) | (993,042 | ) | (1,871,930 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (2,919,063 | ) | (6,698,770 | ) | (65,707 | ) | 242,906 | ||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 1,031,267 | 1,719,319 | 180,574 | 175,244 | |||||||||||||||
Shares issued in reinvestment of distributions | 59,620 | 78,281 | — | — | |||||||||||||||
Shares redeemed | (728,278 | ) | (1,378,388 | ) | (24,335 | ) | (34,880 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 362,609 | 419,212 | 156,239 | 140,364 | |||||||||||||||
R Class | |||||||||||||||||||
Shares sold | 32,035 | 38,881 | 3,571 | 40,482 | |||||||||||||||
Shares issued in reinvestment of distributions | 1,122 | 1,337 | — | — | |||||||||||||||
Shares redeemed | (29,993 | ) | (29,051 | ) | (437 | ) | (9,591 | ) | |||||||||||
Net increase in shares outstanding | 3,164 | 11,167 | 3,134 | 30,891 | |||||||||||||||
High Yield Bond Fund | Global Women's Equality Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | (Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 9,829,067 | 19,446,500 | 294,474 | 439,301 | |||||||||||||||
Shares issued in reinvestment of distributions | 1,120,299 | 2,697,237 | 19,226 | 20,776 | |||||||||||||||
Shares redeemed | (11,212,730 | ) | (19,334,406 | ) | (432,070 | ) | (381,192 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (263,364 | ) | 2,809,331 | (118,370 | ) | 78,885 | |||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 5,565,429 | 10,937,721 | 6,187 | 35,091 | |||||||||||||||
Shares issued in reinvestment of distributions | 553,675 | 1,260,453 | 674 | 1,850 | |||||||||||||||
Shares redeemed | (4,359,444 | ) | (7,173,539 | ) | (91,413 | ) | (7,831 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 1,759,660 | 5,024,635 | (84,552 | ) | 29,110 | ||||||||||||||
R Class | |||||||||||||||||||
Shares sold | 93,373 | 64,577 | |||||||||||||||||
Shares issued in reinvestment of distributions | 3,547 | 3,427 | |||||||||||||||||
Shares redeemed | (35,645 | ) | (32,868 | ) | |||||||||||||||
Net increase in shares outstanding | 61,275 | 35,136 |
SEE NOTES TO FINANCIAL STATEMENTS
74
Small Cap Fund | International Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | (Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 242,457 | 744,341 | 1,264,107 | 1,974,357 | |||||||||||||||
Shares issued in reinvestment of distributions | 34,643 | 116,997 | 60,452 | 54,723 | |||||||||||||||
Shares redeemed | (135,058 | ) | (316,874 | ) | (618,356 | ) | (847,135 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 142,042 | 544,464 | 706,203 | 1,181,945 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 14,006 | 53,097 | 445,873 | 452,923 | |||||||||||||||
Shares issued in reinvestment of distributions | 406 | 1,541 | 14,303 | 11,584 | |||||||||||||||
Shares redeemed | (10,311 | ) | (15,730 | ) | (104,152 | ) | (343,844 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 4,101 | 38,908 | 356,024 | 120,663 | |||||||||||||||
R Class | |||||||||||||||||||
Shares sold | 3,084 | 7,046 | 19,580 | 10,222 | |||||||||||||||
Shares issued in reinvestment of distributions | 203 | 507 | 638 | 314 | |||||||||||||||
Shares redeemed | (182 | ) | (4,205 | ) | (935 | ) | (1,226 | ) | |||||||||||
Net increase in shares outstanding | 3,105 | 3,348 | 19,283 | 9,310 | |||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||
(Unaudited) Period Ended 6/30/12 | Year Ended 12/31/11 | ||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 1,027,505 | 1,735,134 | |||||||||||||||||
Shares issued in reinvestment of distributions | 23,840 | 91,564 | |||||||||||||||||
Shares redeemed | (580,833 | ) | (785,789 | ) | |||||||||||||||
Net increase (decrease) in shares outstanding | 470,512 | 1,040,909 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 308,613 | 171,380 | |||||||||||||||||
Shares issued in reinvestment of distributions | 3,134 | 6,581 | |||||||||||||||||
Shares redeemed | (8,754 | ) | (64,385 | ) | |||||||||||||||
Net increase (decrease) in shares outstanding | 302,993 | 113,576 | |||||||||||||||||
R Class | |||||||||||||||||||
Shares sold | 55,440 | 27,203 | |||||||||||||||||
Shares issued in reinvestment of distributions | 636 | 1,863 | |||||||||||||||||
Shares redeemed | (6,359 | ) | (18,525 | ) | |||||||||||||||
Net increase in shares outstanding | 49,717 | 10,541 |
SEE NOTES TO FINANCIAL STATEMENTS
75
June 30, 2012
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 | Redemption Fees | |||||||||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 21.67 | $ | 0.18 | $ | 0.86 | $ | 1.04 | $ | 0.21 | $ | — | $ | — | $ | 0.21 | $ | — | |||||||||||||||||||||
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 | — | 0.008 | 0.32 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 17.00 | 0.31 | 3.30 | 3.61 | 0.31 | — | — | 0.31 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 25.31 | 0.41 | (8.08 | ) | (7.67 | ) | 0.40 | 0.24 | — | 0.64 | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2007 | 24.53 | 0.44 | 1.87 | 2.31 | 0.43 | 1.10 | — | 1.53 | — | ||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 21.86 | $ | 0.21 | $ | 0.87 | $ | 1.08 | $ | 0.24 | $ | — | $ | — | $ | 0.24 | $ | — | |||||||||||||||||||||
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 | — | 0.008 | 0.37 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 17.14 | 0.36 | 3.33 | 3.69 | 0.36 | — | — | 0.36 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 25.53 | 0.45 | (8.14 | ) | (7.69 | ) | 0.46 | 0.24 | — | 0.70 | — | ||||||||||||||||||||||||||||
Period Ended December 31, 20077 | 24.95 | 0.38 | 1.56 | 1.94 | 0.33 | 1.03 | — | 1.36 | — | ||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 21.79 | $ | 0.16 | $ | 0.86 | $ | 1.02 | $ | 0.19 | $ | — | $ | — | $ | 0.19 | $ | — | |||||||||||||||||||||
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 | — | 0.008 | 0.28 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 17.13 | 0.25 | 3.34 | 3.59 | 0.30 | — | — | 0.30 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 25.59 | 0.31 | (8.12 | ) | (7.81 | ) | 0.41 | 0.24 | — | 0.65 | — | ||||||||||||||||||||||||||||
Period Ended December 31, 20077 | 24.95 | 0.45 | 1.44 | 1.89 | 0.22 | 1.03 | — | 1.25 | — |
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 For the purpose of calculating the turnover ratio for the Balanced Fund, transactions related to the Value Fund merger have been excluded.
6 The Balanced Fund received a litigation settlement in the amount of $1,250,000 in 2007. Had this amount not been included in income, the income ratio would have been 1.64% for the year ended December 31, 2007.
7 Per share data is reflected from class inception date of April 2, 2007.
8 Rounds to less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS
76
June 30, 2012
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses excluding custody credits | Net investment income (loss) | Net expenses including custody credits and waivers | Total expenses excluding custody credits and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 22.50 | 4.84 | % | $ | 1,667,692 | 0.94 | % | 1.60 | % | 0.94 | % | 0.94 | % | 14 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 21.67 | (1.83 | %) | 1,669,361 | 0.95 | % | 1.51 | % | 0.95 | % | 0.95 | % | 38 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 22.36 | 11.83 | % | 1,872,287 | 0.96 | % | 1.55 | % | 0.96 | % | 0.96 | % | 36 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 20.30 | 21.41 | % | 1,834,274 | 0.98 | % | 1.70 | % | 0.98 | % | 0.98 | % | 43 | %5 | |||||||||||||||||||||
Year Ended December 31, 2008 | 17.00 | (30.72 | %) | 1,612,529 | 0.95 | % | 1.85 | % | 0.95 | % | 0.95 | % | 54 | % | |||||||||||||||||||||
Year Ended December 31, 2007 | 25.31 | 9.44 | % | 2,444,076 | 0.96 | % | 1.70 | %6 | 0.96 | % | 0.96 | % | 38 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 22.70 | 4.97 | % | $ | 128,905 | 0.69 | % | 1.86 | % | 0.69 | % | 0.69 | % | 14 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 21.86 | (1.61 | %) | 116,204 | 0.70 | % | 1.77 | % | 0.70 | % | 0.70 | % | 38 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 22.56 | 12.16 | % | 110,437 | 0.71 | % | 1.81 | % | 0.71 | % | 0.71 | % | 36 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 20.47 | 21.70 | % | 101,791 | 0.73 | % | 1.94 | % | 0.73 | % | 0.73 | % | 43 | %5 | |||||||||||||||||||||
Year Ended December 31, 2008 | 17.14 | (30.58 | %) | 66,355 | 0.70 | % | 2.10 | % | 0.70 | % | 0.70 | % | 54 | % | |||||||||||||||||||||
Period Ended December 31, 20077 | 25.53 | 7.84 | % | 20,222 | 0.71 | % | 1.95 | % | 0.71 | % | 0.71 | % | 38 | % | |||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 22.62 | 4.70 | % | $ | 2,969 | 1.19 | % | 1.37 | % | 1.19 | % | 1.19 | % | 14 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 21.79 | (2.09 | %) | 2,791 | 1.20 | % | 1.27 | % | 1.20 | % | 1.20 | % | 38 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 22.49 | 11.58 | % | 2,629 | 1.21 | % | 1.36 | % | 1.21 | % | 1.21 | % | 36 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 20.42 | 21.14 | % | 1,799 | 1.23 | % | 1.30 | % | 1.23 | % | 1.23 | % | 43 | %5 | |||||||||||||||||||||
Year Ended December 31, 2008 | 17.13 | (30.96 | %) | 57 | 1.20 | % | 1.60 | % | 1.20 | % | 1.20 | % | 54 | % | |||||||||||||||||||||
Period Ended December 31, 20077 | 25.59 | 7.61 | % | 1 | 1.21 | % | 1.43 | % | 1.21 | % | 1.21 | % | 38 | % |
SEE NOTES TO FINANCIAL STATEMENTS
77
June 30, 2012
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 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 | Redemption Fees | |||||||||||||||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 11.96 | $ | 0.03 | $ | 0.54 | $ | 0.57 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Year Ended December 31, 2011 | 12.21 | — | (0.25 | ) | (0.25 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.99 | (0.03 | ) | 2.25 | 2.22 | — | — | — | — | — | |||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 7.19 | (0.01 | ) | 2.81 | 2.80 | — | — | — | — | — | |||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 12.56 | — | (5.12 | ) | (5.12 | ) | — | 0.25 | — | 0.25 | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2007 | 12.53 | (0.03 | ) | 1.70 | 1.67 | — | 1.64 | — | 1.64 | — | |||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 12.19 | $ | 0.05 | $ | 0.54 | $ | 0.59 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Year Ended December 31, 2011 | 12.41 | 0.04 | (0.26 | ) | (0.22 | ) | — | — | — | — | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2010 | 10.13 | — | 2.28 | 2.28 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 7.27 | 0.016 | 2.85 | 2.86 | — | — | — | — | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 12.68 | 0.02 | (5.18 | ) | (5.16 | ) | — | 0.25 | — | 0.25 | — | ||||||||||||||||||||||||||||
Period Ended December 31, 20075 | 13.10 | 0.12 | 0.99 | 1.11 | — | 1.53 | — | 1.53 | — | ||||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 11.95 | $ | 0.01 | $ | 0.54 | $ | 0.55 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||
Year Ended December 31, 2011 | 12.24 | (0.02 | )6 | (0.27 | ) | (0.29 | ) | — | — | — | — | — | |||||||||||||||||||||||||||
Year Ended December 31, 2010 | 10.04 | (0.05 | ) | 2.25 | 2.20 | — | — | — | — | — | |||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 7.24 | (0.03 | ) | 2.83 | 2.80 | — | — | — | — | — | |||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 12.66 | (0.03 | ) | (5.14 | ) | (5.17 | ) | — | 0.25 | — | 0.25 | — | |||||||||||||||||||||||||||
Period Ended December 31, 20075 | 13.10 | 0.02 | 1.07 | 1.09 | — | 1.53 | — | 1.53 | — | ||||||||||||||||||||||||||||||
Small Cap Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 9.65 | $ | 0.02 | $ | 0.35 | $ | 0.37 | $ | — | $ | 0.25 | $ | — | $ | 0.25 | $ | — | |||||||||||||||||||||
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 | 2.46 | 2.54 | 0.07 | 0.71 | — | — | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.78 | (0.03 | ) | 2.54 | 2.51 | — | — | — | — | — | |||||||||||||||||||||||||||||
Period Ended December 31, 20087 | 10.00 | 0.01 | (3.22 | ) | (3.21 | ) | 0.01 | — | — | — | — | ||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 9.69 | $ | 0.04 | $ | 0.34 | $ | 0.38 | $ | — | $ | 0.25 | $ | — | $ | 0.25 | $ | — | |||||||||||||||||||||
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 | 2.42 | 2.57 | 0.09 | 0.71 | — | 0.80 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.78 | (0.02 | ) | 2.56 | 2.54 | 0.01 | — | — | 0.01 | — | |||||||||||||||||||||||||||||
Period Ended December 31, 20087 | 10.00 | 0.03 | (3.22 | ) | (3.19 | ) | 0.03 | — | — | 0.03 | — | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 9.61 | $ | 0.02 | $ | 0.34 | $ | 0.36 | $ | — | $ | 0.25 | $ | — | $ | 0.25 | $ | — | |||||||||||||||||||||
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 | 2.35 | 2.73 | 0.07 | 0.71 | — | 0.78 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.78 | (0.05 | ) | 2.53 | 2.48 | — | — | — | — | — | |||||||||||||||||||||||||||||
Period Ended December 31, 20087 | 10.00 | — | (3.22 | ) | (3.22 | ) | — | — | — | — | — |
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 April 2, 2007.
6 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.
7 Per share data for all classes of the Fund is reflected from Fund inception date of March 27, 2008.
SEE NOTES TO FINANCIAL STATEMENTS
78
June 30, 2012
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses excluding custody credits | Net investment income (loss) | Net expenses including custody credits and waivers | Total expenses excluding custody credits and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 12.53 | 4.77 | % | $ | 116,521 | 1.29 | % | 0.47 | % | 1.29 | % | 1.43 | % | 11 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 11.96 | (2.05 | %) | 112,042 | 1.32 | % | 0.04 | % | 1.32 | % | 1.47 | % | 20 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 12.21 | 22.22 | % | 111,403 | 1.41 | % | (0.28 | %) | 1.41 | % | 1.57 | % | 25 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 9.99 | 38.94 | % | 94,306 | 1.45 | % | (0.08 | %) | 1.45 | % | 1.78 | % | 39 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 7.19 | �� | (41.52 | %) | 66,493 | 1.46 | % | (0.01 | %) | 1.46 | % | 1.67 | % | 51 | % | ||||||||||||||||||||
Year Ended December 31, 2007 | 12.56 | 13.39 | % | 105,213 | 1.51 | % | (0.19 | %) | 1.50 | % | 1.76 | % | 66 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 12.78 | 4.84 | % | $ | 7,118 | 1.04 | % | 0.77 | % | 1.04 | % | 1.18 | % | 11 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 12.19 | (1.77 | %) | 4,883 | 1.07 | % | 0.31 | % | 1.07 | % | 1.22 | % | 20 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 12.41 | 22.51 | % | 3,231 | 1.16 | % | (0.04 | %) | 1.16 | % | 1.32 | % | 25 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 10.13 | 39.34 | % | 2,856 | 1.20 | % | 0.16 | % | 1.20 | % | 1.53 | % | 39 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 7.27 | (41.44 | %) | 3,042 | 1.21 | % | 0.24 | % | 1.21 | % | 1.41 | % | 51 | % | |||||||||||||||||||||
Period Ended December 31, 20075 | 12.68 | 8.53 | % | 2,571 | 1.26 | % | 1.27 | % | 1.25 | % | 1.51 | % | 66 | % | |||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 12.50 | 4.60 | % | $ | 479 | 1.54 | % | 0.23 | % | 1.54 | % | 1.68 | % | 11 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 11.95 | (2.37 | %) | 421 | 1.57 | % | (0.13 | %) | 1.57 | % | 1.72 | % | 20 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 12.24 | 21.91 | % | 53 | 1.66 | % | (0.49 | %) | 1.66 | % | 1.82 | % | 25 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 10.04 | 38.67 | % | 4 | 1.70 | % | (0.37 | %) | 1.70 | % | 2.03 | % | 39 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 7.24 | (41.58 | %) | 2 | 1.71 | % | (0.26 | %) | 1.71 | % | 1.91 | % | 51 | % | |||||||||||||||||||||
Period Ended December 31, 20075 | 12.66 | 8.37 | % | 1 | 1.76 | % | 0.45 | % | 1.75 | % | 2.01 | % | 66 | % | |||||||||||||||||||||
Small Cap Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 9.77 | 3.92 | % | $ | 14,840 | 1.24 | % | 0.49 | % | 1.24 | % | 2.15 | % | 66 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 9.65 | (3.50 | %) | 13,290 | 1.24 | % | 0.40 | % | 1.24 | % | 2.71 | % | 161 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 11.05 | 30.17 | % | 9,192 | 1.24 | % | 0.80 | % | 1.24 | % | 4.47 | % | 179 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 9.29 | 37.02 | % | 3,266 | 1.24 | % | (0.41 | %) | 1.24 | % | 12.09 | % | 201 | % | |||||||||||||||||||||
Period Ended December 31, 20087 | 6.78 | (32.07 | %) | 1,140 | 1.25 | % | 0.22 | % | 1.24 | % | 14.13 | % | 109 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 9.82 | 4.00 | % | $ | 676 | 0.99 | % | 0.77 | % | 0.99 | % | 1.90 | % | 66 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 9.69 | (3.17 | %) | 627 | 0.99 | % | 0.67 | % | 0.99 | % | 2.46 | % | 161 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 11.08 | 30.44 | % | 283 | 0.99 | % | 1.41 | % | 0.99 | % | 4.22 | % | 179 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 9.31 | 37.44 | % | 37 | 0.99 | % | (0.27 | %) | 0.99 | % | 11.84 | % | 201 | % | |||||||||||||||||||||
Period Ended December 31, 20087 | 6.78 | (31.92 | %) | 1 | 1.00 | % | 0.47 | % | 0.99 | % | 13.88 | % | 109 | % | |||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 9.72 | 3.83 | % | $ | 76 | 1.49 | % | 0.31 | % | 1.49 | % | 2.40 | % | 66 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 9.61 | (3.74 | %) | 46 | 1.49 | % | 0.15 | % | 1.49 | % | 2.96 | % | 161 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 10.99 | 29.94 | % | 15 | 1.49 | % | 1.62 | % | 1.49 | % | 4.72 | % | 179 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 9.26 | 36.58 | % | 4 | 1.49 | % | (0.62 | %) | 1.49 | % | 12.34 | % | 201 | % | |||||||||||||||||||||
Period Ended December 31, 20087 | 6.78 | (32.20 | %) | 1 | 1.50 | % | (0.03 | %) | 1.49 | % | 14.38 | % | 109 | % |
SEE NOTES TO FINANCIAL STATEMENTS
79
June 30, 2012
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 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 | Redemption Fees | |||||||||||||||||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.38 | $ | 0.12 | $ | — | $ | 0.12 | $ | 0.11 | $ | — | $ | — | $ | 0.11 | $ | — | |||||||||||||||||||||
Year Ended December 31, 2011 | 9.10 | 0.18 | (1.75 | ) | (1.57 | ) | 0.14 | 0.01 | — | 0.15 | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.51 | 0.10 | 0.60 | 0.70 | 0.11 | — | — | 0.11 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.19 | 0.06 | 2.34 | 2.40 | 0.07 | — | 0.01 | 0.08 | — | ||||||||||||||||||||||||||||||
Period Ended December 31, 20085 | 10.00 | 0.13 | (3.86 | ) | (3.73 | ) | 0.08 | — | — | 0.08 | — | ||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.41 | $ | 0.14 | $ | (0.02 | ) | $ | 0.12 | $ | 0.12 | $ | — | $ | — | $ | 0.12 | $ | — | ||||||||||||||||||||
Year Ended December 31, 2011 | 9.12 | 0.20 | (1.74 | ) | (1.54 | ) | 0.16 | 0.01 | — | 0.17 | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.53 | 0.12 | 0.60 | 0.72 | 0.13 | — | — | 0.13 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.19 | — | 2.44 | 2.44 | 0.09 | — | 0.01 | 0.10 | — | ||||||||||||||||||||||||||||||
Period Ended December 31, 20085 | 10.00 | 0.15 | (3.87 | ) | (3.72 | ) | 0.09 | — | — | 0.09 | — | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.36 | $ | 0.13 | $ | (0.02 | ) | $ | 0.11 | $ | 0.11 | $ | — | $ | — | $ | 0.11 | $ | — | ||||||||||||||||||||
Year Ended December 31, 2011 | 9.07 | 0.15 | (1.73 | ) | (1.58 | ) | 0.12 | 0.01 | — | 0.13 | — | ||||||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.50 | 0.08 | 0.60 | 0.68 | 0.11 | — | — | 0.11 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.20 | 0.07 | 2.31 | 2.38 | 0.07 | — | 0.01 | 0.08 | — | ||||||||||||||||||||||||||||||
Period Ended December 31, 20085 | 10.00 | 0.12 | (3.86 | ) | (3.74 | ) | 0.06 | — | — | 0.06 | — | ||||||||||||||||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.20 | $ | 0.27 | $ | 0.14 | $ | 0.41 | $ | 0.27 | $ | — | $ | — | $ | 0.27 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.10 | 0.64 | 1.64 | 2.28 | 0.64 | — | — | 0.64 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 8.37 | 0.59 | (2.22 | ) | (1.63 | ) | 0.63 | 0.01 | — | 0.64 | —6 | ||||||||||||||||||||||||||||
Year Ended December 31, 2007 | 8.54 | 0.63 | (0.14 | ) | 0.49 | 0.63 | 0.03 | — | 0.66 | —6 | |||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.17 | $ | 0.28 | $ | 0.14 | $ | 0.42 | $ | 0.28 | $ | — | $ | — | $ | 0.28 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.08 | 0.65 | 1.62 | 2.27 | 0.65 | — | — | 0.65 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 8.34 | 0.61 | (2.22 | ) | (1.61 | ) | 0.64 | 0.01 | — | 0.65 | —6 | ||||||||||||||||||||||||||||
Year Ended December 31, 2007 | 8.54 | 0.65 | (0.17 | ) | 0.48 | 0.65 | 0.03 | — | 0.68 | —6 | |||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.19 | $ | 0.26 | $ | 0.14 | $ | 0.40 | $ | 0.26 | $ | — | $ | — | $ | 0.26 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.08 | 0.63 | 1.62 | 2.25 | 0.62 | — | — | 0.62 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 8.34 | 0.51 | (2.16 | ) | (1.65 | ) | 0.60 | 0.01 | — | 0.61 | — | ||||||||||||||||||||||||||||
Period Ended December 31, 20078 | 8.68 | 0.45 | (0.29 | ) | 0.16 | 0.47 | 0.03 | — | 0.50 | — |
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 for all classes of the Fund is reflected from Fund inception date of March 27, 2008.
6 Rounds to less than $0.01.
7 In 2007, the Individual Investor Class Shares of the Fund received $197,873 from the Fund's Adviser and $96,127 from an non-affiliated broker as reimbursement for dilution of returns that may have occurred as a result of frequent trading activity from 2001-2003. Excluding the effect of this payment on the Fund's ending net assets per share, the total return for the year ended December 31, 2007 would have been 5.42%.
8 Per share data is reflected from class inception date of April 2, 2007.
SEE NOTES TO FINANCIAL STATEMENTS
80
June 30, 2012
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses excluding custody credits | Net investment income (loss) | Net expenses including custody credits and waivers | Total expenses excluding custody credits and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
International Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.39 | 1.70 | % | $ | 32,827 | 1.40 | % | 3.25 | % | 1.40 | % | 1.73 | % | 17 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.38 | (17.43 | %) | 27,603 | 1.40 | % | 2.07 | % | 1.40 | % | 1.95 | % | 34 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 9.10 | 8.37 | % | 23,254 | 1.40 | % | 1.25 | % | 1.40 | % | 2.55 | % | 41 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 8.51 | 39.14 | % | 9,768 | 1.40 | % | 0.83 | % | 1.40 | % | 7.35 | % | 23 | % | |||||||||||||||||||||
Period Ended December 31, 20085 | 6.19 | (37.26 | %) | 2,087 | 1.40 | % | 2.08 | % | 1.40 | % | 11.81 | % | 26 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.41 | 1.68 | % | $ | 8,850 | 1.15 | % | 3.67 | % | 1.15 | % | 1.48 | % | 17 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.41 | (17.08 | %) | 6,210 | 1.15 | % | 2.32 | % | 1.15 | % | 1.70 | % | 34 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 9.12 | 8.57 | % | 6,549 | 1.15 | % | 1.43 | % | 1.15 | % | 2.30 | % | 41 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 8.53 | 39.70 | % | 2,033 | 1.15 | % | 0.01 | % | 1.15 | % | 7.10 | % | 23 | % | |||||||||||||||||||||
Period Ended December 31, 20085 | 6.19 | (37.13 | %) | 1 | 1.15 | % | 2.33 | % | 1.15 | % | 11.56 | % | 26 | % | |||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.36 | 1.51 | % | $ | 320 | 1.65 | % | 3.56 | % | 1.65 | % | 1.98 | % | 17 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.36 | (17.56 | %) | 178 | 1.65 | % | 1.74 | % | 1.65 | % | 2.20 | % | 34 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 9.07 | 8.10 | % | 136 | 1.65 | % | 0.90 | % | 1.65 | % | 2.80 | % | 41 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 8.50 | 38.65 | % | 14 | 1.65 | % | 0.96 | % | 1.65 | % | 7.60 | % | 23 | % | |||||||||||||||||||||
Period Ended December 31, 20085 | 6.20 | (37.43 | %) | 1 | 1.65 | % | 1.83 | % | 1.65 | % | 12.06 | % | 26 | % | |||||||||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.34 | 5.64 | % | $ | 299,358 | 0.96 | % | 7.47 | % | 0.96 | % | 0.96 | % | 37 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.20 | 2.00 | % | 295,597 | 0.97 | % | 7.54 | % | 0.97 | % | 0.97 | % | 49 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 7.74 | 10.35 | % | 296,349 | 0.99 | % | 8.45 | % | 0.99 | % | 0.99 | % | 70 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 7.74 | 38.70 | % | 298,915 | 0.97 | % | 8.88 | % | 0.97 | % | 1.04 | % | 58 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 6.10 | (20.61 | %) | 92,187 | 0.99 | % | 7.82 | % | 0.99 | % | 1.19 | % | 29 | % | |||||||||||||||||||||
Year Ended December 31, 2007 | 8.37 | 5.80 | %7 | 77,987 | 1.00 | % | 7.31 | % | 0.99 | % | 1.44 | % | 26 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.31 | 5.92 | % | $ | 162,500 | 0.71 | % | 7.74 | % | 0.71 | % | 0.71 | % | 37 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.17 | 2.10 | % | 146,810 | 0.72 | % | 7.78 | % | 0.72 | % | 0.72 | % | 49 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 7.72 | 10.92 | % | 119,258 | 0.74 | % | 8.70 | % | 0.74 | % | 0.74 | % | 70 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 7.70 | 38.78 | % | 91,606 | 0.72 | % | 9.12 | % | 0.72 | % | 0.79 | % | 58 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 6.08 | (20.38 | %) | 23,646 | 0.74 | % | 8.07 | % | 0.74 | % | 0.94 | % | 29 | % | |||||||||||||||||||||
Year Ended December 31, 2007 | 8.34 | 5.68 | % | 19,314 | 0.75 | % | 7.59 | % | 0.74 | % | 1.19 | % | 26 | % | |||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 7.33 | 5.66 | % | $ | 910 | 1.21 | % | 7.30 | % | 1.21 | % | 1.21 | % | 37 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 7.19 | 1.87 | % | 452 | 1.22 | % | 7.30 | % | 1.22 | % | 1.22 | % | 49 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 7.72 | 10.23 | % | 214 | 1.24 | % | 8.21 | % | 1.24 | % | 1.24 | % | 70 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 7.71 | 38.27 | % | 106 | 1.22 | % | 8.52 | % | 1.22 | % | 1.29 | % | 58 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 6.08 | (20.91 | %) | 4 | 1.24 | % | 7.57 | % | 1.24 | % | 1.44 | % | 29 | % | |||||||||||||||||||||
Period Ended December 31, 20078 | 8.34 | 1.94 | % | 1 | 1.25 | % | 7.29 | % | 1.24 | % | 1.69 | % | 26 | % |
SEE NOTES TO FINANCIAL STATEMENTS
81
June 30, 2012
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 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 | Redemption Fees | |||||||||||||||||||||||||||||||
Global Women's Equality Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 15.90 | $ | 0.16 | $ | 0.43 | $ | 0.59 | $ | 0.17 | $ | — | $ | — | $ | 0.17 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 12.79 | 0.08 | 3.20 | 3.28 | 0.08 | — | —5 | 0.08 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 22.01 | 0.13 | (8.62 | ) | (8.49 | ) | 0.13 | 0.60 | — | 0.73 | — | ||||||||||||||||||||||||||||
Period Ended December 31, 20076,7 | 21.86 | 0.07 | 2.13 | 2.20 | 0.10 | 1.95 | — | 2.05 | —5 | ||||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 15.94 | $ | 0.16 | $ | 0.44 | $ | 0.60 | $ | 0.19 | $ | — | $ | — | $ | 0.19 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 12.80 | 0.12 | 3.20 | 3.32 | 0.09 | — | —5 | 0.09 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2008 | 22.03 | 0.18 | (8.63 | ) | (8.45 | ) | 0.18 | 0.60 | — | 0.78 | — | ||||||||||||||||||||||||||||
Period Ended December 31, 20076,7 | 21.86 | 0.13 | 2.12 | 2.25 | 0.13 | 1.95 | — | 2.08 | —5 | ||||||||||||||||||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 8.42 | $ | 0.05 | $ | 0.38 | $ | 0.43 | $ | 0.05 | $ | — | $ | — | $ | 0.05 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.38 | 0.03 | 2.36 | 2.39 | 0.08 | — | — | 0.08 | — | ||||||||||||||||||||||||||||||
Period Ended December 31, 20088 | 10.00 | 0.02 | (3.61 | ) | (3.59 | ) | 0.03 | — | — | 0.03 | — | ||||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 8.46 | $ | 0.07 | $ | 0.37 | $ | 0.44 | $ | 0.06 | $ | — | $ | — | $ | 0.06 | $ | — | |||||||||||||||||||||
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 | — | ||||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.38 | 0.04 | 2.37 | 2.41 | 0.10 | — | — | 0.10 | — | ||||||||||||||||||||||||||||||
Period Ended December 31, 20088 | 10.00 | 0.03 | (3.61 | ) | (3.58 | ) | 0.04 | — | — | 0.04 | — | ||||||||||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 8.37 | $ | 0.05 | $ | 0.37 | $ | 0.04 | $ | — | $ | — | $ | — | $ | 0.04 | $ | — | |||||||||||||||||||||
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 | )9 | 0.97 | 0.95 | 0.01 | — | — | 0.01 | — | |||||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.37 | (0.01 | )9 | 2.37 | 2.36 | 0.07 | — | — | 0.07 | — | |||||||||||||||||||||||||||||
Period Ended December 31, 20088 | 10.00 | — | (3.61 | ) | (3.61 | ) | 0.02 | — | — | 0.02 | — |
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 Rounds to less than $0.01.
6 Effective October 29, 2007, the Global Women's Equality Fund (formerly the Women's Equity Fund) acquired the assets and liabilities of the original Women's Equity Fund, a series of Professionally Managed Portfolios. For the period from April 1, 2007 through October 28, 2007, the Adviser of the Fund was FEMMX Financial. For the period from October 29, 2007 through December 31, 2007 the Adviser was Pax World Management Corp. The original Women's Equity Fund had a fiscal year end of March 31. Information shown for periods prior to October 29, 2007 reflect that of the original Women's Equity Fund.
7 Beginning with the period from April 1, 2007 through December 31, 2007, the Global Women's Equality Fund was audited by Ernst & Young LLP. The previous periods were audited by another independent registered accounting firm, the report of which expressed an unqualified opinion.
8 Per share data for all classes of the Fund is reflected from Fund inception date of March 27, 2008.
9 The amount shown for a share outstanding does not correspond with the aggregate new investment income for the period due to the timing of sales and repurchases of the shares in relation to fluctuating market values of the investments of the Fund.
SEE NOTES TO FINANCIAL STATEMENTS
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June 30, 2012
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses excluding custody credits | Net investment income (loss) | Net expenses including custody credits and waivers | Total expenses excluding custody credits and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Global Women's Equality Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 16.32 | 3.77 | % | $ | 31,970 | 1.24 | % | 1.95 | % | 1.24 | % | 1.68 | % | 20 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 15.90 | (8.60 | %) | 33,034 | 1.24 | % | 1.20 | % | 1.24 | % | 1.68 | % | 114 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 17.58 | 10.54 | % | 35,147 | 1.24 | % | 0.63 | % | 1.24 | % | 1.90 | % | 116 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 15.99 | 25.76 | % | 29,537 | 1.24 | % | 0.58 | % | 1.24 | % | 2.04 | % | 94 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 12.79 | (39.69 | %) | 23,984 | 1.24 | % | 0.71 | % | 1.24 | % | 1.82 | % | 78 | % | |||||||||||||||||||||
Period Ended December 31, 20076,7 | 22.01 | 10.13 | % | 33,233 | 1.29 | % | 0.37 | % | 1.29 | % | 1.67 | % | 32 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 16.35 | 3.82 | % | $ | 1,408 | 0.99 | % | 1.85 | % | 0.99 | % | 1.43 | % | 20 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 15.94 | (8.35 | %) | 2,719 | 0.99 | % | 1.47 | % | 0.99 | % | 1.43 | % | 114 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 17.62 | 10.78 | % | 2,495 | 0.99 | % | 0.86 | % | 0.99 | % | 1.65 | % | 116 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 16.03 | 26.11 | % | 2,518 | 0.99 | % | 0.86 | % | 0.99 | % | 1.79 | % | 94 | % | |||||||||||||||||||||
Year Ended December 31, 2008 | 12.80 | (39.52 | %) | 2,279 | 0.99 | % | 0.96 | % | 0.99 | % | 1.57 | % | 78 | % | |||||||||||||||||||||
Period Ended December 31, 20076,7 | 22.03 | 10.37 | % | 4,528 | 0.99 | % | 0.55 | % | 0.99 | % | 1.44 | % | 32 | % | |||||||||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 8.80 | 5.24 | % | $ | 39,108 | 1.40 | % | 1.11 | % | 1.40 | % | 1.80 | % | 20 | % | |||||||||||||||||||
Year Ended December 31 , 2011 | 8.42 | (10.39 | %) | 33,444 | 1.40 | % | 0.44 | % | 1.40 | % | 1.99 | % | 79 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 9.63 | 11.20 | % | 28,210 | 1.40 | % | 0.09 | % | 1.40 | % | 2.38 | % | 62 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 8.69 | 37.52 | % | 17,765 | 1.40 | % | 0.35 | % | 1.40 | % | 3.78 | % | 81 | % | |||||||||||||||||||||
Period Ended December 31, 20088 | 6.38 | (35.92 | %) | 5,999 | 1.40 | % | 0.27 | % | 1.40 | % | 6.25 | % | 28 | % | |||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 8.84 | 5.22 | % | $ | 5,304 | 1.15 | % | 1.61 | % | 1.15 | % | 1.55 | % | 20 | % | |||||||||||||||||||
Year Ended December 31 , 2011 | 8.46 | (10.07 | %) | 2,511 | 1.15 | % | 0.73 | % | 1.15 | % | 1.74 | % | 79 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 9.64 | 11.56 | % | 1,767 | 1.15 | % | 0.32 | % | 1.15 | % | 2.13 | % | 62 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 8.69 | 37.79 | % | 404 | 1.15 | % | 0.56 | % | 1.15 | % | 3.53 | % | 81 | % | |||||||||||||||||||||
Period Ended December 31, 20088 | 6.38 | (35.83 | %) | 5 | 1.15 | % | 0.52 | % | 1.15 | % | 6.00 | % | 28 | % | |||||||||||||||||||||
R Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2012 (Unaudited) | $ | 8.75 | 5.07 | % | $ | 1,122 | 1.65 | % | 1.04 | % | 1.65 | % | 2.05 | % | 20 | % | |||||||||||||||||||
Year Ended December 31 , 2011 | 8.37 | (10.63 | %) | 658 | 1.65 | % | 0.18 | % | 1.65 | % | 2.24 | % | 79 | % | |||||||||||||||||||||
Year Ended December 31, 2010 | 9.60 | 11.01 | % | 653 | 1.65 | % | (0.18 | %) | 1.65 | % | 2.63 | % | 62 | % | |||||||||||||||||||||
Year Ended December 31, 2009 | 8.66 | 37.16 | % | 371 | 1.65 | % | (0.17 | %) | 1.65 | % | 4.03 | % | 81 | % | |||||||||||||||||||||
Period Ended December 31, 20088 | 6.37 | (36.12 | %) | 30 | 1.65 | % | 0.02 | % | 1.65 | % | 6.50 | % | 28 | % |
SEE NOTES TO FINANCIAL STATEMENTS
83
June 30, 2012
Notes to Financial Statements (Unaudited)
Pax World Funds Series Trust I
NOTE A—Organization and Summary of Significant Accounting Policies
Organization Pax World Funds Series Trust I (the "Trust"), 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 June 30, 2012, the Trust offered eleven investment funds.
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 International Fund (the "International Fund"), Pax World High Yield Bond Fund (the "High Yield Bond Fund"), Pax World Global Women's Equality Fund (the "Global Women's Equality Fund"), and Pax World Global Environmental Markets Fund (the "Global Environmental Markets Fund") (each a "Fund", collectively, the "Funds"), each a diversified series of the Trust.
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 approximately 25-40% of its 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 Adviser believes have above-average growth prospects.
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June 30, 2012
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 International 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 stocks and securities convertible into common or preferred stocks) of non-U.S. issuers.
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 (plus any borrowings for investment purposes) 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, in the opinion of the Adviser, of comparable quality (commonly referred to as "junk bonds").
The Global Women's Equality 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 net assets (plus any borrowings for investment purposes) 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 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 energy (renewable energy and energy efficiency), water (water infrastructure and technologies, pollution control) and waste (waste management and technologies, environmental support services). 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
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June 30, 2012
Notes to Financial Statements, continued
stocks) of companies located around the world, including at least 40% of its net assets in the securities of non-U.S. issuers.
Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown as this could involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust expects this risk of loss to be remote.
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.
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. Domestic fixed income and foreign 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.
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.
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June 30, 2012
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 Board of Trustees (so called "evaluated pricing"). Evaluated pricing may require subjective determinations about the value of a security or other asset, and fair values used to determine a Fund's NAV may differ from quoted or published prices, or from prices that are used by others, for the same investments. Also, the use of evaluated pricing may not always result in adjustments to the prices of securities or other assets held by a Fund.
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 purchase price 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 June 30, 2012, nine securities were fair valued in good faith pursuant to policies and procedures approved by the Board. The Balanced Fund held three securities fair valued at $13,886,009, representing 0.77% of the Fund's net asset value, the Growth Fund held one security fair valued at $430,950, representing 0.35% of the Fund's net asset value, the High Yield Bond Fund held three securities fair valued at $0, representing 0.00% of the Fund's net asset value, and the International Fund held two securities fair valued at $56,797, representing 0.14% of the Fund's net asset value.
87
June 30, 2012
Notes to Financial Statements, continued
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 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. Various inputs are used in determining value, these inputs are 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.
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June 30, 2012
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. Foreign equities 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 significant inputs for equity securities are unobservable, values are categorized as Level 3 in the hierarchy.
Fixed Income Securities Debt 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 significant inputs for fixed income securities are unobservable, values are categorized as Level 3 in the hierarchy.
Mutual Fund Investments Investments in mutual funds are valued at the Mutual 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.
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June 30, 2012
Notes to Financial Statements, continued
The following is a summary of the inputs used to value the Funds' net assets as of June 30, 2012:
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
Balanced | |||||||||||||||||||
Common Stocks—Domestic | $ | 983,667,374 | $ | — | $ | 11,635,650 | $ | 995,303,024 | |||||||||||
Common Stocks—Foreign | 214,766,590 | 30,968,651 | 245,735,241 | ||||||||||||||||
Exchange Traded Funds | 8,363,618 | — | — | 8,363,618 | |||||||||||||||
Community Investment Notes | — | 3,000,000 | 2,250,359 | 5,250,359 | |||||||||||||||
Corporate Bonds | — | 231,252,815 | — | 231,252,815 | |||||||||||||||
U.S. Govt Agency Bonds | — | 100,572,964 | — | 100,572,964 | |||||||||||||||
Government Bonds | — | 14,502,738 | — | 14,502,738 | |||||||||||||||
Municipal Bonds | — | 23,109,372 | — | 23,109,372 | |||||||||||||||
U.S. Treasury Notes | — | 44,918,275 | — | 44,918,275 | |||||||||||||||
Mortgage-Backed Securities | — | 121,359,547 | — | 121,359,547 | |||||||||||||||
Cash Equivalents | 33,279,217 | 6,744,000 | — | 40,023,217 | |||||||||||||||
Equity Call Options Written | (1,719,650 | ) | — | — | (1,719,650 | ) | |||||||||||||
Total | $ | 1,238,357,149 | $ | 576,428,362 | $ | 13,886,009 | $ | 1,828,671,520 | |||||||||||
Growth | |||||||||||||||||||
Common Stocks—Domestic | $ | 102,872,734 | $ | — | $ | 430,950 | $ | 103,303,684 | |||||||||||
Common Stocks—Foreign | 14,238,750 | 2,562,600 | — | 16,801,350 | |||||||||||||||
Cash Equivalents | 3,848,325 | 4,205,000 | — | 8,053,325 | |||||||||||||||
Equity Call/Put Options Written | (72,650 | ) | — | — | (72,650 | ) | |||||||||||||
Total | $ | 120,887,159 | $ | 6,767,600 | $ | 430,950 | $ | 128,085,709 | |||||||||||
Small Cap | |||||||||||||||||||
Common Stocks—Domestic | $ | 15,092,239 | $ | — | $ | — | $ | 15,092,239 | |||||||||||
Common Stocks—Foreign | 537,040 | — | — | 537,040 | |||||||||||||||
Cash Equivalents | — | 183,000 | — | 183,000 | |||||||||||||||
Total | $ | 15,629,279 | $ | 183,000 | $ | — | $ | 15,812,279 | |||||||||||
International | |||||||||||||||||||
Common Stocks—Foreign | $ | 11,977,122 | $ | 28,809,753 | $ | 56,797 | $ | 40,843,672 | |||||||||||
Rights | 29,656 | — | — | 29,656 | |||||||||||||||
Exchange Traded Funds | 1,104,291 | — | — | 1,104,291 | |||||||||||||||
Total | $ | 13,111,069 | $ | 28,809,753 | $ | 56,797 | $ | 41,977,619 |
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June 30, 2012
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
High Yield Bond | |||||||||||||||||||
Common Stocks—Domestic | $ | 7,258,785 | $ | — | $ | — | $ | 7,258,785 | |||||||||||
Common Stocks—Foreign | — | — | 0 | 0 | |||||||||||||||
Preferred Stocks | 2,787,950 | — | — | 2,787,950 | |||||||||||||||
Exchange Traded Funds | 6,003,218 | — | — | 6,003,218 | |||||||||||||||
Corporate Bonds | — | 418,927,142 | 0 | 418,927,142 | |||||||||||||||
Loans | — | 756,249 | — | 756,249 | |||||||||||||||
Warrants | — | — | 0 | 0 | |||||||||||||||
Cash Equivalents | 34,942,268 | 22,744,495 | — | 57,686,763 | |||||||||||||||
Securities Sold Short | (2,957,950 | ) | — | — | (2,957,950 | ) | |||||||||||||
Equity Put Options Written | (16,000 | ) | — | — | (16,000 | ) | |||||||||||||
Total | $ | 48,018,271 | $ | 442,427,886 | $ | 0 | $ | 490,446,157 | |||||||||||
Global Women's Equality | |||||||||||||||||||
Common Stocks—Domestic | $ | 17,171,687 | $ | — | $ | — | $ | 17,171,687 | |||||||||||
Common Stocks—Foreign | 6,590,518 | 8,860,732 | — | 15,451,250 | |||||||||||||||
Exchange Traded Funds | 778,466 | — | — | 778,466 | |||||||||||||||
Cash Equivalents | 1,224,263 | — | — | 1,224,263 | |||||||||||||||
Total | $ | 25,764,934 | $ | 8,860,732 | $ | — | $ | 34,625,666 | |||||||||||
Global Environmental Markets | |||||||||||||||||||
Common Stocks—Domestic | $ | 20,248,935 | $ | — | $ | — | $ | 20,248,935 | |||||||||||
Common Stocks—Foreign | — | 24,259,704 | — | 24,259,704 | |||||||||||||||
Cash Equivalents | — | 1,274,000 | — | 1,274,000 | |||||||||||||||
Total | $ | 20,248,935 | $ | 25,533,704 | $ | — | $ | 45,782,639 |
* Other financial instruments refer to derivative instruments not reflected in the Schedules of Investments, such as futures, forward contracts, options and swap contracts, which are valued at the unrealized appreciation/depreciation of the instrument.
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June 30, 2012
Notes to Financial Statements, continued
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
Balanced | Growth | International | |||||||||||||
Common Stock | |||||||||||||||
Balance as of December 31, 2011 | $ | — | $ | — | $ | 50,279 | |||||||||
Realized Gain (loss) | — | — | — | ||||||||||||
Amortization of Premium | — | — | — | ||||||||||||
Change in unrealized appreciation (depreciation) | — | — | 6,518 | ||||||||||||
Purchases | — | — | — | ||||||||||||
Sales | — | — | — | ||||||||||||
Transfers in and/or out of Level 3 | 11,635,650 | 430,950 | — | ||||||||||||
Balance as of June 30, 2012 | $ | 11,635,650 | $ | 430,950 | $ | 56,797 |
Balanced | High Yield Bond Fund | ||||||||||
Bonds and Notes | |||||||||||
Balance as of December 31, 2011 | $ | 2,250,302 | $ | 0 | |||||||
Realized Gain (loss) | — | — | |||||||||
Amortization of Premium | — | (75,534 | ) | ||||||||
Change in unrealized appreciation (depreciation) | 57 | 47,691 | |||||||||
Purchases | — | 27,843 | |||||||||
Sales | — | — | |||||||||
Transfers in and/or out of Level 3 | — | — | |||||||||
Balance as of June 30, 2012 | $ | 2,250,359 | $ | 0 |
The change in unrealized gain/loss on Level 3 securities held at June 30, 2012, included gains of $57; $47,691; and $6,518 in the Balanced Fund, High Yield Bond Fund and International Fund, respectively; for the year-to-date period then ended.
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. There were no significant transfers between Level 1 and Level 2 during the period. This does not include transfers between Level 1 and Level 2 due to utilization of a pricing vendor's fair value pricing of non-U.S. securities.
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June 30, 2012
The following provides quantitative information about significant unobservable inputs for Level 3 fair value measurements:
Type of Investment | Fair Value at 6/30/2012 | Valuation Technique | Unobservable Input(s) | Range | |||||||||||||||
Balanced | |||||||||||||||||||
Common Stocks—Domestic | $ | 11,635,650 | Market Comparable | Market Price | 1X | ||||||||||||||
Security | Illiquidity Discount | 0% to 10% | |||||||||||||||||
Community Investments | 2,250,302 | Yield Adjustment | U.S. Swap rates | 0% to 5% | |||||||||||||||
Growth | |||||||||||||||||||
Common Stocks—Domestic | $ | 430,950 | Market Comparable | Market Price | 1X | ||||||||||||||
Security | Illiquidity Discount | 0% to 10% | |||||||||||||||||
International | |||||||||||||||||||
Foreign—Equity | $ | 56,797 | Market Comparable | Market Price | 1X | ||||||||||||||
Security |
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, International Fund, Global Women's Equality Fund and Global Environmental Markets 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
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Notes to Financial Statements, continued
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.
Expenses Expenses of the Funds that are directly identifiable to a specific Fund are applied to that Fund. Expenses that are not readily identifiable to a specific Fund 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. 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.
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.
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
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and auditing standards; the effect of political, social, diplomatic or economic events; seizure, expropriation or nationalization of the issuer or its assets; 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.
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 Navigator Securities Lending Prime Portfolio, a registered Rule 2a-7 money market fund. 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 June 30, 2012, the value of securities loaned, payable for collateral due to brokers and non-cash collateral pledged by brokers were as follows:
Market Value of Securities Loaned | Payable on Collateral Due to Broker | Non-Cash Collateral Value | |||||||||||||
Balanced | $ | 53,630,485 | $ | 33,015,157 | $ | 21,279,465 | |||||||||
Growth | 6,488,175 | 3,848,325 | 2,676,609 | ||||||||||||
High Yield Bond | 34,314,930 | 34,942,268 | — | ||||||||||||
Global Women's Equality | 1,245,114 | 1,224,263 | — |
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Notes to Financial Statements, continued
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. Short positions held at the end of the period are disclosed in the footnotes to the Schedules of Investments.
NOTE B—Investment Advisory Fee and Transactions with Affiliated and Other Parties
The Trust has entered into an Investment Advisory Contract (the "Management Contract") with Pax World Management LLC (the "Adviser"). Pursuant to the terms of the Management Contract, the Adviser, subject to the supervision of the Board of Trustees of the Trust, is responsible for managing the assets of the Funds in accordance with the Funds' investment objective, investment programs and policies.
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Pursuant to the Management Contract the Adviser has 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 Adviser also has 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 Adviser 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 | % | |||||||
Growth | 0.75 | % | 0.75 | % | |||||||
Small Cap | 0.75 | % | 0.75 | % | |||||||
International | 0.85 | % | 0.85 | % | |||||||
High Yield Bond | 0.50 | % | 0.50 | % | |||||||
Global Women's Equality | 0.75 | % | 0.75 | % | |||||||
Global Environmental Markets | 0.90 | % | 0.90 | % |
For the period ended June 30, 2012, the Funds incurred the following advisory fees:
Fund | Total Advisory Fees Paid | ||||||
Balanced | $ | 4,639,729 | |||||
Growth | 474,488 | ||||||
Small Cap | 56,609 | ||||||
International | 172,852 | ||||||
High Yield Bond | 1,174,991 | ||||||
Global Women's Equality | 131,190 | ||||||
Global Environmental Markets | 193,894 |
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Notes to Financial Statements, continued
The Adviser has contractually agreed to reimburse Funds to the extent that each Fund's respective expenses exceed, on an annual basis, the following percentages of average daily net assets:
Fund | Individual Investor Class | Institutional Class | R Class | ||||||||||||
Growth1 | 1.29 | % | 1.04 | % | 1.54 | % | |||||||||
Small Cap1 | 1.24 | % | 0.99 | % | 1.49 | % | |||||||||
International1 | 1.40 | % | 1.15 | % | 1.65 | % | |||||||||
High Yield Bond2 | 0.99 | % | 0.74 | % | 1.24 | % | |||||||||
Global Women's Equality1 | 1.24 | % | 0.99 | % | N/A | ||||||||||
Global Environmental Markets1 | 1.40 | % | 1.15 | % | 1.65 | % |
1The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31, 2015.
2The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31, 2012.
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 Board of Trustees' meetings and of preparing, printing and mailing reports, proxy statements and prospectuses to shareholders.
For the period ended June 30, 2012, the dollar amount of expense reimbursements and fee waivers for each of the Funds were as follows:
Total Expense Reimbursement by Adviser | |||||||||||||||
Fund | Individual Investor Class | Institutional Class | R Class | ||||||||||||
Growth | $ | 82,567 | $ | 4,381 | $ | 326 | |||||||||
Small Cap | 65,389 | 3,197 | 294 | ||||||||||||
International | 53,867 | 13,651 | 401 | ||||||||||||
Global Women's Equality | 72,981 | 4,763 | N/A | ||||||||||||
Global Environmental Markets | 75,412 | 8,067 | 1,814 |
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The Trust has 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 R Class 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 Trust are also employees of the Adviser.
NOTE C—Investment Information
Purchases and proceeds from sales of investments for the Funds for the period ended June 30, 2012 were as follows:
Purchases | Sales | ||||||||||||||||||
Fund | Investments1 | U.S. Government Bonds | Investments1 | U.S. Government Bonds | |||||||||||||||
Balanced | $ | 178,923,871 | $ | 72,219,929 | $ | 275,220,857 | $ | 22,150,000 | |||||||||||
Growth | 14,025,801 | — | 14,262,221 | — | |||||||||||||||
Small Cap | 10,961,950 | — | 9,576,994 | — | |||||||||||||||
International | 15,159,140 | — | 6,738,477 | — | |||||||||||||||
High Yield Bond | 171,598,880 | — | 163,977,163 | — | |||||||||||||||
Global Women's Equality | 6,856,481 | — | 10,380,821 | — | |||||||||||||||
Global Environmental Markets | 16,383,447 | — | 8,346,905 | — |
1Excluding short-term investments and U.S. Government bonds.
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Notes to Financial Statements, continued
For federal income tax purposes, the identified cost of investments owned at June 30, 2012 as well as the gross unrealized appreciation (depreciation) of investments and resulting net unrealized appreciation (depreciation) as of June 30, 2012 were as follows for the Funds:
Fund | Identified cost of investments for Federal income tax basis | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | |||||||||||||||
Balanced | $ | 1,610,474,944 | $ | 281,226,424 | $ | 61,310,199 | $ | 219,916,225 | |||||||||||
Growth | 109,497,799 | 25,360,112 | 6,699,552 | 18,660,560 | |||||||||||||||
Small Cap | 16,463,521 | 727,699 | 1,378,941 | (651,242 | ) | ||||||||||||||
International | 45,259,671 | 2,778,318 | 6,060,370 | (3,282,052 | ) | ||||||||||||||
High Yield Bond | 497,448,607 | 13,691,779 | 17,720,279 | (4,028,500 | ) | ||||||||||||||
Global Women's Equality | 34,901,078 | 2,039,658 | 2,315,070 | (275,412 | ) | ||||||||||||||
Global Environmental Markets | 43,862,471 | 4,756,605 | 2,836,437 | 1,920,168 |
At June 30, 2012, the International Fund and Global Women's Equality Fund had unrealized foreign currency gains of $1,859 and $1,053, respectively. The Balanced Fund, Growth Fund, High Yield Bond Fund and Global Environmental Markets Fund had unrealized foreign currency losses of $20,287; $600; $4,960; and $1,173; 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.
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.
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June 30, 2012
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 June 30, 2012 is as follows:
Outstanding at 12/31/11 | Written | Closed | Expired | Exercised | Outstanding at 6/30/12 | ||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||
Call Options | |||||||||||||||||||||||||||
Number of contracts | 3,205 | 1,750 | — | (2,000 | ) | — | 2,955 | ||||||||||||||||||||
Premiums received | $ | 386,453 | $ | 1,193,357 | $ | — | $ | (173,938 | ) | $ | — | $ | 1,405,872 | ||||||||||||||
Put Options | |||||||||||||||||||||||||||
Number of contracts | 2,100 | — | (1,200 | ) | (400 | ) | (500 | ) | — | ||||||||||||||||||
Premiums received | $ | 394,415 | $ | — | $ | (180,662 | ) | $ | (95,644 | ) | $ | (118,109 | ) | $ | — | ||||||||||||
Growth Fund | |||||||||||||||||||||||||||
Call Options | |||||||||||||||||||||||||||
Number of contracts | — | 10 | — | — | — | 10 | |||||||||||||||||||||
Premiums received | $ | — | $ | 41,844 | $ | — | $ | — | $ | — | $ | 41,844 | |||||||||||||||
Put Options | |||||||||||||||||||||||||||
Number of contracts | — | 10 | — | — | — | 10 | |||||||||||||||||||||
Premiums received | $ | — | $ | 30,645 | $ | — | $ | — | $ | — | $ | 30,645 | |||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||
Put Options | |||||||||||||||||||||||||||
Number of contracts | 1,000 | — | — | — | — | 1,000 | |||||||||||||||||||||
Premiums received | $ | 176,198 | $ | — | $ | — | $ | — | $ | — | $ | 176,198 |
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Notes to Financial Statements, continued
Additional Derivative Disclosure The Balanced Fund, the High Yield Bond Fund, and the Women's Equity Fund held equity option contracts as of June 30, 2012. The fair value of such contracts (not accounted for as hedging instruments under FASB Statement of Financial Accounting Standards No. 133 ("FASB 133") and whose primary underlying risk exposure is equity risk at June 30, 2012 was as follows:
Purchased Equity Options Asset Derivatives Fair Value1 | Written Equity Options Liability Derivatives Fair Value2 | ||||||||||
Balanced Fund | $ | — | $ | 1,719,650 | |||||||
Growth | — | 72,650 | |||||||||
High Yield Bond Fund | — | 16,000 |
1Statement of Assets and Liabilities location: Investments, at value.
2Statement of Assets and Liabilities location: Options written, at value.
The effect of equity options on the statement of operations for the period ended June 30, 2012 was as follows:
Realized Gain (Loss) on Derivatives Recognized in Income1 | Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income2 | ||||||||||
Written Options | |||||||||||
Balanced Fund | $ | 97,055 | $ | (159,071 | ) | ||||||
Growth Fund | — | (161 | ) | ||||||||
High Yield Bond Fund | — | 69,000 |
1Statement of Operations location: Purchased options—Net realized gain (loss) on Investments; Written options—Net realized gain (loss) on Options contracts written.
2Statement of Operations location: Purchased options—Change in unrealized appreciation (depreciation) on Investments; Written options—Change in unrealized appreciation (depreciation) on Option contracts written.
Repurchase Agreements The Funds may enter into repurchase agreements with institutions that the Adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. In the case of repurchase agreements with broker-dealers, the value of the underlying securities (or collateral) will be at least equal at all times to the total amount of the repurchase obligation, including the interest factor. A Fund bears the risk of loss in the event the other party to a repurchase agreement defaults on its obligations and the Fund is delayed or prevented from exercising its rights to dispose of the collateral
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securities. This risk includes the risk of procedural costs or delays in addition to a loss on the securities if their value should fall below their repurchase price.
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 Board of Trustees. At June 30, 2012, the Balanced Fund held $14,414,056 or 0.80% of net assets and the High Yield Bond Fund held $140,988,245 or 30.47% of net assets in securities exempt from registration under Rule 144A of the Act.
At June 30, 2012, the Balanced Fund held $15,920,125 of illiquid securities representing 0.88% of net assets; the Growth Fund held $430,950 of illiquid securities representing 0.35% of net assets; the International Fund held $56,797 of illiquid securities representing 0.14% of net assets; and the High Yield Bond Fund held $16,153,008 of illiquid securities, representing 3.49% 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.
NOTE D—Tax Information
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
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Notes to Financial Statements, continued
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 2012 and 2011 was as follows:
Distributions paid in 2012 | Distributions paid in 2011 | ||||||||||||||||||
Fund | Ordinary Income | Long-term Capital Gains | Ordinary Income | Long-term Capital Gains | |||||||||||||||
Balanced | $ | 17,205,505 | $ | — | $ | 24,786,448 | $ | — | |||||||||||
Growth | — | — | — | — | |||||||||||||||
Small Cap | 342,788 | 39,283 | 1,127,876 | 243,441 | |||||||||||||||
International | 636,449 | — | 609,451 | 57,410 | |||||||||||||||
High Yield Bond | 17,756,076 | — | 33,638,396 | 7,231,486 | |||||||||||||||
Global Women's Equality | 354,123 | — | 421,862 | — | |||||||||||||||
Global Environmental Markets | 263,043 | — | — | 871,127 |
During the period from November 1, 2011 through December 31, 2011, the Balanced Fund, International Fund, High Yield Bond Fund, Global Women's Equality Fund and Global Environmental Markets Fund incurred capital losses in the amounts of $3,269,850; $273,880; $1,966,052; $787,654 and $343,944, respectively; and the Growth Fund and International Fund incurred qualified late-year ordinary losses of $2,062 and $87, respectively. These losses are treated for Federal income tax purposes as if they occurred on January 1, 2012. Accordingly, during 2011 the Funds may have made distributions, as required by Internal Revenue Code Regulations, in excess of amounts recognized for financial reporting purposes.
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.
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As of December 31, 2011, the Funds carried forward remaining losses as follows:
Fund | Total Expires in 2017 | Expires in 2018 | No Expiration Short Term | No Expiration Long term | Carryforward Loss Remaining | ||||||||||||||||||
Balanced | $ | 49,731,410 | $ | 492,576 | $ | — | $ | — | $ | 50,223,986 | |||||||||||||
Growth | 8,670,375 | — | — | — | 8,670,375 | ||||||||||||||||||
Small Cap | — | — | — | — | — | ||||||||||||||||||
International | — | — | 126,534 | 347,999 | 474,533 | ||||||||||||||||||
High Yield Bond | — | — | — | — | — | ||||||||||||||||||
Global Women's Equality | 1,657,238 | — | — | — | 1,657,238 | ||||||||||||||||||
Global Environmental Markets | — | — | — | — | — |
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 2007 through 2011). 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 June 30, 2012, no provision for federal income tax is necessary and, therefore, the Funds did not have a liability for any unrecognized tax expenses.
NOTE E—Custodian Bank and Custodian Fees
The custodian fees charged are reduced, pursuant to expense offset arrangements with each Fund, by an earnings credit which is based upon the average cash balances maintained at the Funds' custodian. If the Funds did not have such offset arrangements, they could have invested such amounts in income-producing assets. Custody credits for each of the Funds for the period ended June 30, 2012, reported as Fees paid indirectly in the Statements of Operations, were as follows:
Fund | Custody Credits | ||||||
Balanced | $ | 166 | |||||
Growth | 4 | ||||||
Small Cap | 1 | ||||||
High Yield Bond | 117 | ||||||
Global Environmental Markets | 1 |
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Notes to Financial Statements, continued
NOTE F—Board Approval of Advisory Agreements
Review Process. The 1940 Act requires that the Trustees request and evaluate, and that the Adviser furnish, such information as may reasonably be necessary for the Trustees to evaluate the terms of the Trust's Management Contract. Similarly, the 1940 Act requires that the Trustees request and evaluate, and that Impax furnish, such information as may reasonably be necessary for the Trustees to evaluate the terms of the investment subadvisory contract (the "Subadvisory Contract") among the Trust, the Adviser and Impax. The Trustees who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust (the "Independent Trustees") met telephonically or in person in March and June of 2012 for the purpose of considering the Management Contract and the Subadvisory Contract (the "contract review meetings"). In addition, the Trustees consider matters bearing on the Trust and its investment management and other arrangements at their regular meetings throughout the year, including reviews of investment results and performance data at each regular meeting and periodic presentations from
the Adviser.
During the course of the contract review meetings, the Trustees met and discussed the Management Contract and the Subadvisory Contract with representatives of the Adviser and Impax. The Independent Trustees were assisted in their evaluation of the Management Contract and the Subadvisory Contract by independent legal counsel, from whom they received assistance and advice, including a written memorandum regarding the legal standards applicable to the consideration of advisory arrangements, and with whom they met separately from management. The Independent Trustees made various requests for additional information or explanations from management regarding information that had been provided, to which management responded either orally or in writing.
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 the 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 these arrangements during the course of the year and in prior years. The Trustees evaluated all information available to them on a Fund-by-Fund basis, and their determinations were made separately in respect of each
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Fund. However, they also took into account the common interests of all the Funds in their review.
Nature, Extent and Quality of Services In considering the Management Contract and the Subadvisory Contract, the Trustees, including the Independent Trustees, evaluated the nature, extent and quality of the advisory services provided to the Trust by the Adviser and Impax. They considered the terms of the Management Contract and the Subadvisory Contract and received and considered information provided by management that described, among other matters:
• the nature and scope of the advisory services provided to the Funds and information regarding the experience, qualifications and adequacy of the personnel providing those services,
• the investment program used by the Adviser to manage the Funds and by Impax to subadvise the Global Environmental Markets Fund,
• possible conflicts of interest and fall-out benefits,
• brokerage practices,
• the compliance functions of the Adviser,
• financial results, assets under management and other information relating to the financial resources of the Adviser, and
• information relating to portfolio manager compensation.
In addition to considering the Funds' investment performance (see below), the Trustees considered, among other matters, the Adviser's general oversight of the Trust. They also took into account information concerning the investment philosophies and investment processes used by the Adviser and Impax in managing the Funds as well as their in-house investment and social research capabilities. They also considered various investment resources available to the Adviser and Impax, including research services acquired with "soft dollars" available to the Adviser and Impax as a result of securities transactions effected for the Funds.
The Trustees considered, among other matters, that the Adviser provides the Trust with office space and personnel, and provides oversight and coordination of the Funds' third-party service providers. These services include accounting, bookkeeping, tax, legal, audit, custody and transfer agency services, and preparation of prospectuses, shareholder reports and other regulatory filings. They also took into account the Adviser's compliance and operational
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functions, as well as steps taken by the Adviser to enhance compliance and operational capabilities and the resources being devoted to each.
The Trustees concluded, within the context of their overall conclusions regarding the Management Contract and the Subadvisory Contract, that the scope of the services provided to each Fund by the Adviser under the Management Contract, and to the Global Environmental Markets Fund by Impax, was consistent with such Fund's operational requirements; that the Adviser has the capabilities, resources and personnel necessary to provide the advisory services currently required by each Fund; and that, overall, the nature, extent and quality of the services provided by the Adviser to the Trust, and by Impax to the Global Environmental Markets Fund, were sufficient to warrant approval of the Management Contract and the Subadvisory Contract.
Fund Performance In connection with the contract review meetings, the Trustees, including the Independent Trustees, reviewed information prepared by Lipper, Inc. ("Lipper") regarding the total return investment performance of each Fund, comparing each such Fund's investment results with those of other mutual funds identified by Lipper as having the same investment classification over the 1-, 3-, 5- and 10-year periods (to the extent the Fund had been in existence) ended March 31, 2012. The Trustees, including the Independent Trustees, considered the extent to which the performance of each Fund might be compared to that of other mutual funds that employ socially responsible investing practices, but in light of the limited number of such funds pursuing investment strategies similar to those of the Funds, determined that the broader peer groups identified by Lipper represented a more appropriate comparison. The Independent Trustees considered, in particular, that the one-, three-, and ten-year performance of the High Yield Bond Fund was less favorable than its five-year performance, in each case relative to its Lipper peer group median, and that the Balanced and Global Women's Equality Funds' performance was less favorable than that of their respective Lipper peer group medians for each period, and discussed with senior executives of the Adviser their analysis of such underperformance. In addition to the information reviewed by the Trustees at the contract review meetings, the Trustees receive during the year detailed comparative performance information for each Fund including performance relative to one or more selected securities indices or other benchmarks. The Trustees also considered the portfolio turnover rates of each Fund.
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Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Management Contract and the Subadvisory Contract, that the relevant performance record and process in managing each Fund were sufficient to support approval of the Management Contract and the Subadvisory Contract.
Fees and Other Expenses The Trustees, including the Independent Trustees, considered the advisory fees paid by each Fund to the Adviser, and the subadvisory fees paid to Impax by the Adviser, as well as each Fund's distribution and service (Rule 12b-1) fees, "other expenses" and total expense ratios. In doing so, the Trustees reviewed both information provided by management and information prepared by Lipper regarding the expenses of each Fund relative to those of other mutual funds identified by Lipper as having the same investment classification (or, for the Global Environmental Markets Fund, identified by the Adviser as emphasizing clean technology investments).
In connection with their review, the Trustees considered the Adviser's agreement to:
• reimburse the Global Women's Equality Fund and Small Cap Fund to the extent either such Fund's total operating expenses (with certain exceptions) exceed a percentage of average daily net assets per annum of each share class as follows: 1.24% for Individual Investor Class shares, 0.99% for Institutional Class shares and 1.49% for R Class shares (R Class shares are not offered for Global Women's Equality Fund) through December 31, 2015,
• reimburse the International Fund and Global Environmental Markets Fund to the extent either such 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: 1.40% for Individual Investor Class shares, 1.15% for Institutional Class shares and 1.65% for R Class shares through December 31, 2015, and
• reimburse the Growth Fund to the extent such Fund's total operating expenses (with certain exceptions) exceed a percentage of average daily net assets per annum of each share class as follows: 1.29% for Individual Investor Class shares, 1.04% for Institutional Class shares and 1.54% for R Class shares, until at least December 31, 2015.
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The Trustees noted that the Adviser, at the time of the contract review meetings, did not have a significant institutional advisory business outside of the Funds, and considered the differences in the services provided and proposed to be provided to institutional clients and those provided to the Funds, as well as differences in the advisory fees charged and proposed to be charged to such clients and those charged to the Funds. The Trustees observed that the Funds' advisory fees and total expenses remained generally in line with those of other mutual funds identified by Lipper (or, for the Global Environmental Markets Fund, the Adviser).
Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Management Contract and the Subadvisory Contract, that the fees and expenses to be charged represented reasonable compensation to the Adviser and Impax in light of the services provided. In coming 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, including the Independent Trustees, reviewed information regarding the cost of services provided by the Adviser and the estimated profitability of the Adviser's relationship with the Trust, including a profitability report prepared by management detailing the costs of services provided to each Fund by the Adviser, and the profitability to the Adviser of its advisory relationship with each Fund, in each case for the year ended December 31, 2011. The Trustees recognized that the Adviser should, in the abstract, be entitled to earn a reasonable level of profit for the services provided to each Fund, and that it is difficult to make comparisons of profitability from mutual fund advisory contracts because comparative information is not generally available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions about cost allocations and the Adviser's capital structure and cost of capital. The Trustees concluded that, taking all of the foregoing into account, they were satisfied that the Adviser's level of profitability from its relationship with the Trust was not excessive. The Trustees did not consider the profitability of the Subadvisory Contract to Impax because the structure of the Subadvisory Contract is such that any profits to Impax reduce the profitability of the Adviser, and the fees payable under the Subadvisory Contract are the product of arm's-length bargaining between Impax and the Adviser.
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Possible Fall-Out Benefits The Trustees, including the Independent Trustees, considered information regarding the direct and indirect benefits to the Adviser and Impax from their relationships with the Trust, including reputational and other "fall out" benefits. During the course of the year, the Board of Trustees received presentations from the Adviser, and information from Impax, about its trading practices and brokerage arrangements, including its policies with respect to research provided in connection with trade execution for the Funds (soft dollar arrangements), and the Trustees accepted the representation of the Adviser that it fulfills its fiduciary obligation of seeking best execution when engaging in portfolio transactions for the Funds. The Trustees considered the receipt of these benefits in light of the Adviser's profitability, and concluded that such benefits were not excessive.
Possible Economies of Scale The Trustees, including the Independent Trustees, considered the extent to which the Adviser and Impax may realize economies of scale or other efficiencies in managing and supporting the Funds. They noted that as assets increase, certain fixed costs may be spread across a larger asset base, and it was noted that any economies of scale or other efficiencies might be realized (if at all) across a variety of products and services, including the Funds, and not only in respect of a single Fund.
The Trustees noted that the Adviser was reimbursing expenses of all of the Pax World Funds other than the Balanced and High Yield Bond Funds. The Trustees noted that all Pax World Funds other than the Balanced and High Yield Bond Funds are small by industry standards, and that it was therefore not necessary to engage in more substantive discussions of possible breakpoints or other fee reductions for such Funds at this time. The Trustees further noted the fee waiver and reimbursement agreements described above. Based on these observations, the Trustees concluded that the Funds' overall fee arrangements represent an appropriate sharing at the present time between Fund shareholders and the Adviser (and, for the Global Environmental Markets Fund, Impax) of any economies of scale or other efficiencies in the management of each Fund at current asset levels.
Conclusions. Based on their evaluation of factors that they deemed to be material, including those factors described above, the Board of Trustees, including the Independent Trustees, unanimously concluded that the continuation of the Management Contract with respect to each Fund and the continuation of the Subadvisory Contract with respect to the Global Environmental Markets Fund, was in the best interests of the Fund and should be approved.
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NOTE G—Other
Subsequent Events Effective August 15, 2012, the Global Green Fund has been renamed the Global Environmental Markets Fund.
Recent Accounting Pronouncements In December 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-11, Disclosures about Offsetting Assets and Liabilities. The update creates new disclosure requirements related to derivatives and other financial instruments that are either offset in the Statement of Assets and Liabilities or subject to an enforceable master netting arrangement or similar agreement. The disclosure requirements are effective for interim and annual reporting periods beginning on or after January 1, 2013. Management is currently evaluating the impact, if any, of the update's adoption on the financial statements of the Funds.
NOTE H—Proxy Voting
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.
NOTE I—Quarterly Portfolio Holdings Disclosure
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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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 semi-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 (8/12).
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30 Penhallow Street, Suite 400
Portsmouth NH 03801
800.767.1729
www.paxworld.com
PAX-SAR12
Item 2. Code of Ethics.
This disclosure is not required for the Semi-annual report filing.
Item 3. Audit Committee Financial Expert.
This disclosure is not required for the Semi-annual report filing.
Item 4. Principal Accountant Fees and Services.
This disclosure is not required for the Semi-annual report filing.
Item 5. Audit Committee of Listed Registrants.
This disclosure is not applicable to the Registrant.
Item 6. Schedule of Investments.
A complete series of schedules of investments are 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.
This disclosure is not applicable to the Registrant, as it is an open-end investment company.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
This disclosure is not applicable to the Registrant, as it is an open-end investment company.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
This disclosure is not applicable to the Registrant, as it is an open-end investment company.
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 Directors 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.
(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.
(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.
(3) Written solicitation to repurchase securities issued by closed-end companies: not applicable.
(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 I | ||
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By (Signature and Title) | /s/ Joseph F. Keefe | ||
| Joseph F. Keefe, President | ||
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Date | August 21, 2012 | ||
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 by the Registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Joseph F. Keefe | |
| Joseph F. Keefe, President (Principal Executive Officer) | |
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Date | August 21, 2012 | |
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By (Signature and Title) | /s/ Alicia K. DuBois | |
| Alicia K. DuBois, Treasurer (Principal Financial Officer) | |
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Date | August 21, 2012 | |