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: | 06/30/14 |
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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
June 30, 2014
SEMI-ANNUAL
REPORT
The ESG Managers® Asset Allocation Portfolios
ESG Managers® Growth Portfolio
Class A (PAGAX)
Institutional Class (PAGIX)
Class C (PAGCX)
ESG Managers® Growth and Income Portfolio
Class A (PGPAX)
Institutional Class (PMIIX)
Class C (PWCCX)
ESG Managers® Balanced Portfolio
Class A (PMPAX)
Institutional Class (PWPIX)
Class C (PWPCX)
ESG Managers® Income Portfolio
Class A (PWMAX)
Institutional Class (PWMIX)
Class C (PWMCX)
Pax World Management LLC is the investment adviser to ESG Managers® Portfolios
Table of Contents
Letter to Shareholders | 2 | ||||||
Portfolio Commentary | 7 | ||||||
Portfolio Highlights | |||||||
ESG Managers® Growth Portfolio | 11 | ||||||
ESG Managers® Growth and Income Portfolio | 13 | ||||||
ESG Managers® Balanced Portfolio | 16 | ||||||
ESG Managers® Income Portfolio | 19 | ||||||
Shareholder Expense Examples | 22 | ||||||
Schedules of Investments | 24 | ||||||
Statements of Assets and Liabilities | 32 | ||||||
Statements of Operations | 36 | ||||||
Statements of Changes in Net Assets | 38 | ||||||
Statements of Changes in Net Assets—Shares of Beneficial Interest | 40 | ||||||
Financial Highlights | 42 | ||||||
Notes to Financial Statements | 46 |
For More Information
General Fund Information
877.374.7678
Shareholder Account Information
888.374.8920
Account Inquiries
ESG Managers Portfolios
P.O. Box 55389
Boston, MA 02205-5389
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 55389
Boston, MA 02205-5389
Custodian
State Street Bank and Trust Company
1 Lincoln Street
Boston, MA 02111
Letter to Shareholders
By Joseph Keefe, President & CEO
Dear fellow shareholders,
The first six months of 2014 have surprised most market commentators, although I suppose to some extent that is always the case. We listen to experts only to learn that they are usually wrong, at least when it comes to predicting the future.
Equity prices continued their climb, but so did bond prices—something virtually no one predicted. Volatility was low. Those forecasting that inflation and higher rates are just around the corner have been wrong for years, but perhaps they will eventually be right. We shall have to see. Central bank policies continued to be accommodative to spur economic growth during the first half of 2014 but the Federal Reserve has now announced not only tapering but an end-date to its stimulus program.
The Fed policy change comes amidst evidence of an accelerating recovery in the underlying economy, with unemployment dipping to 6.1 percent in June, its lowest figure since September 2008. There is also growing evidence of widening economic inequality, however, and concern in some quarters that structural inequality and lower productivity are becoming significant drags on future economic growth. The economic environment remains uncertain.
Because being confronted with mixed signals and uncertainty about the future is a relative constant in the investment business, we try to refrain from grandiose prognosticating at Pax World. Instead, the ESG Managers® Portfolios employ broad diversification, institutional quality due diligence, manager selection, holdings-based analysis and ongoing oversight in seeking to anticipate and effectively manage risk in changing economic and investment market environments.
You will find detailed discussion of performance and financial information about the ESG Managers® Portfolios in this report. I will take note of a change in management of the Portfolios. At the end of May, Jon Hale, who worked with us at Pax World to develop the Portfolios and was a member of the portfolio management team since inception, accepted new responsibilities at
2
Morningstar and stepped down as co-manager of the Portfolios. We express our gratitude to Jon for all of his efforts and wish him the best of success in the future. Continuing in his portfolio management role is Peter Di Teresa, who worked with Jon in development of the Portfolios. Morningstar's Shannon Zimmerman joins Peter as co-manager. Shannon has extensive experience in the investment industry, including two tenures in manager research at Morningstar.
The first half of the year was eventful at Pax World. Of particular interest for investors in the ESG Managers® Portfolios was our execution of the first-ever merger of an ETF into an open-end mutual fund. At the end of March, we launched the Pax MSCI International ESG Index Fund (PXNIX), the product of a merger between the Pax World International Fund and the Pax MSCI EAFE ESG ETF. The new fund, which replaced the ETF (Predecessor Fund) in each of the ESG Managers® Portfolios, is a passively-managed index fund designed to track the performance of the MSCI EAFE ESG Index. The MSCI EAFE ESG Index consists of equity securities of companies in developed markets, excluding the U.S. and Canada, that have high environmental, social and governance (ESG) ratings relative to their sector and industry peers, as rated by MSCI ESG Research. The Fund is the only mutual fund in the United States that tracks the MSCI EAFE ESG Index.
On June 4, 2014, we also re-launched the Pax World Global Women's Equality Fund (PXWEX) which, following a shareholder vote, has adopted a new strategy and has been renamed the Pax Ellevate Global Women's Index Fund. The Fund was re-launched in partnership with Ellevate Asset Management, whose principal is Sallie Krawcheck. The Pax Ellevate Global Women's Index Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women's Leadership Index*, an index of companies around the world that are leaders in advancing women through gender diversity on their boards of directors and in management, and through other policies and programs. This Fund is the first equity mutual fund in the United States to focus on investing in the highest-rated companies in the world in advancing women's leadership.
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In advance of launching the Pax Ellevate Global Women's Index Fund, we built the first-ever global Index consisting of companies that are leaders in advancing women, as rated by Pax World Gender Analytics. Research suggests that where women are better represented on boards and in management, companies actually perform better. We designed the index, where the universe of stocks is distinguished vis-à-vis the market as a whole by its gender leadership, in order to measure the contributions and capture the returns associated with women's leadership. We believe the Fund represents a market solution to a global business challenge: by helping direct investor capital towards those companies that are embracing gender diversity, we hope more companies will decide to do so.
We were particularly pleased to be able to partner with Sallie Krawcheck and her team at Ellevate Asset Management in launching the Pax Ellevate Global Women's Index Fund. Sallie Krawcheck is one of the most respected individuals in the financial services industry, and her interest in partnering with Pax World on the Fund speaks to the gathering momentum around investing in women, and in companies that invest in women.
ESG Managers® Portfolios are long-term investment strategies. They have been created and are managed for investors and advisors who seek to capture the potential investment returns associated with global sustainability trends as they gain force in the years ahead. We remain committed to serving sustainable investors and to offering a family of funds that is responsive to the growing interest among investors in companies that are making a positive difference in confronting global sustainability challenges while also seeking to deliver market returns to investors.
Please don't hesitate to contact me, or any member of our staff, should you have any questions or need additional information. In the meantime, I hope you are enjoying your summer and thank you again for your investments in ESG Managers® Portfolios.
Sincerely,
Joseph F. Keefe
President and CEO
*A customized index calculated by MSCI.
The Funds' distributor, ALPS Distributors, Inc., is not affiliated with Pax World Management LLC, Morningstar Associates, LLC or Ellevate Asset Management, LLC.
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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, Morningstar Associates, 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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The Funds use multiple advisers to seek to achieve their investment objectives and Morningstar Associates may allocate a portion of a Fund's assets to one or more investments, such as the underlying funds listed below ("Underlying Funds"), or to one or more subadvisers, who seek to invest the assets allocated to them consistent with the investment style specified by Morningstar (e.g., large cap blend, small/mid cap value, investment grade intermediate term bond). At present, the only subadviser engaged by the Adviser to manage a portion of the Funds is ClearBridge, with all other assets invested in the Underlying Funds. The potential risks and returns of each Fund vary with the degree to which each Fund's assets are invested in particular market segments and/or asset classes. Morningstar Associates will allocate each Fund's assets to Underlying Funds, the Adviser or one or more subadvisers in Morningstar Associates' sole discretion.
The Funds' "multi-manager" approach is designed to reduce the management risk inherent in individual security selection and to achieve lower volatility by combining complementary investment approaches. Allocation of assets among Underlying Funds and subadvisers is based on such factors as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets' current valuations and other economic factors. Morningstar Associates may periodically adjust asset allocations to favor those Underlying Funds and subadvisers that Morningstar Associates believes will provide the most favorable outlook for achieving a Fund's investment objective. As a result, it is not possible to predict the extent to which any Fund's assets will be invested in a particular Underlying Fund or with any subadviser at any given time. The Adviser and/or Morningstar Associates may change the Funds' asset allocations at any time without notice to shareholders and without shareholder approval.
Fund Manager or Subadviser | Fund or Subadvised Strategy | ||||||
Ariel Investments, LLC | Ariel Fund | ||||||
ClearBridge Advisors, LLC | ClearBridge ESG Large Cap Value Strategy | ||||||
Community Capital Management, Inc. | CRA Qualified Investment Fund | ||||||
Miller/Howard Investments, Inc. | Touchstone Premium Yield Equity Fund | ||||||
Everence Capital Management | Praxis Intermediate Income Fund | ||||||
Neuberger Berman Management, LLC | Neuberger Berman Socially Responsive Fund | ||||||
Parnassus Investments | Parnassus Core Equity Fund | ||||||
Portfolio 21 Investments | Portfolio 21 Global Equity Fund | ||||||
Pax World Management LLC | Pax World Global Environmental Markets Fund | ||||||
Pax World Management LLC | Pax World High Yield Bond Fund | ||||||
Pax World Management LLC | Pax World Small Cap Fund | ||||||
Pax World Management LLC | Pax MSCI International ESG Index Fund | ||||||
PIMCO | PIMCO Income Fund | ||||||
RBC Global Asset Management (US) Inc. | Access Capital Community Investment Fund | ||||||
Schroder Investment Management, Ltd | Schroder Emerging Market Equity Fund | ||||||
TIAA-CREF | TIAA-CREF Social Choice Bond Fund |
See Schedules of Investments
6
June 30, 2014
Portfolio Commentary
Portfolio Construction Advisors
Peter DiTeresa, Portfolio Manager,
Shannon Zimmerman, Senior Consultant and Portfolio Manager
The ESG Managers Portfolios earned solid returns in 2014's first half, with the Income and Growth and Income Portfolios outperforming their Blended Benchmarks1 and the other two trailing their benchmarks by modest amounts. While our underlying income-focused and value-oriented funds did particularly well, the Portfolios as a whole benefited from a market environment more favorable for broad diversification than has been the case in recent periods.
Total returns for the six-month period ended June 30, 2014:
Class A Shares | Portfolio | Blended Benchmark1 | |||||||||
Growth Portfolio | 5.51 | % | 6.33 | % | |||||||
Growth and Income Portfolio | 6.00 | % | 5.94 | % | |||||||
Balanced Portfolio | 5.16 | % | 5.48 | % | |||||||
Income Portfolio | 5.18 | % | 4.84 | % |
Going into 2014, we held a more favorable view of stocks than bonds. As a result, we maintained overweight equity stakes in the three multi-asset class Portfolios and were fully invested in the all-equity Growth Portfolio. With stocks generally outperforming bonds in the first half, that positioning helped the Portfolios' performance relative to their benchmarks.
The Portfolios were also overweight U.S. stocks relative to international developed markets, which also benefitted performance. The U.S. stock market, as represented by the Standard & Poor's 500 Index2 (the S&P 500 Index), gained 7.14% in the period while developed international markets, as measured by the MSCI Europe, Australasia, Far East (EAFE) (Net) Index3 (the MSCI EAFE (Net) Index), rose 4.78%. After a first-quarter decline, emerging-markets stocks posted strong results. Outpacing U.S. and international developed markets, the MSCI Emerging Markets4 Index returned 6.14% in the year's first half. Our emerging markets exposure was close to neutral at the start of the year. While that hurt first quarter performance relative to the benchmarks, which do not include emerging markets, it helped second quarter performance.
7
June 30, 2014
Portfolio Commentary, continued
We limited our bond stakes' sensitivity to rising interest rates by overweighting credit-sensitive funds and favoring managers with flexibility in positioning their funds. While the U.S. Federal Reserve appears committed to keeping interest rates low into 2015, market expectations may still cause rates to rise, as we saw in 2013. Investors nonetheless embraced long-term bonds in the second quarter, but the impact on the Portfolios proved modest. Overweight positions in credit-sensitive strategies buoyed results, with PIMCO Income Fund, in particular, contributing significantly to the performance of the multi-asset class portfolios during the first half of the year.
Many of the underlying strategies we selected for the Portfolios had a good first half. Although many of our equity managers suffered in the markets' poor start to the year, most of them were able to earn competitive returns as markets recovered. U.S. stock managers Touchstone Premium Yield Equity Fund and Parnassus Core Equity Fund outperformed the S&P 500 Index for the six months as investors particularly favored dividend-paying and value-leaning stocks. While other strategies trailed the S&P 500 Index, their results were generally competitive with benchmarks and peers. After outperforming in the first quarter, Pax MSCI International ESG Index Fund modestly lagged the MSCI EAFE (Net) Index in the period. On the fixed-income side of the multi-asset portfolios, PIMCO Income Fund continued to deliver impressive relative performance; Pax World High Yield Bond Fund also contributed positively. Core holding TIAA-CREF Social Choice Bond Fund beat the Barclays U.S. Aggregate Bond Index5 (the Barclay's Index) thanks mainly to its corporate and mortgage-backed bond holdings. Muted interest-rate sensitivity versus the benchmark hindered Praxis Intermediate Income Fund but, as with TIAA-CREF Social Choice Bond Fund, the fund's exposure to corporate and mortgage-backed debt proved beneficial, contributing to its competitive returns for the quarter.
Portfolio Changes
The modest adjustments we made over the first half of 2014 generally increased the income-oriented Portfolios' emphasis on dividends. Overall, we moved the Portfolios' international developed markets exposures closer to neutral weights, albeit incrementally. Late in the first quarter saw a change of fund structure as Pax MSCI EAFE Index ETF and Pax World International Fund were merged into a single mutual fund named Pax MSCI International ESG Index Fund. Because the new fund tracks the same index, its record
8
June 30, 2014
Portfolio Commentary, continued
reflects the Pax MSCI EAFE Index ETF's history. The impact on ESG Managers Portfolios was negligible, though it did eliminate the difference between share price and portfolio returns that can arise with exchange-traded funds. Late in the quarter, Parnassus Equity Income Fund became Parnassus Core Equity Fund as the firm believed the new name better reflected the fund's characteristics. Its management and strategy, including a focus on high-quality companies and attention to valuation, remain intact.
Outlook
The surprising relative strength of long-term bonds persisted during the first two quarters of the year, but we remain cautious about interest-rate sensitivity. Indeed, the recent long-bond rally makes rate sensitivity seem even more perilous, with that portion of the yield curve now even more richly valued. Tight credit spreads, however, also argue for caution with regard to credit risk. Because rate risk in our view is the greater threat, the Portfolios have relatively greater exposure to higher-yielding credits than our targets but more muted interest-rate sensitivity. Because we see more downside in rate than in credit sensitivity, we have also increased exposure to managers who are either conservative about interest-rate sensitivity or who have made deft use of flexible mandates. We put Praxis Intermediate Income Fund, which has kept duration below the Barclays U.S. Aggregate Bond Index for some time, in the first camp. In the latter is our other core fixed-income holding, TIAA-CREF Social Choice Bond, which recently benefited from some exposure further along the yield curve, along with good sector positioning. The group also includes PIMCO Income Fund, whose managers use a wide-ranging approach and will shift exposures when they believe the risk-reward characteristics of a sector are deteriorating.
For now, we believe equities are relatively more attractive than bonds. At the end of June, the stocks Morningstar's equity analysts cover were overall fairly valued. With a strengthening U.S. economy and overseas central banks' commitment to fostering growth, we don't believe stocks are particularly expensive, though investor unease could spell more of the sort of sell-off we saw at the start of the year. We think this could be a favorable environment, relatively speaking, for many of our managers, who tend to focus on company fundamentals and run concentrated portfolios of what they believe to be the most attractive stocks consistent with their strategies.
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June 30, 2014
Portfolio Commentary, continued
As we see slowly improving economic growth combined with near-term risks for both stocks and bonds, the ESG Managers Portfolios are attractive options for less-aggressive exposure to global markets using underlying managers who believe sustainable investing helps lead them to high-quality, lower-risk companies that will perform well over the long term while respecting the environment and the concerns of other stakeholders.
1Blended Benchmarks
The Blended Benchmark for the Growth Portfolio is comprised of 66% S&P 500 Index and 34% MSCI EAFE (Net) Index.
The Blended Benchmark for the Growth and Income Portfolio is comprised of 55% S&P 500 Index, 25% MSCI EAFE (Net) Index, and 20% Barclays U.S. Aggregate.
The Blended Benchmark for the Balanced Portfolio is comprised of 42% S&P 500 Index, 18% MSCI EAFE (Net) Index and 40% Barclays Aggregate U.S. Bond Index.
The Blended Benchmark for the Income Portfolio is comprised of 24% S&P 500 Index, 11% MSCI EAFE (Net) Index and 65% Barclays U.S. Aggregate Bond Index.
2Standard & Poor's 500 Composite Stock Index is an unmanaged index of large capitalization common stocks.
3MSCI EAFE (Europe, Australasia, Far East) (Net) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE (Net) Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCIEAFE Index is shown "net," which includes dividend reinvestments after deduction of foreign withholding tax.
4MSCI Emerging Markets Index is an unmanaged index of stocks considered to be representative of stocks of developing countries.
5Barclays 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.
One cannot invest directly in an index.
Securities of small and medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.
Emerging market and international investments involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, economic or political instability in other nations or increased volatility and lower trading volume.
The portfolio commentary in this report provides insight in an effort to help you examine your fund. The views expressed therein are those of the portfolio construction advisers 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.
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June 30, 2014
Growth Portfolio
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Annualized Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 Year | 3 Years | Since Inception1 | ||||||||||||||||||||||
Class A2, 3 | PAGAX | NAV4 | 5.51 | % | 21.86 | % | 11.12 | % | 10.79 | % | |||||||||||||||||
POP | -0.31 | % | 15.19 | % | 9.05 | % | 9.41 | % | |||||||||||||||||||
Institutional Class2 | PAGIX | 5.61 | % | 21.91 | % | 11.32 | % | 11.07 | % | ||||||||||||||||||
Class C2, 5 | PAGCX | NAV4 | 5.11 | % | 20.90 | % | 10.28 | % | 9.97 | % | |||||||||||||||||
CDSC | 4.06 | % | 19.69 | % | |||||||||||||||||||||||
Blended Index6, 7, 8, 10 | 6.33 | % | 24.30 | % | 13.72 | % | 12.87 | % | |||||||||||||||||||
Lipper Multi-Cap Core Funds Index9, 10 | 6.25 | % | 24.42 | % | 14.45 | % | 14.36 | % | |||||||||||||||||||
S&P 500 Index7, 10 | 7.14 | % | 24.61 | % | 16.58 | % | 15.41 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is January 4, 2010.
2Total 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 shown. For more recent month-end performance data, please visit www.esgmanagers.com.
3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
4NAV is Net Asset Value.
5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
6The Blended Index is composed of 66% S&P 500 Index and 34% MSCI EAFE (Net) Index.
7The S&P 500 Index is an index of large capitalization common stocks.
8The 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 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
9The Lipper Multi-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Multi-Cap Core Funds Average. The Lipper Multi-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 any one market capitalization range over an extended period of time. Multi-Cap Core Funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared
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June 30, 2014
Growth Portfolio, continued
Portfolio Highlights (Unaudited), continued
to the S&P SuperComposite 1500 Index. The Lipper Multi-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.
10Unlike the Growth Portfolio, the Blended Index, the Lipper Multi-Cap Core Funds Index and the S&P 500 Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Multi-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.
Manager Allocations
Strategy/Fund | Percent of Net Assets | ||||||
EQUITY | |||||||
Large-Cap Multi-Cap | |||||||
ClearBridge ESG Large Cap Value Strategy | 18.7 | % | |||||
Touchstone Premium Yield Equity Fund | 3.3 | % | |||||
Parnassus Core Equity Fund | 22.5 | % | |||||
Neuberger Berman Socially Responsive Fund | 22.9 | % | |||||
Small/Mid-Cap | |||||||
Ariel Fund | 6.9 | % | |||||
Pax World Small Cap Fund | 7.3 | % | |||||
International/World | |||||||
Pax MSCI International ESG Index Fund | 10.9 | % | |||||
Portfolio 21 Global Equity | 0.3 | % | |||||
Schroder Emerging Markets Equity Fund | 5.1 | % | |||||
Sector Specific | |||||||
Pax World Global Environmental Markets Fund | 2.4 | % | |||||
Total Equities | 100.3 | % | |||||
Other | -0.3 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Description | Percent of Net Assets | ||||||
Neuberger Berman Socially Responsive Fund | 22.9 | % | |||||
Parnassus Core Equity Fund | 22.5 | % | |||||
Pax MSCI International ESG Index Fund | 10.9 | % | |||||
Pax World Small Cap Fund | 7.3 | % | |||||
Ariel Fund | 6.9 | % | |||||
Schroder Emerging Market Equity Fund | 5.1 | % | |||||
Touchstone Premium Yield Equity Fund | 3.3 | % | |||||
Pax World Global Environmental Markets Fund | 2.4 | % | |||||
Wells Fargo & Co. | 0.7 | % | |||||
DISH Network Corp., Class A | 0.7 | % | |||||
Total | 82.7 | % |
Holdings are subject to change.
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June 30, 2014
Growth and Income Portfolio
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Annualized Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 Year | 3 Years | Since Inception1 | ||||||||||||||||||||||
Class A2, 3 | PGPAX | NAV4 | 6.00 | % | 19.75 | % | 10.68 | % | 10.39 | % | |||||||||||||||||
POP | 0.14 | % | 13.14 | % | 8.62 | % | 9.01 | % | |||||||||||||||||||
Institutional Class2 | PMIIX | 6.18 | % | 20.25 | % | 11.02 | % | 10.67 | % | ||||||||||||||||||
Class C2, 5 | PWCCX | NAV4 | 5.58 | % | 18.75 | % | 9.82 | % | 9.53 | % | |||||||||||||||||
CDSC | 4.52 | % | 17.56 | % | |||||||||||||||||||||||
Blended Index6, 7, 8, 9, 11 | 5.94 | % | 20.16 | % | 11.99 | % | 11.52 | % | |||||||||||||||||||
Lipper Mixed-Asset Target Allocation Growth Funds Index10, 11 | 5.72 | % | 18.52 | % | 11.07 | % | 11.01 | % | |||||||||||||||||||
S&P 500 Index7, 11 | 7.14 | % | 24.61 | % | 16.58 | % | 15.41 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is January 4, 2010.
2Total 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 shown. For more recent month-end performance data, please visit www.esgmanagers.com.
3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
4NAV is Net Asset Value.
5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
6The Blended Index is composed of 55% S&P 500 Index, 25% MSCI EAFE (Net) Index and 20% Barclays U.S. Aggregate Bond Index.
7The S&P 500 Index is an index of large capitalization common stocks.
8The 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 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
9The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.
10The Lipper Mixed-Asset Target Allocation Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Growth Funds Average. The Lipper Mixed-Asset Target Allocation Growth Funds Average is a total return performance average of mutual funds tracked by Lipper, Inc. whose primary objective
13
June 30, 2014
Growth and Income Portfolio, continued
Portfolio Highlights (Unaudited), continued
is to conserve principal by maintaining, at all times a mix of between 60%-80% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Growth 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.
11Unlike the Growth and Income Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Growth Funds Index and the S&P 500 Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Mixed-Asset Target Allocation Growth Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.
Manager Allocations
Manager/Strategy | Percent of Net Assets | ||||||
Strategy/Fund | |||||||
EQUITY | |||||||
Large-Cap Multi-Cap | |||||||
ClearBridge ESG Large Cap Value Strategy | 14.3 | % | |||||
Touchstone Premium Yield Equity Fund | 12.3 | % | |||||
Parnassus Core Equity Fund | 18.8 | % | |||||
Neuberger Berman Socially Responsive Fund | 14.7 | % | |||||
Small/Mid-Cap | |||||||
Ariel Fund | 3.5 | % | |||||
Pax World Small Cap Fund | 4.0 | % | |||||
International/World | |||||||
Pax MSCI International ESG Index Fund | 9.2 | % | |||||
Portfolio 21 Global Equity Fund | 1.2 | % | |||||
Schroder Emerging Markets Equity Fund | 4.6 | % | |||||
Sector Specific | |||||||
Pax World Global Environmental Markets Fund | 1.1 | % | |||||
Total Equities | 83.7 | % | |||||
FIXED INCOME | |||||||
Investment Grade | |||||||
Access Capital Community Investment Fund | 0.2 | % | |||||
CRA Qualified Investment Fund | 0.1 | % | |||||
Praxis Intermediate Income Fund | 2.0 | % | |||||
TIAA-CREF Social Choice Bond Fund | 4.4 | % | |||||
PIMCO Income Fund | 6.9 | % | |||||
High Yield | |||||||
Pax World High Yield Bond Fund | 2.9 | % | |||||
Total Fixed Income | 16.5 | % | |||||
Other | -0.2 | % | |||||
Total | 100.0 | % |
14
June 30, 2014
Top Ten Holdings
Description | Percent of Net Assets | ||||||
Parnassus Core Equity Fund | 18.8 | % | |||||
Neuberger Berman Socially Responsive Fund | 14.7 | % | |||||
Touchstone Premium Yield Equity | 12.3 | % | |||||
Pax MSCI International ESG Index Fund | 9.2 | % | |||||
PIMCO Income Fund | 6.9 | % | |||||
Schroder Emerging Market Equity Fund | 4.6 | % | |||||
TIAA-CREF Social Choice Bond Fund | 4.4 | % | |||||
Pax World Small Cap Fund | 4.0 | % | |||||
Ariel Fund | 3.5 | % | |||||
Pax World High Yield Bond Fund | 2.9 | % | |||||
Total | 81.3 | % |
Holdings are subject to change.
15
June 30, 2014
Balanced Portfolio
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Annualized Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 Year | 3 Years | Since Inception1 | ||||||||||||||||||||||
Class A2, 3 | PMPAX | NAV4 | 5.16 | % | 15.61 | % | 9.15 | % | 8.83 | % | |||||||||||||||||
POP | -0.61 | % | 9.27 | % | 7.11 | % | 7.47 | % | |||||||||||||||||||
Institutional Class2 | PWPIX | 5.34 | % | 15.97 | % | 9.45 | % | 9.10 | % | ||||||||||||||||||
Class C2, 5 | PWPCX | NAV4 | 4.77 | % | 14.83 | % | 8.36 | % | 8.02 | % | |||||||||||||||||
CDSC | 3.73 | % | 13.68 | % | |||||||||||||||||||||||
Blended Index6, 7, 8, 9, 11 | 5.48 | % | 16.09 | % | 10.04 | % | 9.92 | % | |||||||||||||||||||
Lipper Mixed-Asset Target Allocation Moderate Funds Index10, 11 | 5.54 | % | 15.53 | % | 9.13 | % | 9.45 | % | |||||||||||||||||||
S&P 500 Index7, 11 | 7.14 | % | 24.61 | % | 16.58 | % | 15.41 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is January 4, 2010.
2Total 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 shown. For more recent month-end performance data, please visit www.esgmanagers.com.
3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
4NAV is Net Asset Value.
5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
6The Blended Index is composed of 42% S&P 500 Index, 18% MSCI EAFE (Net) Index and 40% Barclays U.S. Aggregate Bond Index.
7The S&P 500 Index is an index of large capitalization common stocks.
8The 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 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
9The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.
10The Lipper Mixed-Asset Target Allocation Moderate Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Moderate Funds Average. The Lipper Mixed-Asset Target Allocation Moderate Funds Average is a total return performance average of mutual funds tracked by Lipper, Inc. whose
16
June 30, 2014
primary objective is to conserve principal by maintaining, at all times a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Moderate 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.
11Unlike the Balanced Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Moderate Funds Index and the S&P 500 Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Mixed-Asset Target Allocation Moderate Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.
Manager Allocations
Strategy/Fund | Percent of Net Assets | ||||||
EQUITY | |||||||
Large-Cap Multi-Cap | |||||||
ClearBridge ESG Large Cap Value Strategy | 12.4 | % | |||||
Touchstone Premium Yield Equity Fund | 3.2 | % | |||||
Parnassus Core Equity Fund | 15.5 | % | |||||
Neuberger Berman Socially Responsive Fund | 13.8 | % | |||||
Small/Mid-Cap | |||||||
Ariel Fund | 3.7 | % | |||||
Pax World Small Cap Fund | 3.8 | % | |||||
International/World | |||||||
Pax MSCI International ESG Index Fund | 7.1 | % | |||||
Portfolio 21 Global Equity Fund | 1.2 | % | |||||
Schroder Emerging Markets Equity Fund | 3.6 | % | |||||
Sector Specific | |||||||
Pax World Global Environmental Markets Fund | 1.9 | % | |||||
Total Equities | 66.2 | % | |||||
FIXED INCOME | |||||||
Investment Grade | |||||||
Access Capital Community Investment Fund | 4.9 | % | |||||
CRA Qualified Investment Fund | 4.8 | % | |||||
Praxis Intermediate Income Fund | 6.8 | % | |||||
TIAA-CREF Social Choice Bond Fund | 8.5 | % | |||||
PIMCO Income Fund | 6.0 | % | |||||
High Yield | |||||||
Pax World High Yield Bond Fund | 3.0 | % | |||||
Total Fixed Income | 34.0 | % | |||||
Other | -0.2 | % | |||||
Total | 100.0 | % |
17
June 30, 2014
Balanced Portfolio, continued
Portfolio Highlights (Unaudited), continued
Top Ten Holdings
Description | Percent of Net Assets | ||||||
Parnassus Core Equity Fund | 15.5 | % | |||||
Neuberger Berman Socially Responsive Fund | 13.8 | % | |||||
TIAA-CREF Social Choice Bond Fund | 8.5 | % | |||||
Pax MSCI International ESG Index Fund | 7.1 | % | |||||
Praxis Intermediate Income Fund | 6.8 | % | |||||
PIMCO Income Fund | 6.0 | % | |||||
Access Capital Community Investment Fund | 4.9 | % | |||||
CRA Qualified Investment Fund | 4.8 | % | |||||
Pax World Small Cap Fund | 3.8 | % | |||||
Ariel Fund | 3.7 | % | |||||
Total | 74.9 | % |
Holdings are subject to change.
18
June 30, 2014
Income Portfolio
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Annualized Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 Year | 3 Years | Since Inception1 | ||||||||||||||||||||||
Class A2, 3 | PWMAX | NAV4 | 5.18 | % | �� | 11.38 | % | 6.65 | % | 7.05 | % | ||||||||||||||||
POP | 0.49 | % | 6.39 | % | 5.03 | % | 5.96 | % | |||||||||||||||||||
Institutional Class2 | PWMIX | 5.18 | % | 11.60 | % | 6.89 | % | 7.29 | % | ||||||||||||||||||
Class C2, 5 | PWMCX | NAV4 | 4.72 | % | 10.51 | % | 5.84 | % | 6.23 | % | |||||||||||||||||
CDSC | 3.68 | % | 9.41 | % | |||||||||||||||||||||||
Blended Index6, 7, 8, 9, 11 | 4.84 | % | 11.11 | % | 7.39 | % | 7.69 | % | |||||||||||||||||||
Lipper Mixed-Asset Target Allocation Conservative Funds Index10, 11 | 5.09 | % | 10.65 | % | 6.61 | % | 7.29 | % | |||||||||||||||||||
Barclays U.S. Aggregate Bond Index9, 11 | 3.93 | % | 4.37 | % | 3.66 | % | 4.48 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is January 4, 2010.
2Total 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 shown. For more recent month-end performance data, please visit www.esgmanagers.com.
3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 4.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
4NAV is Net Asset Value.
5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
6The Blended Index is composed of 24% S&P 500 Index, 11% MSCI EAFE (Net) Index and 65% Barclays U.S. Aggregate Bond Index.
7The S&P 500 Index is an index of large capitalization common stocks.
8The 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 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
9The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.
10The Lipper Mixed-Asset Target Allocation Conservative Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Conservative Funds Average. The Lipper Mixed-Asset Target Allocation Conservative Funds Average is a total return performance average of mutual funds tracked
19
June 30, 2014
Income Portfolio, continued
Portfolio Highlights (Unaudited), continued
by Lipper, Inc. whose primary objective is to conserve principal by maintaining, at all times a mix of between 20%-40% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Conservative 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.
11Unlike the Income Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Conservative Funds Index and the Barclays U.S. Aggregate Bond Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Mixed-Asset Target Allocation Conservative Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.
Manager Allocations
Strategy/Fund | Percent of Net Assets | ||||||
EQUITY | |||||||
Large-Cap Multi-Cap | |||||||
ClearBridge ESG Large Cap Value Strategy | 6.5 | % | |||||
Touchstone Premium Yield Equity Fund | 7.0 | % | |||||
Parnassus Core Equity Fund | 9.7 | % | |||||
Neuberger Berman Socially Responsive Fund | 6.4 | % | |||||
Small/Mid-Cap | |||||||
Ariel Fund | 1.2 | % | |||||
Pax World Small Cap Fund | 2.1 | % | |||||
International/World | |||||||
Pax MSCI International ESG Index Fund | 3.4 | % | |||||
Portfolio 21 Global Equity Fund | 0.7 | % | |||||
Schroder Emerging Markets Equity Fund | 2.0 | % | |||||
Sector Specific | |||||||
Pax World Global Environmental Markets Fund | 1.4 | % | |||||
Total Equities | 40.4 | % | |||||
FIXED INCOME | |||||||
Investment Grade | |||||||
Access Capital Community Investment Fund | 9.0 | % | |||||
CRA Qualified Investment Fund | 2.9 | % | |||||
Praxis Intermediate Income Fund | 14.5 | % | |||||
TIAA-CREF Social Choice Bond Fund | 16.0 | % | |||||
PIMCO Income Fund | 16.1 | % | |||||
High Yield | |||||||
Pax World High Yield Bond Fund | 1.7 | % | |||||
Total Fixed Income | 60.2 | % | |||||
Other | -0.6 | % | |||||
Total | 100.0 | % |
20
June 30, 2014
Top Ten Holdings
Description | Percent of Net Assets | ||||||
PIMCO Income Fund | 16.1 | % | |||||
TIAA-CREF Social Choice Bond Fund | 16.0 | % | |||||
Praxis Intermediate Income Fund | 14.5 | % | |||||
Parnassus Core Equity Fund | 9.7 | % | |||||
Access Capital Community Investment Fund | 9.0 | % | |||||
Touchstone Premium Yield Equity Fund | 7.0 | % | |||||
Neuberger Berman Socially Responsive Fund | 6.4 | % | |||||
Pax MSCI International ESG Index Fund | 3.4 | % | |||||
CRA Qualified Investment Fund | 2.9 | % | |||||
Pax World Small Cap Fund | 2.1 | % | |||||
Total | 87.1 | % |
Holdings are subject to change.
21
June 30, 2014
Shareholder Expense Examples (Unaudited)
Examples As a shareholder of the ESG Managers Growth, Growth and Income, Balanced or Income Portfolios, 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, 2014 and ending on June 30, 2014.
Please note that Individual Retirement Account (IRA), Coverdell Education Savings, Roth IRA, SEP-IRA, SIMPLE IRA, and 403(b)(7) accounts are charged an annual custodial fee of twelve dollars. If you are invested in one of these account types, you should add an additional six dollars to the estimated expenses paid during the period.
Actual Expenses For each Fund, the first table on the next page provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. For the Fund, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Examples for Comparison Purposes For each Fund, the second table on the following page provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
22
June 30, 2014
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 or expenses of underlying fund investments. 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 and underlying fund expenses were included, your costs would have been higher.
Based on Actual Fund Return | Beginning Account Value (1/1/14) | Ending Account Value (6/30/14) | Annualized Expense Ratio | Expense Paid During Period1 | |||||||||||||||
Growth - Class A | $ | 1,000.00 | $ | 1,055.10 | 1.11 | % | $ | 5.66 | |||||||||||
Growth - Institutional | 1,000.00 | 1,056.10 | 0.86 | % | 4.38 | ||||||||||||||
Growth - Class C | 1,000.00 | 1,051.10 | 1.86 | % | 9.46 | ||||||||||||||
Growth and Income - Class A | 1,000.00 | 1,060.00 | 1.05 | % | 5.36 | ||||||||||||||
Growth and Income - Institutional | 1,000.00 | 1,061.80 | 0.80 | % | 4.09 | ||||||||||||||
Growth and Income - Class C | 1,000.00 | 1,055.80 | 1.80 | % | 9.18 | ||||||||||||||
Balanced - Class A | 1,000.00 | 1,051.60 | 0.99 | % | 5.04 | ||||||||||||||
Balanced - Institutional | 1,000.00 | 1,053.40 | 0.74 | % | 3.77 | ||||||||||||||
Balanced - Class C | 1,000.00 | 1,047.70 | 1.74 | % | 8.83 | ||||||||||||||
Income - Class A | 1,000.00 | 1,051.80 | 0.93 | % | 4.73 | ||||||||||||||
Income - Institutional | 1,000.00 | 1,051.80 | 0.68 | % | 3.46 | ||||||||||||||
Income - Class C | 1,000.00 | 1,047.20 | 1.68 | % | 8.53 | ||||||||||||||
Based on Hypothetical 5% Return (before expenses) | Beginning Account Value (1/1/14) | Ending Account Value (6/30/14) | Annualized Expense Ratio | Expense Paid During Period1 | |||||||||||||||
Growth - Class A | $ | 1,000.00 | $ | 1,019.29 | 1.11 | % | $ | 5.56 | |||||||||||
Growth - Institutional | 1,000.00 | 1,020.53 | 0.86 | % | 4.31 | ||||||||||||||
Growth - Class C | 1,000.00 | 1,015.57 | 1.86 | % | 9.30 | ||||||||||||||
Growth and Income - Class A | 1,000.00 | 1,019.59 | 1.05 | % | 5.26 | ||||||||||||||
Growth and Income - Institutional | 1,000.00 | 1,020.83 | 0.80 | % | 4.01 | ||||||||||||||
Growth and Income - Class C | 1,000.00 | 1,015.87 | 1.80 | % | 9.00 | ||||||||||||||
Balanced - Class A | 1,000.00 | 1,019.89 | 0.99 | % | 4.96 | ||||||||||||||
Balanced - Institutional | 1,000.00 | 1,021.12 | 0.74 | % | 3.71 | ||||||||||||||
Balanced - Class C | 1,000.00 | 1,016.17 | 1.74 | % | 8.70 | ||||||||||||||
Income - Class A | 1,000.00 | 1,020.18 | 0.93 | % | 4.66 | ||||||||||||||
Income - Institutional | 1,000.00 | 1,021.42 | 0.68 | % | 3.41 | ||||||||||||||
Income - Class C | 1,000.00 | 1,016.46 | 1.68 | % | 8.40 |
1Expenses are equal to each Funds' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period beginning on January 1, 2014 and ending on June 30, 2014).
23
June 30, 2014
Schedule of Investments (Unaudited)
Growth Portfolio
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 18.7% | |||||||||||
Consumer Discretionary: 2.9% | |||||||||||
DISH Network Corp., Class A (a) | 1,743 | $ | 113,435 | ||||||||
Home Depot, Inc., The | 627 | 50,762 | |||||||||
SES SA | 913 | 34,630 | |||||||||
Target Corp. | 936 | 54,241 | |||||||||
Time Warner Cable, Inc. | 496 | 73,061 | |||||||||
Time Warner, Inc. | 1,072 | 75,308 | |||||||||
Time, Inc. (a) | 134 | 3,245 | |||||||||
Twenty-First Century Fox, Inc., Class B | 2,118 | 72,499 | |||||||||
477,181 | |||||||||||
Consumer Staples: 2.0% | |||||||||||
CVS Caremark Corp. | 1,248 | 94,062 | |||||||||
Coca-Cola Co., The | 973 | 41,216 | |||||||||
Kellogg Co. | 698 | 45,859 | |||||||||
Kimberly-Clark Corp. | 429 | 47,713 | |||||||||
PepsiCo, Inc. | 676 | 60,394 | |||||||||
Sysco Corp. | 711 | 26,627 | |||||||||
315,871 | |||||||||||
Energy: 2.3% | |||||||||||
Cameron International Corp. (a) | 489 | 33,110 | |||||||||
ConocoPhillips | 882 | 75,614 | |||||||||
National Oilwell Varco, Inc. | 736 | 60,610 | |||||||||
Noble Corp PLC | 943 | 31,647 | |||||||||
Royal Dutch Shell PLC, ADR | 855 | 70,426 | |||||||||
Schlumberger, Ltd. | 517 | 60,980 | |||||||||
Suncor Energy, Inc. | 814 | 34,701 | |||||||||
367,088 | |||||||||||
Financials: 4.7% | |||||||||||
American Express Co. | 747 | 70,868 | |||||||||
American Tower Corp., REIT | 468 | 42,111 | |||||||||
Bank of New York Mellon Corp., The | 885 | 33,170 | |||||||||
Capital One Financial Corp. | 459 | 37,913 | |||||||||
Citigroup, Inc. | 713 | 33,582 | |||||||||
JPMorgan Chase & Co. | 1,874 | 107,980 | |||||||||
Loews Corp. | 658 | 28,959 | |||||||||
Marsh & McLennan Cos., Inc. | 889 | 46,068 | |||||||||
MetLife, Inc. | 676 | 37,559 | |||||||||
Progressive Corp., The | 676 | 17,143 | |||||||||
State Street Corp. | 786 | 52,866 | |||||||||
Travelers Cos., Inc., The | 544 | 51,174 | |||||||||
US Bancorp | 1,966 | 85,167 | |||||||||
Wells Fargo & Co. | 2,205 | 115,895 | |||||||||
760,455 | |||||||||||
Health Care: 1.9% | |||||||||||
Amgen, Inc. | 389 | 46,046 | |||||||||
Johnson & Johnson | 505 | 52,833 | |||||||||
Merck & Co., Inc. | 1,016 | 58,776 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Novartis AG, ADR | 371 | $ | 33,587 | ||||||||
Pfizer, Inc. | 1,042 | 30,927 | |||||||||
Teva Pharmaceutical Industries, Ltd., ADR | 650 | 34,073 | |||||||||
WellPoint, Inc. | 486 | 52,298 | |||||||||
308,540 | |||||||||||
Industrials: 2.0% | |||||||||||
Danaher Corp. | 838 | 65,976 | |||||||||
Emerson Electric Co. | 750 | 49,770 | |||||||||
General Electric Co. | 2,995 | 78,709 | |||||||||
Honeywell International, Inc. | 747 | 69,434 | |||||||||
Illinois Tool Works, Inc. | 668 | 58,490 | |||||||||
NOW, Inc. (a) | 114 | 4,128 | |||||||||
326,507 | |||||||||||
Information Technology: 1.7% | |||||||||||
EMC Corp. | 1,403 | 36,955 | |||||||||
IBM | 189 | 34,260 | |||||||||
Microsoft Corp. | 955 | 39,824 | |||||||||
Motorola Solutions, Inc. | 534 | 35,548 | |||||||||
Nuance Communications, Inc. (a) | 1,937 | 36,357 | |||||||||
TE Connectivity, Ltd. | 871 | 53,863 | |||||||||
Xerox Corp | 3,125 | 38,875 | |||||||||
275,682 | |||||||||||
Materials: 0.8% | |||||||||||
Air Products & Chemicals, Inc. | 291 | 37,428 | |||||||||
Crown Holdings, Inc. (a) | 1,099 | 54,686 | |||||||||
Martin Marietta Materials, Inc. | 243 | 32,088 | |||||||||
124,202 | |||||||||||
Telecommunication Services: 0.1% | |||||||||||
Vodafone Group PLC, ADR | 689 | 23,006 | |||||||||
Utilities: 0.3% | |||||||||||
Sempra Energy | 509 | 53,297 | |||||||||
TOTAL COMMON STOCKS | |||||||||||
(Cost $2,113,804) | 3,031,829 | ||||||||||
AFFILIATED INVESTMENT COMPANIES: 20.6% | |||||||||||
Pax MSCI International ESG Index Fund (b) | 196,234 | 1,756,292 | |||||||||
Pax World Global Environmental Markets Fund (b) | 30,265 | 396,773 | |||||||||
Pax World Small Cap Fund (b) | 83,239 | 1,189,484 | |||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $2,867,769) | 3,342,549 |
SEE NOTES TO FINANCIAL STATEMENTS
24
June 30, 2014
Schedule of Investments (Unaudited), continued
Growth Portfolio, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
NON-AFFILIATED INVESTMENT COMPANIES: 61.0% | |||||||||||
Ariel Fund (b) | 14,314 | $ | 1,112,640 | ||||||||
Neuberger Berman Socially Responsive Fund (b) | 101,221 | 3,707,724 | |||||||||
Parnassus Core Equity Fund (b) | 91,936 | 3,638,839 | |||||||||
Portfolio 21 Global Equity Fund (b) | 971 | 40,567 | |||||||||
Schroder Emerging Market Equity Fund (c) | 59,574 | 823,316 | |||||||||
Touchstone Premium Yield Equity Fund (d) | 52,286 | 530,705 | |||||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $9,009,024) | 9,853,791 | ||||||||||
TOTAL INVESTMENTS: 100.3% | |||||||||||
(Cost $13,990,597) | 16,228,169 | ||||||||||
OTHER ASSETS AND LIABILITIES— | |||||||||||
(Net): -0.3% | (51,941 | ) | |||||||||
Net Assets: 100.0% | $ | 16,176,228 |
(a) Non income producing security.
(b) Institutional Class shares
(c) Investor Class shares
(d) Class Y shares
ADR American Depository Receipt
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
25
June 30, 2014
Schedule of Investments (Unaudited)
Growth and Income Portfolio
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 14.3% | |||||||||||
Consumer Discretionary: 2.2% | |||||||||||
DISH Network Corp., Class A (a) | 1,200 | $ | 78,096 | ||||||||
Home Depot, Inc., The | 451 | 36,513 | |||||||||
SES SA | 586 | 22,227 | |||||||||
Target Corp. | 665 | 38,537 | |||||||||
Time Warner Cable, Inc. | 343 | 50,524 | |||||||||
Time Warner, Inc. | 741 | 52,055 | |||||||||
Time, Inc. (a) | 92 | 2,228 | |||||||||
Twenty-First Century Fox, Inc., Class B | 1,514 | 51,824 | |||||||||
332,004 | |||||||||||
Consumer Staples: 1.5% | |||||||||||
Coca-Cola Co., The | 702 | 29,737 | |||||||||
CVS Caremark Corp. | 905 | 68,210 | |||||||||
Kellogg Co. | 492 | 32,324 | |||||||||
Kimberly-Clark Corp. | 303 | 33,700 | |||||||||
PepsiCo, Inc. | 495 | 44,223 | |||||||||
Sysco Corp. | 506 | 18,950 | |||||||||
227,144 | |||||||||||
Energy: 1.8% | |||||||||||
Cameron International Corp. (a) | 346 | 23,428 | |||||||||
ConocoPhillips | 635 | 54,438 | |||||||||
National Oilwell Varco, Inc. | 516 | 42,493 | |||||||||
Noble Corp PLC | 679 | 22,787 | |||||||||
Royal Dutch Shell PLC, ADR | 610 | 50,246 | |||||||||
Schlumberger, Ltd. | 368 | 43,406 | |||||||||
Suncor Energy, Inc. | 560 | 23,873 | |||||||||
260,671 | |||||||||||
Financials: 3.6% | |||||||||||
American Express Co. | 536 | 50,850 | |||||||||
American Tower Corp., REIT | 323 | 29,064 | |||||||||
Bank of New York Mellon Corp., The | 647 | 24,250 | |||||||||
Capital One Financial Corp. | 333 | 27,506 | |||||||||
Citigroup, Inc. | 494 | 23,267 | |||||||||
JPMorgan Chase & Co. | 1,310 | 75,482 | |||||||||
Loews Corp. | 477 | 20,993 | |||||||||
Marsh & McLennan Cos., Inc. | 629 | 32,595 | |||||||||
MetLife, Inc. | 480 | 26,669 | |||||||||
Progressive Corp., The | 488 | 12,376 | |||||||||
State Street Corp. | 539 | 36,253 | |||||||||
Travelers Cos., Inc., The | 400 | 37,628 | |||||||||
US Bancorp | 1,359 | 58,872 | |||||||||
Wells Fargo & Co. | 1,585 | 83,307 | |||||||||
539,112 | |||||||||||
Health Care: 1.5% | |||||||||||
Amgen, Inc. | 268 | 31,723 | |||||||||
Johnson & Johnson | 366 | 38,291 | |||||||||
Merck & Co., Inc. | 723 | 41,826 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Novartis AG, ADR | 263 | $ | 23,809 | ||||||||
Pfizer, Inc. | 731 | 21,696 | |||||||||
Teva Pharmaceutical Industries, Ltd., ADR | 475 | 24,900 | |||||||||
WellPoint, Inc. | 338 | 36,372 | |||||||||
218,617 | |||||||||||
Industrials: 1.5% | |||||||||||
Danaher Corp. | 580 | 45,663 | |||||||||
Emerson Electric Co. | 537 | 35,635 | |||||||||
General Electric Co. | 2,135 | 56,108 | |||||||||
Honeywell International, Inc. | 540 | 50,193 | |||||||||
Illinois Tool Works, Inc. | 477 | 41,766 | |||||||||
NOW, Inc. (a) | 78 | 2,824 | |||||||||
232,189 | |||||||||||
Information Technology: 1.3% | |||||||||||
EMC Corp. | 986 | 25,971 | |||||||||
IBM | 136 | 24,653 | |||||||||
Microsoft Corp. | 705 | 29,399 | |||||||||
Motorola Solutions, Inc. | 369 | 24,564 | |||||||||
Nuance Communications, Inc. (a) | 1,336 | 25,077 | |||||||||
TE Connectivity, Ltd. | 622 | 38,464 | |||||||||
Xerox Corp | 2,215 | 27,555 | |||||||||
195,683 | |||||||||||
Materials: 0.6% | |||||||||||
Air Products & Chemicals, Inc. | 211 | 27,139 | |||||||||
Crown Holdings, Inc. (a) | 768 | 38,216 | |||||||||
Martin Marietta Materials, Inc. | 169 | 22,316 | |||||||||
87,671 | |||||||||||
Telecommunication Services: 0.1% | |||||||||||
Vodafone Group PLC, ADR | 459 | 15,326 | |||||||||
Utilities: 0.2% | |||||||||||
Sempra Energy | 352 | 36,858 | |||||||||
TOTAL COMMON STOCKS | |||||||||||
(Cost $1,489,293) | 2,145,275 | ||||||||||
AFFILIATED INVESTMENT COMPANIES: 17.2% | |||||||||||
Pax MSCI International ESG Index Fund (b) | 154,397 | 1,381,851 | |||||||||
Pax World Global Environmental Markets Fund (b) | 12,551 | 164,548 | |||||||||
Pax World High Yield Bond Fund (b) | 56,993 | 437,133 | |||||||||
Pax World Small Cap Fund (b) | 42,314 | 604,666 | |||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $2,316,030) | 2,588,198 |
SEE NOTES TO FINANCIAL STATEMENTS
26
June 30, 2014
Schedule of Investments (Unaudited), continued
Growth and Income Portfolio, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
NON-AFFILIATED INVESTMENT COMPANIES: 68.7% | |||||||||||
Access Capital Community Investment Fund (b) | 3,144 | $ | 29,299 | ||||||||
Ariel Fund (b) | 6,690 | 520,012 | |||||||||
CRA Qualified Investment Fund (b) | 1,165 | 12,463 | |||||||||
Neuberger Berman Socially Responsive Fund (b) | 60,311 | 2,209,205 | |||||||||
Parnassus Core Equity Fund (b) | 71,282 | 2,821,341 | |||||||||
PIMCO Income Fund (b) | 81,432 | 1,035,000 | |||||||||
Praxis Intermediate Income Fund (b) | 28,913 | 302,723 | |||||||||
Portfolio 21 Global Equity Fund (b) | 4,243 | 177,224 | |||||||||
Schroder Emerging Market Equity Fund (c) | 50,434 | 696,996 | |||||||||
TIAA-CREF Social Choice Bond Fund (b) | 64,310 | 656,601 | |||||||||
Touchstone Premium Yield Equity Fund (d) | 182,519 | 1,852,566 | |||||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $9,578,267) | 10,313,430 | ||||||||||
TOTAL INVESTMENTS: 100.2% | |||||||||||
(Cost $13,383,590) | 15,046,903 | ||||||||||
OTHER ASSETS AND LIABILITIES— | |||||||||||
(Net): -0.2% | (29,109 | ) | |||||||||
Net Assets: 100.0% | $ | 15,017,794 |
(a) Non income producing security.
(b) Institutional Class shares
(c) Investor Class shares
(d) Class Y shares
ADR American Depository Receipt
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
27
June 30, 2014
Schedule of Investments (Unaudited)
Balanced Portfolio
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 12.4% | |||||||||||
Consumer Discretionary: 1.9% | |||||||||||
DISH Network Corp., Class A (a) | 1,183 | $ | 76,990 | ||||||||
Home Depot, Inc., The | 429 | 34,732 | |||||||||
SES SA | 668 | 25,337 | |||||||||
Target Corp. | 655 | 37,957 | |||||||||
Time Warner Cable, Inc. | 346 | 50,966 | |||||||||
Time Warner, Inc. | 753 | 52,898 | |||||||||
Time, Inc. (a) | 94 | 2,277 | |||||||||
Twenty-First Century Fox, Inc., Class B | 1,503 | 51,448 | |||||||||
332,605 | |||||||||||
Consumer Staples: 1.3% | |||||||||||
CVS Caremark Corp. | 884 | 66,627 | |||||||||
Coca-Cola Co., The | 687 | 29,101 | |||||||||
Kellogg Co. | 482 | 31,667 | |||||||||
Kimberly-Clark Corp. | 295 | 32,810 | |||||||||
PepsiCo, Inc. | 491 | 43,866 | |||||||||
Sysco Corp. | 493 | 18,463 | |||||||||
222,534 | |||||||||||
Energy: 1.5% | |||||||||||
Cameron International Corp. (a) | 348 | 23,563 | |||||||||
ConocoPhillips | 620 | 53,153 | |||||||||
National Oilwell Varco, Inc. | 510 | 41,999 | |||||||||
Noble Corp PLC | 664 | 22,284 | |||||||||
Royal Dutch Shell PLC, ADR | 606 | 49,916 | |||||||||
Schlumberger, Ltd. | 356 | 41,990 | |||||||||
Suncor Energy, Inc. | 576 | 24,555 | |||||||||
257,460 | |||||||||||
Financials: 3.1% | |||||||||||
American Express Co. | 516 | 48,954 | |||||||||
American Tower Corp., REIT | 335 | 30,143 | |||||||||
Bank of New York Mellon Corp., The | 621 | 23,275 | |||||||||
Capital One Financial Corp. | 328 | 27,093 | |||||||||
Citigroup, Inc. | 500 | 23,550 | |||||||||
JPMorgan Chase & Co. | 1,298 | 74,791 | |||||||||
Loews Corp. | 460 | 20,245 | |||||||||
Marsh & McLennan Cos., Inc. | 588 | 30,470 | |||||||||
MetLife, Inc. | 470 | 26,113 | |||||||||
Progressive Corp., The | 451 | 11,437 | |||||||||
State Street Corp. | 536 | 36,051 | |||||||||
Travelers Cos., Inc., The | 380 | 35,747 | |||||||||
US Bancorp | 1,381 | 59,825 | |||||||||
Wells Fargo & Co. | 1,549 | 81,415 | |||||||||
529,109 | |||||||||||
Health Care: 1.3% | |||||||||||
Amgen, Inc. | 272 | 32,197 | |||||||||
Johnson & Johnson | 351 | 36,722 | |||||||||
Merck & Co., Inc. | 712 | 41,189 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Novartis AG, ADR | 236 | $ | 21,365 | ||||||||
Pfizer, Inc. | 706 | 20,954 | |||||||||
Teva Pharmaceutical Industries, Ltd., ADR | 460 | 24,113 | |||||||||
WellPoint, Inc. | 337 | 36,265 | |||||||||
212,805 | |||||||||||
Industrials: 1.4% | |||||||||||
Danaher Corp. | 591 | 46,530 | |||||||||
Emerson Electric Co. | 543 | 36,033 | |||||||||
General Electric Co. | 2,108 | 55,398 | |||||||||
Honeywell International, Inc. | 555 | 51,587 | |||||||||
Illinois Tool Works, Inc. | 471 | 41,241 | |||||||||
NOW, Inc. (a) | 79 | 2,861 | |||||||||
233,650 | |||||||||||
Information Technology: 1.1% | |||||||||||
EMC Corp. | 980 | 25,813 | |||||||||
IBM | 133 | 24,109 | |||||||||
Microsoft Corp. | 664 | 27,689 | |||||||||
Motorola Solutions, Inc. | 376 | 25,030 | |||||||||
Nuance Communications, Inc. (a) | 1,356 | 25,452 | |||||||||
TE Connectivity, Ltd. | 606 | 37,475 | |||||||||
Xerox Corp | 2,172 | 27,020 | |||||||||
192,588 | |||||||||||
Materials: 0.5% | |||||||||||
Air Products & Chemicals, Inc. | 209 | 26,882 | |||||||||
Crown Holdings, Inc. (a) | 774 | 38,514 | |||||||||
Martin Marietta Materials, Inc. | 171 | 22,581 | |||||||||
87,977 | |||||||||||
Telecommunication Services: 0.1% | |||||||||||
Vodafone Group PLC, ADR | 485 | 16,194 | |||||||||
Utilities: 0.2% | |||||||||||
Sempra Energy | 359 | 37,591 | |||||||||
TOTAL COMMON STOCKS | |||||||||||
(Cost $1,445,403) | 2,122,513 | ||||||||||
AFFILIATED INVESTMENT COMPANIES: 15.8% | |||||||||||
Pax MSCI International ESG Index Fund (b) | 135,100 | 1,209,146 | |||||||||
Pax World Global Environmental Markets Fund (b) | 24,659 | 323,283 | |||||||||
Pax World High Yield Bond Fund (b) | 66,642 | 511,142 | |||||||||
Pax World Small Cap Fund (b) | 45,921 | 656,210 | |||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $2,356,734) | 2,699,781 |
SEE NOTES TO FINANCIAL STATEMENTS
28
June 30, 2014
Schedule of Investments (Unaudited), continued
Balanced Portfolio, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
NON-AFFILIATED INVESTMENT COMPANIES: 72.0% | |||||||||||
Access Capital Community Investment Fund (b) | 91,607 | $ | 853,781 | ||||||||
Ariel Fund (b) | 8,059 | 626,418 | |||||||||
CRA Qualified Investment Fund (b) | 76,702 | 820,709 | |||||||||
Neuberger Berman Socially Responsive Fund (b) | 64,469 | 2,361,511 | |||||||||
Parnassus Core Equity Fund (b) | 67,134 | 2,657,177 | |||||||||
PIMCO Income Fund (b) | 81,502 | 1,035,889 | |||||||||
Praxis Intermediate Income Fund (b) | 111,608 | 1,168,535 | |||||||||
Portfolio 21 Global Equity Fund (b) | 4,813 | 201,029 | |||||||||
Schroder Emerging Market Equity Fund (c) | 44,240 | 611,397 | |||||||||
TIAA-CREF Social Choice Bond Fund (b) | 142,291 | 1,452,794 | |||||||||
Touchstone Premium Yield Equity Fund (d) | 53,600 | 544,044 | |||||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $11,712,694) | 12,333,284 | ||||||||||
TOTAL INVESTMENTS: 100.2% | |||||||||||
(Cost $15,514,831) | 17,155,578 | ||||||||||
OTHER ASSETS AND LIABILITIES— | |||||||||||
(Net): -0.2% | (28,292 | ) | |||||||||
Net Assets: 100.0% | $ | 17,127,286 |
(a) Non income producing security.
(b) Institutional Class share
(c) Investor Class shares
(d) Class Y shares
ADR American Depository Receipt
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
29
June 30, 2014
Schedule of Investments (Unaudited)
Income Portfolio
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 6.5% | |||||||||||
Consumer Discretionary: 1.0% | |||||||||||
DISH Network Corp., Class A (a) | 287 | $ | 18,678 | ||||||||
Home Depot, Inc., The | 108 | 8,744 | |||||||||
SES SA | 161 | 6,107 | |||||||||
Target Corp. | 161 | 9,330 | |||||||||
Time Warner Cable, Inc. | 83 | 12,226 | |||||||||
Time Warner, Inc. | 184 | 12,926 | |||||||||
Time, Inc. (a) | 23 | 557 | |||||||||
Twenty-First Century Fox, Inc., Class B | 365 | 12,494 | |||||||||
81,062 | |||||||||||
Consumer Staples: 0.7% | |||||||||||
CVS Caremark Corp. | 216 | 16,280 | |||||||||
Coca-Cola Co., The | 169 | 7,159 | |||||||||
Kellogg Co. | 117 | 7,687 | |||||||||
Kimberly-Clark Corp. | 72 | 8,008 | |||||||||
PepsiCo, Inc. | 119 | 10,631 | |||||||||
Sysco Corp. | 121 | 4,531 | |||||||||
54,296 | |||||||||||
Energy: 0.8% | |||||||||||
Cameron International Corp. (a) | 85 | 5,755 | |||||||||
ConocoPhillips | 152 | 13,032 | |||||||||
National Oilwell Varco, Inc. | 121 | 9,964 | |||||||||
Noble Corp PLC | 164 | 5,504 | |||||||||
Royal Dutch Shell PLC, ADR | 149 | 12,273 | |||||||||
Schlumberger, Ltd. | 89 | 10,498 | |||||||||
Suncor Energy, Inc. | 140 | 5,968 | |||||||||
62,994 | |||||||||||
Financials: 1.6% | |||||||||||
American Express Co. | 129 | 12,238 | |||||||||
American Tower Corp., REIT | 86 | 7,738 | |||||||||
Bank of New York Mellon Corp., The | 154 | 5,772 | |||||||||
Capital One Financial Corp. | 78 | 6,443 | |||||||||
Citigroup, Inc. | 121 | 5,699 | |||||||||
JPMorgan Chase & Co. | 314 | 18,094 | |||||||||
Loews Corp. | 113 | 4,973 | |||||||||
Marsh & McLennan Cos., Inc. | 153 | 7,928 | |||||||||
MetLife, Inc. | 114 | 6,334 | |||||||||
Progressive Corp., The | 116 | 2,942 | |||||||||
State Street Corp. | 135 | 9,080 | |||||||||
Travelers Cos., Inc., The | 93 | 8,749 | |||||||||
US Bancorp | 340 | 14,729 | |||||||||
Wells Fargo & Co. | 374 | 19,657 | |||||||||
130,376 | |||||||||||
Health Care: 0.6% | |||||||||||
Amgen, Inc. | 67 | 7,931 | |||||||||
Johnson & Johnson | 88 | 9,207 | |||||||||
Merck & Co., Inc. | 174 | 10,066 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Novartis AG, ADR | 63 | $ | 5,703 | ||||||||
Pfizer, Inc. | 174 | 5,164 | |||||||||
Teva Pharmaceutical Industries, Ltd., ADR | 113 | 5,923 | |||||||||
WellPoint, Inc. | 82 | 8,824 | |||||||||
52,818 | |||||||||||
Industrials: 0.7% | |||||||||||
Danaher Corp. | 142 | 11,180 | |||||||||
Emerson Electric Co. | 131 | 8,693 | |||||||||
General Electric Co. | 516 | 13,561 | |||||||||
Honeywell International, Inc. | 134 | 12,455 | |||||||||
Illinois Tool Works, Inc. | 113 | 9,894 | |||||||||
NOW, Inc. (a) | 19 | 688 | |||||||||
56,471 | |||||||||||
Information Technology: 0.6% | |||||||||||
EMC Corp. | 247 | 6,506 | |||||||||
IBM | 33 | 5,982 | |||||||||
Microsoft Corp. | 164 | 6,839 | |||||||||
Motorola Solutions, Inc. | 93 | 6,191 | |||||||||
Nuance Communications, Inc. (a) | 333 | 6,250 | |||||||||
TE Connectivity, Ltd. | 149 | 9,214 | |||||||||
Xerox Corp | 525 | 6,531 | |||||||||
47,513 | |||||||||||
Materials: 0.3% | |||||||||||
Air Products & Chemicals, Inc. | 51 | 6,560 | |||||||||
Crown Holdings, Inc. (a) | 188 | 9,355 | |||||||||
Martin Marietta Materials, Inc. | 43 | 5,678 | |||||||||
21,593 | |||||||||||
Telecommunication Services: 0.1% | |||||||||||
Vodafone Group PLC, ADR | 124 | 4,140 | |||||||||
Utilities: 0.1% | |||||||||||
Sempra Energy | 88 | 9,214 | |||||||||
TOTAL COMMON STOCKS | |||||||||||
(Cost $364,013) | 520,477 | ||||||||||
AFFILIATED INVESTMENT COMPANIES: 8.6% | |||||||||||
Pax MSCI International ESG Index Fund (b) | 30,867 | 276,263 | |||||||||
Pax World Global Environmental Markets Fund (b) | 8,877 | 116,384 | |||||||||
Pax World High Yield Bond Fund (b) | 18,273 | 140,156 | |||||||||
Pax World Small Cap Fund (b) | 11,794 | 168,533 | |||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $608,472) | 701,336 |
SEE NOTES TO FINANCIAL STATEMENTS
30
June 30, 2014
Schedule of Investments (Unaudited), continued
Income Portfolio, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
NON-AFFILIATED INVESTMENT COMPANIES: 85.5% | |||||||||||
Access Capital Community Investment Fund (b) | 77,642 | $ | 723,625 | ||||||||
Ariel Fund (b) | 1,288 | 100,139 | |||||||||
CRA Qualified Investment Fund (b) | 22,189 | 237,417 | |||||||||
Neuberger Berman Socially Responsive Fund (b) | 14,194 | 519,929 | |||||||||
Parnassus Core Equity Fund (b) | 19,833 | 784,974 | |||||||||
PIMCO Income Fund (b) | 102,266 | 1,299,801 | |||||||||
Praxis Intermediate Income Fund (b) | 112,012 | 1,172,768 | |||||||||
Portfolio 21 Global Equity Fund (b) | 1,300 | 54,318 | |||||||||
Schroder Emerging Market Equity Fund (c) | 11,752 | 162,418 | |||||||||
TIAA-CREF Social Choice Bond Fund (b) | 126,387 | 1,290,413 | |||||||||
Touchstone Premium Yield Equity Fund (d) | 55,324 | 561,539 | |||||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | |||||||||||
(Cost $6,650,171) | 6,907,341 | ||||||||||
TOTAL INVESTMENTS: 100.6% | |||||||||||
(Cost $7,622,656) | 8,129,154 | ||||||||||
OTHER ASSETS AND LIABILITIES— | |||||||||||
(Net): -0.6% | (50,517 | ) | |||||||||
Net Assets: 100.0% | $ | 8,078,637 |
(a) Non income producing security.
(b) Institutional Class shares
(c) Investor Class shares
(d) Class Y shares
ADR American Depository Receipt
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
31
June 30, 2014
Statements of Assets and Liabilities (Unaudited)
ASSETS | Growth | Growth and Income | |||||||||
Investments, at cost—Note A | $ | 13,990,597 | $ | 13,383,590 | |||||||
Investments in unaffiliated issuers, at value—Note A | $ | 12,885,620 | $ | 12,458,705 | |||||||
Investments in affiliated issuers, at value | 3,342,549 | 2,588,198 | |||||||||
Total Investments | 16,228,169 | 15,046,903 | |||||||||
Cash | 29,485 | 52,029 | |||||||||
Prepaid Expenses | 1,644 | 1,593 | |||||||||
Receivables: | |||||||||||
Capital stock sold | — | 25,996 | |||||||||
Dividends and interest—Note A | 5,180 | 3,605 | |||||||||
Investment securities sold | 23,920 | — | |||||||||
Other | 273 | 232 | |||||||||
Total Assets | 16,288,671 | 15,130,358 | |||||||||
LIABILITIES | |||||||||||
Payables: | |||||||||||
Capital stock reacquired | 18,773 | — | |||||||||
Investment securities purchased | 12,289 | 28,438 | |||||||||
Accrued expenses: | |||||||||||
Investment advisory fees—Note B | 8,976 | 7,526 | |||||||||
Distribution expense | 3,885 | 5,200 | |||||||||
Trustees' fees | 3,372 | 3,390 | |||||||||
Compliance expense | 11,907 | 11,906 | |||||||||
Transfer agent fees | 8,289 | 7,346 | |||||||||
Custodian fees | 18,098 | 19,191 | |||||||||
Legal and audit fees | 13,689 | 16,238 | |||||||||
Other accrued expenses | 13,165 | 13,329 | |||||||||
Total Liabilities | 112,443 | 112,564 | |||||||||
NET ASSETS | $ | 16,176,228 | $ | 15,017,794 |
SEE NOTES TO FINANCIAL STATEMENTS
32
June 30, 2014
ASSETS | Balanced | Income | |||||||||
Investments, at cost—Note A | $ | 15,514,831 | $ | 7,622,656 | |||||||
Investments in unaffiliated issuers, at value—Note A | $ | 14,455,797 | $ | 7,427,818 | |||||||
Investments in affiliated issuers, at value | 2,699,781 | 701,336 | |||||||||
Total Investments | 17,155,578 | 8,129,154 | |||||||||
Cash | 42,184 | 26,055 | |||||||||
Prepaid Expenses | 1,550 | 221 | |||||||||
Receivables: | |||||||||||
Capital stock sold | 16,540 | — | |||||||||
Dividends and interest—Note A | 3,634 | 900 | |||||||||
Investment securities sold | 221 | 37 | |||||||||
Other | 219 | 53 | |||||||||
Total Assets | 17,219,926 | 8,156,420 | |||||||||
LIABILITIES | |||||||||||
Payables: | |||||||||||
Capital stock reacquired | 500 | — | |||||||||
Investment securities purchased | 8,754 | 2,102 | |||||||||
Accrued expenses: | |||||||||||
Investment advisory fees—Note B | 8,108 | 3,376 | |||||||||
Distribution expense | 4,737 | 2,191 | |||||||||
Trustees' fees | 3,012 | 3,316 | |||||||||
Compliance expense | 11,907 | 11,907 | |||||||||
Transfer agent fees | 7,516 | 3,720 | |||||||||
Custodian fees | 18,985 | 21,731 | |||||||||
Legal and audit fees | 16,266 | 16,171 | |||||||||
Other accrued expenses | 12,855 | 13,269 | |||||||||
Total Liabilities | 92,640 | 77,783 | |||||||||
NET ASSETS | $ | 17,127,286 | $ | 8,078,637 |
SEE NOTES TO FINANCIAL STATEMENTS
33
June 30, 2014
Statements of Assets and Liabilities (Unaudited), continued
Growth | Growth and Income | ||||||||||
NET ASSETS REPRESENTED BY | |||||||||||
Paid in Capital | $ | 13,833,248 | $ | 13,321,581 | |||||||
Undistributed (distributions in excess of) net investment income | 68,612 | 56,248 | |||||||||
Accumulated net realized gain (loss) | 36,779 | (23,367 | ) | ||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||
Investments | 2,237,572 | 1,663,313 | |||||||||
Foreign currency translations | 17 | 19 | |||||||||
NET ASSETS | $ | 16,176,228 | $ | 15,017,794 | |||||||
Class A | |||||||||||
Net assets | $ | 10,323,368 | $ | 8,479,090 | |||||||
Capital Shares Outstanding | 798,771 | 677,781 | |||||||||
Net asset value per share | $ | 12.92 | $ | 12.51 | |||||||
Institutional Class | |||||||||||
Net assets | $ | 3,733,666 | $ | 2,162,987 | |||||||
Capital Shares Outstanding | 288,230 | 172,507 | |||||||||
Net asset value per share | $ | 12.95 | $ | 12.54 | |||||||
Class C | |||||||||||
Net assets | $ | 2,119,194 | $ | 4,375,717 | |||||||
Capital Shares Outstanding | 165,250 | 351,394 | |||||||||
Net asset value per share | $ | 12.82 | $ | 12.45 |
SEE NOTES TO FINANCIAL STATEMENTS
34
June 30, 2014
Balanced | Income | ||||||||||
NET ASSETS REPRESENTED BY | |||||||||||
Paid in Capital | $ | 15,472,979 | $ | 7,562,795 | |||||||
Undistributed (distributions in excess of) net investment income | 54,022 | 18,230 | |||||||||
Accumulated net realized gain (loss) | (40,480 | ) | (8,895 | ) | |||||||
Net unrealized appreciation (depreciation) of: | |||||||||||
Investments | 1,640,747 | 506,497 | |||||||||
Foreign currency translations | 18 | 10 | |||||||||
NET ASSETS | $ | 17,127,286 | $ | 8,078,637 | |||||||
Class A | |||||||||||
Net assets | $ | 9,373,716 | $ | 4,097,659 | |||||||
Capital Shares Outstanding | 788,715 | 371,303 | |||||||||
Net asset value per share | $ | 11.88 | $ | 11.04 | |||||||
Institutional Class | |||||||||||
Net assets | $ | 4,262,960 | $ | 2,303,340 | |||||||
Capital Shares Outstanding | 357,986 | 208,414 | |||||||||
Net asset value per share | $ | 11.91 | $ | 11.05 | |||||||
Class C | |||||||||||
Net assets | $ | 3,490,610 | $ | 1,677,638 | |||||||
Capital Shares Outstanding | 296,303 | 153,916 | |||||||||
Net asset value per share | $ | 11.78 | $ | 10.90 |
SEE NOTES TO FINANCIAL STATEMENTS
35
Period Ended June 30, 2014
Statements of Operations (Unaudited)
Growth | Growth and Income | ||||||||||
INVESTMENT INCOME | |||||||||||
Income | |||||||||||
Dividends (net of foreign withholding tax of $336; $214; $207; and $48; respectively) | $ | 94,283 | $ | 131,030 | |||||||
Dividends from affiliate—Note C | 81,279 | 68,452 | |||||||||
Total Income | 175,562 | 199,482 | |||||||||
Expenses | |||||||||||
Investment advisory fees—Note B | 40,843 | 32,338 | |||||||||
Distribution expenses—Class A (Note B) | 12,174 | 8,549 | |||||||||
Distribution expenses—Class C (Note B) | 2,590 | 5,100 | |||||||||
Service plan expenses—Class C (Note B) | 7,770 | 15,299 | |||||||||
Transfer agent fees | 14,821 | 19,644 | |||||||||
Printing and other shareholder communication fees | 5,152 | 6,155 | |||||||||
Custodian fees | 49,743 | 52,517 | |||||||||
Legal fees and related expenses | 9,870 | 9,716 | |||||||||
Trustees' fees and expenses | 9,039 | 9,241 | |||||||||
Compliance expense | 6,221 | 6,220 | |||||||||
Audit fees | 12,003 | 14,462 | |||||||||
Registration fees | 23,990 | 25,165 | |||||||||
Other expenses | 1,681 | 1,558 | |||||||||
Total Expenses | 195,897 | 205,964 | |||||||||
Less: | |||||||||||
Advisory fee waiver—Note B | (4,487 | ) | (3,163 | ) | |||||||
Expenses assumed by Adviser—Note B | (102,610 | ) | (123,110 | ) | |||||||
Net expenses | 88,800 | 79,691 | |||||||||
Net investment income (loss) | 86,762 | 119,791 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS)—Notes A and C | |||||||||||
Net realized gain (loss) on: | |||||||||||
Investments in unaffiliated issuers | 64,446 | 13,932 | |||||||||
Investments in affiliated issuers | 11,081 | 6,506 | |||||||||
Foreign currency transactions | (11 | ) | (6 | ) | |||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||
Investments in unaffiliated issuers | 660,224 | 639,771 | |||||||||
Investments in affiliated issuers | 27,428 | 17,051 | |||||||||
Foreign currency translation | (1 | ) | — | ||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 763,167 | 677,254 | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 849,929 | $ | 797,045 |
SEE NOTES TO FINANCIAL STATEMENTS
36
Period Ended June 30, 2014
Balanced | Income | ||||||||||
INVESTMENT INCOME | |||||||||||
Income | |||||||||||
Dividends (net of foreign withholding tax of $336; $214; $207; and $48; respectively) | $ | 147,786 | $ | 102,708 | |||||||
Dividends from affiliate—Note C | 59,581 | 14,495 | |||||||||
Total Income | 207,367 | 117,203 | |||||||||
Expenses | |||||||||||
Investment advisory fees—Note B | 38,034 | 17,116 | |||||||||
Distribution expenses—Class A (Note B) | 10,256 | 4,566 | |||||||||
Distribution expenses—Class C (Note B) | 4,005 | 1,851 | |||||||||
Service plan expenses—Class C (Note B) | 12,015 | 5,554 | |||||||||
Transfer agent fees | 20,162 | 16,268 | |||||||||
Printing and other shareholder communication fees | 5,924 | 3,197 | |||||||||
Custodian fees | 52,645 | 53,760 | |||||||||
Legal fees and related expenses | 9,846 | 9,549 | |||||||||
Trustees' fees and expenses | 8,935 | 9,064 | |||||||||
Compliance expense | 6,221 | 6,221 | |||||||||
Audit fees | 14,462 | 14,462 | |||||||||
Registration fees | 24,288 | 24,206 | |||||||||
Other expenses | 1,473 | 1,389 | |||||||||
Total Expenses | 208,266 | 167,203 | |||||||||
Less: | |||||||||||
Advisory fee waiver—Note B | (3,470 | ) | (907 | ) | |||||||
Expenses assumed by Adviser—Note B | (121,614 | ) | (129,345 | ) | |||||||
Net expenses | 83,182 | 36,951 | |||||||||
Net investment income (loss) | 124,185 | 80,252 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS)—Notes A and C | |||||||||||
Net realized gain (loss) on: | |||||||||||
Investments in unaffiliated issuers | 17,167 | 4,520 | |||||||||
Investments in affiliated issuers | 3,758 | 2,308 | |||||||||
Foreign currency transactions | (11 | ) | (1 | ) | |||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||
Investments in unaffiliated issuers | 405,189 | 283,963 | |||||||||
Investments in affiliated issuers | 258,782 | 8,599 | |||||||||
Foreign currency translation | 3 | — | |||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 684,888 | 299,389 | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 809,073 | $ | 379,641 |
SEE NOTES TO FINANCIAL STATEMENTS
37
June 30, 2014
Statements of Changes in Net Assets
Growth | Growth and Income | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | |||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 86,762 | $ | 104,792 | $ | 119,791 | $ | 165,543 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 75,516 | 3,047,209 | 20,432 | 2,588,384 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 687,651 | 377,595 | 656,822 | (112,121 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 849,929 | 3,529,596 | 797,045 | 2,641,806 | |||||||||||||||
Distributions to shareholders from: Net investment income | |||||||||||||||||||
Class A | (10,394 | ) | (53,546 | ) | (43,175 | ) | (50,331 | ) | |||||||||||
Institutional Class | (7,756 | ) | (21,066 | ) | (13,046 | ) | (49,941 | ) | |||||||||||
Class C | — | — | (7,321 | ) | (11,125 | ) | |||||||||||||
Realized gains | (1,418,812) | ||||||||||||||||||
Class A | (204,234 | ) | (473,134 | ) | (178,079 | ) | (727,212 | ) | |||||||||||
Institutional Class | (72,703 | ) | (301,442 | ) | (45,528 | ) | (180,481 | ) | |||||||||||
Class C | (42,269 | ) | — | (92,185 | ) | (449,890 | ) | ||||||||||||
Total distributions to shareholders | (337,356 | ) | (2,268,000 | ) | (379,334 | ) | (1,468,980 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 1,663,199 | 2,277,031 | 2,399,235 | 2,408,249 | |||||||||||||||
Proceeds from reinvestment of distributions | 212,599 | 1,451,656 | 205,075 | 715,020 | |||||||||||||||
Cost of shares redeemed | (1,319,611 | ) | (5,017,656 | ) | (313,972 | ) | (959,275 | ) | |||||||||||
Net increase (decrease) from Class A transactions | 556,187 | (1,288,969 | ) | 2,290,338 | 2,163,994 | ||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 84,014 | 2,854,807 | 566,697 | 1,601,782 | |||||||||||||||
Proceeds from reinvestment of distributions | 78,123 | 482,875 | 58,574 | 230,130 | |||||||||||||||
Cost of shares redeemed | (55,220 | ) | (1,705,238 | ) | (11,113 | ) | (6,533,762 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 106,917 | 1,632,444 | 614,158 | (4,701,850 | ) | ||||||||||||||
Class C | |||||||||||||||||||
Proceeds from shares sold | 43,901 | 196,939 | 777,040 | 1,683,932 | |||||||||||||||
Proceeds from reinvestment of distributions | 36,470 | 268,837 | 97,796 | 453,647 | |||||||||||||||
Cost of shares redeemed | (180,577 | ) | (141,736 | ) | (327,103 | ) | (768,641 | ) | |||||||||||
Net increase (decrease) from Class C transactions | (100,206 | ) | 324,040 | 547,733 | 1,368,938 | ||||||||||||||
Net increase (decrease) from capital share transactions | 562,898 | 667,515 | 3,452,229 | (1,168,918 | ) | ||||||||||||||
Net increase (decrease) in net assets | 1,075,471 | 1,929,111 | 3,869,940 | 3,908 | |||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 15,100,757 | 13,171,646 | 11,147,854 | 11,143,946 | |||||||||||||||
End of period (1) | $ | 16,176,228 | $ | 15,100,757 | $ | 15,017,794 | $ | 11,147,854 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | 68,612 | $ | — | $ | 56,248 | $ | — |
SEE NOTES TO FINANCIAL STATEMENTS
38
June 30, 2014
Balanced | Income | ||||||||||||||||||
INCREASE (DECREASE) IN NET ASSETS | Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | |||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 124,185 | $ | 236,949 | $ | 80,252 | $ | 148,252 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 20,914 | 2,768,216 | 6,827 | 802,292 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 663,974 | (250,226 | ) | 292,562 | (251,679 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 809,073 | 2,754,939 | 379,641 | 698,865 | |||||||||||||||
Distributions to shareholders from: Net investment income | |||||||||||||||||||
Class A | (42,207 | ) | (84,674 | ) | (34,717 | ) | (39,782 | ) | |||||||||||
Institutional Class | (23,284 | ) | (74,915 | ) | (21,514 | ) | (65,475 | ) | |||||||||||
Class C | (4,672 | ) | (12,363 | ) | (9,042 | ) | (15,482 | ) | |||||||||||
Realized gains | |||||||||||||||||||
Class A | (160,194 | ) | (828,004 | ) | (48,075 | ) | (230,970 | ) | |||||||||||
Institutional Class | (72,958 | ) | (479,882 | ) | (26,539 | ) | (212,355 | ) | |||||||||||
Class C | (63,532 | ) | (334,845 | ) | (19,670 | ) | (127,901 | ) | |||||||||||
Total distributions to shareholders | (366,847 | ) | (1,814,683 | ) | (159,557 | ) | (691,965 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 2,234,433 | 2,093,463 | 1,768,462 | 1,223,032 | |||||||||||||||
Proceeds from reinvestment of distributions | 197,661 | 868,766 | 75,290 | 251,962 | |||||||||||||||
Cost of shares redeemed | (750,361 | ) | (2,989,473 | ) | (588,758 | ) | (505,884 | ) | |||||||||||
Net increase (decrease) from Class A transactions | 1,681,733 | (27,244 | ) | 1,254,994 | 969,110 | ||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 530,524 | 2,475,203 | 78,391 | 376,501 | |||||||||||||||
Proceeds from reinvestment of distributions | 96,242 | 552,609 | 48,053 | 277,384 | |||||||||||||||
Cost of shares redeemed | (784,168 | ) | (6,469,621 | ) | (54,652 | ) | (3,374,521 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | (157,402 | ) | (3,441,809 | ) | 71,792 | (2,720,636 | ) | ||||||||||||
Class C | |||||||||||||||||||
Proceeds from shares sold | 560,590 | 1,334,460 | 274,223 | 660,504 | |||||||||||||||
Proceeds from reinvestment of distributions | 65,353 | 341,122 | 27,435 | 135,785 | |||||||||||||||
Cost of shares redeemed | (309,062 | ) | (746,537 | ) | (115,777 | ) | (184,368 | ) | |||||||||||
Net increase (decrease) from Class C transactions | 316,881 | 929,045 | 185,881 | 611,921 | |||||||||||||||
Net increase (decrease) from capital share transactions | 1,841,212 | (2,540,008 | ) | 1,512,667 | (1,139,605 | ) | |||||||||||||
Net increase (decrease) in net assets | 2,283,438 | (1,599,752 | ) | 1,732,751 | (1,132,705 | ) | |||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 14,843,848 | 16,443,600 | 6,345,886 | 7,478,591 | |||||||||||||||
End of period (1) | $ | 17,127,286 | $ | 14,843,848 | $ | 8,078,637 | $ | 6,345,886 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | 54,022 | $ | — | $ | 18,230 | $ | 3,251 |
SEE NOTES TO FINANCIAL STATEMENTS
39
June 30, 2014
Statements of Changes in Net Assets—Shares of Beneficial Interest
Growth | Growth and Income | ||||||||||||||||||
Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 133,624 | 176,587 | 195,318 | 187,371 | |||||||||||||||
Shares issued in reinvestment of distributions | 16,455 | 118,576 | 16,419 | 60,003 | |||||||||||||||
Shares redeemed | (105,123 | ) | (401,895 | ) | (25,943 | ) | (75,508 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 44,956 | (106,732 | ) | 185,794 | 171,866 | ||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 6,773 | 211,934 | 46,336 | 126,257 | |||||||||||||||
Shares issued in reinvestment of distributions | 6,033 | 39,379 | 4,678 | 19,225 | |||||||||||||||
Shares redeemed | (4,375 | ) | (125,643 | ) | (902 | ) | (491,008 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 8,431 | 125,670 | 50,112 | (345,526 | ) | ||||||||||||||
Class C | |||||||||||||||||||
Shares sold | 3,547 | 15,253 | 64,447 | 127,506 | |||||||||||||||
Shares issued in reinvestment of distributions | 2,845 | 22,072 | 7,861 | 38,243 | |||||||||||||||
Shares redeemed | (14,631 | ) | (11,276 | ) | (26,842 | ) | (60,601 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (8,239 | ) | 26,049 | 45,466 | 105,148 |
SEE NOTES TO FINANCIAL STATEMENTS
40
June 30, 2014
Balanced | Income | ||||||||||||||||||
Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | Unaudited Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 191,910 | 171,039 | 164,166 | 107,103 | |||||||||||||||
Shares issued in reinvestment of distributions | 16,652 | 76,004 | 6,844 | 23,583 | |||||||||||||||
Shares redeemed | (63,833 | ) | (241,932 | ) | (54,058 | ) | (44,296 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 144,729 | 5,111 | 116,952 | 86,390 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 44,923 | 197,931 | 7,039 | 33,074 | |||||||||||||||
Shares issued in reinvestment of distributions | 8,094 | 48,251 | 4,361 | 25,746 | |||||||||||||||
Shares redeemed | (67,310 | ) | (511,983 | ) | (5,008 | ) | (292,301 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (14,293 | ) | (265,801 | ) | 6,392 | (233,481 | ) | ||||||||||||
Class C | |||||||||||||||||||
Shares sold | 48,444 | 111,858 | 25,370 | 58,741 | |||||||||||||||
Shares issued in reinvestment of distributions | 5,557 | 30,106 | 2,524 | 12,837 | |||||||||||||||
Shares redeemed | (26,788 | ) | (61,992 | ) | (10,845 | ) | (16,287 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 27,213 | 79,972 | 17,049 | 55,291 |
SEE NOTES TO FINANCIAL STATEMENTS
41
June 30, 2014
Financial Highlights
Selected data for a share outstanding throughout each period
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Growth Portfolio | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.51 | $ | 0.07 | $ | 0.61 | $ | 0.68 | $ | 0.01 | $ | 0.26 | $ | – | $ | 0.27 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.33 | 0.11 | 3.10 | 3.21 | 0.07 | 1.96 | – | 2.03 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.30 | 0.11 | 1.02 | 1.13 | 0.10 | – | – | 0.10 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.89 | 0.12 | (0.61 | ) | (0.49 | ) | 0.07 | 0.03 | – | 0.10 | |||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.13 | 0.86 | 0.99 | 0.10 | – | – | 0.10 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.54 | $ | 0.09 | $ | 0.61 | $ | 0.70 | $ | 0.03 | $ | 0.26 | $ | – | $ | 0.29 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.37 | 0.12 | 3.12 | 3.24 | 0.11 | 1.96 | – | 2.07 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.34 | 0.12 | 1.04 | 1.16 | 0.13 | – | – | 0.13 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.91 | 0.14 | (0.59 | ) | (0.45 | ) | 0.09 | 0.03 | – | 0.12 | |||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.13 | 0.90 | 1.03 | 0.12 | – | – | 0.12 | |||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.45 | $ | 0.03 | $ | 0.60 | $ | 0.63 | $ | – | $ | 0.26 | $ | – | $ | 0.26 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.31 | (0.01 | ) | 3.11 | 3.10 | – | 1.96 | – | 1.96 | ||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.29 | 0.02 | 1.03 | 1.05 | 0.03 | – | – | 0.03 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.88 | 0.03 | (0.58 | ) | (0.55 | ) | 0.01 | 0.03 | – | 0.04 | |||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.04 | 0.88 | 0.92 | 0.04 | – | – | 0.04 | |||||||||||||||||||||||||||
Growth and Income Portfolio | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.13 | $ | 0.13 | $ | 0.59 | $ | 0.72 | $ | 0.07 | $ | 0.27 | $ | – | $ | 0.34 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.30 | 0.16 | 2.50 | 2.66 | 0.13 | 1.70 | – | 1.83 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.38 | 0.18 | 0.91 | 1.09 | 0.17 | – | – | 0.17 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.80 | 0.20 | (0.43 | ) | (0.23 | ) | 0.19 | 0.006 | – | 0.19 | |||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.25 | 0.72 | 0.97 | 0.17 | – | – | 0.17 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.15 | $ | 0.15 | $ | 0.59 | $ | 0.74 | $ | 0.08 | $ | 0.27 | $ | – | $ | 0.35 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.30 | 0.22 | 2.49 | 2.71 | 0.16 | 1.70 | – | 1.86 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.37 | 0.20 | 0.93 | 1.13 | 0.20 | – | – | 0.20 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.80 | 0.22 | (0.44 | ) | (0.22 | ) | 0.21 | 0.006 | – | 0.21 | |||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.22 | 0.76 | 0.98 | 0.19 | – | – | 0.19 | |||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.08 | $ | 0.08 | $ | 0.58 | $ | 0.66 | $ | 0.02 | $ | 0.27 | $ | – | $ | 0.29 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.27 | 0.06 | 2.50 | 2.56 | 0.05 | 1.70 | – | 1.75 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.34 | 0.09 | 0.95 | 1.04 | 0.08 | – | – | 0.08 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.78 | 0.11 | (0.44 | ) | (0.33 | ) | 0.11 | 0.006 | – | 0.11 | |||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.14 | 0.75 | 0.89 | 0.11 | – | – | 0.11 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, 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 Commencement of operations—January 4, 2010
6 Rounds to less than 0.01.
SEE NOTES TO FINANCIAL STATEMENTS
42
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Gross expenses excluding reimbursements and waivers | Portfolio Turnover4 | |||||||||||||||||||||||||
Growth Portfolio | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.92 | 5.51 | % | $ | 10,323 | 1.11 | % | 1.18 | % | 2.51 | % | 7 | % | |||||||||||||||||
Year Ended December 31, 2013 | 12.51 | 28.84 | % | 9,432 | 1.26 | % | 0.88 | % | 2.87 | % | 126 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.33 | 11.04 | % | 9,751 | 1.32 | % | 1.04 | % | 3.19 | % | 45 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.30 | (4.50 | %) | 1,463 | 1.19 | % | 1.09 | % | 6.37 | % | 53 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.89 | 9.96 | % | 768 | 1.23 | % | 1.32 | % | 8.40 | % | 40 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.95 | 5.61 | % | $ | 3,734 | 0.86 | % | 1.42 | % | 2.26 | % | 7 | % | |||||||||||||||||
Year Ended December 31, 2013 | 12.54 | 28.98 | % | 3,508 | 1.01 | % | 0.90 | % | 2.62 | % | 126 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.37 | 11.24 | % | 1,753 | 1.06 | % | 1.12 | % | 2.94 | % | 45 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.34 | (4.12 | %) | 2,582 | 0.94 | % | 1.27 | % | 6.12 | % | 53 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.91 | 10.33 | % | 2,579 | 0.98 | % | 1.32 | % | 8.15 | % | 40 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.82 | 5.11 | % | $ | 2,119 | 1.86 | % | 0.41 | % | 3.26 | % | 7 | % | |||||||||||||||||
Year Ended December 31, 2013 | 12.45 | 27.84 | % | 2,160 | 2.01 | % | -0.10 | % | 3.62 | % | 126 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.31 | 10.15 | % | 1,667 | 2.06 | % | 0.21 | % | 3.93 | % | 45 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.29 | (5.10 | %) | 1,501 | 1.94 | % | 0.27 | % | 7.12 | % | 53 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.88 | 9.16 | % | 1,324 | 1.98 | % | 0.43 | % | 9.15 | % | 40 | % | |||||||||||||||||||
Growth and Income Portfolio | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.51 | 6.00 | % | $ | 8,479 | 1.05 | % | 2.11 | % | 3.04 | % | 5 | % | |||||||||||||||||
Year Ended December 31, 2013 | 12.13 | 23.86 | % | 5,966 | 1.12 | % | 1.25 | % | 3.02 | % | 140 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.30 | 10.60 | % | 3,618 | 1.13 | % | 1.64 | % | 3.61 | % | 48 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.38 | (2.16 | %) | 2,460 | 1.00 | % | 1.84 | % | 4.12 | % | 51 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.80 | 9.79 | % | 2,068 | 1.08 | % | 2.42 | % | 5.17 | % | 30 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.54 | 5.58 | % | $ | 2,163 | 0.80 | % | 2.41 | % | 2.79 | % | 5 | % | |||||||||||||||||
Year Ended December 31, 2013 | 12.15 | 24.32 | % | 1,487 | 0.87 | % | 1.77 | % | 2.77 | % | 140 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.30 | 10.96 | % | 5,286 | 0.88 | % | 1.86 | % | 3.36 | % | 48 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.37 | (2.01 | %) | 4,785 | 0.78 | % | 2.07 | % | 3.89 | % | 51 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.80 | 9.93 | % | 4,705 | 0.83 | % | 2.18 | % | 4.92 | % | 30 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.45 | 5.94 | % | $ | 4,376 | 1.80 | % | 1.29 | % | 3.79 | % | 5 | % | |||||||||||||||||
Year Ended December 31, 2013 | 12.08 | 22.94 | % | 3,694 | 1.87 | % | 0.44 | % | 3.77 | % | 140 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.27 | 9.80 | % | 2,240 | 1.88 | % | 0.84 | % | 4.35 | % | 48 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.34 | (3.01 | %) | 2,244 | 1.79 | % | 1.08 | % | 4.91 | % | 51 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.78 | 8.93 | % | 1,516 | 1.83 | % | 1.36 | % | 5.93 | % | 30 | % |
SEE NOTES TO FINANCIAL STATEMENTS
43
June 30, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Balanced Portfolio | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.56 | $ | 0.10 | $ | 0.48 | $ | 0.58 | $ | 0.05 | $ | 0.21 | $ | – | $ | 0.26 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.22 | 0.17 | 1.76 | 1.93 | 0.14 | 1.45 | – | 1.59 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.45 | 0.19 | 0.75 | 0.94 | 0.16 | 0.01 | – | 0.17 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.57 | 0.22 | (0.10 | ) | 0.12 | 0.20 | 0.04 | – | 0.24 | ||||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.21 | 0.53 | 0.74 | 0.17 | – | – | 0.17 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.58 | $ | 0.11 | $ | 0.50 | $ | 0.61 | $ | 0.07 | $ | 0.21 | $ | – | $ | 0.28 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.23 | 0.21 | 1.76 | 1.97 | 0.17 | 1.45 | – | 1.62 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.46 | 0.22 | 0.74 | 0.96 | 0.18 | 0.01 | – | 0.19 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.58 | 0.24 | (0.10 | ) | 0.14 | 0.22 | 0.04 | – | 0.26 | ||||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.21 | 0.56 | 0.77 | 0.19 | – | – | 0.19 | |||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.47 | $ | 0.05 | $ | 0.49 | $ | 0.54 | $ | 0.02 | $ | 0.21 | $ | – | $ | 0.23 | |||||||||||||||||||
Year Ended December 31, 2013 | 11.14 | 0.07 | 1.76 | 1.83 | 0.05 | 1.45 | – | 1.50 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.39 | 0.11 | 0.74 | 0.85 | 0.09 | 0.01 | – | 0.10 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.53 | 0.14 | (0.10 | ) | 0.04 | 0.14 | 0.04 | – | 0.18 | ||||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.13 | 0.53 | 0.66 | 0.13 | – | – | 0.13 | |||||||||||||||||||||||||||
Income Portfolio | |||||||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 10.72 | $ | 0.12 | $ | 0.42 | $ | 0.54 | $ | 0.09 | $ | 0.13 | $ | – | $ | 0.22 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.92 | 0.22 | 0.81 | 1.03 | 0.20 | 1.03 | – | 1.23 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.51 | 0.22 | 0.51 | 0.73 | 0.22 | 0.10 | – | 0.32 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.55 | 0.25 | 0.02 | 0.27 | 0.24 | 0.07 | – | 0.31 | |||||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.21 | 0.53 | 0.74 | 0.19 | – | – | 0.19 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 10.73 | $ | 0.13 | $ | 0.43 | $ | 0.56 | $ | 0.11 | $ | 0.13 | $ | – | $ | 0.24 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.93 | 0.25 | 0.81 | 1.06 | 0.23 | 1.03 | – | 1.26 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.52 | 0.24 | 0.52 | 0.76 | 0.25 | 0.10 | – | 0.35 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.56 | 0.28 | 0.01 | 0.29 | 0.26 | 0.07 | – | 0.33 | |||||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.22 | 0.54 | 0.76 | 0.20 | – | – | 0.20 | |||||||||||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 10.60 | $ | 0.08 | $ | 0.41 | $ | 0.49 | $ | 0.06 | $ | 0.13 | $ | – | $ | 0.19 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.82 | 0.13 | 0.81 | 0.94 | 0.13 | 1.03 | – | 1.16 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 10.42 | 0.14 | 0.51 | 0.65 | 0.15 | 0.10 | – | 0.25 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.50 | 0.18 | 0.01 | 0.19 | 0.20 | 0.07 | – | 0.27 | |||||||||||||||||||||||||||
Period Ended December 31, 20105 | 10.00 | 0.13 | 0.52 | 0.65 | 0.15 | – | – | 0.15 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, 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 Commencement of operations—January 4, 2010
6 Rounds to less than 0.01.
SEE NOTES TO FINANCIAL STATEMENTS
44
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||
Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Gross expenses excluding reimbursements and waivers | Portfolio Turnover4 | |||||||||||||||||||||||||
Balanced Portfolio | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.88 | 5.16 | % | $ | 9,374 | 0.99 | % | 1.71 | % | 2.61 | % | 9 | % | |||||||||||||||||
Year Ended December 31, 2013 | 11.56 | 17.48 | % | 7,446 | 1.08 | % | 1.36 | % | 2.47 | % | 106 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.22 | 9.02 | % | 7,167 | 1.08 | % | 1.75 | % | 3.02 | % | 42 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.45 | 1.04 | % | 4,399 | 1.01 | % | 2.07 | % | 4.24 | % | 46 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.57 | 7.50 | % | 2,071 | 1.10 | % | 2.05 | % | 5.19 | % | 36 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.91 | 5.34 | % | $ | 4,263 | 0.74 | % | 1.94 | % | 2.36 | % | 9 | % | |||||||||||||||||
Year Ended December 31, 2013 | 11.58 | 17.86 | % | 4,312 | 0.83 | % | 1.71 | % | 2.22 | % | 106 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.23 | 9.26 | % | 7,169 | 0.83 | % | 1.99 | % | 2.77 | % | 42 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.46 | 1.24 | % | 5,380 | 0.76 | % | 2.27 | % | 4.02 | % | 46 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.58 | 7.74 | % | 5,292 | 0.85 | % | 2.09 | % | 4.93 | % | 36 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.78 | 4.77 | % | $ | 3,491 | 1.74 | % | 0.95 | % | 3.36 | % | 9 | % | |||||||||||||||||
Year Ended December 31, 2013 | 11.47 | 16.70 | % | 3,086 | 1.83 | % | 0.57 | % | 3.22 | % | 106 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 11.14 | 8.17 | % | 2,108 | 1.83 | % | 1.02 | % | 3.77 | % | 42 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.39 | 0.28 | % | 931 | 1.76 | % | 1.30 | % | 5.00 | % | 46 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.53 | 6.68 | % | 390 | 1.85 | % | 1.34 | % | 5.94 | % | 36 | % | |||||||||||||||||||
Income Portfolio | |||||||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.04 | 5.18 | % | $ | 4,098 | 0.93 | % | 2.30 | % | 4.50 | % | 11 | % | |||||||||||||||||
Year Ended December 31, 2013 | 10.72 | 9.65 | % | 2,728 | 0.99 | % | 1.93 | % | 4.16 | % | 97 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 10.92 | 6.99 | % | 1,835 | 1.00 | % | 2.01 | % | 4.34 | % | 84 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.51 | 2.51 | % | 1,596 | 0.95 | % | 2.35 | % | 5.64 | % | 45 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.55 | 7.46 | % | 1,164 | 1.10 | % | 2.04 | % | 6.67 | % | 27 | % | |||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 11.05 | 5.18 | % | $ | 2,303 | 0.68 | % | 2.50 | % | 4.25 | % | 11 | % | |||||||||||||||||
Year Ended December 31, 2013 | 10.73 | 9.89 | % | 2,168 | 0.74 | % | 2.17 | % | 3.91 | % | 97 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 10.93 | 7.23 | % | 4,761 | 0.75 | % | 2.25 | % | 4.08 | % | 84 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.52 | 2.74 | % | 4,586 | 0.70 | % | 2.61 | % | 5.41 | % | 45 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.56 | 7.68 | % | 4,107 | 0.85 | % | 2.14 | % | 6.41 | % | 27 | % | |||||||||||||||||||
Class C | |||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 10.90 | 4.72 | % | $ | 1,678 | 1.68 | % | 1.51 | % | 5.25 | % | 11 | % | |||||||||||||||||
Year Ended December 31, 2013 | 10.60 | 8.82 | % | 1,450 | 1.74 | % | 1.19 | % | 4.91 | % | 97 | % | |||||||||||||||||||
Year Ended December 31, 2012 | 10.82 | 6.23 | % | 882 | 1.75 | % | 1.27 | % | 5.09 | % | 84 | % | |||||||||||||||||||
Year Ended December 31, 2011 | 10.42 | 1.78 | % | 661 | 1.70 | % | 1.68 | % | 6.35 | % | 45 | % | |||||||||||||||||||
Period Ended December 31, 20105 | 10.50 | 6.54 | % | 27 | 1.85 | % | 1.27 | % | 7.41 | % | 27 | % |
SEE NOTES TO FINANCIAL STATEMENTS
45
June 30, 2014
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, 2014, the Trust offered ten investment funds.
These financial statements relate only to the ESG Managers Growth Portfolio (the "Growth Portfolio"), ESG Managers Growth and Income Portfolio (the "Growth and Income Portfolio"), ESG Managers Balanced Portfolio (the "Balanced Portfolio"), and ESG Managers Income Portfolio (the "Income Portfolio") (each a "Fund" and collectively, the "Funds"), each a diversified series of the Trust. The Funds described herein commenced operations on January 4, 2010.
Each Fund has three classes of shares—Class A Shares, Institutional Class Shares and Class C Shares. Although all share classes generally have identical voting, dividend and liquidation rights, each class votes separately when required by law. Different share classes pay different distribution amounts to the extent the expenses of such classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense structure and sales charges, as applicable.
The Funds use multiple advisers to seek to achieve their investment objectives and Morningstar Associates may allocate a portion of a Fund's assets to one or more investments, such as the underlying funds listed below ("Underlying Funds"), or to one or more subadvisers, who seek to invest the assets allocated to them consistent with the investment style specified by Morningstar (e.g., large cap blend, small/mid cap value, investment grade intermediate term bond). At present, the only subadviser engaged by the Adviser to manage a portion of the Funds is ClearBridge, with all other asset invested in the Underlying Funds. The potential risks and returns of each Fund vary with the degree to which each Fund's assets are invested in particular market segments and/or asset classes. Morningstar Associates will allocate each Fund's assets to Underlying Funds, the Adviser or one or more subadvisers in Morningstar Associates' sole discretion.
46
June 30, 2014
Notes to Financial Statements (Unaudited), continued
The Funds' "multi-manager" approach is designed to reduce the management risk inherent in individual security selection and to achieve lower volatility by combining complementary investment approaches. Allocation of assets among Underlying Funds and subadvisers is based on such factors as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets' current valuations and other economic factors. Morningstar Associates may periodically adjust asset allocations to favor those Underlying Funds and subadvisers that Morningstar Associates believes will provide the most favorable outlook for achieving a Fund's investment objective. As a result, it is not possible to predict the extent to which any Fund's assets will be invested in a particular Underlying Fund or with any subadviser at any given time. The Adviser and/or Morningstar Associates may change the Funds' asset allocations at any time without notice to shareholders and without shareholder approval.
Morningstar establishes different allocations among Underlying Funds, the Adviser and subadvisers for each Fund. In general, relative to other Funds, the Growth Portfolio will have the greatest allocations to Underlying Funds and subadvisers investing principally in equity securities, each of the Growth and Income Portfolio and the Balanced Portfolio will have successively lower allocations to Underlying Funds and subadvisers investing principally in equity securities, and the Income Portfolio will have the lowest allocation to Underlying Funds and subadvisers investing principally in equity securities. Similarly, it is expected that in general, relative to the other Funds, the Income Portfolio will have the greatest allocation to Underlying Funds and subadvisers investing primarily in fixed income securities, the Balanced Portfolio and the Growth and Income Portfolio will have successively lower allocations to Underlying Funds and subadvisers investing primarily in fixed income securities, and the Growth Portfolio will have the lowest allocations to Underlying Funds and subadvisers investing primarily in fixed income securities.
With respect to the fixed income portion of its investment portfolio, each Fund may invest, through Underlying Funds or subadvisers, in (i) securities issued by the U.S. government, its agencies and instrumentalities, (ii) corporate bonds and asset backed securities of all types (including mortgage-backed securities), and (iii) securities of foreign issuers. Each Fund may purchase fixed income securities of any rating, including junk bonds (e.g., securities rated lower than BBB- by Standard & Poor's Ratings Group or Baa by Moody's Investors Service or unrated securities of comparable quality as determined by the
47
June 30, 2014
Notes to Financial Statements (Unaudited), continued
Adviser, subadviser or the adviser of the Underlying Fund), though it is not currently anticipated that any Fund will invest more than 20% of its assets in junk bonds.
With respect to the equity portion of its investment portfolio, each Fund may invest, through Underlying Funds or subadvisers, in securities of companies with any market capitalization, and the Adviser, subadviser and/or the adviser of the Underlying Fund intends to focus on economic sectors that it believes offer the Funds the potential to meet their investment objectives. Each Fund may invest in the securities of other investment companies that are part of the Pax World family of investment companies, including in particular mutual funds (the "Underlying Pax Mutual Funds") managed by the Adviser. The Underlying Pax Mutual Funds include, but are not limited to, Pax World Global Environmental Markets Fund, Pax World High Yield Bond Fund, Pax World Small Cap Fund and Pax MSCI International ESG Index Fund. Each Fund may invest in the securities of other investment companies to the extent permitted by the Investment Company Act of 1940, as amended (the "1940 Act"), and the rules adopted thereunder.
The Growth Portfolio's primary investment objective is to seek long-term capital appreciation. The portfolio expects to invest (directly or indirectly through mutual funds and/or exchange-traded funds ("ETFs") almost all of its total assets in equity securities (e.g., stocks), although it may invest a small portion (generally less than 10%) of its total assets in fixed income securities. The Growth Portfolio may invest in domestic securities as well as securities of non-U.S. issuers, including investments in emerging markets.
The Growth and Income Portfolio's investment objective is to seek long-term capital appreciation plus current income. Under normal market conditions, the Growth and Income Portfolio expects to invest (directly or indirectly through mutual funds and/or ETFs) most of its total assets in equity securities (e.g., stocks) that pay current dividends and that the Adviser or a subadviser (as defined below) believes have the potential for capital appreciation, although, it may invest a portion of its assets (generally less than twenty percent) in fixed income securities (e.g., corporate bonds, U.S. Treasury securities, agency securities and municipal bonds). The Growth and Income Portfolio may invest in domestic securities as well as securities of non-U.S. issuers, including investments in emerging markets.
48
June 30, 2014
Notes to Financial Statements (Unaudited), continued
The Balanced Portfolio's primary investment objective is to seek long-term capital appreciation. As a secondary objective and to the extent consistent with its primary investment objective, the Balanced Portfolio seeks current income. Under normal market conditions, the Balanced Portfolio expects to invest (directly or indirectly through mutual funds and/or ETFs) approximately 60%-75% of its total assets in equity securities (e.g., stocks) and approximately 25%-40% of its total assets in fixed income securities (e.g., corporate bonds, U.S. Treasury securities, agency securities and municipal bonds), depending on market conditions. The Balanced Portfolio may invest in domestic securities as well as securities of non-U.S. issuers, including investments in emerging markets, though it is not currently anticipated that a significant portion of its assets would be invested in emerging market securities.
The Income Portfolio's primary investment objective is to maximize current income while preserving capital. As a secondary objective and to the extent consistent with its primary investment objective, the Income Portfolio seeks capital appreciation. Under normal market conditions, the Income Portfolio expects to invest (directly or indirectly through mutual funds and/or ETFs) at least 65% of its total assets in fixed income securities (e.g., corporate bonds, U.S. Treasury securities, agency securities and municipal bonds). The Income Portfolio may invest in securities of non-U.S. issuers including investments in emerging markets, though it is not currently anticipated that a significant portion of its assets would be invested in emerging market securities.
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.
49
June 30, 2014
Notes to Financial Statements (Unaudited), continued
Valuation of Investments For purposes of calculating the net asset value ("NAV"), determined ordinarily as of the close of regular trading (normally 4:00 p.m. Eastern time) (the "NYSE Close") on the New York Stock Exchange ("NYSE") on each day (a "Business Day") that the NYSE is open for trading, the Funds normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. U.S. fixed income and non-U.S. securities are normally priced using data reflecting the earlier closing of the principal markets for those securities, subject to possible fair value adjustments. Information that becomes known to the Funds or their agents after NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or NAV determined earlier that day.
For the purpose of these financial statements, fair values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or pricing services. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair value.
Investments denominated in currencies other than the U.S. dollar are converted to U.S. dollars using daily exchange rates obtained from pricing services. As a result, the NAV of a Fund's shares may be affected by changes in the value of currencies in relation to the U.S. dollar.
If market quotations are not readily available (including in cases when available market quotations are deemed to be unreliable), the Funds' investments will be valued as determined in good faith pursuant to policies and procedures approved by the Board of Trustees (so called "evaluated pricing"). The Board has delegated to the Adviser's Best Execution and Valuation Committee the day-to-day responsibility for making evaluated pricing determinations with respect to Fund holdings. The Best Execution and Valuation Committee is comprised of representatives of the Adviser, including several members of the Portfolio Management team, the Director of Trading, the Chief Compliance Officer and the Chief Financial Officer. One of the functions of the Best Execution and Valuation Committee is to value securities where current and reliable market quotations are not readily available. The Committee meets periodically and reports to the Board at each quarterly
50
June 30, 2014
Notes to Financial Statements (Unaudited), continued
meeting regarding any securities for which evaluated pricing was employed during the previous quarter. All actions taken by the Best Execution and Valuation Committee are reviewed and ratified by the Board.
The Funds may determine that market quotations are not readily available due to events relating to a single issuer (e.g., corporate actions or announcements) or events relating to multiple issuers (e.g., governmental actions or natural disasters). The Funds may determine the fair value of investments based on information provided by pricing services and other third-party vendors, which may recommend fair value prices or adjustments with reference to other securities, indices or assets. Various factors may be considered in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time at which Funds' net asset value is determined; and changes in overall market conditions. At June 30, 2014, no management-appraised fair valued securities were held by any of the Funds.
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
51
June 30, 2014
Notes to Financial Statements (Unaudited), continued
participants. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a general summary of valuation inputs and classifications for different categories of securities.
Equity Securities Equity securities, including common stocks, preferred stocks and exchange-traded funds, for which market quotations are readily available, valued at the last reported sale price or official closing price as reported by an independent pricing service, are generally categorized as Level 1 in the hierarchy. Non-U.S. equity securities may also be valued at official close, or may be valued based on the fair value pricing procedures noted above. When third-party fair value pricing of foreign securities methods are applied, they are generally categorized as Level 2. To the extent that inputs for equity securities are unobservable, values are categorized as Level 3 in the hierarchy.
Fixed Income Securities Fixed income securities, including corporate Bonds (both investment-grade and high-yield), U.S. Treasury Obligations, Government Bonds, Mortgage-Backed and Asset-Backed Securities and Municipal Bonds, are valued at evaluated prices received from independent pricing services, which are evaluated using various inputs and techniques which may include trade activity, broker-dealer quotes, yield curves, coupon rates, default rates, cash flows, models and other inputs, and are generally categorized as Level 2 in the hierarchy. To the extent that inputs for fixed
52
June 30, 2014
Notes to Financial Statements (Unaudited), continued
income securities are unobservable, values are categorized as Level 3 in the hierarchy.
Mutual Fund Investments Investments in mutual funds are valued at the Funds' closing net asset value and are generally categorized as Level 1.
Short-term Investments Short-term securities, including repurchase agreements with remaining maturities of 60 days or less, which are valued at amortized cost, are generally categorized as Level 2 in the hierarchy.
The following is a summary of the inputs used to value the Funds' net assets as of June 30, 2014:
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
Growth | |||||||||||||||||||
Common Stocks—Domestic | $ | 2,654,915 | $ | — | $ | — | $ | 2,654,915 | |||||||||||
Common Stocks—Foreign | 376,914 | — | — | 376,914 | |||||||||||||||
Affiliated Investment Companies | 3,342,549 | — | — | 3,342,549 | |||||||||||||||
Unaffiliated Investment Companies | 9,853,791 | — | — | 9,853,791 | |||||||||||||||
Total | $ | 16,228,169 | $ | — | $ | — | $ | 16,228,169 | |||||||||||
Growth and Income | |||||||||||||||||||
Common Stocks—Domestic | $ | 1,880,239 | $ | — | $ | — | $ | 1,880,239 | |||||||||||
Common Stocks—Foreign | 265,036 | — | — | 265,036 | |||||||||||||||
Affiliated Investment Companies | 2,588,198 | — | — | 2,588,198 | |||||||||||||||
Unaffiliated Investment Companies | 10,313,430 | — | — | 10,313,430 | |||||||||||||||
Total | $ | 15,046,903 | $ | — | $ | — | $ | 15,046,903 | |||||||||||
Balanced | |||||||||||||||||||
Common Stocks—Domestic | $ | 1,859,283 | $ | — | $ | — | $ | 1,859,283 | |||||||||||
Common Stocks—Foreign | 263,230 | — | — | 263,230 | |||||||||||||||
Affiliated Investment Companies | 2,699,781 | — | — | 2,699,781 | |||||||||||||||
Unaffiliated Investment Companies | 12,333,284 | — | — | 12,333,284 | |||||||||||||||
Total | $ | 17,155,578 | $ | — | $ | — | $ | 17,155,578 | |||||||||||
Income | |||||||||||||||||||
Common Stocks—Domestic | $ | 455,144 | $ | — | $ | — | $ | 455,144 | |||||||||||
Common Stocks—Foreign | 65,333 | — | — | 65,333 | |||||||||||||||
Affiliated Investment Companies | 701,336 | — | — | 701,336 | |||||||||||||||
Unaffiliated Investment Companies | 6,907,341 | — | — | 6,907,341 | |||||||||||||||
Total | $ | 8,129,154 | $ | — | $ | — | $ | 8,129,154 |
53
June 30, 2014
Notes to Financial Statements (Unaudited), continued
Transfers in and out of Levels during the period are assumed to be transferred on the last day of the period at their current value. During the period, Level 2 to Level 1 transfers were $34,630 for the Growth Portfolio, $22,227 for the Growth and Income Portfolio, $25,337 for the Balanced Portfolio, and $6,107 for the Income Portfolio, due to the utilization of the pricing vendor's fair value pricing of foreign securities.
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 Funds expect to pay dividends of net investment income, if any, semiannually and to make distributions of capital gains, if any, at least annually. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
Class Accounting Expenses directly attributable to a class of shares, such as 12b-1 distribution fees, are charged to that class. Each Fund has adopted a 12b-1 plan, applicable to certain classes of each of the Funds. Expenses of the Funds that are directly identifiable to a specific Fund, such as transfer agent fees, custody fees and registration fees, are applied to that Fund. Expenses that are not readily identifiable to a specific Fund, such as printing expense, Trustees' fees and legal fees, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of the Funds. Investment income, realized and unrealized gains and losses are allocated based upon the relative daily net assets of each class of shares.
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June 30, 2014
Notes to Financial Statements (Unaudited), continued
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 and auditing standards; the effect of political, social, diplomatic or economic events; seizure, expropriation or nationalization of the issuer or its assets; fluctuation in foreign currency exchange rates and the possible imposition of currency exchange controls. If the Fund invests substantially in securities of non-U.S. issuers tied economically to a particular country or geographic region, it will be subject to the risks associated with such country or geographic region to a greater extent than a fund that is more diversified across countries or geographic regions.
55
June 30, 2014
Notes to Financial Statements (Unaudited), continued
NOTE B—Investment Advisory Fee and Transactions with Affiliated and Other Parties
The Trust has entered into an Investment Advisory Contract (the "Agreement") with the Adviser. Pursuant to the terms of the agreement, 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.
Pursuant to the Agreement 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. With respect to the portion of assets invested in mutual funds and/or ETFs the Adviser is paid an advisory fee of 0.45%, and the Adviser continues to apply previously existing management fees to the portion of fund assets managed directly by a subadviser, resulting in annualized advisory fee ratios as follows during the period (expressed as a percentage of the average daily net assets of such Fund):
Fund | Managed by Subadviser | Fund Investments | YTD 2014 Effective Advisory Fee | ||||||||||||
Growth | 0.90 | % | 0.45 | % | 0.53 | % | |||||||||
Growth and Income | 0.85 | % | 0.45 | % | 0.51 | % | |||||||||
Balanced | 0.80 | % | 0.45 | % | 0.49 | % | |||||||||
Income | 0.75 | % | 0.45 | % | 0.47 | % |
The Adviser has entered into an Asset Allocation Agreement with Morningstar Associates, whereby Morningstar Associates, subject to the supervision of the Board of Trustees of the Trust and the Adviser, is responsible for certain portfolio construction services for the Funds.
As the portfolio construction adviser to the Adviser and each of the Funds, Morningstar Associates has primary responsibility for: (i) the design of the asset allocation strategy of each Fund, (ii) the amount of assets allocated to each Underlying Fund, subadviser and/or the Adviser, (iii) the evaluation, selection and recommendation to the Adviser and the Board of Trustees of the Underlying Funds to be invested in by each Fund and the hiring, termination and replacement of subadvisers to manage portions of the assets of each Fund,
56
June 30, 2014
Notes to Financial Statements (Unaudited), continued
and (iv) together with the Adviser, overseeing and monitoring the ongoing performance of the pooled investment vehicles and subadvisers of each Fund.
The Adviser compensates Morningstar Associates out of the advisory fees it receives from the applicable Fund. As of June 30, 2014, the Adviser pays a fee to Morningstar Associates at an annual rate of 0.15% of the daily net assets of each Fund.
Pursuant to Subadvisory Contracts, the subadvisers manage the Funds' portfolios of securities and make decisions with respect to the purchase and sale of investments, subject to the general control of the Board of Trustees of the Funds, the Adviser, and Morningstar Associates. For their services under their respective Subadvisory Contracts, each subadviser receives from the Adviser a fee based on a percentage of the applicable average daily net assets from the Adviser's advisory fee (the "Subadvisory fees"). At present, the only subadviser engaged by the Adviser is ClearBridge.
Payment of fees to Morningstar and the subadviser is the responsibility of the Adviser, and is not an additional expense of the Funds.
During the period, the Adviser voluntarily waived advisory fees related to a portion of the acquired fund fees for investments in other mutual funds managed by the Adviser. For the period ended June 30, 2014, the Funds incurred the following advisory fees and fee waivers:
Fund | Gross Advisory Fee | Fees Waived | Net Advisory Fee | ||||||||||||
Growth | $ | 40,843 | $ | 4,487 | $ | 36,356 | |||||||||
Growth and Income | 32,338 | 3,163 | �� | 29,175 | |||||||||||
Balanced | 38,034 | 3,470 | 34,564 | ||||||||||||
Income | 17,116 | 907 | 16,209 |
The Adviser has agreed contractually to reimburse a portion of the Fund's expenses so that the Fund's Other Expenses (excluding management fees, distribution and service fees, interest, taxes, certain securities lending costs, brokerage commissions, extraordinary expenses and Acquired Fund Fees and expenses other than those attributable to advisory fees indirectly borne by the Fund through its investment in funds (other than ETFs) advised by the Adviser), as a percentage of its average net assets, do not exceed 0.39%, 0.34%, 0.29% and 0.24% on an annualized basis for the Growth Portfolio, Growth and Income Portfolio, Balanced Portfolio and Income Portfolio,
57
June 30, 2014
Notes to Financial Statements (Unaudited), continued
respectively. The table below summarizes contractual expense arrangements in place during the period (expressed as a percentage of the average daily net assets of each Fund):
Capped Expenses | YTD 2014 | ||||||||||||||
Fund | Managed by Subadviser | Fund Investments | Effective Expense Cap | ||||||||||||
Growth | |||||||||||||||
Class A | 1.54 | % | 1.09 | % | 1.17 | % | |||||||||
Institutional | 1.29 | % | 0.84 | % | 0.92 | % | |||||||||
Class C | 2.29 | % | 1.84 | % | 1.92 | % | |||||||||
Growth and Income | |||||||||||||||
Class A | 1.44 | % | 1.04 | % | 1.10 | % | |||||||||
Institutional | 1.19 | % | 0.79 | % | 0.85 | % | |||||||||
Class C | 2.19 | % | 1.79 | % | 1.85 | % | |||||||||
Balanced | |||||||||||||||
Class A | 1.34 | % | 0.99 | % | 1.03 | % | |||||||||
Institutional | 1.09 | % | 0.74 | % | 0.78 | % | |||||||||
Class C | 2.09 | % | 1.74 | % | 1.78 | % | |||||||||
Income | |||||||||||||||
Class A | 1.24 | % | 0.94 | % | 0.96 | % | |||||||||
Institutional | 0.99 | % | 0.69 | % | 0.71 | % | |||||||||
Class C | 1.99 | % | 1.69 | % | 1.71 | % |
The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31,2015.
This reimbursement arrangement will continue in effect until at least December 31, 2015 unless modified or terminated by the Fund's Trustees.
Such expenses include (i) investment advisory 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.
Each of the Funds is subject to the expenses, including advisory fees, of the underlying funds in which it invests.
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For the period ended June 30, 2014, the dollar amounts of expense reimbursements for each of the Funds were as follows:
Total Expenses Reimbursed by Adviser | |||||||||||||||
Fund | Class A | Institutional | Class C | ||||||||||||
Growth | $ | 65,151 | $ | 23,597 | $ | 13,862 | |||||||||
Growth and Income | 66,363 | 17,162 | 39,585 | ||||||||||||
Balanced | 64,763 | 31,559 | 25,292 | ||||||||||||
Income | 64,629 | 38,509 | 26,207 |
Each Fund has adopted a plan (a "12b-1 Plan") pursuant to Rule 12b-1 under the 1940 Act that allows it to pay distribution fees for the sale and distribution of its Class A and Class C shares and for personal services rendered to the Fund shareholders in connection with the maintenance of shareholder accounts. The Funds' distributor may pay all or any portion of the distribution fee to secure ties 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, 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. The annual fees may equal up to 0.25% for Class A or up to 0.75% for Class C of the average daily net assets allocable to such classes of shares of a Fund.
In addition to the 12b-1 Plan, each Fund has adopted a shareholder services plan (a "Services Plan") with respect to Class C shares. Under each Services Plan, up to 0.25% of the average daily net assets allocable to Class C shares of the Fund may be used to pay service fees to qualified dealers for providing certain shareholder services (e.g., personal services rendered to such shareholders and/or the maintenance of shareholder accounts).
Several individuals who are officers and/or Trustees of the Trust are also employees of the Adviser.
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Notes to Financial Statements (Unaudited), continued
NOTE C—Investment Information
Purchases and proceeds from sales of investments for the Funds (excluding short-term investments and U.S. government bonds, if any) for the period ended June 30, 2014 were as follows:
Fund | Purchases | Sales | |||||||||
Growth | $ | 1,575,444 | $ | 1,161,680 | |||||||
Growth and Income | 3,805,147 | 595,023 | |||||||||
Balanced | 3,050,841 | 1,453,154 | |||||||||
Income | 2,238,475 | 795,846 |
For federal income tax purposes, the identified cost of investments owned at June 30, 2014 as well as the gross unrealized appreciation (depreciation) of investments and resulting net unrealized appreciation (depreciation) as of June 30, 2014 were as follows for the Funds:
Identified cost of investments for Federal income tax basis | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | ||||||||||||||||
Growth | $ | 13,990,597 | $ | 2,257,387 | $ | 19,815 | $ | 2,237,572 | |||||||||||
Growth and Income | 13,383,590 | 1,675,146 | 11,833 | 1,663,313 | |||||||||||||||
Balanced | 15,514,831 | 1,690,650 | 49,903 | 1,640,747 | |||||||||||||||
Income | 7,622,656 | 518,729 | 12,232 | 506,497 |
At June 30, 2014, the Growth Portfolio, Growth and Income Portfolio, Balanced Portfolio and Income Portfolio had unrealized foreign currency gains of $17, $19, $18 and $10, respectively.
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The term "affiliated company" includes other investment companies that are managed by a Fund's Adviser. At June 30, 2014, the Funds held the following investments in affiliated companies:
Fund | Shares Held at 06/30/14 | Value at 12/31/13 | Gross Additions | Gross Reductions | Value at 06/30/14 | Income Distributions | |||||||||||||||||||||
Growth | |||||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 196,234 | $ | 1,371,972 | $ | 180,665 | $ | 128,901 | $ | 1,756,292 | $ | 50,792 | ||||||||||||||||
Pax World Global Environmental Markets Fund | 30,265 | 327,203 | 62,141 | — | 396,773 | 3,585 | |||||||||||||||||||||
Pax World International Fund* | — | 344,596 | 20,445 | — | — | 20,445 | |||||||||||||||||||||
Pax World Small Cap Fund | 83,239 | 996,357 | 145,301 | 3,126 | 1,189,484 | 6,458 | |||||||||||||||||||||
Total | $ | 3,040,128 | $ | 408,552 | $ | 132,027 | $ | 3,342,549 | $ | 81,279 | |||||||||||||||||
Growth and Income | |||||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 154,397 | $ | 785,376 | $ | 417,778 | $ | 6,661 | $ | 1,381,851 | $ | 39,655 | ||||||||||||||||
Pax World Balanced Fund | — | 5,857 | — | 5,938 | — | — | |||||||||||||||||||||
Pax World Global Environmental Markets Fund | 12,551 | 135,658 | 25,691 | — | 164,548 | 1,487 | |||||||||||||||||||||
Pax World High Yield Bond Fund | 56,993 | 386,842 | 43,364 | — | 437,133 | 12,466 | |||||||||||||||||||||
Pax World International Fund* | — | 190,828 | 11,561 | — | — | 11,561 | |||||||||||||||||||||
Pax World Small Cap Fund | 42,314 | 404,962 | 176,015 | 425 | 604,666 | 3,283 | |||||||||||||||||||||
Total | $ | 1,909,523 | $ | 674,409 | $ | 13,024 | $ | 2,588,198 | $ | 68,452 | |||||||||||||||||
Balanced | |||||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 135,100 | $ | 909,114 | $ | 283,063 | $ | 55,057 | $ | 1,209,146 | $ | 34,285 | ||||||||||||||||
Pax World Balanced Fund | — | 8,162 | — | 8,270 | — | — | |||||||||||||||||||||
Pax World Global Environmental Markets Fund | 24,659 | 260,297 | 57,122 | — | 323,283 | 2,832 | |||||||||||||||||||||
Pax World High Yield Bond Fund | 66,642 | 473,048 | 39,673 | 10,000 | 511,142 | 15,170 | |||||||||||||||||||||
Pax World International Fund* | — | 81,270 | 3,844 | — | — | 3,844 | |||||||||||||||||||||
Pax World Small Cap Fund | 45,921 | 516,588 | 138,695 | 27,280 | 656,210 | 3,451 | |||||||||||||||||||||
Total | $ | 2,248,479 | $ | 522,397 | $ | 100,607 | $ | 2,699,781 | $ | 59,581 |
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Fund | Shares Held at 06/30/14 | Value at 12/31/13 | Gross Additions | Gross Reductions | Value at 06/30/14 | Income Distributions | |||||||||||||||||||||
Income | |||||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 30,867 | $ | 158,134 | $ | 119,740 | $ | 10,852 | $ | 276,263 | $ | 7,933 | ||||||||||||||||
Pax World Balanced Fund | — | 1,959 | — | 1,986 | — | — | |||||||||||||||||||||
Pax World Global Environmental Markets Fund | 8,877 | 110,679 | 3,510 | — | 116,384 | 1,052 | |||||||||||||||||||||
Pax World High Yield Bond Fund | 18,273 | 99,595 | 38,287 | — | 140,156 | 3,897 | |||||||||||||||||||||
Pax World International Fund* | — | 11,100 | 698 | — | — | 698 | |||||||||||||||||||||
Pax World Small Cap Fund | 11,794 | 101,097 | 60,490 | — | 168,533 | 915 | |||||||||||||||||||||
Total | $ | 482,564 | $ | 222,725 | $ | 12,838 | $ | 701,336 | $ | 14,495 |
Income distributions from affiliates are included as dividend income on the Statement of Operations. Dividends are reinvested, with reinvestment amounts included under Gross Additions column above.
*The Pax World International Fund (the "acquired fund") was acquired by the Pax MSCI International ESG Index Fund (the "acquiring fund") on March 31, 2014. Shareholders of the acquired fund received an equivalent value of shares of the acquiring fund upon completion of the merger. The value of shares exchanged is not reflected in Gross Additions or Gross Reductions figures in the table above.
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. The collateral is held by a third party, which the Funds may not recall. 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 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. Without regard to the underlying holdings of affiliated investment companies in which the Funds
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Notes to Financial Statements (Unaudited), continued
invest, at June 30, 2014, the Funds did not directly hold any securities exempt from registration under Rule 144A of the Act.
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. Without regard to the underlying holdings of affiliated investment companies in which the Funds invest, at June 30, 2014, the Funds did not directly hold any securities which were deemed illiquid.
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 investment transactions for a reporting period may differ significantly from distributions during such period. For tax purposes, short-term capital gains are considered ordinary income.
The tax character of distributions paid during 2014 and 2013 was as follows:
Distributions paid in 2014 | Distributions paid in 2013 | ||||||||||||||||||
Fund | Ordinary income | Long-term capital gains | Ordinary income | Long-term capital gains | |||||||||||||||
Growth | $ | 131,937 | $ | 205,419 | $ | 530,670 | $ | 1,737,330 | |||||||||||
Growth and Income | 225,476 | 153,858 | 597,625 | 871,355 | |||||||||||||||
Balanced | 221,625 | 145,222 | 782,915 | 1,031,768 | |||||||||||||||
Income | 94,989 | 64,568 | 239,999 | 451,966 |
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As of December 31, 2013, the Funds had no capital loss carryforward amounts available to offset future gains.
Uncertain Tax Position Management has analyzed the Funds' tax positions taken for all open tax years which remain subject to examination by the Funds' major tax jurisdictions (years 2010 through 2013). 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, 2014, no provision for federal income tax is necessary and, therefore, the Funds did not have a liability for any unrecognized tax expenses.
NOTE E—Board Approval of Advisory Agreements
Review Process. The Investment Company Act of 1940 (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 investment advisory contract (the "Management Contract"). Similarly, the 1940 Act requires that the Trustees request and evaluate, and that each of Morningstar Associates, LLC ("Morningstar") and ClearBridge Advisors, LLC ("Clearbridge") (each a "Subadviser" and collectively, the "Subadvisers") furnish, such information as may reasonably be necessary for the Trustees to evaluate the terms of its respective subadvisory contract (each a "Subadvisory Contract" and collectively, the "Subadvisory Contracts") among the Trust, the Adviser and such Subadviser. 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 in person in March and June of 2014 for the purpose of considering the Management Contract and each 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 and each Subadviser.
During the course of the contract review meetings, the Trustees met and discussed the Management Contract and each Subadvisory Contract with representatives of the Adviser. The Independent Trustees were assisted in their evaluation of the Management Contract and each Subadvisory Contract by
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Notes to Financial Statements (Unaudited), continued
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 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 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 each 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 each Subadviser. They considered the terms of the Management Contract and each 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 and each Subadviser to manage the Funds;
• possible conflicts of interest and fall-out benefits,
• brokerage practices,
• the compliance functions of the Adviser, and
• financial results, assets under management and other information relating to the financial resources of the Adviser.
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Notes to Financial Statements (Unaudited), continued
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 each Subadviser in managing the Funds as well as their in-house investment and sustainable research capabilities. They also considered various investment resources available to the Adviser and Clearbridge, including research services acquired with "soft dollars" available to the Adviser and Clearbridge 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 functions, as well as the resources being devoted by the Adviser to such functions.
The Trustees concluded, within the context of their overall conclusions regarding the Management Contract and each Subadvisory Contract, that the scope of the services provided to each Fund by the Adviser under the Management Contract, and to each Fund by its applicable Subadvisers, 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 and each applicable Subadviser to each Fund were sufficient to warrant approval of the Management Contract and each 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 within their Lipper peer group over the 1-year and 3-year periods ended March 31, 2014. The Independent Trustees considered that the ESG Managers Growth and Income Portfolio, ESG Managers Balanced and ESG Managers Income Portfolios had outperformed their Lipper performance universe average for both periods, while the ESG Managers Growth Portfolio had underperformed its Lipper performance universe average for both periods.
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Notes to Financial Statements (Unaudited), continued
The Trustees, including the Independent Trustees, also considered the performance of ClearBridge relative to its benchmark index, as well as the performance of Morningstar in allocating each Fund's assets. 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 sustainable or 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. 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, which includes performance relative to one or more selected securities indices or other benchmarks. Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Management Contract and each Subadvisory Contract, that the relevant performance record and process in managing each Fund were sufficient to support approval of the Management Contract and each 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 each Subadviser by the Adviser, as well as each Fund's distribution and service (Rule 12b-1) fees, "other expenses" and total expenses. 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 within the same peer group as identified by Lipper. The Independent Trustees noted that the total expenses including acquired fund fees and expenses of the ESG Managers Growth, ESG Managers Growth and Income, ESG Managers Balanced and ESG Managers Income Portfolios were above average for, though within the range of, their Lipper peers, consisting primarily funds-of- affiliated funds. The Independent Trustees also noted that the total expenses including acquired fund fees and expenses of the ESG Managers Growth, ESG Managers Growth and Income, ESG Managers Balanced and ESG Managers Income Portfolios were below average for, though within the range of, the corresponding expenses of competitors identified by the Adviser that are primarily funds-of-unaffiliated funds. Each Fund's management fees (after giving effect to the expense reimbursements described below) were equal to or below the median management fees of its Lipper peer group. In connection with their review, the Trustees considered the Adviser's agreement to reimburse each Fund through December 31, 2015 to
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Notes to Financial Statements (Unaudited), continued
the extent that such Fund's "Other Expenses" (excluding management fees, distribution and service fees, interest, taxes, certain securities lending costs, brokerage commissions, extraordinary expenses and Acquired Fund Fees and Expenses (except that the Adviser has also agreed contractually to waive its advisory fees with respect to the Funds' investments in funds advised by the Adviser)) as a percentage of average net assets do not exceed 0.39% on an annualized basis for the ESG Managers Growth Portfolio, 0.34% for the ESG Managers Growth and Income Portfolio, 0.29% for the ESG Managers Balanced Portfolio, and 0.24% for the ESG Managers Income Portfolio.
The Trustees considered the expenses indirectly borne by the Funds through their investment in other funds (including funds advised by the Adviser), and the extent to which the services provided by the Adviser to such funds afforded the Funds access to a more diversified investment portfolio than would otherwise have been practicable in light of the Funds' current asset levels. 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.
Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Management Contract and each Subadvisory Contract, that the fees and expenses to be charged represented reasonable compensation to the Adviser and each Subadviser in light of the services provided. In coming to this conclusion, the Trustees took into account, among other factors, the 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, 2013. 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
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Notes to Financial Statements (Unaudited), continued
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 any Subadvisory Contract to the relevant Subadviser because the structure of each Subadvisory Contract is such that any profits to the applicable Subadviser under such contracts reduce the profitability of the Adviser, and the fees payable under each Subadvisory Contract are the product of arm's-length bargaining between the applicable Subadviser and the Adviser.
Possible Fall-Out Benefits. The Trustees, including the Independent Trustees, considered information regarding the direct and indirect benefits to the Adviser and each Subadviser from their relationships with the Trust, including reputational and other "fall out" benefits. During the course of the year, the Trustees received presentations from the Adviser, and information from ClearBridge, 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 each Subadviser 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, in light of the small size of the Funds, the Funds did not yet appear to have achieved significant economies of scale. The Trustees concluded that the Funds' overall fee arrangements represent an appropriate sharing at the present time between Fund shareholders, the Adviser and each Subadviser of any economies of scale or other efficiencies in the management of each Fund at current asset levels.
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Notes to Financial Statements (Unaudited), continued
Conclusions. Based on their evaluation of factors that they deemed to be material, including those factors described above, the Trustees, including the Independent Trustees, unanimously concluded that the continuation of the Management Contract and each Subadvisory Contract was in the best interests of the Fund and should be approved.
NOTE F—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 877.374.7678, or within the Statement of Additional Information available on ESG Managers' website at www.esgmanagers.com 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 ESG Managers (toll-free) at 877.374.7678 or visiting ESG Managers' website at www.esgmanagers.com and will be available without charge by visiting the SEC's website at www.sec.gov.
NOTE G—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 ESG Managers' website at www.esgmanagers.com or telephoning ESG Managers (toll-free) at 877.374.7678.
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The Statement of Additional Information includes additional information about the trustees and is available upon request without charge by calling 877.374.7678 between the hours of 9:00 a.m. and 5:30 p.m. Eastern time or by visiting our website at www.esgmanagers.com.
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 ESG Managers® Portfolios 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 877.374.7678, e-mailing info@esgmanagers.com or visiting www.esgmanagers.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 877.374.7678 or visit www.esgmanagers.com.
Distributor: ALPS Distributors, Inc. member of FINRA (8/14).
71
30 Penhallow Street, Suite 400
Portsmouth NH 03801
877.374.7678
www.esgmanagers.com
PAX004442
PAX WORLD BALANCED FUND | |||
Individual Investor Class (PAXWX) Institutional Class (PAXIX) Class R (PAXRX) | |||
PAX WORLD GROWTH FUND | |||
Individual Investor Class (PXWGX) Class A (PXGAX) Institutional Class (PWGIX) Class R (PXGRX) | |||
PAX WORLD SMALL CAP FUND | |||
Individual Investor Class (PXSCX) Class A (PXSAX) Institutional Class (PXSIX) Class R (PXSRX) | |||
PAX WORLD HIGH YIELD BOND FUND | |||
Individual Investor Class (PAXHX) Class A (PXHAX) Institutional Class (PXHIX) Class R (PXHRX) |
PAX WORLD GLOBAL ENVIRONMENTAL MARKETS FUND | |||
Individual Investor Class (PGRNX) Class A (PXEAX) Institutional Class (PGINX) Class R (PGRGX) | |||
PAX MSCI INTERNATIONAL ESG INDEX FUND | |||
Individual Investor Class (PXINX) Institutional Class (PXNIX) Class R (PXIRX) | |||
PAX ELLEVATE GLOBAL WOMEN'S INDEX FUND | |||
Individual Investor Class (PXWEX) Institutional Class (PXWIX) |
SEMI-ANNUAL REPORT
June 30, 2014
Table of Contents
Letter to Shareholders | 1 | ||||||
Portfolio Manager Comments and Highlights | |||||||
Pax World Balanced Fund | 5 | ||||||
Pax World Growth Fund | 9 | ||||||
Pax World Small Cap Fund | 13 | ||||||
Pax World High Yield Bond Fund | 17 | ||||||
Pax World Global Environmental Markets Fund | 23 | ||||||
Pax MSCI International ESG Index Fund | 29 | ||||||
Pax Ellevate Global Women's Index Fund | 34 | ||||||
Sustainability Update | 38 | ||||||
Shareholder Expense Examples | 40 | ||||||
Schedule of Investments | 43 | ||||||
Statements of Assets and Liabilities | 74 | ||||||
Statements of Operations | 78 | ||||||
Statements of Changes in Net Assets | 80 | ||||||
Statements of Changes—Shares of Beneficial Interest | 84 | ||||||
Financial Highlights | 86 | ||||||
Notes to Financial Statements | 98 | ||||||
Account Options and Services | 133 |
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 Advisers
Pax World Management LLC
Pax Ellevate Management LLC
30 Penhallow Street, Suite 400
Portsmouth, NH 03801
Transfer and
Dividend Disbursing Agent
Boston Financial Data Services
P.O. Box 55370
Boston, MA 02205-5370
Custodian
State Street Bank
and Trust Company
1 Lincoln Street
Boston, MA 02111
Letter to Shareholders
by Joseph Keefe, President & CEO
Dear fellow shareholders,
The first six months of 2014 have surprised most market commentators, although I suppose to some extent that is always the case. We listen to experts only to learn that they are usually wrong, at least when it comes to predicting the future.
Equity prices continued their climb, but so did bond prices—something virtually no one predicted. Volatility was low. Those forecasting that inflation and higher rates are just around the corner have been wrong for years, but perhaps they will eventually be right. We shall have to see. Central bank policies continued to be accommodative to spur economic growth during the first half of 2014 but the Federal Reserve has now announced not only tapering but an end-date to its stimulus program.
The Fed policy change comes amidst evidence of an accelerating recovery in the underlying economy, with unemployment dipping to 6.1 percent in June, its lowest figure since September 2008. There is also growing evidence of widening economic inequality, however, and concern in some quarters that structural inequality and lower productivity are becoming significant drags on future economic growth. The economic environment remains uncertain.
Because being confronted with mixed signals and uncertainty about the future is a relative constant in the investment business, we try to refrain from grandiose prognosticating at Pax World. Instead, our portfolio managers stay focused on fundamentals and are ever attentive to risk. At the same time, I think it's fair to say that they remain cautiously optimistic about the investment climate as we start the second half of 2014.
As for the first half of the year, it was hardly uneventful at Pax World. Major new initiatives included creating the first-ever global women's index (the Pax Global Women's Leadership Index); the first ever global index fund focused on investing in women's leadership (the Pax Ellevate Global Women's Index Fund); the first-ever merger of an ETF into an open-end mutual fund (the Pax MSCI International ESG Index Fund); introducing our second fossil fuel-free portfolio (Pax World Growth Fund); and the first-ever Sustainability Report issued by Pax World.
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On June 4, 2014, we re-launched the Pax World Global Women's Equality Fund (PXWEX) which, following a shareholder vote, has adopted a new strategy and has been renamed the Pax Ellevate Global Women's Index Fund. The Fund was re-launched in partnership with Ellevate Asset Management, whose principal is Sallie Krawcheck. The Pax Ellevate Global Women's Index Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women's Leadership Index,* an index of companies around the world that are leaders in advancing women through gender diversity on their boards of directors and in management, and through other policies and programs. This Fund is the first of its kind—and is the only equity mutual fund in the United States that focuses on investing in the highest-rated companies in the world in advancing women's leadership.
In advance of launching the Pax Ellevate Global Women's Index Fund, we built the first-ever global Index consisting of companies that are leaders in advancing women, as rated by Pax World Gender Analytics. Research suggests that where women are better represented on boards and in management, companies actually perform better. We designed this first-of-its-kind index, where the universe of stocks is distinguished vis-à-vis the market as a whole by its gender leadership, in order to measure the contributions and capture the returns associated with women's leadership. We believe the Fund represents a market solution to a global business challenge: by helping direct investor capital towards those companies that are embracing gender diversity, we hope more companies will decide to do so.
We also hope to be able to deliver market or above-market returns over the long term. And because the Fund invests in a diversified, broad-market global index, we believe the Fund can be considered as a core holding in many investor portfolios.
We were particularly pleased to be able to partner with Sallie Krawcheck and her team at Ellevate Asset Management in launching the Pax Ellevate Global Women's Index Fund. Sallie Krawcheck is one of the most respected individuals in the financial services industry, and her interest in partnering with Pax World on the Fund speaks to the gathering momentum around investing in women, and in companies that invest in women.
At the end of March, we also launched the Pax MSCI International ESG Index Fund (PXINX), the product of a merger between the Pax World International
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Fund and the Pax MSCI EAFE ESG ETF. The new fund, a passively-managed index fund, is designed to track the performance of the MSCI EAFE ESG Index, which consists of equity securities of companies in developed markets, excluding the U.S. and Canada, that have high environmental, social and governance (ESG) ratings relative to their sector and industry peers, as rated by MSCI ESG Research. The Fund is the only mutual fund in the United States that tracks the MSCI EAFE ESG Index, and we hope it will provide an attractive option to investors seeking international exposure under a sustainable investing approach.
Pax World also recently hired a new Chief Investment Officer. Steve Falci, whose prior positions include Head of Strategy Development, Sustainable Investment at Kleinwort Benson Investors and Chief Investment Officer for Equities at Calvert Group, has deep experience in sustainable investing and we are very pleased to welcome him to our team.
We remain committed to serving sustainable investors and to offering a family of funds that is responsive to the growing interest among investors in companies that are making a positive difference in confronting global sustainability challenges while also seeking to deliver market returns to investors.
Please don't hesitate to contact me, or any member of our staff, should you have any questions or need additional information. In the meantime, I hope you are enjoying your summer and thank you again for your investments in Pax World Funds.
Sincerely,
Joseph F. Keefe
President and CEO
*A customized index calculated by MSCI.
Past performance is no guarantee of future results.
The Fund's distributor, ALPS Distributors, Inc., is not affiliated with Ellevate Asset Management, LLC.
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, Pax Ellevate 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, 2014
Pax World Balanced Fund
Portfolio Manager
Christopher Brown
Portfolio Manager's Comments
How did the Pax World Balanced Fund (the Fund) perform for the period? For the six-month period ended June 30, 2014, the Individual Investor Class, Institutional Class, and Class R shares of the Fund had total returns of 5.00%, 5.07%, and 4.82%, respectively, compared to 5.90% for the 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index blend (the Blended Index) and 5.38% for the Lipper Balanced Funds Index.
What factors contributed to the Fund's performance? The Fund's equity investments outperformed the equity component of the Blended Index, primarily due to stock selection and to a relative overweight allocation to equities. Equity sector investments that contributed positively to the Fund's relative performance were consumer discretionary, energy and information technology while the Fund's holdings of companies in the health care, materials and utilities sectors detracted from performance. The Fund's bond investments underperformed relative to the fixed income component of the Blended Index while providing a positive absolute contribution to Fund performance. The largest detractors were securities in the corporate, government-related and U.S. Treasury bond sectors.
Can you discuss any significant changes to the Fund's positioning throughout the period? As the year began, the U.S. Federal Reserve continued to reduce the level of investment it has been making each month in U.S. Treasury and mortgage-related bonds as part of its quantitative easing1 economic stimulus program. Investor expectations for interest rates increases intensified. Both circumstances have negative implications for fixed income performance. In response, fixed income investments in the Fund were reduced and duration was shortened. Allocations to equities and cash were increased. Within the Fund's equity portfolio, allocations to the information technology, financial, and industrial sectors were increased based on an anticipated acceleration of corporate capital expenditures. The Fund's investment in health care stocks was reduced, especially after the first quarter when many stocks in the sector that had benefited from favorable investor sentiment suffered as stock price momentum reversed.
What portfolio holdings contributed positively to performance? DirecTV, a satellite television products and services provider, benefited due to an announcement by
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June 30, 2014
Pax World Balanced Fund, continued
AT&T, Inc. that it intended to acquire the firm. DirecTV is the U.S. Environmental Protection Agency's 2014 Energy Star Partner of the Year based on its commitment to energy efficient design. Baker Hughes, Inc., which serves the energy industry, enjoyed strong stock performance based on favorable earnings reports, margins that beat analysts' expectations and positive future guidance. ONEOK, Inc. is a diversified energy company that benefited from improving investor sentiment after increasing its dividend and reporting a favorable growth outlook. Both Baker Hughes and ONEOK have received positive attention for their efforts to reduce the environmental impact of their operations.
What portfolio holdings detracted from performance? Earnings for Chicago Bridge & Iron Co. NV fell short of expectations and the Fund's position in the company was sold. The stock of Nucor Corp., a steel manufacturer, suffered after the company announced weak seasonal performance in the first quarter and disappointing future earnings guidance. State Street Corp. is a custody bank which provides a range of financial services for the investment industry. The bank has been negatively affected by low interest rates. Its net interest margin (the difference between what it realizes on short term investments and the interest it pays on short term deposits) has been shrinking which hurts net interest revenue.
1Quantitative easing is monetary policy used by central banks to stimulate a national economy. Typically, central banks implement quantitative easing by buying financial assets from commercial banks and other private institutions, injecting a pre-determined quantity of money into the economy.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | 5 years | 10 years | |||||||||||||||||||||
Individual Investor Class1 | PAXWX | 5.00 | % | 16.79 | % | 8.09 | % | 11.21 | % | 5.73 | % | ||||||||||||||||
Institutional Class1, 2 | PAXIX | 5.07 | % | 17.03 | % | 8.36 | % | 11.49 | % | 5.92 | % | ||||||||||||||||
Class R1, 3 | PAXRX | 4.82 | % | 16.46 | % | 7.82 | % | 10.93 | % | 5.55 | % | ||||||||||||||||
S&P 500 Index4, 8 | 7.14 | % | 24.61 | % | 16.58 | % | 18.83 | % | 7.78 | % | |||||||||||||||||
Blended Index5, 6, 8 | 5.90 | % | 16.24 | % | 11.48 | % | 13.32 | % | 6.93 | % | |||||||||||||||||
Lipper Balanced Funds Index7, 8 | 5.38 | % | 16.25 | % | 9.74 | % | 12.50 | % | 6.51 | % |
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, other than for Individual Investor Class shares, 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,
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June 30, 2014
which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2Inception of Institutional Class shares is April 2, 2007. The performance information shown for Institutional Class shares includes the performance of Individual Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.
3Inception of Class R shares is April 2, 2007. The performance information shown for Class R shares includes the performance of Individual Investor Class shares for the period prior to Class R inception. Expenses have not been adjusted to reflect the expenses allocable to Class R shares. If such expenses were reflected, the returns would be lower than those shown.
4The S&P 500 Index is an index of large capitalization common stocks.
5The Blended Index is composed of 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index.
6The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.
7The Lipper Balanced Funds Index tracks the results of the 30 largest mutual funds in the Lipper Balanced Funds Average, which is a total return performance average of mutual funds tracked by Lipper, Inc. whose primary objective is to conserve principal by maintaining, at all times, a balanced portfolio of both stocks and bonds. The Lipper Balanced Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator.
8Unlike the Balanced Fund, the S&P 500 Index, the Barclays U.S. Aggregate Bond Index and the Lipper Balanced Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Balanced Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 58.7 | % | |||||
U.S. Bonds | 33.4 | % | |||||
Foreign Stocks | 3.8 | % | |||||
Foreign Bonds | 0.9 | % | |||||
Affiliated Investment Companies | 1.0 | % | |||||
Exchange Traded Funds | 0.3 | % | |||||
Cash & Cash Equivalents | 1.9 | % | |||||
Total | 100.0 | % |
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Pax World Balanced Fund, continued
Portfolio Highlights (Unaudited), continued
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Becton Dickinson & Co. | 2.4 | % | |||||
Apple, Inc. | 2.2 | % | |||||
Morgan Stanley | 1.9 | % | |||||
BlackRock, Inc. | 1.8 | % | |||||
American Tower Corp., REIT | 1.7 | % | |||||
UnitedHealth Group, Inc. | 1.6 | % | |||||
EI du Pont de Nemours & Co. | 1.6 | % | |||||
American Express Co. | 1.6 | % | |||||
EQT Corp. | 1.5 | % | |||||
BorgWarner, Inc. | 1.4 | % | |||||
Total | 17.7 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Fixed Income | 34.3 | % | |||||
Corporate Bonds 10.1%, Agency/Gov't Related Bonds 8.0%, Treasury Bonds 9.1%, Mortgage Backed Bonds 5.6%, Municipal Bonds 0.7%, Gov't Bonds 0.6% and Community Investing Bonds 0.2%. | |||||||
Financials | 12.4 | % | |||||
Information Technology | 11.6 | % | |||||
Health Care | 9.8 | % | |||||
Energy | 7.8 | % | |||||
Industrials | 7.7 | % | |||||
Consumer Discretionary | 6.9 | % | |||||
Consumer Staples | 3.3 | % | |||||
Materials | 1.6 | % | |||||
Affiliated Investment Companies | 1.0 | % | |||||
Utilities | 0.7 | % | |||||
Telecommunication Services | 0.7 | % | |||||
Exchange Traded Funds | 0.3 | % | |||||
Other | 1.9 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
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June 30, 2014
Pax World Growth Fund
Portfolio Manager
Anthony Trzcinka, CFA
Portfolio Manager's Comments
How did the Pax World Growth Fund (the Fund) perform for the period? For the six-month period ended June 30, 2014, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 4.94%, 4.99%, 5.07%, and 4.82%, respectively, compared to 6.31% for the Russell 1000 Growth Index (the Index) and 5.15% for the Lipper Multi-Cap Growth Funds Index. During the period, the Fund divested its fossil fuel holdings and now pursues a fossil fuel-free investment strategy. The Fund seeks to avoid investments in companies that derive a majority of their revenue from the exploration, development and refining of fossil fuels including oil, coal and natural gas. In lieu of fossil fuel companies, the Fund substitutes investments in companies that are proactively developing solutions to global sustainability challenges, including climate change, water, food and health care.
What factors contributed to the Fund's performance? Performance of the Fund's investments in the consumer discretionary, industrials and financials sectors was the top contributor to its performance relative to the Index, largely due to strong stock selection. Investments in the energy, consumer staples and information technology sectors were the largest detractors from relative performance. The Fund completed implementation of its fossil fuel-free investment approach just as energy prices increased, primarily due to geopolitical tensions in the Middle East. The Fund's top performing stock for the quarter was SunPower Corp., an investment added as the Fund divested from fossil fuel energy companies.
Can you discuss any significant changes to the Fund's positioning throughout the period? As the fossil fuel-free investment approach was implemented, the Fund's small allocation to the energy sector declined during the period and was eliminated entirely by the end of April 2014. The Fund's other sector allocations were generally unchanged and include cyclically-oriented and economically sensitive stocks because we anticipate a continued, moderately-paced economic recovery.
What portfolio holdings contributed positively to performance? Marriott International, Inc., Class A, which operates hotels and resorts worldwide, benefited from an uptick in travel, particularly business-related travel, and increases in occupancy and room rates. MSCI ESG Research reports that Marriott maintains policies and goals to reduce energy and water consumption in its hotels. Baker
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Pax World Growth Fund, continued
Hughes, Inc., which serves the energy industry, enjoyed strong stock performance in the period based on favorable earnings reports for the fourth quarter of 2013 and the first quarter of 2014, margins that beat analysts' expectations and positive future guidance. MSCI ESG Research highlights the company's efforts to minimize the environmental impact of its operations. United Rentals, Inc. rents general construction and industrial equipment to businesses and governments, primarily. In light of the slow pace of the overall economic recovery, many of United Rentals customers choose to rent rather than purchase and maintain construction equipment. The company maintains materials and waste management efforts to reduce its environmental impact.
What portfolio holdings detracted from performance? Whole Foods Market, Inc. offers natural and organic foods through stores in the U.S., Canada and the U.K. The company fell short of earnings expectations and saw a decline in the rate of same-store sales growth. According to MSCI ESG Research, the company continues to demonstrate a sector leading approach that capitalizes on growth opportunities by marketing foods with improved nutritional and ecological value. Dick's Sporting Goods, Inc., the sporting and fitness goods retailer, announced disappointing earnings. State Street Corp. is a custody bank which provides a range of financial services for the investment industry. The bank has been negatively affected by low interest rates. Its net interest margin (the difference between what it realizes on short term investments and the interest it pays on short term deposits) has been shrinking which hurts net interest revenue.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | 5 years | 10 years | |||||||||||||||||||||||||
Individual Investor Class1 | PXWGX | 4.94 | % | 25.46 | % | 11.77 | % | 17.73 | % | 6.96 | % | ||||||||||||||||||||
Class A1, 2, 4 | PXGAX | NAV3 | 4.99 | % | 25.54 | % | 11.78 | % | 17.74 | % | 6.97 | % | |||||||||||||||||||
POP | -0.77 | % | 18.62 | % | 9.69 | % | 16.42 | % | 6.36 | % | |||||||||||||||||||||
Institutional Class1, 5 | PWGIX | 5.07 | % | 25.79 | % | 12.06 | % | 18.03 | % | 7.13 | % | ||||||||||||||||||||
Class R1, 6 | PXGRX | 4.82 | % | 25.21 | % | 11.49 | % | 17.45 | % | 6.80 | % | ||||||||||||||||||||
Russell 1000 Growth Index7, 10 | 6.31 | % | 26.92 | % | 16.26 | % | 19.24 | % | 8.20 | % | |||||||||||||||||||||
Russell 3000 Growth Index8, 10 | 5.98 | % | 26.75 | % | 16.11 | % | 19.34 | % | 8.27 | % | |||||||||||||||||||||
Lipper Multi-Cap Growth Funds Index9, 10 | 5.15 | % | 27.30 | % | 14.33 | % | 18.90 | % | 8.21 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Individual Investor Class shares, do
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June 30, 2014
not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call 800.767.1729.
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class Shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5Inception of Institutional Class shares is April 2, 2007. The performance information shown for Institutional Class shares includes the performance of Individual Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.
6Inception of Class R shares is April 2, 2007. The performance information shown for Class R shares includes the performance of Class A shares for the period prior to Class R inception. Expenses have not been adjusted to reflect the expenses allocable to Class R shares. If such expenses were reflected, the returns would be lower than those shown.
7The Russell 1000 Growth Index ("Benchmark") measures the performance of the large-cap growth segment of the U.S. equity universe. It includes those companies in the Russell 1000 Index with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index measures the performance of the 1,000 largest companies, as measured by market capitalization. Effective December 12, 2013, the Russell 1000 Growth Index replaced the Russell 3000 Growth Index as the primary benchmark for Pax World Growth Fund (the "Fund") because Pax World Management believes the Russell 1000 Growth Index is a more appropriate representation of the universe of securities in which the Fund may invest. One cannot invest directly in an index.
8The Russell 3000 Growth Index measures the performance of those companies in the Russell 3000 Index with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies, as measured by market capitalization.
9The Lipper Multi-Cap Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Multi-Cap Growth Funds Average. The Lipper Multi-Cap Growth Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap Growth Funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales per-share growth value, compared to the S&P SuperComposite 1500 Index. The Lipper Multi-Cap Growth Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index or some other traditional economic indicator.
10Unlike the Growth Fund, the Russell 1000 Growth Index, Russell 3000 Growth Index and the Lipper Multi-Cap Growth Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Multi-Cap Growth Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
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Pax World Growth Fund, continued
Portfolio Highlights (Unaudited), continued
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 91.1 | % | |||||
Foreign Stocks | 5.6 | % | |||||
Cash & Cash Equivalents | 3.3 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Apple, Inc. | 4.4 | % | |||||
PepsiCo, Inc. | 2.7 | % | |||||
3M Co. | 2.4 | % | |||||
Microsoft Corp. | 2.2 | % | |||||
QUALCOMM, Inc. | 2.1 | % | |||||
IBM | 1.8 | % | |||||
Abbott Laboratories | 1.7 | % | |||||
Google, Inc., Class A | 1.7 | % | |||||
Cummins, Inc. | 1.7 | % | |||||
Marriott International, Inc., Class A | 1.7 | % | |||||
Total | 22.4 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Information Technology | 31.3 | % | |||||
Consumer Discretionary | 16.1 | % | |||||
Industrials | 15.3 | % | |||||
Health Care | 14.6 | % | |||||
Consumer Staples | 7.3 | % | |||||
Financials | 7.2 | % | |||||
Materials | 1.9 | % | |||||
Telecommunication Services | 1.7 | % | |||||
Utilities | 1.3 | % | |||||
Energy | 0.0 | % | |||||
Other | 3.3 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
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June 30, 2014
Pax World Small Cap Fund
Portfolio Manager
Nathan Moser, CFA
Portfolio Manager's Comments
How did the Pax World Small Cap Fund (the Fund) perform for the period? For the six-month period ended June 30, 2014, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 6.12%, 6.16%, 6.26% and 6.03%, respectively, compared to 3.19% for the Russell 2000 Index (the Index)and 3.83% for the Lipper Small-Cap Core Funds Index.
What factors contributed to the Fund's performance? From a sector perspective, consumer staples, industrials and energy were the largest contributors to the Fund's performance relative to the Index. Eight of the 10 industrial sectors represented in the portfolio turned in positive relative performance during the period, primarily as a result of strong stock selection. The two sectors that detracted from performance were information technology and financials.
Can you discuss any significant changes to the Fund's positioning throughout the period? One of the most substantial risks confronting equity investors is elevated stock valuations after more than five years of bull market conditions. The Fund focuses on leveraging current investment opportunities, protecting gains as they are achieved and managing risks as they emerge. At this time, we remain watchful for signs of increasing inflationary pressures and improvements in consumer sentiment and purchasing power. During the period, the Fund decreased its allocation to the consumer discretionary sector awaiting further signs that higher employment is driving increased wages and consumer activity. The Fund increased allocations to stocks in the energy and utilities sectors, where revenues and earnings historically have been more consistent across market cycles, as well as industrials.
What portfolio holdings contributed positively to performance? Hillshire Brands Co., a food manufacturer, was the top contributor largely due to its pending acquisition by Tyson Foods, Inc. MICROS Systems, Inc., a software company serving the hospitality industry, performed well due to its pending acquisition by Oracle Corp. Ultra Petroleum Corp. is an independent oil and gas company engaged primarily in natural gas production in the U.S. The Fund initiated its position in Ultra Petroleum at a time when many analysts were concerned that natural gas prices would remain low. Natural gas prices rebounded during a harsh winter in many regions of the country. The valuation of Ultra Petroleum's stock
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Pax World Small Cap Fund, continued
also increased. We believe that as global demand for cleaner burning energy sources increases, capable developers of natural gas production sites, like Ultra Petroleum, should continue to benefit.
What portfolio holdings detracted from performance? Cinemark Holdings, Inc. is engaged in the motion picture exhibition business in the U.S. and Latin America. The company reported fourth quarter 2013 earnings that disappointed investors. Westell Technologies, Inc. designs, manufactures, and distributes telecommunications products to service providers. The negative impact of Westell Technologies on Fund performance is contradictory to the positive fundamental characteristics of the stock. Some observers suggested that profit taking after the stock's strong 2013 performance could have contributed to its performance thus far in 2014. Compuware, a software company, has been going through a reorganization. Investors have some expectations that the company may be acquired and recent weakness may stem from the lack of any news on this front. The Fund continues to hold the stock because the valuation and 5% dividend yield are attractive.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | 5 years | Since Inception | |||||||||||||||||||||||||
Individual Investor Class1 | PXSCX | 6.12 | % | 26.06 | % | 15.45 | % | 20.48 | % | 11.86 | % | ||||||||||||||||||||
Class A1, 2, 4 | PXSAX | NAV3 | 6.16 | % | 26.19 | % | 15.47 | % | 20.49 | % | 11.87 | % | |||||||||||||||||||
POP | 0.31 | % | 19.20 | % | 13.32 | % | 19.14 | % | 10.86 | % | |||||||||||||||||||||
Institutional Class1 | PXSIX | 6.26 | % | 26.44 | % | 15.76 | % | 20.81 | % | 12.16 | % | ||||||||||||||||||||
Class R1 | PXSRX | 6.03 | % | 25.80 | % | 15.21 | % | 20.19 | % | 11.59 | % | ||||||||||||||||||||
Russell 2000 Index5, 7 | 3.19 | % | 23.64 | % | 14.57 | % | 20.21 | % | 10.62 | % | |||||||||||||||||||||
Lipper Small-Cap Core Funds Index6, 7 | 3.83 | % | 23.49 | % | 14.08 | % | 19.75 | % | 10.64 | % |
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 investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Individual Investor Class shares, 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.
14
June 30, 2014
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class Shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
6The Lipper Small-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Small-Cap Core Funds Average. The Lipper Small-Cap Core Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper's USDE small-cap ceiling. Small-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index. The Lipper Small-Cap Core Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index or some other traditional economic indicator.
7Unlike the Small Cap Fund, the Russell 2000 Index and the Lipper Small-Cap Core Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Small-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 94.6 | % | |||||
Foreign Stocks | 5.3 | % | |||||
Cash & Cash Equivalents | 0.1 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Ultra Petroleum Corp. | 4.4 | % | |||||
Capitol Federal Financial, Inc. | 4.0 | % | |||||
Gannett Co., Inc. | 3.9 | % | |||||
Hologic, Inc. | 3.9 | % | |||||
Compuware Corp. | 3.3 | % | |||||
United Financial Bancorp., Inc. | 3.2 | % | |||||
MICROS Systems, Inc. | 3.1 | % | |||||
KAR Auction Services, Inc. | 3.0 | % | |||||
Laclede Group, Inc., The | 2.9 | % | |||||
LinnCo LLC | 2.9 | % | |||||
Total | 34.6 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
15
June 30, 2014
Pax World Small Cap Fund, continued
Portfolio Highlights (Unaudited), continued
Sector Diversification
Sector | Percent of Net Assets | ||||||
Information Technology | 28.3 | % | |||||
Financials | 22.7 | % | |||||
Health Care | 14.4 | % | |||||
Consumer Discretionary | 12.3 | % | |||||
Energy | 8.3 | % | |||||
Industrials | 8.0 | % | |||||
Utilities | 5.0 | % | |||||
Materials | 0.9 | % | |||||
Consumer Staples | 0.0 | % | |||||
Telecommunication Services | 0.0 | % | |||||
Other | 0.1 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
16
June 30, 2014
Pax World High Yield Bond Fund
Portfolio Manager
Mary Austin, CFA
Portfolio Manager's Comments
How did the Pax World High Yield Bond Fund (the Fund) perform for the period? For the six-month period ended June 30, 2014, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 4.74%, 4.74%, 4.88% and 4.48%, respectively, compared to 5.54% for the BofA Merrill Lynch U.S. High Yield—Cash Pay—BB-B (Constrained 2%) Index (the Index) and 5.27% for the Lipper High Yield Bond Funds Index.
What factors contributed to the Fund's performance? The most significant factor in our underperformance year-to-date relative to the Index was the movement in the 10-year U.S. Treasury bond yield that benefitted longer duration and higher quality BB-rated1 paper. At the start of the year the 10-year yield was approximately 3% and at the end of the second quarter, it was 2.53%. The price appreciation in the 10-year benefitted longer duration bonds relative to shorter duration bonds due to spread tightening at the longer end of the curve. Also BB-rated bonds move more in tandem with the 10-year Treasury so they appreciated more than single B-rated1 bonds. For this reason our underweighting and selection in BB bonds were our largest detractors.
From a sector perspective, the largest contributors to the Fund's performance relative to the Index came from security selection in the basic industry and media sectors and an underweight allocation to the financial services sector which underperformed. The largest detractors from relative performance were the consumer cyclical, technology & electronics and banking sectors.
Can you discuss any significant changes to the Fund's positioning throughout the period? We increased our international holdings by 10% by participating in the new issues of Columbus International, Inc., a Caribbean cable company that we believe can drive growth with their extensive network assets, and B Communications, Ltd., the largest wireless provider in Israel. In addition, we lowered our capital goods holdings with the sale of two positions that no longer held good relative value.
What portfolio holdings contributed positively to performance? ION Geophysical Corp. serves the energy industry worldwide. Its bonds appreciated in the first half
17
June 30, 2014
Pax World High Yield Bond Fund, continued
of 2014 due to strong first quarter growth, contract wins and a favorable ruling on a patent infringement lawsuit.
Sappi Papier manufactures and sells wood pulp, paper-pulp, and paper-based solutions worldwide. Sappi's execution of cost cutting measures, including shutting plants while investing in new growth opportunities, underpinned the increased value of its bonds.
Altice Group, a multinational cable and telecommunications company with a presence in France, Israel, Belgium, Luxemburg, Portugal, French West Indies, Dominican Republic, and Switzerland, outperformed after the company announced the acquisitions of both Numericable Group and SFR to increase its market share in the French cable market. The Company also reported better than expected first quarter 2014 results.
What Portfolio holdings detracted from performance? Hercules Offshore, Inc. leases jack-up and other mobile drilling rigs to energy production companies operating in shallow waters in the Gulf of Mexico and off the coasts of West Africa and the Middle East. Bond price depreciation was mostly due to two factors. First, the company walked away from two contracts in Angola due to their poor compliance with Foreign Corrupt Practices Act. Second, backlogs returned to their previous base structure after the change to longer ones due to the BP Macondo disaster. This decrease worried some investors due to uncertainty over the longer term.
ProShare UltraShort Euro, an ETF used as a hedging instrument to reduce volatility in the portfolio, underperformed relative to the Index due to price depreciation from our average purchase price.
Ocean Rig, owner of Drill Rigs Holdings, Inc., is an international drilling contractor for offshore oil and gas exploration specializing in ultra-deepwater and harsh environment high-specification rigs. A capital spending slowdown in exploring for oil and gas by national oil companies and oil majors worldwide has affected the price of the Ocean Rig bonds.
1Credit quality ratings by Standard & Poor's assist investors by evaluating the credit worthiness of many bond issues. A: An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong. BBB: An obligation rated 'BBB' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the
18
June 30, 2014
obligation. BB: An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. B: An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB,' but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation. CCC: An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. CC: An obligation rated 'CC' is currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred, but Standard & Poor's expects default to be a virtual certainty, regardless of the anticipated time to default. NR: This indicates that no rating has been requested, or that there is insufficient information on which to base a rating, or that Standard & Poor's does not rate a particular obligation as a matter of policy.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | 5 years | 10 years | |||||||||||||||||||||||||
Individual Investor Class1 | PAXHX | 4.74 | % | 10.38 | % | 7.57 | % | 10.22 | % | 7.33 | % | ||||||||||||||||||||
Class A1, 2, 4 | PXHAX | NAV3 | 4.74 | % | 10.38 | % | 7.56 | % | 10.22 | % | 7.33 | % | |||||||||||||||||||
POP | -0.02 | % | 5.39 | % | 5.93 | % | 9.22 | % | 6.84 | % | |||||||||||||||||||||
Institutional Class1, 5 | PXHIX | 4.88 | % | 10.67 | % | 7.84 | % | 10.51 | % | 7.58 | % | ||||||||||||||||||||
Class R1, 6 | PXHRX | 4.48 | % | 10.11 | % | 7.30 | % | 10.02 | % | 7.14 | % | ||||||||||||||||||||
BofA Merrill Lynch U.S. High Yield— Cash Pay—BB-B (Constrained 2%) Index7, 9 | 5.54 | % | 11.32 | % | 8.94 | % | 12.50 | % | 8.19 | % | |||||||||||||||||||||
Lipper High Yield Bond Funds Index8, 9 | 5.27 | % | 11.44 | % | 8.74 | % | 13.23 | % | 7.57 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Individual Investor Class shares, do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call 800.767.1729.
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class Shares of 4.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
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June 30, 2014
Pax World High Yield Bond Fund, continued
Portfolio Highlights (Unaudited)
5Inception of Institutional Class shares is June 1, 2004. The performance information shown for Institutional Class shares includes the performance of Individual Investor Class shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares. If such expenses were reflected, the returns would be higher than those shown.
6Inception of Class R shares is April 2, 2007. The performance information shown for Class R shares includes the performance of Individual Investor Class shares for the period prior to Class R inception. Expenses have not been adjusted to reflect the expenses allocable to Class R shares. If such expenses were reflected, the returns would be lower than those shown.
7The BofA Merrill Lynch U.S. High Yield Cash Pay BB-B (Constrained 2%) Index tracks the performance of BB- and B rated fixed income securities publicly issued in the major domestic or eurobond markets, with total index allocation to an individual issuer limited to 2%.
8The Lipper High 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.
9Unlike 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. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Bonds | 62.6 | % | |||||
Foreign Bonds | 26.1 | % | |||||
Loans | 6.8 | % | |||||
U.S. Stocks | 2.9 | % | |||||
Cash & Cash Equivalents | 1.6 | % | |||||
Total | 100.0 | % |
Credit Quality
Bond Rating | Percent of Bonds | ||||||
A | 0.6 | % | |||||
BBB | 2.1 | % | |||||
BB | 21.4 | % | |||||
B | 61.1 | % | |||||
CCC | 11.5 | % | |||||
Not Rated | 3.3 | % | |||||
Total | 100.0 | % |
20
June 30, 2014
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Alta Mesa Holdings, LP/Finance Services Corp., 9.625%, 10/15/18 | 1.6 | % | |||||
Expo Event Transco, Inc., 144A, 9.000%, 06/15/21 | 1.6 | % | |||||
Clayton Williams Energy, Inc., 7.750%, 04/01/19 | 1.6 | % | |||||
Chaparral Energy, Inc., 7.625%, 11/15/22 | 1.5 | % | |||||
Penn Virginia Corp., 8.500%, 05/01/20 | 1.5 | % | |||||
Jack Cooper Holdings Corp., 144A, 9.250%, 06/01/20 | 1.4 | % | |||||
syncreon Group BV/Global Finance US, Inc., 144A, 8.625%, 11/01/21 | 1.4 | % | |||||
Ingles Markets, Inc., 5.750%, 06/15/23 | 1.4 | % | |||||
Omega Healthcare Investors, Inc., REIT, 5.875%, 03/15/24 | 1.4 | % | |||||
Michael Baker Holdings LLC/Finance Corp., 144A, 8.875%, 04/15/19 | 1.4 | % | |||||
Total | 14.8 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
Fixed Income Sector Diversification
Sector | Percent of Net Assets | ||||||
Energy | 19.1 | % | |||||
Media | 13.6 | % | |||||
Services | 12.0 | % | |||||
Consumer Cyclical | 10.8 | % | |||||
Technology & Electronics | 10.4 | % | |||||
Telecommunications | 9.8 | % | |||||
Capital Goods | 5.0 | % | |||||
Basic Industry | 4.7 | % | |||||
Health Care | 4.6 | % | |||||
Consumer Non-Cyclical | 2.4 | % | |||||
Financial Services | 1.9 | % | |||||
Real Estate | 1.9 | % | |||||
Automotive | 1.4 | % | |||||
Chemicals | 0.4 | % | |||||
Banking | 0.3 | % | |||||
Utility | 0.1 | % | |||||
Other | 1.6 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
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June 30, 2014
Pax World High Yield Bond Fund, continued
Portfolio Highlights (Unaudited), continued
Geographical Diversification
Country | Percent of Net Assets | ||||||
United States | 71.8 | % | |||||
Luxembourg | 6.4 | % | |||||
Canada | 3.8 | % | |||||
Netherlands | 3.2 | % | |||||
Bermuda | 2.2 | % | |||||
Marshall Islands | 1.9 | % | |||||
Austria | 1.4 | % | |||||
Great Britain | 1.3 | % | |||||
Barbados | 1.3 | % | |||||
Sweden | 0.9 | % | |||||
Cayman Islands | 0.9 | % | |||||
Mexico | 0.8 | % | |||||
Ireland | 0.7 | % | |||||
Israel | 0.6 | % | |||||
Australia | 0.4 | % | |||||
France | 0.4 | % | |||||
Norway | 0.3 | % | |||||
Malaysia | 0.1 | % | |||||
Other | 1.6 | % | |||||
Total | 100.0 | % |
22
June 30, 2014
Pax World Global Environmental
Markets Fund
Co-Portfolio Managers
Bruce Jenkyn-Jones, Simon Gottelier & Hubert Aarts
Sub-Advisor
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, 2014, the Individual Investor Class, Class A, Institutional Class and Class R shares of the Fund had total returns of 3.09%, 3.13%, 3.27% and 3.00%, respectively, versus 6.18% for the MSCI World (Net) Index and 4.87% for the FTSE Environmental Opportunities Index Series ("FTSE EOAS").
What factors contributed to the Fund's performance? Global markets trended sideways for the first four months of the year before demonstrating a return to positive performance towards the end of the second quarter. Resource optimization markets underperformed global equity markets as sectors outside of our investable universe such as oil/gas, utilities and health care posted strong relative performance. Companies with exposure to economically sensitive end markets also underperformed.
There were numerous policy developments in the first half of 2014 impacting upon our markets. The European Union (EU) unveiled its 2020 Climate and Energy Framework, proposing a reduction in the region's greenhouse gas emissions by 40% in 2030, but does not extend as far as legally binding renewables targets for individual member states beyond 2020. However, it sets an EU-wide goal to boost the share of renewable energy and also includes an indicative goal to boost energy efficiency by 25%.
In February, China announced its intention to spend $330 billion on tackling pollution of its scarce water resources. The budget exceeds the $277 billion expected to be spent battling the more-highly publicized air pollution crisis in China's cities. The plans aim to improve the quality of the country's water by 30 - 50% through investments in waste water treatment, recycling and membrane technologies.
23
June 30, 2014
Pax World Global Environmental Markets Fund, continued
In June, the U.S. Environmental Protection Agency (EPA) unveiled its Clean Power Plan, a new flexible strategy that aims to cut carbon dioxide emissions from fossil fuel power plants by 30% by 2030. The EPA says this should lead to net climate and health benefits of up to $48 billion, spur innovation and encourage economic growth.
The United Nations' next major international summit on climate change is scheduled for December 2015. We expect further regulatory changes to be announced in the build-up to this and the preparations should sustain media and investor interest in environmental markets.
Can you discuss any significant changes in the Fund's positioning throughout the period? There were no significant changes to the Fund's overall positioning, albeit with numerous purchases and sales within the portfolio. Energy efficiency and water infrastructure remained our preferred sub-sectors, and we reduced our underweight position in renewable energy through the addition of Huaneng Renewables Corp., Ltd. and Trina Solar, Ltd., which are both based in China, and Enel Green Power SpA of Italy to the portfolio. We retained our zero weighting to food and agriculture markets over the period but are opportunistically looking to add.
What portfolio holdings contributed positively to performance relative to the FTSE EOAS? During the period, our holdings in the water and energy efficiency sub-sectors were key areas of strength. Water utilities performed particularly well, reflecting diminished regulatory risk in U.K. water utilities and increased investor appetite for defensive holdings more broadly. Pennon Group PLC in the U.K. and American Water Works Co., Inc. in the U.S. were two such examples.
Energy efficiency holdings continued to benefit from a combination of cyclical recovery in end markets and a secular boost from increasingly stringent energy efficiency regulations. Most notable were our companies in the transport energy efficiency sub-sector, such as Delphi Automotive PLC in the U.K. and BorgWarner, Inc. in the U.S., which benefited from recovering automotive sales and as President Obama's commitment to fuel consumption and emission reduction technologies gained further traction as the EPA issued rules on the sulphur content in gasoline.
Companies reporting strong results and positive outlook statements over the period also drove performance. Epistar Corp., a Taiwan-based consumer energy efficiency company was one such example, benefitting from price stabilization in the light-emitting diode television market.
24
June 30, 2014
What portfolio holdings detracted from performance relative to the FTSE EOAS? Companies reporting disappointing results and weak outlook statements underperformed over the period, most notably Alstom SA, the power network efficiency company in France and Itron, Inc., a power network efficiency company in the U.S. We sold Alstom ahead of the bids for the company by General Electric Company and Siemens AG on news of potential fines in the U.S. for improper conduct but we believe that Itron generally has a strong business model and prospects and so this stock remains in the portfolio.
Other underperformance was largely stock specific, with Sekisui Chemical Co., Ltd., a diversified environmental company in Japan, experiencing significant profit-taking at the beginning of the year following the introduction of the Japanese sales tax and short-term yen strength. The stock recovered in the second quarter.
From a sub-sector perspective, our exposure to the renewable energy sub-sector proved the largest detractor to performance, primarily driven by portfolio holding Huaneng Renewables which underperformed following disappointing output from its wind generation business.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | 5 years | Since Inception | |||||||||||||||||||||||||
Individual Investor Class1 | PGRNX | 3.09 | % | 24.64 | % | 11.62 | % | 13.77 | % | 5.82 | % | ||||||||||||||||||||
Class A1, 2, 4 | PXEAX | NAV3 | 3.13 | % | 24.67 | % | 11.63 | % | 13.78 | % | 5.83 | % | |||||||||||||||||||
POP | -2.51 | % | 17.85 | % | 9.53 | % | 12.51 | % | 4.88 | % | |||||||||||||||||||||
Institutional Class1 | PGINX | 3.27 | % | 24.99 | % | 11.90 | % | 14.09 | % | 6.10 | % | ||||||||||||||||||||
Class R1 | PGRGX | 3.00 | % | 24.43 | % | 11.33 | % | 13.51 | % | 5.55 | % | ||||||||||||||||||||
MSCI World (Net) Index5, 7 | 6.18 | % | 24.05 | % | 11.81 | % | 14.99 | % | 5.37 | % | |||||||||||||||||||||
FTSE Environmental Opportunities Index Series6, 7 | 4.87 | % | 27.65 | % | 8.78 | % | 15.60 | % | 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 investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Individual Investor Class shares, 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
25
June 30, 2014
Pax World Global Environmental Markets Fund, continued
Portfolio Highlights (Unaudited), continued
may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares sold within 18 months of purchase over $1 million. POP (public offering price) reflects the maximum sales load for the Fund's Class Shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.
3NAV is Net Asset Value.
4Inception of Class A shares is May 1, 2013. The performance information shown for Class A shares includes the performance of Individual Investor Class shares, adjusted to reflect the sales charge applicable to Class A shares, for the period prior to Class A inception.
5The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World (Net) Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
6The FTSE Environmental Opportunities Index Series measures the performance of global companies that have significant involvement in environmental business activities, including renewable and alternative energy, energy efficiency, water technology and waste and pollution control. The FTSE Environmental Opportunities Index Series requires companies to have at least 20% of their business derived from environmental markets and technologies. The FTSE Environmental Opportunities Index Series is published by a joint venture of Impax Asset Management, Ltd. ("Impax") with FTSE International. Impax is also the sub-adviser to the Pax World Global Environmental Markets Fund.
7Unlike the Global Environmental Markets Fund, the MSCI World (Net) Index and the FTSE Environmental Opportunities Index Series are not investments, are not professionally managed, have no policy of sustainable investing and do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
Foreign Stocks | 62.2 | % | |||||
U.S. Stocks | 34.7 | % | |||||
Cash & Cash Equivalents | 3.1 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
GEA Group AG | 3.6 | % | |||||
Pall Corp. | 3.2 | % | |||||
Watts Water Technologies, Inc., Class A | 3.1 | % | |||||
Stericycle, Inc. | 3.0 | % | |||||
Delphi Automotive PLC | 3.0 | % | |||||
Pennon Group PLC | 2.9 | % | |||||
Linde AG | 2.8 | % | |||||
American Water Works Co., Inc. | 2.8 | % | |||||
Pentair PLC | 2.8 | % | |||||
Agilent Technologies, Inc. | 2.8 | % | |||||
Total | 30.0 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
26
June 30, 2014
Environmental Markets Classification System (EMCS)
Sector | Sub Sector | Percent of Net Assets | |||||||||
Energy Efficiency | 34.7 | % | |||||||||
Power Network Efficiency | 7.8 | % | |||||||||
Industrial Energy Efficiency | 8.1 | % | |||||||||
Buildings Energy Efficiency | 4.8 | % | |||||||||
Transport Energy Efficiency | 5.3 | % | |||||||||
Consumer Energy Efficiency | 4.6 | % | |||||||||
Diversified Energy Efficiency | 4.1 | % | |||||||||
Water Infrastructure & Technologies | 29.8 | % | |||||||||
Water Infrastructure | 14.8 | % | |||||||||
Water Treatment Equipment | 5.5 | % | |||||||||
Water Utilities | 9.5 | % | |||||||||
Pollution Control | 12.3 | % | |||||||||
Pollution Control Solutions | 3.7 | % | |||||||||
Environmental Testing & Gas Sensing | 8.6 | % | |||||||||
Waste Management & Technologies | 8.2 | % | |||||||||
Waste Technology Equipment | 0.0 | % | |||||||||
Hazardous Waste Management | 5.6 | % | |||||||||
General Waste Management | 2.6 | % | |||||||||
Diversified Environmental | 7.1 | % | |||||||||
Diversified Environmental | 7.1 | % | |||||||||
Renewable & Alternative Energy | 4.8 | % | |||||||||
Solar Energy Generation Equipment | 0.5 | % | |||||||||
Renewable Energy Developers & Independent Power Producers (IPPs) | 4.3 | % | |||||||||
Other | 3.1 | % | |||||||||
100.0 | % |
May include companies representing multiple industries within a single "Sector".
27
June 30, 2014
Pax World Global Environmental Markets Fund, continued
Portfolio Highlights (Unaudited), continued
Geographical Diversification
Country | Percent of Net Assets | ||||||
United States | 34.7 | % | |||||
United Kingdom | 16.9 | % | |||||
Japan | 11.4 | % | |||||
Germany | 9.2 | % | |||||
China | 5.4 | % | |||||
Switzerland | 2.4 | % | |||||
Finland | 2.4 | % | |||||
France | 2.1 | % | |||||
Taiwan | 2.2 | % | |||||
Brazil | 2.0 | % | |||||
Italy | 1.9 | % | |||||
Ireland | 1.8 | % | |||||
Hong Kong | 1.3 | % | |||||
Belgium | 1.2 | % | |||||
Australia | 1.0 | % | |||||
Spain | 1.0 | % | |||||
Philippines | 0.0 | % | |||||
Other | 3.1 | % | |||||
Total | 100.0 | % |
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June 30, 2014
Pax MSCI International ESG Index Fund
Portfolio Manager
Christopher Brown
Portfolio Manager's Comments
How did the Pax MSCI International ESG Index Fund (the Fund) perform for the period? For the six-month period ended June 30, 2014, the Individual Investor Class, Institutional Class and Class R of the Fund had total returns of 3.98%, 4.21% and 3.91%, respectively, compared to 4.38% for the MSCI EAFE ESG (Net) Index (the Index) and 4.78% for the MSCI EAFE (Net) Index (EAFE Index).
It is important to note that, effective March 31, 2014, the Fund acquired the assets of Pax World International Fund and of Pax MSCI EAFE ESG Index ETF pursuant to an Agreement and Plan of Reorganization dated as of March 31, 2014 (the Reorganizations). Because the Pax MSCI International ESG Index Fund had no investment operations prior to the closing of the Reorganizations, and based on the similarity of the Pax MSCI International ESG Index Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the Predecessor Fund) is treated as the survivor of the Reorganizations for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to March 31, 2014 is that of the Predecessor Fund.
The Fund is designed to track the performance of the Index with the objective of outperforming the EAFE Index over the long run. The Fund and the Index are constructed to have a better environmental, social and governance (ESG) profile than the EAFE Index. Based on evaluations of ESG characteristics conducted by MSCI ESG Research as of June 30, 2014, the ESG profile of the Fund's holdings averaged an overall rating of AA on MSCI ESG Research's seven-point scale compared to an overall rating of A for the EAFE Index.1
Can you discuss any significant changes to the Fund's positioning throughout the period? With the change upon the Reorganizations to a passively managed investment strategy, certain securities were sold and other securities were purchased to achieve a closer alignment of the holdings of the Fund and the constituent securities of the EAFE ESG Index.
What portfolio holdings contributed positively to performance? The top contributors to the Fund's performance relative to the benchmark were Novo Nordisk A/S Class B, Novartis AG and Bunzl PLC. Pharmaceutical stocks were the strongest
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June 30, 2014
Pax MSCI International ESG Index Fund, continued
performers by far in the health care sector during the six-month period ended June 30. The Fund's overweight holdings in Novo Nordisk, based in Denmark, and Novartis, in Switzerland were the primary drivers of the Fund's relative outperformance of the health care sector in the EAFE Index. Bunzl, headquartered in London, provides a range of consumer products primarily to retail stores as well as government and educational markets in the Americas, Europe and Australasia. Following a stock split in the fourth quarter of 2013, the company reported strong revenue, profit and earnings in the first quarter of this year.
What portfolio holdings detracted from performance? For the period following the reorganization through June 30, 2014, the top detractors from the Fund's performance relative to the benchmark were Vodafone Group PLC, Pearson PLC and HSBC Holdings PLC. Vodafone, a worldwide telecommunications company, has a significant focus on providing telecommunication services to emerging and developing economies. During the quarter, the stock's decline in value was due to investor concerns regarding the near-term negative earnings impact of a substantial investment the company is making in its networks. Pearson is an international media and education company. The company's stock price slid after it announced disappointing results for 2013, blaming challenging conditions in its North American and U.K. markets, its largest segments. HSBC provides banking and financial products and services globally. HSBC stock suffered along with the stocks of other firms in the European banking sector due to increasing investor concern over potential litigation costs.
1MSCI ESG Research evaluates companies' ESG characteristics and derives corresponding ESG scores and ratings. Companies are ranked by ESG score against their sector peers to determine their eligibility for the MSCI ESG indices. MSCI ESG Research identifies the highest-rated companies in each peer group to meet the float-adjusted market capitalization sector targets. The rating system is based on general and industry-specific ESG criteria, assigning ratings on a 7-point scale from AAA (highest) to CCC (lowest).
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June 30, 2014
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | Since Inception | ||||||||||||||||||
Individual Investor Class1 | PXINX | 3.98 | % | 21.30 | % | 8.89 | % | 7.92 | % | ||||||||||||||
Institutional Class2 | PXNIX | 4.21 | % | 21.75 | % | 9.16 | % | 8.20 | % | ||||||||||||||
Class R2 | PXIRX | 3.91 | % | 20.98 | % | 8.61 | % | 7.68 | % | ||||||||||||||
MSCI EAFE ESG (Net) Index3, 5 | 4.38 | % | 22.64 | % | 9.02 | % | 8.35 | % | |||||||||||||||
MSCI EAFE (Net) Index4, 5 | 4.78 | % | 23.57 | % | 8.10 | % | 7.50 | % |
Total returns for periods of less than one year have not been annualized.
1The Fund's inception date is January 27, 2011. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Institutional Class shares, do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2Inception of the Individual Investor Class and Class R is March 31, 2014. The performance information shown for the Individual Investor Class and Class R shares are those of the Predecessor Fund. These returns have been adjusted to reflect the expenses allocable to Individual Investor Class and Class R shares.
3The MSCI EAFE ESG Index is a free float-adjusted market capitalization weighted index designed to measure the performance of equity securities of issuers organized or operating in developed market countries around the world excluding the U.S. and Canada that have high environmental, social and governance (ESG) ratings relative to their sector and industry group peers, as rated by MSCI ESG Research annually. MSCI ESG Research evaluates companies' ESG characteristics and derives corresponding ESG scores and ratings. Companies are ranked by ESG score against their sector peers to determine their eligibility for the MSCI ESG indices. MSCI ESG Research identifies the highest-rated companies in each peer group to meet the float-adjusted market capitalization sector targets. The rating system is based on general and industry-specific ESG criteria, assigning ratings on a 7-point scale from AAA (highest) to CCC (lowest). Performance for the MSCI EAFE ESG Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
4The 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 consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE ESG Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
5Unlike the International Index Fund, the MSCI EAFE ESG Index and the MSCI EAFE Index are not investments and are not professionally managed and do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index.
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June 30, 2014
Pax MSCI International ESG Index Fund, continued
Portfolio Highlights (Unaudited), continued
Asset Allocation | Percent of Investments | ||||||
Foreign Stocks | 98.5 | % | |||||
Cash & Cash Equivalents | 0.3 | % | |||||
Exchange Traded Funds | 0.4 | % | |||||
Other | 0.8 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Roche Holding AG | 3.1 | % | |||||
Novartis AG | 3.0 | % | |||||
HSBC Holdings PLC | 2.8 | % | |||||
Commonwealth Bank of Australia | 1.9 | % | |||||
GlaxoSmithKline PLC | 1.8 | % | |||||
BASF SE | 1.6 | % | |||||
Westpac Banking Corp. | 1.5 | % | |||||
Novo Nordisk A/S, Class B | 1.4 | % | |||||
Vodafone Group PLC | 1.3 | % | |||||
Australia & New Zealand Banking Group, Ltd | 1.3 | % | |||||
Total | 19.7 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 26.6 | % | |||||
Consumer Discretionary | 12.9 | % | |||||
Industrials | 12.0 | % | |||||
Health Care | 11.9 | % | |||||
Consumer Staples | 9.4 | % | |||||
Materials | 8.3 | % | |||||
Telecommunication Services | 5.3 | % | |||||
Information Technology | 4.9 | % | |||||
Energy | 3.9 | % | |||||
Utilities | 3.3 | % | |||||
Exchange Traded Funds | 0.4 | % | |||||
Other | 1.1 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
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June 30, 2014
Geographical Diversification
Country | Percent of Net Assets | ||||||
Japan | 21.9 | % | |||||
United Kingdom | 20.3 | % | |||||
Australia | 9.4 | % | |||||
Switzerland | 9.3 | % | |||||
Germany | 9.1 | % | |||||
France | 7.6 | % | |||||
Netherlands | 4.9 | % | |||||
Sweden | 4.4 | % | |||||
Spain | 3.4 | % | |||||
Denmark | 1.8 | % | |||||
Norway | 1.2 | % | |||||
Italy | 1.1 | % | |||||
Singapore | 1.0 | % | |||||
Hong Kong | 0.9 | % | |||||
Belgium | 0.5 | % | |||||
Ireland | 0.5 | % | |||||
Luxembourg | 0.4 | % | |||||
Finland | 0.3 | % | |||||
Portugal | 0.3 | % | |||||
Austria | 0.2 | % | |||||
New Zealand | 0.2 | % | |||||
Israel | 0.1 | % | |||||
Other | 1.2 | % | |||||
Total | 100.0 | % |
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June 30, 2014
Pax Ellevate Global Women's Index Fund
Co-Portfolio Managers:
Julie Fox Gorte, Ph.D., Scott LaBreche & Heather Smith
Portfolio Manager's Comments
How did the Pax Ellevate Global Women's Index Fund (the Fund) perform for the period? For the six-month period ended June 30, 2014, the Individual Investor Class and Institutional Class shares of the Fund had total returns of 5.77% and 5.91%, respectively, compared to 6.18% for the MSCI World (Net) Index.
It is important to note that on June 4, 2014, the Pax World Global Women's Equality Fund merged into the Fund, pursuant to an Agreement and Plan of Reorganization as of May 28, 2014 (the Reorganization). Because the Fund had no investment operations prior to the closing of the Reorganization, Pax World Global Women's Equality Fund (the Predecessor Fund) is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to June 4, 2014 is that of the Predecessor Fund.
Pax World Management LLC and Ellevate Asset Management LLC, whose principal is Sallie Krawcheck, entered into a partnership agreement to manage and distribute the Fund. Pax Ellevate Management LLC (PEM) is the investment adviser to the Fund.
What is the investment objective of the Fund? The Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women's Leadership Index* (the Women's Index), while maintaining risk characteristics that PEM believes are generally similar to those of the Women's Index. The Fund is the first mutual fund in the United States to focus on investing in companies that are global leaders in advancing women.
How are the Fund's investments positioned invested? The Fund employs an index-based investment approach intended to closely correspond to or exceed the performance of the Women's Index, while maintaining risk characteristics that PEM believes are generally similar to those of the Women's Index. Under normal circumstances, the Global Women's Index Fund invests more than 80% of its total
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June 30, 2014
assets in the component securities of the Women's Index and other financial instruments.
The Index is the first broad-market index of the highest-rated companies in the world in advancing women's leadership. The Index consists of equity securities of companies around the world that demonstrate a commitment to advancing women through gender diversity on their board, in executive management and through other policies and programs, as rated by Pax World Gender Analytics. Companies in the Index also meet key environmental, social and governance (ESG) standards, as rated by MSCI ESG Research.
*A custom index calculated by MSCI.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2014
Total Return | Average Annual Return | ||||||||||||||||||||||||||
Share class | Ticker Symbol | YTD | 1 year | 3 years | 5 years | 10 years | |||||||||||||||||||||
Individual Investor Class1 | PXWEX | 5.77 | % | 24.45 | % | 9.60 | % | 11.64 | % | 3.68 | % | ||||||||||||||||
Institutional Class1, 2, 3 | PXWIX | 5.91 | % | 24.74 | % | 9.86 | % | 11.91 | % | 3.90 | % | ||||||||||||||||
Pax Global Women's Leadership (Net) Index*, 4, 6 | |||||||||||||||||||||||||||
MSCI World (Net) Index5, 6 | 6.18 | % | 24.05 | % | 11.81 | % | 14.99 | % | 7.25 | % |
Total returns for periods of less than one year have not been annualized.
*A custom index calculated by MSCI.
1Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Individual Investor Class Shares, do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729.
2Pax World Global Women's Equality Fund, a series of Pax World Funds Series Trust I, acquired Women's Equity Fund, a series of Professionally Managed Portfolios ("Old Women's Equity Fund"), on October 29, 2007. Performance information shown includes the performance of Retail Class shares of Old Women's Equity Fund for periods prior to October 29, 2007, which has not been adjusted to reflect any differences in expenses between Old Women's Equity Fund and the Pax World Global Women's Equality Fund; if such expense adjustments were reflected, the returns would be higher than those shown. The Fund's investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and, other than for Individual Investor Class Shares, 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
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June 30, 2014
Pax Ellevate Global Women's Index Fund, continued
Portfolio Highlights (Unaudited)
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.
3Inception of Institutional Class shares is April 19, 2006. The performance information shown for Institutional Class shares includes the performance of the Retail Class shares of Old Women's Equity Fund shares for the period prior to Institutional Class inception. Expenses have not been adjusted to reflect the expenses allocable to Institutional Class shares or to reflect any differences in expenses between Old Women's Equity Fund and the Pax World Global Women's Equality Fund. If such expense adjustments and allocable expenses were reflected, the returns would be higher than those shown.
4The Women's Index is a customized market-weighted index consisting of equity securities of issuers organized or operating in countries around the world that demonstrate a commitment to advancing and empowering women through gender diversity on their boards, in management and through other policies and programs, and an understanding of the potential business advantages associated with greater gender diversity, as rated by Pax World Gender Analytics. In addition, the companies comprising the Women's Index meet certain environmental, social and governance (ESG) or sustainability thresholds, as rated by MSCI ESG Research. No performance information is included here as the Women's Index is newly created.
5The MSCI World (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown "net," which includes dividend reinvestments after deduction of foreign withholding taxes.
6Unlike the Pax Ellevate Global Women's Index Fund, the Pax Global Women's Leadership Index and the MSCI World (Net) Index are not an investments, are not professionally managed, have (with the exception of the Pax Global Women's Leadership Index) no policy of sustainable investing and do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index. One cannot invest directly in an index.
Asset Allocation | Percent of Investments | ||||||
U.S. Stocks | 52.5 | % | |||||
Foreign Stocks | 45.7 | % | |||||
Exchange Traded Funds | 1.2 | % | |||||
Cash & Cash Equivalents | 0.6 | % | |||||
Total | 100.0 | % |
Top Ten Holdings
Company | Percent of Net Assets | ||||||
Toronto-Dominion Bank, The | 1.9 | % | |||||
Microsoft Corp. | 1.9 | % | |||||
Lockheed Martin Corp. | 1.9 | % | |||||
PepsiCo, Inc. | 1.9 | % | |||||
Aetna, Inc. | 1.7 | % | |||||
Procter & Gamble Co., The | 1.7 | % | |||||
General Electric Co. | 1.6 | % | |||||
Estee Lauder Cos, Inc., Class A | 1.5 | % | |||||
Nestle SA | 1.5 | % | |||||
Intact Financial Corp. | 1.5 | % | |||||
Total | 17.1 | % |
Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Holdings are subject to change.
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June 30, 2014
Sector Diversification
Sector | Percent of Net Assets | ||||||
Financials | 22.8 | % | |||||
Consumer Staples | 14.9 | % | |||||
Information Technology | 14.8 | % | |||||
Consumer Discretionary | 13.2 | % | |||||
Industrials | 9.2 | % | |||||
Health Care | 8.8 | % | |||||
Telecommunication Services | 5.4 | % | |||||
Utilities | 5.2 | % | |||||
Materials | 2.1 | % | |||||
Energy | 1.8 | % | |||||
Exchange Traded Funds | 1.2 | % | |||||
Other | 0.6 | % | |||||
Total | 100.0 | % |
May include companies representing multiple industries within a single "Sector".
Geographical Diversification
Country | Percent of Net Assets | ||||||
United States | 52.6 | % | |||||
Canada | 7.8 | % | |||||
France | 7.3 | % | |||||
United Kingdom | 5.8 | % | |||||
Sweden | 4.9 | % | |||||
Australia | 4.0 | % | |||||
Germany | 3.3 | % | |||||
Switzerland | 2.2 | % | |||||
Finland | 2.0 | % | |||||
Norway | 1.5 | % | |||||
Netherlands | 1.5 | % | |||||
Hong Kong | 1.0 | % | |||||
South Africa | 0.8 | % | |||||
Spain | 0.8 | % | |||||
Japan | 0.6 | % | |||||
Italy | 0.6 | % | |||||
Ireland | 0.4 | % | |||||
Singapore | 0.3 | % | |||||
Denmark | 0.2 | % | |||||
Belgium | 0.2 | % | |||||
Malaysia | 0.1 | % | |||||
Israel | 0.1 | % | |||||
New Zealand | 0.1 | % | |||||
Poland | 0.1 | % | |||||
Other | 1.8 | % | |||||
Total | 100.0 | % |
37
June 30, 2014
Sustainable Investing Update
Senior Vice President for
Sustainable Investing
Julie Gorte, Ph.D.
The last six months at Pax have been a gender equality skunk works. A skunk works is a business development incubator, and this one produced a successful birth: the new Pax Global Women's Leadership Index*, and its associated fund, the Pax Ellevate Global Women's Index Fund (PXWEX).
There were many reasons to do this, but one of the most important is that it's simply smart investing. Competition among companies for market share and growth is intense, and in order to compete successfully in a world where the hurdles only get higher, companies must take advantage of all the talent available to them, not just in the male half. There is abundant academic research showing that companies with more women in their decision-making structures—boards and senior management in particular—perform better financially. This is no surprise. There is also a great deal of academic research showing that heterogeneous groups have better decision-making processes that consider more different perspectives before choosing a course of action. There's only so much heterogeneity in any group composed of only one gender, and sadly, most boards around the globe are dominated, or composed only of, men. Management diversity is less well understood, but from what we do know, the proportions of women in senior management are roughly in line with women membership on boards—management teams, in other words, lack sufficient gender diversity, and in our view this can undermine company performance. Companies that embrace gender diversity, on the other hand, should do better, and research shows that they do.
By producing this Index, and launching the Pax Ellevate Global Women's Index Fund, we believe that we have provided investors not only another fund choice, but a way to validate the concept that gender is important in corporate performance.
It is also a step, we believe, that is not only good for investors but will help foster gender equality and social change. No single investor, even institutions much larger than Pax, can change the world solely through investing with a particular point of view, but if enough investors believe that companies that
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June 30, 2014
manifest some specific attribute—such as women's empowerment—are worth investing in, those companies will, all other things equal, trade at a premium. By creating this index to recognize companies that are leaders in women's empowerment, we are doing our bit to encourage all companies to really embrace diversity, and take effective action to achieve it.
Pax also integrates gender concerns and focuses on board diversity in its other funds as well. For example, we vote against, or withhold votes from, all male candidates on board slates that have less than two women, and then we send a letter to the companies telling them why. In the 2014 proxy season, we have voted against board slates at nearly 19% of the companies whose proxies we voted. That may sound dispiriting, but consider this: that means that over 80% of the companies in Pax's portfolios had at least two women on their boards, and that wasn't true ten years ago. Progress can be slow, but it is progress just the same.
In addition to constructing the first index and mutual fund based on women's empowerment, we also continued our work on other important areas. Climate change is a core concern for us, and will remain so for the foreseeable future. One of the steps we took to strengthen our work on mitigating greenhouse gas emissions among our portfolios was to make our Growth Fund fossil-fuel free. In addition to assuring that the fund does not own companies that extract and produce coal, oil or gas, we have also created a clean-tech opportunity list, so that the fund can invest in companies that positively contribute to pollution prevention, including mitigation of greenhouse gas emissions. The Growth Fund is still a broadly diversified fund, but there are opportunities to find company leaders in sustainability performance in every sector.
That concept—finding sustainability leaders to invest in—is one of Pax's core concepts, an aspiration that guides our investment decisions. There are times when leadership is far removed from perfection, of course. In a world without gender discrimination we would expect boards to be made up, on average, of equal proportions of men and women, and all companies would be doing their level best to reduce greenhouse gas emissions and adapt to climate change. The fact that we're not there yet is a powerful argument for Pax to keep doing what it does, and it's why we come to work every day.
*A custom index calculated by MSCI. One cannot invest directly in an index.
Past performance is no guarantee of future results.
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June 30, 2014
Shareholder Expense Examples (Unaudited)
Examples As a shareholder of the Pax World Balanced, Growth, Small Cap, High Yield Bond, Global Environmental Markets, International ESG Index or Global Women's Index 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, 2014 and ending on June 30, 2014.
Please note that Individual Retirement Account (IRA), Coverdell Education Savings, Roth IRA, SEP-IRA, SIMPLE IRA, and 403(b)(7) accounts are charged an annual custodial fee of twelve dollars. If you are invested in one of these account types, you should add an additional six dollars to the estimated expenses paid during the period.
Actual Expenses For each Fund, the first table on the next page provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. For the Fund, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Examples for Comparison Purposes For each Fund, the second table on the following page provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
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June 30, 2014
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, our costs would have been higher.
Based on Actual Fund Return | Beginning Account Value 1/1/14 | Ending Account Value 6/30/14 | Annualized Expense Ratio | Expenses Paid During Period1 | |||||||||||||||
Balanced Fund - Individual Investor | $ | 1,000.00 | $ | 1,050.00 | 0.91 | % | $ | 4.63 | |||||||||||
Balanced Fund - Institutional | 1,000.00 | 1,050.70 | 0.66 | % | 3.36 | ||||||||||||||
Balanced Fund - R Class | 1,000.00 | 1,048.20 | 1.16 | % | 5.89 | ||||||||||||||
Growth Fund - Individual Investor | 1,000.00 | 1,049.40 | 1.27 | % | 6.45 | ||||||||||||||
Growth Fund - A Class | 1,000.00 | 1,049.90 | 1.27 | % | 6.45 | ||||||||||||||
Growth Fund - Institutional | 1,000.00 | 1,050.70 | 1.02 | % | 5.19 | ||||||||||||||
Growth Fund - R Class | 1,000.00 | 1,048.20 | 1.52 | % | 7.72 | ||||||||||||||
Small Cap Fund - Individual Investor | 1,000.00 | 1,061.20 | 1.24 | % | 6.34 | ||||||||||||||
Small Cap Fund - A Class | 1,000.00 | 1,061.60 | 1.24 | % | 6.34 | ||||||||||||||
Small Cap Fund - Institutional | 1,000.00 | 1,062.60 | 0.99 | % | 5.06 | ||||||||||||||
Small Cap Fund - R Class | 1,000.00 | 1,060.30 | 1.49 | % | 7.61 | ||||||||||||||
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,047.40 | 0.95 | % | 4.82 | ||||||||||||||
High Yield Bond Fund - A Class | 1,000.00 | 1,047.40 | 0.95 | % | 4.82 | ||||||||||||||
High Yield Bond Fund - Institutional | 1,000.00 | 1,048.80 | 0.70 | % | 3.56 | ||||||||||||||
High Yield Bond Fund - R Class | 1,000.00 | 1,044.80 | 1.20 | % | 6.08 | ||||||||||||||
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,030.90 | 1.40 | % | 7.05 | ||||||||||||||
Global Environmental Markets Fund - A Class | 1,000.00 | 1,031.30 | 1.40 | % | 7.05 | ||||||||||||||
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,032.70 | 1.15 | % | 5.80 | ||||||||||||||
Global Environmental Markets Fund - R Class | 1,000.00 | 1,030.00 | 1.65 | % | 8.30 | ||||||||||||||
MSCI International ESG Index Fund - Individual Investor | 1,000.00 | 1,039.80 | 0.80 | % | 4.05 | ||||||||||||||
MSCI International ESG Index Fund - Institutional | 1,000.00 | 1,042.10 | 0.55 | % | 2.78 | ||||||||||||||
MSCI International ESG Index Fund - R Class | 1,000.00 | 1,039.10 | 1.05 | % | 5.31 | ||||||||||||||
Global Women's Index Fund - Individual Investor2 | 1,000.00 | 1,057.70 | 1.20 | % | 6.12 | ||||||||||||||
Global Women's Index Fund - Institutional2 | 1,000.00 | 1,059.10 | 0.95 | % | 4.85 |
1Expenses are equal to each Funds' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period beginning on January 1, 2014 and ending on June 30, 2014).
2Effective June 4, 2014, the annualized expense ratios for the Global Women's Index Fund have been contractually reduced to 0.99% and 0.74% for the Individual Investor Class shares and Institutional Class shares, respectively. Had the reduced expenses been in place for the 6-month period, the resulting Ending Account Values and Expenses Paid During the Period shown in the table above would be $1057.70 and $5.05 for Individual Investor Class shares, and $1,059.10 and $3.78 for Institutional Class Shares.
41
June 30, 2014
Shareholder Expense Examples (Unaudited), continued
Based on Hypothetical 5% Return (before expenses) | Beginning Account Value 1/1/14 | Ending Account Value 6/30/14 | Annualized Expense Ratio | Expenses Paid During Period1 | |||||||||||||||
Balanced Fund - Individual Investor | $ | 1,000.00 | $ | 1,020.28 | 0.91 | % | $ | 4.56 | |||||||||||
Balanced Fund - Institutional | 1,000.00 | 1,021.52 | 0.66 | % | 3.31 | ||||||||||||||
Balanced Fund - R Class | 1,000.00 | 1,019.04 | 1.16 | % | 5.81 | ||||||||||||||
Growth Fund - Individual Investor | 1,000.00 | 1,018.50 | 1.27 | % | 6.36 | ||||||||||||||
Growth Fund - A Class | 1,000.00 | 1,018.50 | 1.27 | % | 6.36 | ||||||||||||||
Growth Fund - Institutional | 1,000.00 | 1,019.74 | 1.02 | % | 5.11 | ||||||||||||||
Growth Fund - R Class | 1,000.00 | 1,017.26 | 1.52 | % | 7.60 | ||||||||||||||
Small Cap Fund - Individual Investor | 1,000.00 | 1,018.65 | 1.24 | % | 6.21 | ||||||||||||||
Small Cap Fund - A Class | 1,000.00 | 1,018.65 | 1.24 | % | 6.21 | ||||||||||||||
Small Cap Fund - Institutional | 1,000.00 | 1,019.89 | 0.99 | % | 4.96 | ||||||||||||||
Small Cap Fund - R Class | 1,000.00 | 1,017.41 | 1.49 | % | 7.45 | ||||||||||||||
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,020.08 | 0.95 | % | 4.76 | ||||||||||||||
High Yield Bond Fund - A Class | 1,000.00 | 1,020.08 | 0.95 | % | 4.76 | ||||||||||||||
High Yield Bond Fund - Institutional | 1,000.00 | 1,021.32 | 0.70 | % | 3.51 | ||||||||||||||
High Yield Bond Fund - R Class | 1,000.00 | 1,018.84 | 1.20 | % | 6.01 | ||||||||||||||
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,017.85 | 1.40 | % | 7.00 | ||||||||||||||
Global Environmental Markets Fund - A Class | 1,000.00 | 1,017.85 | 1.40 | % | 7.00 | ||||||||||||||
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,019.09 | 1.15 | % | 5.76 | ||||||||||||||
Global Environmental Markets Fund - R Class | 1,000.00 | 1,016.61 | 1.65 | % | 8.25 | ||||||||||||||
MSCI International ESG Index Fund - Individual Investor | 1,000.00 | 1,020.83 | 0.80 | % | 4.01 | ||||||||||||||
MSCI International ESG Index Fund - Institutional | 1,000.00 | 1,022.07 | 0.55 | % | 2.76 | ||||||||||||||
MSCI International ESG Index Fund - R Class | 1,000.00 | 1,019.59 | 1.05 | % | 5.26 | ||||||||||||||
Global Women's Index Fund - Individual Investor2 | 1,000.00 | 1,018.84 | 1.20 | % | 6.01 | ||||||||||||||
Global Women's Index Fund - Institutional2 | 1,000.00 | 1,020.08 | 0.95 | % | 4.76 |
1Expenses are equal to each Funds' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period beginning on January 1, 2014 and ending on June 30, 2014).
2Effective June 4, 2014, the annualized expense ratios for the Global Women's Index Fund have been contractually reduced to 0.99% and 0.74% for the Individual Investor Class shares and Institutional Class shares, respectively. Had the reduced expenses been in place for the 6-month period, the resulting hypothetical Ending Account Values and Expenses Paid During the Period shown in the table above would be $1019.89 and $4.96 for Individual Investor Class shares, and $1,021.12 and $3.71 for Institutional Class Shares.
42
June 30, 2014
Schedule of Investments (Unaudited)
Pax World Balanced Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 62.5% | |||||||||||
Consumer Discretionary: 6.9% | |||||||||||
BorgWarner, Inc. | 434,140 | $ | 28,301,587 | ||||||||
DirecTV (a) | 275,000 | 23,377,750 | |||||||||
Ford Motor Co. | 400,000 | 6,896,000 | |||||||||
InterContinental Hotels Group | 274,349 | 11,350,185 | |||||||||
Michael Kors Holdings, Ltd. (a) | 135,000 | 11,967,750 | |||||||||
Newell Rubbermaid, Inc. | 639,100 | 19,805,709 | |||||||||
Time Warner, Inc. | 390,000 | 27,397,500 | |||||||||
Walt Disney Co., The | 112,000 | 9,602,880 | |||||||||
138,699,361 | |||||||||||
Consumer Staples: 3.3% | |||||||||||
Colgate-Palmolive Co. (e) | 120,000 | 8,181,600 | |||||||||
Estee Lauder Cos, Inc., Class A (e) | 195,812 | 14,540,999 | |||||||||
Kellogg Co. (e) | 55,000 | 3,613,500 | |||||||||
Mead Johnson Nutrition Co. | 180,000 | 16,770,600 | |||||||||
PepsiCo, Inc. | 170,000 | 15,187,800 | |||||||||
Procter & Gamble Co., The | 110,000 | 8,644,900 | |||||||||
66,939,399 | |||||||||||
Energy: 7.8% | |||||||||||
Baker Hughes, Inc. | 355,000 | 26,429,750 | |||||||||
Dresser-Rand Group, Inc. (a) | 345,711 | 22,032,162 | |||||||||
EQT Corp. | 275,506 | 29,451,592 | |||||||||
Hess Corp. | 157,000 | 15,525,730 | |||||||||
Noble Energy, Inc. (e) | 239,600 | 18,559,416 | |||||||||
ONEOK, Inc. (e) | 255,156 | 17,371,020 | |||||||||
Rosetta Resources, Inc. (a) | 235,725 | 12,929,516 | |||||||||
Ultra Petroleum Corp. (a)(e) | 438,055 | 13,005,853 | |||||||||
155,305,039 | |||||||||||
Financials: 12.4% | |||||||||||
American Express Co. | 330,000 | 31,307,100 | |||||||||
American Tower Corp., REIT | 373,100 | 33,571,538 | |||||||||
AvalonBay Communities, Inc., REIT (e) | 124,360 | 17,682,748 | |||||||||
Bank of New York Mellon Corp., The (e) | 601,300 | 22,536,724 | |||||||||
BlackRock, Inc. | 112,500 | 35,955,000 | |||||||||
Discover Financial Services | 295,000 | 18,284,100 | |||||||||
Goldman Sachs Group, Inc., The | 97,500 | 16,325,400 | |||||||||
M&T Bank Corp. | 98,000 | 12,156,900 | |||||||||
Morgan Stanley | 1,160,300 | 37,512,499 | |||||||||
Prudential Financial, Inc. | 140,000 | 12,427,800 | |||||||||
US Bancorp (e) | 220,000 | 9,530,400 | |||||||||
247,290,209 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care: 9.8% | |||||||||||
Agilent Technologies, Inc. | 140,000 | $ | 8,041,600 | ||||||||
Becton Dickinson & Co. (e) | 413,530 | 48,920,599 | |||||||||
Celgene Corp. (a) | 205,000 | 17,605,400 | |||||||||
Express Scripts Holding Co. (a)(e) | 190,400 | 13,200,432 | |||||||||
Gilead Sciences, Inc. (a)(e) | 285,000 | 23,629,350 | |||||||||
Hologic, Inc. (a)(e) | 300,000 | 7,605,000 | |||||||||
Merck & Co., Inc. | 290,000 | 16,776,500 | |||||||||
Roche Holding AG | 75,000 | 22,346,760 | |||||||||
Sanofi, ADR | 115,000 | 6,114,550 | |||||||||
UnitedHealth Group, Inc. (e) | 395,000 | 32,291,250 | |||||||||
196,531,441 | |||||||||||
Industrials: 7.7% | |||||||||||
3M Co. (e) | 165,000 | 23,634,600 | |||||||||
CSX Corp. (e) | 474,167 | 14,609,085 | |||||||||
Cummins, Inc. | 146,198 | 22,556,889 | |||||||||
Delta Air Lines, Inc. | 220,000 | 8,518,400 | |||||||||
Eaton Corp PLC | 185,000 | 14,278,300 | |||||||||
Fastenal Co (e) | 40,000 | 1,979,600 | |||||||||
Nordson Corp. | 220,000 | 17,641,800 | |||||||||
Quanta Services, Inc. (a) | 439,221 | 15,188,262 | |||||||||
Ryder System, Inc. | 145,852 | 12,848,103 | |||||||||
Stericycle, Inc. (a) | 125,000 | 14,802,500 | |||||||||
Xylem, Inc. (e) | 210,000 | 8,206,800 | |||||||||
154,264,339 | |||||||||||
Information Technology: 11.6% | |||||||||||
Amdocs, Ltd. | 343,341 | 15,906,989 | |||||||||
Apple, Inc. | 472,500 | 43,909,425 | |||||||||
Cognizant Technology Solutions, Class A (a) | 361,188 | 17,665,705 | |||||||||
EMC Corp. | 375,000 | 9,877,500 | |||||||||
Google, Inc., Class A | 38,000 | 22,217,460 | |||||||||
Google, Inc., Class C (a) | 38,000 | 21,860,640 | |||||||||
Intel Corp. (e) | 725,000 | 22,402,500 | |||||||||
Microsoft Corp. | 625,786 | 26,095,276 | |||||||||
NXP Semiconductor NP (a) | 120,000 | 7,941,600 | |||||||||
Oracle Corp. | 450,000 | 18,238,500 | |||||||||
QUALCOMM, Inc. | 140,000 | 11,088,000 | |||||||||
SunPower Corp. (a)(e) | 144,400 | 5,917,512 | |||||||||
Visa, Inc., Class A | 45,000 | 9,481,950 | |||||||||
232,603,057 | |||||||||||
Materials: 1.6% | |||||||||||
EI du Pont de Nemours & Co. (e) | 489,961 | 32,063,048 | |||||||||
Telecommunication Services: 0.7% | |||||||||||
AT&T, Inc. (e) | 380,000 | 13,436,800 |
SEE NOTES TO FINANCIAL STATEMENTS
43
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Utilities: 0.7% | |||||||||||
CenterPoint Energy, Inc. | 306,457 | $ | 7,826,912 | ||||||||
ONE Gas, Inc. (e) | 183,689 | 6,934,260 | |||||||||
14,761,172 | |||||||||||
TOTAL COMMON STOCKS (Cost $950,386,577) | 1,251,893,865 | ||||||||||
AFFILIATED INVESTMENT COMPANIES: 1.0% | |||||||||||
Pax MSCI International ESG Index Fund | 2,187,174 | 19,575,208 | |||||||||
TOTAL AFFILIATED INVESTMENT COMPANIES (Cost $17,974,964) | 19,575,208 | ||||||||||
EXCHANGE TRADED FUNDS: 0.3% | |||||||||||
iShares Silver Trust (a) | 321,507 | 6,510,517 | |||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $8,877,573) | 6,510,517 | ||||||||||
BONDS: 34.3% | |||||||||||
Community Investment Notes: 0.2% | |||||||||||
CINI Investment Note, 2.000%, 11/01/14 (c) | $ | 255,205 | 248,876 | ||||||||
Calvert Social Investment Foundation, Inc., 0.500%, 09/15/14 | 150,000 | 150,000 | |||||||||
Calvert Social Investment Foundation, Inc., 1.000%, 01/15/15 | 3,000,000 | 3,000,000 | |||||||||
Enterprise Community Impact, 1.500%, 12/11/15 (c) | 500,000 | 499,994 | |||||||||
Total Community Investment Notes (Cost $3,905,205) | 3,898,870 | ||||||||||
CORPORATE BONDS: 10.1% | |||||||||||
Consumer Discretionary: 0.8% | |||||||||||
Best Buy Co., Inc., 3.750%, 03/15/16 (e) | 2,396,000 | 2,479,860 | |||||||||
DIRECTV Holdings, LLC/Financing Co., 3.800%, 03/15/22 | 1,000,000 | 1,034,336 | |||||||||
Marriott International, Inc., 3.250%, 09/15/22 | 3,000,000 | 2,971,962 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Consumer Discretionary, continued | |||||||||||
Newell Rubbermaid, Inc., 2.050%, 12/01/17 | $ | 170,000 | $ | 171,992 | |||||||
Time Warner Cable, Inc., 6.750%, 07/01/18 | 3,000,000 | 3,553,104 | |||||||||
VF Corp., 5.950%, 11/01/17 | 2,235,000 | 2,567,888 | |||||||||
Walt Disney Co., The, 6.000%, 07/17/17 | 2,141,000 | 2,451,875 | |||||||||
15,231,017 | |||||||||||
Consumer Staples: 1.0% | |||||||||||
Anheuser-Busch Inbev Worldwide, 1.375%, 07/15/17 | 4,000,000 | 4,016,432 | |||||||||
Costco Wholesale Corp., 1.125%, 12/15/17 | 3,000,000 | 2,987,718 | |||||||||
Kellogg Co., 4.150%, 11/15/19 | 2,000,000 | 2,167,980 | |||||||||
Kimberly-Clark Corp., 6.125%, 08/01/17 | 5,000,000 | 5,752,325 | |||||||||
Kraft Foods Group, Inc., 6.125%, 08/23/18 | 3,000,000 | 3,485,238 | |||||||||
Mondelez International, Inc., 6.125%, 08/23/18 | 2,000,000 | 2,328,488 | |||||||||
20,738,181 | |||||||||||
Energy: 0.7% | |||||||||||
Cameron International Corp., 3.700%, 06/15/24 | 1,250,000 | 1,264,174 | |||||||||
Noble Energy, Inc., 8.250%, 03/01/19 | 3,000,000 | 3,785,793 | |||||||||
ONEOK Partners, LP, 8.625%, 03/01/19 | 3,775,000 | 4,770,600 | |||||||||
Southwestern Energy Co., 7.500%, 02/01/18 | 3,000,000 | 3,578,265 | |||||||||
Talisman Energy, Inc., 3.750%, 02/01/21 | 1,000,000 | 1,035,316 | |||||||||
14,434,148 | |||||||||||
Financials: 3.8% | |||||||||||
American Express Co., 7.000%, 03/19/18 | 1,000,000 | 1,190,146 | |||||||||
American Tower Corp., REIT, 7.250%, 05/15/19 | 1,665,000 | 2,016,503 | |||||||||
Bank of America Corp., 1.350%, 11/21/16 | 4,950,000 | 4,967,464 | |||||||||
Bank of New York Mellon Corp., The, 2.950%, 06/18/15 | 3,000,000 | 3,076,917 |
SEE NOTES TO FINANCIAL STATEMENTS
44
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Financials, continued | |||||||||||
BB&T Corp., 1.450%, 01/12/18 | $ | 3,134,000 | $ | 3,121,705 | |||||||
BlackRock, Inc., 3.375%, 06/01/22 | 1,000,000 | 1,033,990 | |||||||||
Branch Banking & Trust Co., 0.657%, 12/01/16 | 1,000,000 | 1,003,946 | |||||||||
Branch Banking & Trust Co./Wilson NC, 0.550%, 09/13/16 | 4,000,000 | 3,986,224 | |||||||||
Ford Motor Credit Co., LLC, 1.479%, 11/20/18 | 3,000,000 | 2,994,459 | |||||||||
Ford Motor Credit Co., LLC, 1.060%, 03/12/19 | 3,000,000 | 3,019,986 | |||||||||
Goldman Sachs Group, Inc., The, 6.250%, 09/01/17 | 3,000,000 | 3,417,852 | |||||||||
Goldman Sachs Group, Inc., The, 1.425%, 04/30/18 | 4,000,000 | 4,068,368 | |||||||||
Goldman Sachs Group, Inc., The, 1.500%, 11/06/18 | 2,000,000 | 1,982,484 | |||||||||
International Bank for Reconstruction & Development, 0.375%, 08/24/15 | 4,000,000 | 4,007,692 | |||||||||
International Bank for Reconstruction & Development, 0.625%, 07/12/17 | 2,000,000 | 1,978,634 | |||||||||
Morgan Stanley, 0.706%, 10/15/15 | 2,000,000 | 2,004,760 | |||||||||
Morgan Stanley, 1.509%, 04/25/18 | 4,000,000 | 4,083,092 | |||||||||
Morgan Stanley, 3.100%, 11/09/18 (e) | 1,177,000 | 1,248,033 | |||||||||
North American Development Bank, 2.400%, 10/26/22 | 2,000,000 | 1,907,830 | |||||||||
PNC Bank NA, 6.875%, 04/01/18 | 2,000,000 | 2,360,976 | |||||||||
PNC Funding Corp., 5.250%, 11/15/15 | 2,000,000 | 2,123,522 | |||||||||
PNC Preferred Funding Trust I, 144A, 1.883%, 03/15/17 (d) | 6,445,000 | 6,316,100 | |||||||||
Prudential Financial, Inc., 7.375%, 06/15/19 | 2,000,000 | 2,479,448 | |||||||||
Prudential Financial, Inc., 3.510%, 11/02/20 (e) | 3,000,000 | 3,169,200 | |||||||||
State Street Corp., 4.956%, 03/15/18 | 4,010,000 | 4,403,096 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Financials, continued | |||||||||||
Toyota Motor Credit Corp., 3.450%, 01/18/15 | $ | 2,000,000 | $ | 1,986,500 | |||||||
US Bancorp, 1.950%, 11/15/18 | 2,064,000 | 2,079,717 | |||||||||
76,028,644 | |||||||||||
Health Care: 1.1% | |||||||||||
Becton Dickinson & Co., 1.750%, 11/08/16 | 3,000,000 | 3,058,488 | |||||||||
Becton Dickinson & Co., 3.250%, 11/12/20 | 3,000,000 | 3,123,489 | |||||||||
Celgene Corp., 2.450%, 10/15/15 | 2,000,000 | 2,040,070 | |||||||||
Celgene Corp., 2.300%, 08/15/18 | 950,000 | 966,316 | |||||||||
Celgene Corp., 3.950%, 10/15/20 | 2,000,000 | 2,112,194 | |||||||||
Gilead Sciences, Inc., 3.700%, 04/01/24 | 2,000,000 | 2,056,302 | |||||||||
Thermo Fisher Scientific, Inc., 3.200%, 03/01/16 | 2,000,000 | 2,078,508 | |||||||||
UnitedHealth Group, Inc., 4.875%, 03/15/15 | 119,000 | 122,870 | |||||||||
UnitedHealth Group, Inc., 5.375%, 03/15/16 | 4,000,000 | 4,319,532 | |||||||||
UnitedHealth Group, Inc., 6.000%, 02/15/18 | 2,500,000 | 2,886,743 | |||||||||
22,764,512 | |||||||||||
Industrials: 1.1% | |||||||||||
Atlas Copco AB, 144A, 5.600%, 05/22/17 (d) | 2,505,000 | 2,792,872 | |||||||||
CSX Corp., 7.375%, 02/01/19 | 2,000,000 | 2,450,576 | |||||||||
Cummins, Inc., 7.125%, 03/01/28 | 3,200,000 | 4,329,206 | |||||||||
Emerson Electric Co., 5.250%, 10/15/18 | 1,000,000 | 1,143,462 | |||||||||
Ingersoll-Rand Co., 6.443%, 11/15/27 | 2,000,000 | 2,411,502 | |||||||||
Pentair PLC, 5.000%, 05/15/21 | 4,050,000 | 4,483,135 | |||||||||
Ryder System, Inc., 5.850%, 11/01/16 | 2,000,000 | 2,203,840 | |||||||||
United Parcel Service, Inc., 5.500%, 01/15/18 | 1,000,000 | 1,141,533 | |||||||||
20,956,126 |
SEE NOTES TO FINANCIAL STATEMENTS
45
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Information Technology: 1.1% | |||||||||||
Adobe Systems, Inc., 3.250%, 02/01/15 | $ | 2,000,000 | $ | 2,031,256 | |||||||
Adobe Systems, Inc., 4.750%, 02/01/20 | 1,150,000 | 1,280,745 | |||||||||
Apple, Inc., 0.450%, 05/03/16 | 4,000,000 | 3,993,312 | |||||||||
CA, Inc., 5.375%, 12/01/19 | 3,000,000 | 3,376,719 | |||||||||
Cisco Systems, Inc., 0.727%, 03/01/19 | 2,000,000 | 2,015,154 | |||||||||
Corning, Inc., 8.875%, 08/15/21 | 2,000,000 | 2,623,054 | |||||||||
IBM Corp., 2.000%, 01/05/16 | 1,750,000 | 1,791,141 | |||||||||
IBM Corp., 5.700%, 09/14/17 | 5,000,000 | 5,700,775 | |||||||||
22,812,156 | |||||||||||
Materials: 0.1% | |||||||||||
Potash Corp of Saskatchewan, Inc., 3.250%, 12/01/17 | 2,000,000 | 2,112,610 | |||||||||
Telecommunication Services: 0.4% | |||||||||||
America Movil SAB de CV, 9.000%, 01/15/16 (b)(g)(MX) | 52,000,000 | 4,291,817 | |||||||||
Vodafone Group PLC, 5.625%, 02/27/17 | 3,000,000 | 3,340,467 | |||||||||
7,632,284 | |||||||||||
TOTAL CORPORATE BONDS (Cost $193,084,808) | 202,709,678 | ||||||||||
U.S. GOVERNMENT AGENCY BONDS: 8.0% | |||||||||||
Federal Farm Credit Bank (Agency): 1.5% | |||||||||||
Federal Farm Credit Bank, 3.850%, 02/11/15 | 4,000,000 | 4,089,788 | |||||||||
Federal Farm Credit Bank, 1.010%, 06/26/17 | 4,000,000 | 4,000,412 | |||||||||
Federal Farm Credit Bank, 1.120%, 08/20/18 | 4,000,000 | 3,966,276 | |||||||||
Federal Farm Credit Bank, 1.140%, 09/04/18 | 3,500,000 | 3,462,498 | |||||||||
Federal Farm Credit Bank, 1.740%, 03/11/20 | 3,000,000 | 2,955,477 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | |||||||||||
Federal Farm Credit Bank (Agency), continued | |||||||||||
Federal Farm Credit Bank, 2.450%, 08/05/20 | $ | 3,000,000 | $ | 2,999,607 | |||||||
Federal Farm Credit Bank, 2.500%, 11/05/20 | 3,000,000 | 3,005,001 | |||||||||
Federal Farm Credit Bank, 1.840%, 02/04/21 | 3,000,000 | 2,932,557 | |||||||||
Federal Farm Credit Bank, 3.190%, 07/07/23 | 2,000,000 | 1,998,330 | |||||||||
29,409,946 | |||||||||||
Federal Home Loan Bank System (Agency): 2.8% | |||||||||||
Federal Home Loan Bank, 5.625%, 06/13/16 | 2,000,000 | 2,198,676 | |||||||||
Federal Home Loan Bank, 0.500%, 06/19/17 | 2,700,000 | 2,700,292 | |||||||||
Federal Home Loan Bank, 1.000%, 06/27/17 | 4,000,000 | 4,005,320 | |||||||||
Federal Home Loan Bank, 0.750%, 11/28/17 | 3,000,000 | 2,963,631 | |||||||||
Federal Home Loan Bank, 0.950%, 01/25/18 | 2,000,000 | 1,985,436 | |||||||||
Federal Home Loan Bank, 1.020%, 01/30/18 | 3,000,000 | 2,979,252 | |||||||||
Federal Home Loan Bank, 1.000%, 02/05/18 | 5,000,000 | 4,944,269 | |||||||||
Federal Home Loan Bank, 1.375%, 03/09/18 | 3,000,000 | 3,012,327 | |||||||||
Federal Home Loan Bank, 1.375%, 06/27/18 | 3,000,000 | 2,982,327 | |||||||||
Federal Home Loan Bank, 1.150%, 07/25/18 | 3,000,000 | 2,940,318 | |||||||||
Federal Home Loan Bank, 1.140%, 10/25/18 | 5,000,000 | 4,892,600 | |||||||||
Federal Home Loan Bank, 0.800%, 06/05/19 | 3,000,000 | 2,903,082 | |||||||||
Federal Home Loan Bank, 1.550%, 02/05/20 | 3,000,000 | 2,875,254 | |||||||||
Federal Home Loan Bank, 2.350%, 07/09/20 | 3,690,000 | 3,689,181 | |||||||||
Federal Home Loan Bank, 2.375%, 03/12/21 | 3,000,000 | 3,038,622 | |||||||||
Federal Home Loan Bank, 1.500%, 09/26/22 | 3,000,000 | 2,900,163 | |||||||||
Federal Home Loan Bank, 2.250%, 10/11/22 | 3,000,000 | 2,865,516 |
SEE NOTES TO FINANCIAL STATEMENTS
46
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | |||||||||||
Federal Home Loan Bank System (Agency), continued | |||||||||||
Federal Home Loan Bank, 2.220%, 12/27/22 | $ | 3,000,000 | $ | 2,851,215 | |||||||
56,727,481 | |||||||||||
Freddie Mac (Agency): 1.4% | |||||||||||
Freddie Mac, 1.000%, 09/29/17 | 4,000,000 | 3,993,656 | |||||||||
Freddie Mac, 1.250%, 12/12/17 | 1,500,000 | 1,501,365 | |||||||||
Freddie Mac, 1.000%, 02/14/18 | 3,000,000 | 2,973,522 | |||||||||
Freddie Mac, 1.250%, 03/13/18 | 3,000,000 | 2,982,096 | |||||||||
Freddie Mac, 1.050%, 03/26/18 | 3,000,000 | 2,974,893 | |||||||||
Freddie Mac, 1.125%, 05/25/18 | 5,000,000 | 4,946,740 | |||||||||
Freddie Mac, 1.250%, 06/10/19 | 5,500,000 | 5,399,152 | |||||||||
Freddie Mac, 2.000%, 06/27/19 | 3,000,000 | 3,009,171 | |||||||||
27,780,595 | |||||||||||
Fannie Mae (Agency): 2.3% | |||||||||||
Fannie Mae, 2.000%, 03/10/16 | 3,000,000 | 3,073,908 | |||||||||
Fannie Mae, 0.500%, 03/30/16 | 925,000 | 926,737 | |||||||||
Fannie Mae, 0.800%, 06/19/17 | 2,290,000 | 2,265,053 | |||||||||
Fannie Mae, 2.200%, 10/27/17 | 5,000,000 | 5,164,950 | |||||||||
Fannie Mae, 1.000%, 12/27/17 | 3,000,000 | 2,975,397 | |||||||||
Fannie Mae, 1.050%, 01/30/18 | 3,000,000 | 2,977,587 | |||||||||
Fannie Mae, 1.050%, 01/30/18 | 2,000,000 | 1,987,658 | |||||||||
Fannie Mae, 1.050%, 05/25/18 | 3,000,000 | 2,966,535 | |||||||||
Fannie Mae, 1.000%, 12/20/18 | 4,000,000 | 3,859,156 | |||||||||
Fannie Mae, 1.000%, 03/13/19 | 6,645,000 | 6,570,509 | |||||||||
Fannie Mae, 1.625%, 08/08/19 | 2,000,000 | 1,988,358 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | |||||||||||
Fannie Mae (Agency), continued | |||||||||||
Fannie Mae, 1.500%, 10/23/19 | $ | 3,000,000 | $ | 2,930,586 | |||||||
Fannie Mae, 1.500%, 04/17/20 | 2,750,000 | 2,631,032 | |||||||||
Fannie Mae, 2.000%, 05/21/21 | 925,000 | 891,533 | |||||||||
Fannie Mae, 2.000%, 11/14/22 | 6,000,000 | 5,669,400 | |||||||||
46,878,399 | |||||||||||
TOTAL U.S. GOVERNMENT AGENCY BONDS (Cost $161,365,500) | 160,796,421 | ||||||||||
GOVERNMENT BONDS: 0.6% | |||||||||||
Canadian Government Bond, 2.500%, 06/01/15 (f)(CA) | 3,000,000 | 2,850,091 | |||||||||
U.S. Dept of Housing & Urban Development, 4.330%, 08/01/15 | 3,000,000 | 3,132,789 | |||||||||
U.S. Dept of Housing & Urban Development, 4.620%, 08/01/18 | 5,000,000 | 5,634,725 | |||||||||
TOTAL GOVERNMENT BONDS (Cost $10,890,099) | 11,617,605 | ||||||||||
MUNICIPAL BONDS: 0.7% | |||||||||||
Alderwood Water & Wastewater District, 5.150%, 12/01/25 | 2,435,000 | 2,640,246 | |||||||||
City of Portland OR, 6.031%, 06/15/18 | 3,125,657 | 3,366,052 | |||||||||
Iowa Finance Authority, 3.430%, 08/01/19 | 2,000,000 | 2,118,780 | |||||||||
State Board of Administration Finance Corp., 1.298%, 07/01/16 | 4,260,000 | 4,305,795 | |||||||||
State of Colorado Department of Transportation, 0.963%, 12/15/16 | 1,485,000 | 1,482,773 | |||||||||
TOTAL MUNICIPAL BONDS (Cost $13,269,461) | 13,913,646 | ||||||||||
U.S. TREASURY NOTES: 9.1% | |||||||||||
United States Treasury Note (TIPS), 1.875%, 07/15/15 | 3,046,725 | 3,165,977 |
SEE NOTES TO FINANCIAL STATEMENTS
47
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
U.S. TREASURY NOTES, continued | |||||||||||
United States Treasury Note, 0.375%, 08/31/15 | $ | 35,000,000 | $ | 35,089,565 | |||||||
United States Treasury Note, 0.250%, 09/30/15 (e) | 41,000,000 | 41,047,232 | |||||||||
United States Treasury Note, 0.250%, 12/15/15 (e) | 10,000,000 | 10,002,540 | |||||||||
United States Treasury Note, 2.125%, 12/31/15 | 20,000,000 | 20,560,540 | |||||||||
United States Treasury Note (TIPS), 2.000%, 01/15/16 | 2,388,640 | 2,519,643 | |||||||||
United States Treasury Note, 0.375%, 01/15/16 | 27,000,000 | 27,044,307 | |||||||||
United States Treasury Note, 0.250%, 02/29/16 (e) | 905,000 | 904,187 | |||||||||
United States Treasury Note, 0.375%, 03/15/16 (e) | 20,000,000 | 20,012,900 | |||||||||
United States Treasury Note, 0.875%, 09/15/16 | 5,000,000 | 5,036,915 | |||||||||
United States Treasury Note, 0.625%, 02/15/17 | 905,000 | 902,843 | |||||||||
United States Treasury Note (TIPS), 0.125%, 04/15/18 | 1,004,951 | 1,038,633 | |||||||||
United States Treasury Note, 3.375%, 11/15/19 | 5,000,000 | 5,434,180 | |||||||||
United States Treasury Note, 3.625%, 02/15/20 | 2,000,000 | 2,200,234 | |||||||||
United States Treasury Note (TIPS), 1.250%, 07/15/20 | 4,347,760 | 4,768,101 | |||||||||
United States Treasury Note, 2.000%, 11/15/21 | 3,000,000 | 2,962,968 | |||||||||
TOTAL U.S. TREASURY NOTES (Cost $181,784,855) | 182,690,765 | ||||||||||
MORTGAGE-BACKED SECURITIES: 5.6% | |||||||||||
Ginnie Mae (Mortgage Backed): 0.9% | |||||||||||
Ginnie Mae, 6.000%, 05/15/21 | 242,009 | 259,283 | |||||||||
Ginnie Mae, 6.000%, 07/15/21 | 25,936 | 27,682 | |||||||||
Ginnie Mae, 6.000%, 02/15/22 | 339,692 | 365,166 | |||||||||
Ginnie Mae, 1.625%, 11/20/33 | 2,242,125 | 2,333,705 | |||||||||
Ginnie Mae, 1.625%, 05/20/34 | 2,485,819 | 2,588,827 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Ginnie Mae (Mortgage Backed), continued | |||||||||||
Ginnie Mae, 1.625%, 08/20/34 | $ | 1,344,012 | $ | 1,397,773 | |||||||
Ginnie Mae, 1.625%, 04/20/35 | 2,542,773 | 2,648,156 | |||||||||
Ginnie Mae, 1.625%, 07/20/35 | 1,759,462 | 1,829,853 | |||||||||
Ginnie Mae, 6.000%, 08/15/35 | 720,962 | 832,700 | |||||||||
Ginnie Mae, 6.000%, 05/20/36 | 402,264 | 451,299 | |||||||||
Ginnie Mae, 6.000%, 01/15/38 | 668,910 | 760,548 | |||||||||
Ginnie Mae, 3.000%, 07/20/41 | 1,111,908 | 1,157,430 | |||||||||
Ginnie Mae, 2.000%, 06/20/43 | 3,404,820 | 3,495,027 | |||||||||
18,147,449 | |||||||||||
Freddie Mac (Mortgage-Backed): 1.2% | |||||||||||
Freddie Mac, 4.500%, 09/01/18 | 120,427 | 127,767 | |||||||||
Freddie Mac, 4.000%, 09/01/18 | 91,473 | 97,073 | |||||||||
Freddie Mac, 5.500%, 10/01/18 | 94,186 | 100,017 | |||||||||
Freddie Mac, 5.000%, 11/01/18 | 78,361 | 83,195 | |||||||||
Freddie Mac, 5.000%, 11/01/18 | 88,349 | 93,813 | |||||||||
Freddie Mac, 3.500%, 11/01/25 | 1,183,517 | 1,254,887 | |||||||||
Freddie Mac, 3.500%, 01/01/29 | 1,873,523 | 1,985,527 | |||||||||
Freddie Mac, 3.000%, 07/01/33 | 2,958,813 | 3,009,186 | |||||||||
Freddie Mac, 3.500%, 01/01/34 | 3,084,078 | 3,225,745 | |||||||||
Freddie Mac, 2.353%, 12/01/35 | 1,578,074 | 1,682,211 | |||||||||
Freddie Mac, 2.525%, 05/01/36 | 13,897 | 13,952 | |||||||||
Freddie Mac, 2.373%, 11/01/36 | 1,318,815 | 1,407,659 | |||||||||
Freddie Mac, 2.442%, 04/01/37 | 558,021 | 591,815 |
SEE NOTES TO FINANCIAL STATEMENTS
48
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Freddie Mac (Mortgage-Backed), continued | |||||||||||
Freddie Mac, 2.392%, 01/01/38 | $ | 1,633,237 | $ | 1,741,382 | |||||||
Freddie Mac, 5.000%, 07/01/39 | 1,124,582 | 1,251,132 | |||||||||
Freddie Mac, 5.000%, 08/01/39 | 746,670 | 830,696 | |||||||||
Freddie Mac, 5.500%, 10/01/39 | 1,109,588 | 1,247,692 | |||||||||
Freddie Mac, 2.629%, 12/01/39 | 3,355,418 | 3,563,183 | |||||||||
Freddie Mac, 3.500%, 01/01/41 | 1,475,893 | 1,519,472 | |||||||||
23,826,404 | |||||||||||
Fannie Mae (Mortgage Backed): 3.4% | |||||||||||
Fannie Mae, 4.500%, 07/01/18 | 364,246 | 386,910 | |||||||||
Fannie Mae, 3.500%, 09/01/18 | 295,076 | 313,210 | |||||||||
Fannie Mae, 3.500%, 10/01/18 | 51,564 | 54,729 | |||||||||
Fannie Mae, 3.500%, 10/01/18 | 173,869 | 184,544 | |||||||||
Fannie Mae, 5.000%, 11/01/18 | 21,649 | 22,978 | |||||||||
Fannie Mae, 5.000%, 11/01/18 | 139,596 | 148,171 | |||||||||
Fannie Mae, 5.000%, 11/01/18 | 166,799 | 177,054 | |||||||||
Fannie Mae, 5.000%, 10/01/20 | 511,022 | 551,965 | |||||||||
Fannie Mae, 3.500%, 01/01/26 | 1,743,837 | 1,851,163 | |||||||||
Fannie Mae, 3.500%, 02/01/26 | 1,585,779 | 1,683,138 | |||||||||
Fannie Mae, 4.000%, 10/01/26 | 2,681,031 | 2,873,361 | |||||||||
Fannie Mae, 3.000%, 11/01/26 | 1,511,097 | 1,572,074 | |||||||||
Fannie Mae, 3.000%, 11/01/26 | 2,139,670 | 2,226,012 | |||||||||
Fannie Mae, 3.500%, 12/01/26 | 2,732,554 | 2,900,846 | |||||||||
Fannie Mae, 2.500%, 03/01/27 | 2,224,896 | 2,263,697 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Fannie Mae (Mortgage Backed), continued | |||||||||||
Fannie Mae, 2.500%, 06/01/27 | $ | 5,527,223 | $ | 5,624,063 | |||||||
Fannie Mae, 2.500%, 09/01/27 | 2,421,129 | 2,463,556 | |||||||||
Fannie Mae, 2.500%, 12/01/27 | 3,429,904 | 3,489,719 | |||||||||
Fannie Mae, 3.000%, 04/01/28 | 3,630,506 | 3,778,258 | |||||||||
Fannie Mae, 3.000%, 09/01/28 | 3,006,590 | 3,096,242 | |||||||||
Fannie Mae, 4.000%, 01/01/32 | 1,996,810 | 2,149,278 | |||||||||
Fannie Mae, 6.500%, 06/01/32 | 257,687 | 291,311 | |||||||||
Fannie Mae, 2.550%, 12/01/33 | 125,185 | 134,900 | |||||||||
Fannie Mae, 2.176%, 12/01/33 | 318,922 | 343,596 | |||||||||
Fannie Mae, 6.000%, 02/01/34 | 542,547 | 613,810 | |||||||||
Fannie Mae, 4.500%, 04/01/34 | 2,936,143 | 3,211,861 | |||||||||
Fannie Mae, 2.160%, 05/01/34 | 1,007,409 | 1,074,532 | |||||||||
Fannie Mae, 2.357%, 07/01/34 | 1,551,644 | 1,655,310 | |||||||||
Fannie Mae, 2.297%, 01/01/35 | 766,446 | 813,103 | |||||||||
Fannie Mae, 1.870%, 03/01/35 | 583,698 | 610,779 | |||||||||
Fannie Mae, 2.181%, 06/01/35 | 170,954 | 180,782 | |||||||||
Fannie Mae, 1.864%, 10/01/35 | 2,679,477 | 2,859,734 | |||||||||
Fannie Mae, 1.912%, 12/01/35 | 2,053,018 | 2,189,242 | |||||||||
Fannie Mae, 2.045%, 05/01/36 | 167,226 | 167,808 | |||||||||
Fannie Mae, 2.383%, 06/01/37 | 470,291 | 501,739 | |||||||||
Fannie Mae, 2.202%, 09/01/37 | 3,487,147 | 3,706,455 | |||||||||
Fannie Mae, 4.000%, 01/01/41 | 3,518,294 | 3,740,224 |
SEE NOTES TO FINANCIAL STATEMENTS
49
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Balanced Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
MORTGAGE-BACKED SECURITIES, continued | |||||||||||
Fannie Mae (Mortgage Backed), continued | |||||||||||
Fannie Mae, 4.000%, 02/01/41 | $ | 2,472,121 | $ | 2,628,161 | |||||||
Fannie Mae, 3.500%, 10/01/41 | 2,303,730 | 2,379,913 | |||||||||
Fannie Mae, 2.078%, 09/01/42 | 2,503,467 | 2,581,293 | |||||||||
67,495,521 | |||||||||||
Commercial Mortgage-Backed: 0.1% | |||||||||||
Morgan Stanley Capital I, Inc., 4.989%, 08/13/42 | 2,000,000 | 2,055,046 | |||||||||
TOTAL MORTGAGE-BACKED SECURITIES (Cost $109,865,993) | 111,524,420 | ||||||||||
TOTAL BONDS (Cost $674,165,921) | 687,151,405 | ||||||||||
CERTIFICATES OF DEPOSIT: 0.0% | |||||||||||
Hope Community Credit Union, 0.750%, 05/07/15 | 100,000 | 100,000 | |||||||||
Urban Partnership Bank, 0.200%, 09/19/14 | 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 $416,689) | 416,689 | 416,689 | |||||||||
TIME DEPOSIT: 1.2% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/01/14 | 23,201,000 | 23,201,000 | |||||||||
(Cost $2,3201,000) |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 0.4% | |||||||||||
State Street Institutional U.S. Government Money Market Fund | 7,033,718 | $ | 7,033,718 | ||||||||
(Cost $7,033,718) | |||||||||||
TOTAL INVESTMENTS: 99.7% (Cost $1,682,404,442) | 1,996,130,402 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -0.4% | (7,033,718 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 13,323,329 | ||||||||||
(NET): 0.7% | |||||||||||
NET ASSETS: 100.0% | $ | 2,002,420,013 |
(a) Non income producing security.
(b) Illiquid security.
(c) Fair Valued security.
(d) Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers.
(e) Security or partial position of this security was on loan as of June 30, 2014. The total market value of securities on loan as of June 30, 2014 was $240,099,318.
(f) Principal amount is in Canadian dollars; value is in U.S. dollars.
(g) Principal amount is in Mexican pesos; 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
SEE NOTES TO FINANCIAL STATEMENTS
50
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Growth Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 96.7% | |||||||||||
Consumer Discretionary: 16.1% | |||||||||||
Amazon.com, Inc. (a) | 5,000 | $ | 1,623,900 | ||||||||
BorgWarner, Inc. | 35,800 | 2,333,802 | |||||||||
DirecTV (a) | 19,500 | 1,657,695 | |||||||||
InterContinental Hotels Group | 40,502 | 1,675,622 | |||||||||
Macy's, Inc. | 37,500 | 2,175,750 | |||||||||
Marriott International, Inc., Class A | 48,000 | 3,076,799 | |||||||||
Michael Kors Holdings, Ltd. (a)(c) | 10,750 | 952,988 | |||||||||
Newell Rubbermaid, Inc. | 92,000 | 2,851,080 | |||||||||
NIKE, Inc., Class B | 33,920 | 2,630,496 | |||||||||
Scripps Networks Interactive, Class A | 21,500 | 1,744,510 | |||||||||
Starbucks Corp. | 22,650 | 1,752,657 | |||||||||
Time Warner, Inc. | 38,050 | 2,673,013 | |||||||||
Valeo SA | 11,200 | 1,502,755 | |||||||||
VF Corp. | 43,800 | 2,759,400 | |||||||||
29,410,467 | |||||||||||
Consumer Staples: 7.3% | |||||||||||
Estee Lauder Cos, Inc., Class A | 31,300 | 2,324,338 | |||||||||
Fresh Market, Inc., The (a) | 28,750 | 962,263 | |||||||||
General Mills, Inc. (c) | 50,500 | 2,653,270 | |||||||||
PepsiCo, Inc. | 55,430 | 4,952,116 | |||||||||
Procter & Gamble Co., The | 31,600 | 2,483,444 | |||||||||
13,375,431 | |||||||||||
Financials: 7.2% | |||||||||||
American Tower Corp., REIT | 26,950 | 2,424,961 | |||||||||
CBRE Group, Inc., Class A (a) | 68,500 | 2,194,740 | |||||||||
Morgan Stanley | 49,800 | 1,610,034 | |||||||||
PNC Financial Services Group, Inc. (c) | 30,700 | 2,733,835 | |||||||||
State Street Corp. | 39,650 | 2,666,859 | |||||||||
Weyerhaeuser Co., REIT | 42,500 | 1,406,325 | |||||||||
13,036,754 | |||||||||||
Health Care: 14.6% | |||||||||||
Abbott Laboratories | 77,500 | 3,169,750 | |||||||||
Agilent Technologies, Inc. | 40,000 | 2,297,600 | |||||||||
Alexion Pharmaceuticals, Inc. (a) | 8,850 | 1,382,813 | |||||||||
Biogen Idec, Inc. (a) | 4,500 | 1,418,895 | |||||||||
Celgene Corp. (a)(c) | 27,000 | 2,318,759 | |||||||||
Express Scripts Holding Co. (a) | 21,750 | 1,507,928 | |||||||||
Gilead Sciences, Inc. (a) | 29,150 | 2,416,827 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
HeartWare International, Inc. (a) | 14,300 | $ | 1,265,550 | ||||||||
Hologic, Inc. (a) | 72,750 | 1,844,213 | |||||||||
Laboratory Corp of America Holdings (a)(c) | 12,650 | 1,295,360 | |||||||||
Mylan, Inc. (a) | 46,000 | 2,371,760 | |||||||||
Roche Holding AG | 7,900 | 2,353,859 | |||||||||
Thermo Fisher Scientific, Inc. | 24,962 | 2,945,516 | |||||||||
26,588,830 | |||||||||||
Industrials: 15.3% | |||||||||||
3M Co. | 30,000 | 4,297,199 | |||||||||
Cummins, Inc. | 20,000 | 3,085,800 | |||||||||
Eaton Corp PLC | 32,050 | 2,473,619 | |||||||||
Expeditors Int. of Washington, Inc. (c) | 46,000 | 2,031,360 | |||||||||
Landstar System, Inc. | 29,250 | 1,872,000 | |||||||||
Pall Corp. | 24,875 | 2,124,076 | |||||||||
Quanta Services, Inc. (a) | 60,200 | 2,081,716 | |||||||||
Roper Industries, Inc. | 16,400 | 2,394,564 | |||||||||
Stanley Black & Decker, Inc. | 32,500 | 2,854,150 | |||||||||
United Parcel Service, Inc., Class B | 25,951 | 2,664,130 | |||||||||
United Rentals, Inc. (a)(c) | 18,750 | 1,963,688 | |||||||||
27,842,302 | |||||||||||
Information Technology: 31.3% (b) | |||||||||||
Apple, Inc. | 85,925 | 7,985,009 | |||||||||
Aruba Networks, Inc. (a) | 54,500 | 954,840 | |||||||||
ASML Holding NV | 16,294 | 1,519,741 | |||||||||
Cognizant Technology Solutions, Class A (a) | 52,500 | 2,567,775 | |||||||||
CommVault Systems, Inc. (a) | 19,050 | 936,689 | |||||||||
Cree, Inc. (a) | 23,500 | 1,173,825 | |||||||||
eBay, Inc. (a) | 32,750 | 1,639,465 | |||||||||
EMC Corp. | 74,500 | 1,962,330 | |||||||||
Facebook, Inc., Class A (a) | 15,000 | 1,009,350 | |||||||||
Google, Inc., Class A | 5,305 | 3,101,674 | |||||||||
Google, Inc., Class C (a) | 5,305 | 3,051,860 | |||||||||
IBM (c) | 18,467 | 3,347,513 | |||||||||
Intuit, Inc. (c) | 26,400 | 2,125,992 | |||||||||
MasterCard, Inc., Class A | 28,000 | 2,057,160 | |||||||||
Microsoft Corp. | 96,500 | 4,024,050 | |||||||||
Nuance Communications, Inc. (a)(c) | 65,000 | 1,220,050 | |||||||||
Oracle Corp. | 43,750 | 1,773,188 | |||||||||
QUALCOMM, Inc. | 48,250 | 3,821,400 | |||||||||
Red Hat, Inc. (a) | 32,200 | 1,779,694 | |||||||||
salesforce.com, inc. (a) | 38,750 | 2,250,600 |
SEE NOTES TO FINANCIAL STATEMENTS
51
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Growth Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Information Technology, continued | |||||||||||
SAP SE, ADR | 15,850 | $ | 1,220,450 | ||||||||
SunPower Corp. (a) | 29,750 | 1,219,155 | |||||||||
Texas Instruments, Inc. (c) | 48,500 | 2,317,815 | |||||||||
Trimble Navigation, Ltd. (a) | 58,750 | 2,170,813 | |||||||||
Visa, Inc., Class A | 8,000 | 1,685,680 | |||||||||
56,916,118 | |||||||||||
Materials: 1.9% | |||||||||||
Nucor Corp. | 28,000 | 1,379,000 | |||||||||
Praxair, Inc. (c) | 15,750 | 2,092,230 | |||||||||
3,471,230 | |||||||||||
Telecommunication Services: 1.7% | |||||||||||
Verizon Communications, Inc. | 43,370 | 2,122,094 | |||||||||
Vodafone Group PLC, ADR | 27,729 | 925,871 | |||||||||
3,047,965 | |||||||||||
Utilities: 1.3% | |||||||||||
American Water Works Co., Inc. | 47,404 | 2,344,128 | |||||||||
TOTAL COMMON STOCKS (Cost $115,227,593) | 176,033,225 | ||||||||||
TIME DEPOSIT: 3.1% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/01/14 | $ | 5,632,000 | 5,632,000 | ||||||||
(Cost $5,632,000) |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 2.7% | |||||||||||
State Street Institutional U.S. Government Money Market Fund | 4,967,563 | $ | 4,967,563 | ||||||||
(Cost $4,967,563) | |||||||||||
TOTAL INVESTMENTS: 102.5% (Cost $125,827,156) | 186,632,788 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -2.7% | (4,967,563 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | 335,217 | ||||||||||
(NET): 0.2% | |||||||||||
NET ASSETS: 100.0% | $ | 182,000,442 |
(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, 2014. The total market value of securities on loan as of June 30, 2014 was $33,340,489.
ADR American Depository Receipt
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
52
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Small Cap Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCK: 99.9% | |||||||||||
Consumer Discretionary: 12.3% | |||||||||||
Bob Evans Farms, Inc. | 67,096 | $ | 3,358,155 | ||||||||
Bravo Brio Restaurant Group, Inc. (a) | 102,354 | 1,597,746 | |||||||||
Cinemark Holdings, Inc. | 49,440 | 1,748,198 | |||||||||
Columbia Sportswear Co. | 22,500 | 1,859,625 | |||||||||
Gannett Co., Inc. | 161,500 | 5,056,565 | |||||||||
Jamba, Inc. (a) | 91,231 | 1,103,895 | |||||||||
Ruth's Hospitality Group, Inc. | 87,975 | 1,086,491 | |||||||||
15,810,675 | |||||||||||
Energy: 8.3% | |||||||||||
LinnCo LLC | 119,604 | 3,742,409 | |||||||||
RSP Permian, Inc. (a) | 38,500 | 1,248,940 | |||||||||
Ultra Petroleum Corp. (a) | 190,000 | 5,641,100 | |||||||||
10,632,449 | |||||||||||
Financials: 22.7% | |||||||||||
Ares Capital Corp. | 150,000 | 2,679,000 | |||||||||
Cape Bancorp, Inc. | 134,303 | 1,441,071 | |||||||||
Capitol Federal Financial, Inc. | 423,447 | 5,149,116 | |||||||||
Chicopee Bancorp, Inc. | 123,033 | 2,078,027 | |||||||||
Fox Chase Bancorp, Inc. | 98,200 | 1,655,652 | |||||||||
Hampden Bancorp, Inc. | 42,336 | 713,785 | |||||||||
LaSalle Hotel Properties, REIT | 97,353 | 3,435,587 | |||||||||
Oritani Financial Corp. | 241,832 | 3,721,794 | |||||||||
Peoples Federal Bancshares, Inc. (b) | 109,228 | 2,016,349 | |||||||||
Territorial Bancorp, Inc. | 100,178 | 2,091,717 | |||||||||
United Financial Bancorp., Inc. | 304,037 | 4,119,701 | |||||||||
29,101,799 | |||||||||||
Health Care: 14.4% | |||||||||||
Cantel Medical Corp. | 27,131 | 993,537 | |||||||||
Cubist Pharmaceuticals, Inc. (a) | 49,921 | 3,485,484 | |||||||||
Exactech, Inc. (a) | 102,474 | 2,585,419 | |||||||||
Hologic, Inc. (a) | 197,456 | 5,005,510 | |||||||||
Ligand Pharmaceuticals, Inc. (a) | 46,227 | 2,879,480 | |||||||||
Natus Medical, Inc. (a) | 1,000 | 25,140 | |||||||||
VCA, Inc. (a) | 98,393 | 3,452,610 | |||||||||
18,427,180 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCK, continued | |||||||||||
Industrials: 8.0% | |||||||||||
JetBlue Airways Corp. (a) | 230,000 | $ | 2,495,500 | ||||||||
KAR Auction Services, Inc. | 120,420 | 3,837,785 | |||||||||
Knoll, Inc. | 50,190 | 869,793 | |||||||||
Watsco, Inc. | 29,826 | 3,064,920 | |||||||||
10,267,998 | |||||||||||
Information Technology: 28.3% (c) | |||||||||||
Amdocs, Ltd. | 80,000 | 3,706,400 | |||||||||
Benchmark Electronics, Inc. (a) | 92,823 | 2,365,130 | |||||||||
Brooks Automation, Inc. | 99,954 | 1,076,505 | |||||||||
Compuware Corp. | 421,816 | 4,213,942 | |||||||||
Evolving Systems, Inc. | 142,085 | 1,216,248 | |||||||||
MICROS Systems, Inc. (a) | 58,000 | 3,938,200 | |||||||||
Microsemi Corp. (a) | 130,693 | 3,497,345 | |||||||||
Open Text Corp. | 65,625 | 3,146,063 | |||||||||
Polycom, Inc. (a) | 182,539 | 2,287,214 | |||||||||
Solera Holdings, Inc. | 39,196 | 2,632,011 | |||||||||
Teradyne, Inc. | 55,000 | 1,078,000 | |||||||||
TheStreet, Inc. | 1,096,710 | 2,643,071 | |||||||||
TiVo, Inc. (a) | 141,390 | 1,825,345 | |||||||||
Westell Technologies, Inc., Class A (a) | 1,150,986 | 2,819,916 | |||||||||
36,445,390 | |||||||||||
Materials: 0.9% | |||||||||||
Calgon Carbon Corp. (a) | 50,000 | 1,116,500 | |||||||||
Utilities: 5.0% | |||||||||||
Laclede Group, Inc., The | 77,695 | 3,772,092 | |||||||||
Unitil Corp. | 79,931 | 2,704,066 | |||||||||
6,476,158 | |||||||||||
TOTAL COMMON STOCKS (Cost $122,678,302) | 128,278,149 | ||||||||||
TIME DEPOSIT: 8.0% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/01/14 | $ | 10,221,000 | 10,221,000 | ||||||||
(Cost $10,221,000) |
SEE NOTES TO FINANCIAL STATEMENTS
53
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Small Cap Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 5.9% | |||||||||||
State Street Institutional U.S. Government Money Market Fund | 7,586,765 | $ | 7,586,765 | ||||||||
(Cost $7,586,765) | |||||||||||
TOTAL INVESTMENTS: 113.8% (Cost $140,486,067) | 146,085,914 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -5.9% | (7,586,765 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | (10,177,130 | ) | |||||||||
(NET): -7.9% | |||||||||||
NET ASSETS: 100.0% | $ | 128,322,019 |
(a) Non-income producing security.
(b) Security or partial position of this security was on loan as of June 30, 2014. The total market value of securities on loan as of June 30, 2014 was $7,470,660.
(c) Broad industry sectors used for financial reporting purposes. Diversification compliance testing is based on narrower industries within broad sector.
REIT Real Estate Investment Trust
Pax World High Yield Bond Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 0.9% | |||||||||||
Energy: 0.4% | |||||||||||
LinnCo LLC | 100,000 | $ | 3,129,000 | ||||||||
Financial Services: 0.2% | |||||||||||
Ares Capital Corp. (f) | 55,000 | 982,300 | |||||||||
Hercules Technology Growth Capital, Inc. (f) | 32,894 | 531,567 | |||||||||
1,513,867 | |||||||||||
Healthcare: 0.0% | |||||||||||
Interactive Health, Inc. (b)(e)(g) | 706 | 0 | |||||||||
Media: 0.3% | |||||||||||
Gannett Co., Inc. | 61,000 | 1,909,910 | |||||||||
Technology & Electronics: 0.0% | |||||||||||
Nuance Communications, Inc. (g) | 10,000 | 187,700 | |||||||||
TOTAL COMMON STOCKS (Cost $6,435,871) | 6,740,477 | ||||||||||
PREFERRED STOCKS: 2.0% | |||||||||||
Energy: 1.3% | |||||||||||
Vanguard Natural Resources LLC, 7.625% (f) | 380,000 | 9,435,400 | |||||||||
Financial Services: 0.7% | |||||||||||
Hercules Tech Growth Capital, Inc., 7.000% | 190,000 | 4,921,000 | |||||||||
Healthcare: 0.0% | |||||||||||
Interactive Health, Inc. (b)(e)(g) | 1,412 | 0 | |||||||||
TOTAL PREFERRED STOCKS (Cost $14,587,320) | 14,356,400 | ||||||||||
BONDS: 95.5% | |||||||||||
CORPORATE BONDS: 88.7% | |||||||||||
Automotive: 1.4% | |||||||||||
Chassix, Inc., 144A, 9.250%, 08/01/18 (a) | $ | 100,000 | 109,250 | ||||||||
Delphi Corp., 5.000%, 02/15/23 (f) | 3,000,000 | 3,232,500 |
SEE NOTES TO FINANCIAL STATEMENTS
54
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Automotive, continued | |||||||||||
Lear Corp., 5.375%, 03/15/24 | $ | 1,000,000 | $ | 1,032,500 | |||||||
Stackpole International Intermediate Co., 144A, 7.750%, 10/15/21 (a) | 5,500,000 | 5,775,000 | |||||||||
10,149,250 | |||||||||||
Banking: 0.3% | |||||||||||
Bank of America Corp., 1.350%, 11/21/16 | 2,000,000 | 2,007,056 | |||||||||
Basic Industry: 4.7% | |||||||||||
Gibraltar Industries, Inc., 6.250%, 02/01/21 | 250,000 | 261,250 | |||||||||
Imperial Metals Corp., 144A, 7.000%, 03/15/19 (a) | 2,000,000 | 2,060,000 | |||||||||
Kissner Milling Co., Ltd., 144A, 7.250%, 06/01/19 (a) | 6,000,000 | 6,195,000 | |||||||||
Neenah Paper, Inc., 144A, 5.250%, 05/15/21 (a) | 1,000,000 | 1,020,000 | |||||||||
Nexeo Solutions LLC/Finance Corp., 8.375%, 03/01/18 | 8,000,000 | 8,120,000 | |||||||||
Sappi Papier Holding GmbH, 144A, 7.750%, 07/15/17 (a)(f) | 250,000 | 279,375 | |||||||||
Sappi Papier Holding GmbH, 144A, 8.375%, 06/15/19 (a)(f) | 400,000 | 443,000 | |||||||||
Sappi Papier Holding GmbH, 144A, 6.625%, 04/15/21 (a)(f) | 6,750,000 | 7,155,000 | |||||||||
Sappi Papier Holding GmbH, 144A, 7.500%, 06/15/32 (a) | 2,955,000 | 2,629,950 | |||||||||
Tempel Steel Co., 144A, 12.000%, 08/15/16 (a) | 3,000,000 | 2,985,000 | |||||||||
Trinseo Materials Operating SCA/ Finance, Inc., 8.750%, 02/01/19 | 2,250,000 | 2,430,000 | |||||||||
33,578,575 | |||||||||||
Capital Goods: 5.0% | |||||||||||
CTP Transportation Products LLC/ Finance, Inc., 144A, 8.250%, 12/15/19 (a) | 6,000,000 | 6,480,000 | |||||||||
Emeco Proprietary, Ltd., 144A, 9.875%, 03/15/19 (a)(f) | 3,000,000 | 3,093,750 | |||||||||
Hyva Global BV, 144A, 8.625%, 03/24/16 (a)(b) | 2,000,000 | 2,085,000 | |||||||||
Kleopatra Holdings 1 SCA, 144A, 10.250%, 08/15/17 (a)(c)(LU) | 2,461,127 | 3,504,823 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Capital Goods, continued | |||||||||||
Mcron Finance Sub LLC/Finance Corp., 144A, 8.375%, 05/15/19 (a) | $ | 4,198,000 | $ | 4,617,800 | |||||||
Milacron LLC/Mcron Finance Corp., 144A, 7.750%, 02/15/21 (a) | 1,615,000 | 1,776,500 | |||||||||
Plastipak Holdings, Inc., 144A, 6.500%, 10/01/21 (a) | 1,000,000 | 1,060,000 | |||||||||
SPL Logistics Escrow LLC/Finance Corp., 144A, 8.875%, 08/01/20 (a) | 5,000,000 | 5,625,000 | |||||||||
Unifrax I, LLC/Holding Co., 144A, 7.500%, 02/15/19 (a) | 6,250,000 | 6,562,500 | |||||||||
Waterjet Holdings, Inc., 144A, 7.625%, 02/01/20 (a) | 1,400,000 | 1,491,000 | |||||||||
36,296,373 | |||||||||||
Chemicals: 0.4% | |||||||||||
Polymer Group, Inc., 144A, 6.875%, 06/01/19 (a) | 3,000,000 | 3,060,000 | |||||||||
Consumer Cyclical: 8.6% | |||||||||||
Boardriders SA, 144A, 8.875%, 12/15/17 (a)(c)(LU) | 7,000,000 | 10,040,394 | |||||||||
Brown Shoe Co., Inc., 7.125%, 05/15/19 | 3,000,000 | 3,172,500 | |||||||||
CST Brands, Inc., 5.000%, 05/01/23 | 3,000,000 | 3,015,000 | |||||||||
DriveTime Automotive Group/ Acceptance Corp., 144A, 8.000%, 06/01/21 (a) | 3,000,000 | 3,075,000 | |||||||||
Hot Topic, Inc., 144A, 9.250%, 06/15/21 (a)(f) | 1,500,000 | 1,672,500 | |||||||||
Ingles Markets, Inc., 5.750%, 06/15/23 (f) | 10,000,000 | 10,174,999 | |||||||||
Levi Strauss & Co., 7.625%, 05/15/20 (f) | 3,000,000 | 3,243,750 | |||||||||
Levi Strauss & Co., 6.875%, 05/01/22 | 200,000 | 221,500 | |||||||||
Outerwall, Inc., 6.000%, 03/15/19 | 6,200,000 | 6,463,500 | |||||||||
Perry Ellis International, Inc., 7.875%, 04/01/19 | 9,000,000 | 9,360,000 | |||||||||
PF Chang's China Bistro, Inc., 144A, 10.250%, 06/30/20 (a) | 500,000 | 512,500 |
SEE NOTES TO FINANCIAL STATEMENTS
55
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Consumer Cyclical, continued | |||||||||||
Quicksilver, Inc./Wholesale, Inc., 144A, 7.875%, 08/01/18 (a) | $ | 1,000,000 | $ | 1,020,000 | |||||||
Radio Systems Corp., 144A, 8.375%, 11/01/19 (a) | 2,100,000 | 2,323,125 | |||||||||
Sally Holdings LLC/Capital, Inc., 6.875%, 11/15/19 | 4,450,000 | 4,839,375 | |||||||||
Sally Holdings LLC/Capital, Inc., 5.750%, 06/01/22 | 2,425,000 | 2,594,750 | |||||||||
Sally Holdings LLC/Capital, Inc., 5.500%, 11/01/23 | 100,000 | 103,250 | |||||||||
61,832,143 | |||||||||||
Consumer Non-Cyclical: 2.4% | |||||||||||
BC Mountain LLC/Finance, Inc., 144A, 7.000%, 02/01/21 (a) | 250,000 | 243,125 | |||||||||
H.J. Heinz Co., 4.250%, 10/15/20 (f) | 2,000,000 | 2,015,000 | |||||||||
H.J. Heinz Finance Co., 144A, 7.125%, 08/01/39 (a) | 3,000,000 | 3,285,000 | |||||||||
KeHE Distributors, LLC/Finance Corp., 144A, 7.625%, 08/15/21 (a) | 3,500,000 | 3,821,563 | |||||||||
Univeg Holding BV, 144A, 7.875%, 11/15/20 (a)(c)(NL) | 6,000,000 | 8,282,185 | |||||||||
17,646,873 | |||||||||||
Energy: 16.7% | |||||||||||
Alta Mesa Holdings, LP/Finance Services Corp., 9.625%, 10/15/18 | 11,277,000 | 11,897,234 | |||||||||
Bonanza Creek Energy, Inc., 6.750%, 04/15/21 | 2,000,000 | 2,150,000 | |||||||||
CGG SA, 6.500%, 06/01/21 (f) | 500,000 | 498,750 | |||||||||
Chaparral Energy, Inc., 7.625%, 11/15/22 | 9,750,000 | 10,578,750 | |||||||||
Clayton Williams Energy, Inc., 7.750%, 04/01/19 | 10,550,000 | 11,235,750 | |||||||||
Drill Rigs Holdings, Inc., 144A, 6.500%, 10/01/17 (a) | 5,000,000 | 5,137,500 | |||||||||
Energy XXI Gulf Coast, Inc., 7.500%, 12/15/21 | 250,000 | 268,750 | |||||||||
EV Energy Partners, LP/Finance Corp., 8.000%, 04/15/19 | 500,000 | 527,500 | |||||||||
Exterran Partners LP/EXPL Finance Corp., 6.000%, 04/01/21 | 6,250,000 | 6,343,750 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Energy, continued | |||||||||||
Exterran Partners LP/EXPL Finance Corp., 144A, 6.000%, 10/01/22 (a) | $ | 2,000,000 | $ | 2,040,000 | |||||||
Ferrellgas LP/Finance Corp., 144A, 6.750%, 01/15/22 (a) | 100,000 | 105,000 | |||||||||
Hercules Offshore, Inc., 144A, 10.250%, 04/01/19 (a) | 4,500,000 | 4,961,250 | |||||||||
Hercules Offshore, Inc., 144A, 6.750%, 04/01/22 (a)(f) | 7,950,000 | 7,582,313 | |||||||||
ION Geophysical Corp., 8.125%, 05/15/18 (f) | 8,000,000 | 8,040,000 | |||||||||
Jones Energy Holdings/Finance Co., 144A, 6.750%, 04/01/22 (a) | 500,000 | 528,750 | |||||||||
KCA Deutag UK Finance PLC, 144A, 7.250%, 05/15/21 (a)(f) | 750,000 | 780,000 | |||||||||
Memorial Production Partners LP/Finance Corp., 7.625%, 05/01/21 | 5,000,000 | 5,256,250 | |||||||||
Penn Virginia Corp., 7.250%, 04/15/19 | 2,975,000 | 3,168,375 | |||||||||
Penn Virginia Corp., 8.500%, 05/01/20 | 9,375,000 | 10,523,438 | |||||||||
Petroleum Geo-Services ASA, 144A, 7.375%, 12/15/18 (a) | 2,000,000 | 2,145,000 | |||||||||
PHI, Inc., 144A, 5.250%, 03/15/19 (a) | 3,000,000 | 3,067,500 | |||||||||
Rosetta Resources, Inc., 5.625%, 05/01/21 | 4,500,000 | 4,651,875 | |||||||||
Rosetta Resources, Inc., 5.875%, 06/01/22 | 2,000,000 | 2,092,500 | |||||||||
Sabine Pass Liquefaction, LLC, 5.625%, 02/01/21 | 1,710,000 | 1,816,875 | |||||||||
SAExploration Holdings, Inc., 144A, 10.000%, 07/15/19 (a) | 8,500,000 | 8,553,125 | |||||||||
Sanjel Corp., 144A, 7.500%, 06/19/19 (a) | 7,000,000 | 7,017,500 | |||||||||
120,967,735 | |||||||||||
Financial Services: 1.0% | |||||||||||
Ares Capital Corp., 144A, 5.125%, 06/01/16 (a) | 1,200,000 | 1,293,750 | |||||||||
CIT Group, Inc., 5.000%, 05/15/17 | 250,000 | 267,031 | |||||||||
CIT Group, Inc., 4.250%, 08/15/17 | 1,000,000 | 1,045,625 |
SEE NOTES TO FINANCIAL STATEMENTS
56
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Financial Services, continued | |||||||||||
CIT Group, Inc., 5.250%, 03/15/18 | $ | 1,000,000 | $ | 1,076,250 | |||||||
Fly Leasing, Ltd., 6.750%, 12/15/20 (f) | 2,000,000 | 2,135,000 | |||||||||
Oxford Finance, LLC/Co - Issuer, Inc.,144A, 7.250%, 01/15/18 (a) | 1,475,000 | 1,556,125 | |||||||||
7,373,781 | |||||||||||
Health Care: 3.9% | |||||||||||
Air Medical Group Holdings, Inc., 9.250%, 11/01/18 | 5,680,000 | 6,077,600 | |||||||||
Hanger, Inc., 7.125%, 11/15/18 | 4,920,000 | 5,190,600 | |||||||||
Omega Healthcare Investors, Inc., REIT, 5.875%, 03/15/24 | 9,500,000 | 10,119,400 | |||||||||
Salix Pharmaceuticals, Ltd., 144A, 6.000%, 01/15/21 (a) | 6,590,000 | 7,084,250 | |||||||||
28,471,850 | |||||||||||
Media: 13.3% | |||||||||||
Altice Financing SA, 144A, 6.500%, 01/15/22 (a) | 2,000,000 | 2,135,000 | |||||||||
Altice Finco SA, 144A, 8.125%, 01/15/24 (a) | 7,250,000 | 8,029,375 | |||||||||
Altice SA, 144A, 7.750%, 05/15/22 (a) | 1,500,000 | 1,605,000 | |||||||||
Columbus International, Inc., 144A, 7.375%, 03/30/21 (a) | 8,500,000 | 9,190,625 | |||||||||
Dish DBS Corp., 5.875%, 07/15/22 (f) | 4,000,000 | 4,350,000 | |||||||||
Expo Event Transco, Inc., 144A, 9.000%, 06/15/21 (a) | 11,050,000 | 11,602,499 | |||||||||
Harland Clarke Holdings Corp., 144A, 6.875%, 03/01/20 (a) | 5,000,000 | 5,318,750 | |||||||||
Harland Clarke Holdings Corp., 144A, 9.250%, 03/01/21 (a)(f) | 5,000,000 | 5,256,250 | |||||||||
Harron Communications, LP/Finance Corp., 144A, 9.125%, 04/01/20 (a) | 2,435,000 | 2,727,200 | |||||||||
Lee Enterprises, Inc., 144A, 9.500%, 03/15/22 (a) | 250,000 | 268,125 | |||||||||
MDC Partners, Inc., 144A, 6.750%, 04/01/20 (a) | 6,891,000 | 7,304,460 | |||||||||
Nara Cable Funding II, Ltd., 144A, 8.500%, 03/01/20 (a)(c)(IE) | 250,000 | 409,421 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Media, continued | |||||||||||
Nara Cable Funding, Ltd., 144A, 8.875%, 12/01/18 (a) | $ | 4,200,000 | $ | 4,504,500 | |||||||
Numericable Group, 144A, 4.875%, 05/15/19 (a) | 1,000,000 | 1,027,500 | |||||||||
Numericable Group, 144A, 6.000%, 05/15/22 (a) | 1,000,000 | 1,041,250 | |||||||||
Quad/Graphics, Inc., 144A, 7.000%, 05/01/22 (a) | 7,000,000 | 7,035,000 | |||||||||
SITV LLC/Finance, 144A, 10.375%, 07/01/19 (a) | 2,000,000 | 2,060,000 | |||||||||
Time, Inc., 144A, 5.750%, 04/15/22 (a)(f) | 5,000,000 | 5,062,500 | |||||||||
Townsquare Radio, LLC/Inc., 144A, 9.000%, 04/01/19 (a) | 6,350,000 | 7,064,375 | |||||||||
WMG Acquisition Corp., 144A, 6.750%, 04/15/22 (a) | 7,000,000 | 7,035,000 | |||||||||
WMG Acquisition Corp., 144A, 5.625%, 04/15/22 (a)(f) | 250,000 | 252,188 | |||||||||
VTR Finance BV, 144A, 6.875%, 01/15/24 (a) | 2,500,000 | 2,690,595 | |||||||||
95,969,613 | |||||||||||
Real Estate: 1.9% | |||||||||||
Forestar USA Real Estate Group, Inc., 144A, 8.500%, 06/01/22 (a) | 3,100,000 | 3,224,000 | |||||||||
Hunt Cos, Inc., 144A, 9.625%, 03/01/21 (a) | 1,000,000 | 1,052,500 | |||||||||
Kennedy-Wilson, Inc., 8.750%, 04/01/19 | 7,800,000 | 8,477,820 | |||||||||
Kennedy-Wilson, Inc., 5.875%, 04/01/24 | 1,000,000 | 1,017,500 | |||||||||
13,771,820 | |||||||||||
Services: 12.0% | |||||||||||
Air Canada, 144A, 7.750%, 04/15/21 (a) | 4,500,000 | 4,792,500 | |||||||||
Algeco Scotsman Global Finance PLC, 144A, 9.000%, 10/15/18 (a)(c)(UK) | 250,000 | 366,315 | |||||||||
Algeco Scotsman Global Finance PLC, 144A, 8.500%, 10/15/18 (a)(f) | 7,850,000 | 8,379,875 | |||||||||
Allegion US Holding Co., Inc., 144A, 5.750%, 10/01/21 (a) | 100,000 | 105,750 |
SEE NOTES TO FINANCIAL STATEMENTS
57
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Services, continued | |||||||||||
Alliance Data Systems Corp., 144A, 5.250%, 12/01/17 (a) | $ | 1,000,000 | $ | 1,050,000 | |||||||
Alliance Data Systems Corp., 144A, 6.375%, 04/01/20 (a) | 500,000 | 535,000 | |||||||||
BlueLine Rental Finance Corp., 144A, 7.000%, 02/01/19 (a) | 2,100,000 | 2,247,000 | |||||||||
Interactive Data Corp., 144A, 5.875%, 04/15/19 (a)(f) | 1,500,000 | 1,535,625 | |||||||||
Jack Cooper Holdings Corp., 144A, 9.250%, 06/01/20 (a) | 9,390,000 | 10,364,212 | |||||||||
Jurassic Holdings III, Inc., 144A, 6.875%, 02/15/21 (a) | 750,000 | 766,875 | |||||||||
Kenan Advantage Group, Inc., The, 144A, 8.375%, 12/15/18 (a) | 5,650,000 | 6,059,625 | |||||||||
Live Nation Entertainment, Inc., 144A, 7.000%, 09/01/20 (a) | 500,000 | 550,000 | |||||||||
Marquette Transportation Co./Finance Corp., 10.875%, 01/15/17 | 7,400,000 | 7,849,550 | |||||||||
Michael Baker Holdings LLC/Finance Corp., 144A, 8.875%, 04/15/19 (a) | 10,000,000 | 10,050,000 | |||||||||
Michael Baker International LLC/CDL Acq Co, Inc., 144A, 8.250%, 10/15/18 (a) | 3,600,000 | 3,852,000 | |||||||||
Navios Maritime Acqusition Corp./Finance US, Inc., 144A, 8.125%, 11/15/21 (a) | 8,000,000 | 8,400,000 | |||||||||
Ridgebury Crude Tankers LLC, 144A, 7.625%, 03/20/17 (a)(e) | 800,000 | 821,334 | |||||||||
Sabre GLBL, Inc., 144A, 8.500%, 05/15/19 (a) | 4,200,000 | 4,677,750 | |||||||||
syncreon Group BV/Global Finance US, Inc., 144A, 8.625%, 11/01/21 (a) | 10,050,000 | 10,251,000 | |||||||||
Vander Intermediate Holding II Corp., 144A, 9.750%, 02/01/19 (a)(f) | 2,100,000 | 2,241,750 | |||||||||
Viking Cruises, Ltd., 144A, 8.500%, 10/15/22 (a) | 500,000 | 555,000 | |||||||||
Zachry Holdings, Inc., 144A, 7.500%, 02/01/20 (a) | 1,000,000 | 1,077,500 | |||||||||
86,528,661 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Technology & Electronics: 8.5% | |||||||||||
ACI Worldwide, Inc., 144A, 6.375%, 08/15/20 (a) | $ | 250,000 | $ | 263,750 | |||||||
Advanced Micro Devices, Inc., 7.750%, 08/01/20 (f) | 3,000,000 | 3,213,750 | |||||||||
Advanced Micro Devices, Inc., 144A, 6.750%, 03/01/19 (a) | 4,950,000 | 5,290,313 | |||||||||
Advanced Micro Devices, Inc., 144A, 7.000%, 07/01/24 (a) | 1,750,000 | 1,791,563 | |||||||||
BCP Singapore VI Cayman Financing Co., Ltd., 144A, 8.000%, 04/15/21 (a) | 6,000,000 | 6,165,000 | |||||||||
BMC Software Finance, Inc., 144A, 8.125%, 07/15/21 (a) | 5,500,000 | 5,685,625 | |||||||||
Brightstar Corp., 144A, 7.250%, 08/01/18 (a) | 2,500,000 | 2,759,375 | |||||||||
Entegris, Inc., 144A, 6.000%, 04/01/22 (a) | 2,100,000 | 2,173,500 | |||||||||
j2 Global, Inc., 8.000%, 08/01/20 | 7,000,000 | 7,612,500 | |||||||||
MMI International, Ltd., 144A, 8.000%, 03/01/17 (a) | 1,000,000 | 1,028,860 | |||||||||
NeuStar, Inc., 4.500%, 01/15/23 (f) | 4,250,000 | 3,697,500 | |||||||||
Nuance Communications, Inc., 2.750%, 08/15/27 (f) | 5,000,000 | 5,306,250 | |||||||||
Syniverse Holdings, Inc., 9.125%, 01/15/19 | 7,013,000 | 7,530,209 | |||||||||
WEX, Inc. 144A, 4.750%, 02/01/23 (a) | 9,250,000 | 8,995,625 | |||||||||
61,513,820 | |||||||||||
Telecommunications: 8.5% | |||||||||||
America Movil SAB de CV, 9.000%, 01/15/16 (b)(d)(MX) | 25,000,000 | 2,063,373 | |||||||||
B Communications, Ltd., 144A, 7.375%, 02/15/21 (a) | 4,000,000 | 4,320,000 | |||||||||
CenturyLink, Inc., 6.450%, 06/15/21 | 3,000,000 | 3,270,000 | |||||||||
Digicel Group, Ltd., 144A, 8.250%, 09/30/20 (a) | 6,000,000 | 6,570,000 | |||||||||
Digicel Group, Ltd., 144A, 7.125%, 04/01/22 (a) | 250,000 | 261,250 | |||||||||
Dycom Investments, Inc., 7.125%, 01/15/21 | 3,000,000 | 3,240,000 |
SEE NOTES TO FINANCIAL STATEMENTS
58
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
CORPORATE BONDS, continued | |||||||||||
Telecommunications, continued | |||||||||||
Eileme 2 AB, 144A, 11.625%, 01/31/20 (a) | $ | 5,400,000 | $ | 6,480,000 | |||||||
Equinix, Inc., 3.000%, 10/15/14 | 2,000,000 | 3,795,000 | |||||||||
Fairpoint Communications, Inc., 144A, 8.750%, 08/15/19 (a) | 3,000,000 | 3,247,500 | |||||||||
Maxcom Telecomunicaciones SAB de CV, 6.000%, 06/15/20 | 4,073,333 | 3,706,733 | |||||||||
Pacnet,Ltd., 144A, 9.000%, 12/12/18 (a) | 6,000,000 | 6,510,000 | |||||||||
Sprint Corp., 144A, 7.875%, 09/15/23 (a)(f) | 1,000,000 | 1,115,000 | |||||||||
Sprint Corp., 144A, 7.125%, 06/15/24 (a) | 5,500,000 | 5,843,750 | |||||||||
Wind Acquisition Holdings Finance SA, 12.250%, 07/15/17 (c)(LU) | 2,252,503 | 3,219,293 | |||||||||
Wind Acquisition Holdings Finance SA, 144A, 12.250%, 07/15/17 (a)(c)(LU) | 1,126,251 | 1,609,646 | |||||||||
Wind Acquisition Holdings Finance SA, 144A, 12.250%, 07/15/17 (a)(f) | 4,505,006 | 4,662,096 | |||||||||
Zayo Group LLC/Zayo Capital, Inc., 8.125%, 01/01/20 | 1,381,000 | 1,510,469 | |||||||||
61,424,110 | |||||||||||
Utility: 0.1% | |||||||||||
FPL Energy National Wind Portfolio LLC, 144A, 6.125%, 03/25/19 (a)(b) | 45,220 | 44,929 | |||||||||
Ormat Funding Corp., 8.250%, 12/30/20 | 422,035 | 422,035 | |||||||||
466,964 | |||||||||||
TOTAL CORPORATE BONDS (Cost $617,977,101) | 641,058,624 | ||||||||||
LOANS: 6.8% | |||||||||||
Consumer Cyclical: 2.2% | |||||||||||
Charlotte Russe, Inc., 6.750%, 05/21/19 (b) | 9,927,487 | 9,877,850 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
BONDS, continued | |||||||||||
LOANS, continued | |||||||||||
Consumer Cyclical, continued | |||||||||||
Charlotte Russe, Inc., Term B, 6.750%, 05/21/19 (b) | $ | 2,000,000 | $ | 1,990,000 | |||||||
Stuart Weitzman Acq Co., LLC, 1.000%, 03/04/20 (b) | 4,000,000 | 3,986,660 | |||||||||
15,854,510 | |||||||||||
Energy: 0.7% | |||||||||||
Green Plains Processing LLC, 1.000%, 06/03/20 | 5,000,000 | 5,042,200 | |||||||||
Healthcare: 0.7% | |||||||||||
Salix Pharmaceuticals, Ltd., 4.250%, 01/02/20 | 4,875,000 | 4,918,802 | |||||||||
Media: 0.0% | |||||||||||
Lee Enterprises, Inc., 7.250%, 03/21/19 | 232,939 | 236,433 | |||||||||
Technology & Electronics: 1.9% | |||||||||||
Internap Network Services Corp., 6.000%, 11/26/19 | 6,965,000 | 7,004,213 | |||||||||
Isola USA Corp., 9.250%, 11/29/18 | 6,912,500 | 6,947,063 | |||||||||
13,951,276 | |||||||||||
Telecommunications: 1.3% | |||||||||||
Fairpoint Communications, Inc., 7.500%, 02/14/19 | 2,984,887 | 3,097,447 | |||||||||
Intelsat Jackson Holdings SA, 3.750%, 06/30/19 | 3,000,000 | 3,009,060 | |||||||||
PRWireless, Inc., 11.250%, 06/29/20 | 3,000,000 | 2,970,000 | |||||||||
9,076,507 | |||||||||||
TOTAL LOANS (Cost $48,730,713) | 49,079,728 | ||||||||||
TOTAL BONDS (Cost $666,707,814) | 690,138,352 | ||||||||||
CERTIFICATES OF DEPOSIT: 0.1% | |||||||||||
One PacificCoast Bank, 1.100%, 01/21/15 | 200,000 | 200,000 | |||||||||
One PacificCoast Bank, 1.250%, 05/10/17 | 100,000 | 100,000 | |||||||||
One PacificCoast Bank, FSB CDARS, 0.120%, 07/10/14 | 200,000 | 200,000 |
SEE NOTES TO FINANCIAL STATEMENTS
59
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World High Yield Bond Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
CERTIFICATES OF DEPOSIT, continued | |||||||||||
One PacificCoast Bank, FSB CDARS, 0.120%, 10/09/14 | $ | 100,000 | $ | 100,000 | |||||||
Self Help Credit Union, 0.550%, 01/04/15 | 100,000 | 100,000 | |||||||||
Urban Partnership Bank, 0.400%, 07/01/14 | 100,564 | 100,564 | |||||||||
Urban Partnership Bank, 0.400%, 08/03/14 | 100,000 | 100,000 | |||||||||
TOTAL CERTIFICATES OF DEPOSIT (Cost $900,564) | 900,564 | ||||||||||
TIME DEPOSIT: 2.6% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/01/14 | 18,599,000 | 18,599,000 | |||||||||
(Cost $3,137,000) | |||||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL FROM SECURITIES LENDING: 4.2% | |||||||||||
State Street Institutional U.S. Government Money Market Fund | 30,177,358 | 30,177,358 | |||||||||
(Cost $30,177,358) | |||||||||||
TOTAL INVESTMENTS: 105.3% (Cost $737,407,927) | 760,912,151 | ||||||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— (NET): -4.2% | (30,177,358 | ) | |||||||||
OTHER ASSETS AND LIABILITIES— | (7,696,677 | ) | |||||||||
(NET):- 1.1% | |||||||||||
NET ASSETS: 100.0% | $ | 723,038,116 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value |
(a) Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers.
(b) Illiquid security.
(c) 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, 2014. The total market value of securities on loan as of June 30, 2014 was $42,771,379.
(g) Non-income producing security.
IE Ireland
LP Limited Partnership
LU Luxembourg
MX Mexico
NL Netherlands
REIT Real Estate Investment Trust
UK United Kingdom
SECURITIES SHORT SOLD: -0.4% | |||||||||||
COMMON STOCK: -0.4% | |||||||||||
Telecommunications: -0.4% | |||||||||||
Equinix, Inc. | (14,000 | ) | $ | (2,941,260 | ) | ||||||
TOTAL SECURITIES SOLD SHORT (Proceeds -$2,701,019) | $ | (2,941,260 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
60
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Global Environmental Markets Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 96.9% | |||||||||||
RENEWABLE & ALTERNATIVE ENERGY: 4.8% | |||||||||||
Solar Energy Generation Equipment: 0.5% | |||||||||||
Trina Solar, Ltd., ADR (a) | 78,500 | $ | 1,007,155 | ||||||||
Renewable Energy Developer & Independent Power Producers (IPPS) : 4.3% | |||||||||||
Enel Green Power SpA | 1,295,182 | 3,665,672 | |||||||||
Huaneng Renewables Corp., Ltd. | 13,490,000 | 4,455,037 | |||||||||
8,120,709 | |||||||||||
ENERGY EFFICIENCY: 34.7% | |||||||||||
Power Network Efficiency: 7.8% | |||||||||||
ABB, Ltd. (a) | 193,710 | 4,457,332 | |||||||||
Emerson Electric Co. | 49,800 | 3,304,728 | |||||||||
Itron, Inc. (a) | 61,385 | 2,489,162 | |||||||||
Quanta Services, Inc. (a) | 131,500 | 4,547,270 | |||||||||
14,798,492 | |||||||||||
Industrial Energy Efficiency: 8.1% | |||||||||||
GEA Group AG | 142,359 | 6,729,903 | |||||||||
Infineon Technologies AG | 147,323 | 1,839,054 | |||||||||
SMC Corp./Japan | 14,300 | 3,831,849 | |||||||||
Spirax-Sarco Engineering PLC | 67,599 | 3,159,742 | |||||||||
15,560,548 | |||||||||||
Buildings Energy Efficiency: 4.8% | |||||||||||
Acuity Brands, Inc. | 11,000 | 1,520,750 | |||||||||
Kingspan Group PLC | 206,234 | 3,466,747 | |||||||||
Legrand SA | 65,844 | 4,032,326 | |||||||||
9,019,823 | |||||||||||
Transport Energy Efficiency: 5.3% | |||||||||||
BorgWarner, Inc. | 66,800 | 4,354,692 | |||||||||
Delphi Automotive PLC | 81,300 | 5,588,562 | |||||||||
9,943,254 | |||||||||||
Consumer Energy Efficiency: 4.6% | |||||||||||
Epistar Corp. (a) | 1,575,000 | 3,904,195 | |||||||||
Murata Manufacturing Co., Ltd. | 50,300 | 4,717,165 | |||||||||
8,621,360 | |||||||||||
Diversified Energy Efficiency: 4.1% | |||||||||||
IMI PLC | 165,535 | 4,209,119 | |||||||||
Siemens AG | 26,612 | 3,513,693 | |||||||||
7,722,812 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
WATER INFRASTRUCTURE & TECHNOLOGIES: 29.8% | |||||||||||
Water Infrastructure: 14.8% | |||||||||||
Beijing Enterprises Water Group, Ltd. | 3,724,000 | $ | 2,489,794 | ||||||||
IDEX Corp. | 44,050 | 3,556,597 | |||||||||
Pentair PLC | 73,050 | 5,268,366 | |||||||||
Roper Industries, Inc. | 23,800 | 3,475,038 | |||||||||
Valmont Industries, Inc. | 23,500 | 3,570,825 | |||||||||
Watts Water Technologies, Inc., Class A | 94,846 | 5,854,844 | |||||||||
Xylem, Inc. | 93,200 | 3,642,256 | |||||||||
27,857,720 | |||||||||||
Water Treatment Equipment: 5.5% | |||||||||||
Kemira Oyj | 278,107 | 4,450,098 | |||||||||
Pall Corp. | 70,500 | 6,019,995 | |||||||||
10,470,093 | |||||||||||
Water Utilities: 9.5% | |||||||||||
American Water Works Co., Inc. | 107,500 | 5,315,875 | |||||||||
Cia de Saneamento Basico do Estado, ADR | 356,500 | 3,821,680 | |||||||||
Manila Water Co., Inc. | 77,304 | 45,195 | |||||||||
Pennon Group PLC | 408,001 | 5,484,041 | |||||||||
Severn Trent PLC | 102,188 | 3,378,103 | |||||||||
18,044,894 | |||||||||||
POLLUTION CONTROL: 12.3% | |||||||||||
Pollution Control Solutions: 3.7% | |||||||||||
ENN Energy Holdings, Ltd. | 653,500 | 4,692,594 | |||||||||
Umicore SA | 50,192 | 2,335,534 | |||||||||
7,028,128 | |||||||||||
Environmental Testing & Gas Sensing: 8.6% | |||||||||||
Agilent Technologies, Inc. | 91,600 | 5,261,504 | |||||||||
ALS, Ltd. | 221,301 | 1,848,543 | |||||||||
Applus Services SA (a) | 87,140 | 1,801,744 | |||||||||
Horiba, Ltd. | 105,899 | 3,800,570 | |||||||||
Thermo Fisher Scientific, Inc. | 30,600 | 3,610,800 | |||||||||
16,323,161 | |||||||||||
WASTE MANAGEMENT & TECHNOLOGIES: 8.2% | |||||||||||
Hazardous Waste Management: 5.6% | |||||||||||
Daiseki Co., Ltd. | 272,686 | 4,897,362 | |||||||||
Stericycle, Inc. (a) | 47,550 | 5,630,871 | |||||||||
10,528,233 |
SEE NOTES TO FINANCIAL STATEMENTS
61
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax World Global Environmental Markets Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
WASTE MANAGEMENT & TECHNOLOGIES, continued | |||||||||||
General Waste Management: 2.6% | |||||||||||
Shanks Group PLC | 2,692,190 | $ | 4,916,852 | ||||||||
DIVERSIFIED ENVIRONMENTAL: 7.1% | |||||||||||
Diversified Environmental: 7.1% | |||||||||||
3M Co. | 24,200 | 3,466,408 | |||||||||
Linde AG | 25,240 | 5,363,400 | |||||||||
Sekisui Chemical Co., Ltd. | 392,200 | 4,547,015 | |||||||||
13,376,823 | |||||||||||
TOTAL COMMON STOCKS (Cost $149,416,755) | 183,340,057 | ||||||||||
TOTAL INVESTMENTS: 96.9% (Cost $149,416,755) | 183,340,057 | ||||||||||
OTHER ASSETS AND LIABILITIES— (Net): 3.1% | 5,838,096 | ||||||||||
NET ASSETS: 100.0% | $ | 189,178,153 |
(a) Non-income producing security.
ADR American Depository Receipt
SUMMARY OF INVESTMENTS BY COUNTRY | |||||||||||
Percent of Net Assets | Value | Percent of Net Assets | |||||||||
Australia | $ | 1,848,543 | 1.0 | % | |||||||
Belgium | 2,335,534 | 1.2 | % | ||||||||
Brazil | 3,821,680 | 2.0 | % | ||||||||
China | 10,154,786 | 5.4 | % | ||||||||
Finland | 4,450,098 | 2.4 | % | ||||||||
France | 4,032,326 | 2.1 | % | ||||||||
Germany | 17,446,050 | 9.2 | % | ||||||||
Hong Kong | 2,489,794 | 1.3 | % | ||||||||
Ireland | 3,466,747 | 1.8 | % | ||||||||
Italy | 3,665,672 | 1.9 | % | ||||||||
Japan | 21,793,961 | 11.4 | % | ||||||||
Philippines | 45,195 | 0.0 | % | ||||||||
Spain | 1,801,744 | 1.0 | % | ||||||||
Switzerland | 4,457,332 | 2.4 | % | ||||||||
Taiwan | 3,904,195 | 2.2 | % | ||||||||
United Kingdom | 32,004,785 | 16.9 | % | ||||||||
United States | 65,621,615 | 34.7 | % | ||||||||
Other assets and liabilities - (Net) | 5,838,096 | 3.1 | % | ||||||||
Total | $ | 189,178,153 | 100.0 | % |
Pax MSCI International ESG Index Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 98.5% | |||||||||||
Australia: 9.4% | |||||||||||
AMP, Ltd. | 58,188 | $ | 290,873 | ||||||||
Australia & New Zealand Banking Group, Ltd | 48,483 | 1,524,523 | |||||||||
Brambles, Ltd. | 32,643 | 282,815 | |||||||||
CFS Retail Property Trust Group, REIT | 133,307 | 256,353 | |||||||||
Commonwealth Bank of Australia | 28,990 | 2,211,010 | |||||||||
Fortescue Metals Group, Ltd. | 41,044 | 169,518 | |||||||||
Goodman Group, REIT | 38,506 | 183,326 | |||||||||
GPT Group, The, REIT | 52,521 | 190,209 | |||||||||
Mirvac Group, REIT | 99,049 | 166,681 | |||||||||
National Australia Bank, Ltd. | 42,084 | 1,300,764 | |||||||||
Newcrest Mining, Ltd. (a) | 24,854 | 249,625 | |||||||||
Orica, Ltd. | 12,122 | 222,637 | |||||||||
Origin Energy, Ltd. | 12,286 | 169,345 | |||||||||
QBE Insurance Group, Ltd. | 22,768 | 233,196 | |||||||||
Ramsay Health Care, Ltd. | 5,611 | 240,998 | |||||||||
Stockland, REIT | 55,809 | 204,119 | |||||||||
Wesfarmers, Ltd. | 22,111 | 872,531 | |||||||||
Westpac Banking Corp. | 55,227 | 1,766,497 | |||||||||
Woodside Petroleum, Ltd. | 14,091 | 546,327 | |||||||||
11,081,347 | |||||||||||
Austria: 0.2% | |||||||||||
OMV AG | 4,343 | 196,195 | |||||||||
Belgium: 0.5% | |||||||||||
Colruyt SA | 3,530 | 179,293 | |||||||||
Delhaize Group SA | 2,530 | 171,198 | |||||||||
KBC Groep NV (a) | 4,247 | 231,042 | |||||||||
581,533 | |||||||||||
Denmark: 1.8% | |||||||||||
Coloplast A/S, Class B | 1,297 | 117,359 | |||||||||
Novo Nordisk A/S, Class B | 35,763 | 1,650,568 | |||||||||
Pandora A/S | 1,813 | 139,136 | |||||||||
Vestas Wind Systems A/S (a) | 3,666 | 184,981 | |||||||||
2,092,044 | |||||||||||
Finland: 0.3% | |||||||||||
Stora Enso OYJ | 14,131 | 137,383 | |||||||||
UPM-Kymmene OYJ | 15,208 | 259,776 | |||||||||
397,159 | |||||||||||
France: 7.6% | |||||||||||
Accor SA | 4,151 | 215,750 | |||||||||
Air Liquide SA | 6,509 | 879,554 | |||||||||
AXA SA | 34,184 | 816,769 | |||||||||
Bouygues SA | 5,006 | 208,301 | |||||||||
Cap Gemini SA | 3,985 | 284,384 |
SEE NOTES TO FINANCIAL STATEMENTS
62
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
France, continued | |||||||||||
Carrefour SA | 12,525 | $ | 461,849 | ||||||||
Cie de St-Gobain | 8,445 | 476,485 | |||||||||
Danone SA | 12,003 | 892,524 | |||||||||
Kering | 1,356 | 297,467 | |||||||||
Lafarge SA | 3,591 | 312,270 | |||||||||
Legrand SA | 5,426 | 332,291 | |||||||||
L'Oreal SA | 4,588 | 789,958 | |||||||||
Renault SA | 3,874 | 350,189 | |||||||||
Schneider Electric SA | 9,214 | 868,819 | |||||||||
Societe BIC SA | 1,411 | 193,078 | |||||||||
Technip SA | 1,838 | 200,822 | |||||||||
Unibail-Rodamco SE, REIT | 1,984 | 577,364 | |||||||||
Vallourec SA | 2,925 | 131,116 | |||||||||
Vinci SA | 8,324 | 622,292 | |||||||||
8,911,282 | |||||||||||
Germany: 8.8% | |||||||||||
adidas AG | 3,664 | 370,490 | |||||||||
Allianz SE | 7,812 | 1,303,931 | |||||||||
BASF SE | 16,514 | 1,920,966 | |||||||||
Bayerische Motoren Werke AG | 5,873 | 743,696 | |||||||||
Deutsche Boerse AG | 3,755 | 291,143 | |||||||||
Deutsche Lufthansa AG | 5,874 | 126,097 | |||||||||
Deutsche Post AG | 16,548 | 597,299 | |||||||||
GEA Group AG | 5,448 | 257,550 | |||||||||
HeidelbergCement AG | 3,193 | 272,069 | |||||||||
Henkel AG & Co. KGaA | 2,513 | 252,722 | |||||||||
Hochtief AG | 1,868 | 161,672 | |||||||||
K+S AG | 5,391 | 177,032 | |||||||||
Linde AG | 3,202 | 680,412 | |||||||||
Metro AG (a) | 3,038 | 132,209 | |||||||||
Muenchener Rueckversicherungs AG | 3,803 | 842,168 | |||||||||
ProSiebenSat.1 Media AG | 5,516 | 245,512 | |||||||||
SAP AG | 17,656 | 1,360,478 | |||||||||
Suedzucker AG | 456 | 9,208 | |||||||||
Volkswagen AG | 2,652 | 694,603 | |||||||||
10,439,257 | |||||||||||
Hong Kong: 0.9% | |||||||||||
Chaoda Modern Agriculture (Holdings), Ltd. (a)(b)(c) | 710,000 | 67,451 | |||||||||
CLP Holdings, Ltd. | 36,000 | 294,807 | |||||||||
Hong Kong Exchanges and Clearing, Ltd. | 24,000 | 447,100 | |||||||||
Li & Fung, Ltd. | 146,000 | 216,632 | |||||||||
1,025,990 | |||||||||||
Ireland: 0.5% | |||||||||||
CRH PLC | 12,705 | 325,468 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Ireland, continued | |||||||||||
Kerry Group PLC, Class A | 2,869 | $ | 215,479 | ||||||||
540,947 | |||||||||||
Israel: 0.1% | |||||||||||
Delek Group, Ltd. | 221 | 91,417 | |||||||||
Italy: 1.1% | |||||||||||
Assicurazioni Generali SpA | 18,053 | 395,370 | |||||||||
Enel Green Power SpA | 40,939 | 115,867 | |||||||||
Intesa Sanpaolo SpA | 208,490 | 643,260 | |||||||||
Pirelli & C. SpA | 7,474 | 119,807 | |||||||||
1,274,304 | |||||||||||
Japan: 21.9% | |||||||||||
Aisin Seiki Co., Ltd. | 4,300 | 171,166 | |||||||||
Asahi Kasei Corp. | 27,000 | 206,699 | |||||||||
Astellas Pharma, Inc. | 43,000 | 565,474 | |||||||||
Canon, Inc. | 21,500 | 702,663 | |||||||||
Central Japan Railway Co. | 3,800 | 542,443 | |||||||||
Chugai Pharmaceutical Co., Ltd. | 5,800 | 163,540 | |||||||||
Daikin Industries, Ltd. | 5,400 | 340,809 | |||||||||
Daiwa House Industry Co., Ltd. | 18,000 | 373,151 | |||||||||
Denso Corp. | 10,200 | 487,260 | |||||||||
Dentsu, Inc. | 6,900 | 281,001 | |||||||||
East Japan Railway Co. | 7,700 | 606,699 | |||||||||
Eisai Co., Ltd. | 7,200 | 302,150 | |||||||||
Fast Retailing Co., Ltd. | 1,100 | 362,373 | |||||||||
Fuji Heavy Industries, Ltd. | 12,600 | 349,382 | |||||||||
FUJIFILM Holdings Corp. | 1,800 | 50,239 | |||||||||
Fujitsu, Ltd. | 46,000 | 344,671 | |||||||||
Hitachi Construction Machinery Co., Ltd. | 8,800 | 175,650 | |||||||||
Honda Motor Co., Ltd. | 30,700 | 1,071,268 | |||||||||
Inpex Corp. | 22,500 | 342,274 | |||||||||
JFE Holdings, Inc. | 12,800 | 264,758 | |||||||||
Kajima Corp. | 36,000 | 159,238 | |||||||||
Kao Corp. | 12,400 | 488,359 | |||||||||
Kawasaki Heavy Industries, Ltd. | 60,000 | 228,731 | |||||||||
KDDI Corp. | 10,000 | 610,135 | |||||||||
Keyence Corp. | 1,000 | 437,288 | |||||||||
Kobe Steel, Ltd. | 79,000 | 118,813 | |||||||||
Komatsu, Ltd. | 18,900 | 438,731 | |||||||||
Konica Minolta, Inc. | 10,500 | 103,783 | |||||||||
Kubota Corp. | 27,000 | 383,138 | |||||||||
Kyocera Corp. | 8,000 | 379,870 | |||||||||
Makita Corp. | 1,900 | 117,427 | |||||||||
Marubeni Corp. | 15,000 | 109,785 |
SEE NOTES TO FINANCIAL STATEMENTS
63
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Japan, continued | |||||||||||
Mazda Motor Corp. | 54,000 | $ | 253,418 | ||||||||
Mitsubishi Corp. | 31,000 | 645,247 | |||||||||
Mitsubishi Electric Corp. | 39,000 | 481,757 | |||||||||
Mitsubishi Motors Corp. | 10,600 | 117,134 | |||||||||
Mitsubishi UFJ Lease & Finance Co., Ltd. | 33,400 | 191,993 | |||||||||
Mitsui Fudosan Co., Ltd. | 17,000 | 573,737 | |||||||||
Mizuho Financial Group, Inc. | 418,000 | 859,200 | |||||||||
Murata Manufacturing Co., Ltd. | 4,800 | 450,147 | |||||||||
NEC Corp. | 38,000 | 121,277 | |||||||||
NGK Spark Plug Co., Ltd. | 8,000 | 225,873 | |||||||||
Nikon Corp. | 7,400 | 116,580 | |||||||||
Nippon Steel & Sumitomo Metal Corp. | 161,000 | 515,765 | |||||||||
Nippon Telegraph & Telephone Corp. | 8,200 | 511,088 | |||||||||
Nissan Motor Co., Ltd. | 43,100 | 408,133 | |||||||||
Nitto Denko Corp. | 2,600 | 121,788 | |||||||||
NKSJ Holdings, Inc. | 7,100 | 191,310 | |||||||||
NTT DOCOMO, Inc. | 38,400 | 655,519 | |||||||||
Panasonic Corp. | 38,400 | 465,487 | |||||||||
Resona Holdings, Inc. | 57,000 | 332,158 | |||||||||
Ricoh Co., Ltd. | 9,000 | 107,268 | |||||||||
Santen Pharmaceutical Co., Ltd. | 4,500 | 253,508 | |||||||||
Sekisui Chemical Co., Ltd. | 16,000 | 185,498 | |||||||||
Sekisui House, Ltd. | 19,800 | 271,705 | |||||||||
Seven & I Holdings Co., Ltd. | 14,000 | 590,097 | |||||||||
Sharp Corp./Japan (a) | 37,000 | 118,796 | |||||||||
Shin-Etsu Chemical Co., Ltd. | 7,700 | 468,223 | |||||||||
SoftBank Corp. | 16,900 | 1,259,438 | |||||||||
Sony Corp. | 17,300 | 289,092 | |||||||||
Sumitomo Electric Industries, Ltd. | 18,900 | 266,064 | |||||||||
Sumitomo Metal Mining Co., Ltd. | 17,000 | 277,473 | |||||||||
Sumitomo Mitsui Financial Group | 23,200 | 973,400 | |||||||||
Suzuken Co., Ltd. | 3,900 | 145,279 | |||||||||
Suzuki Motor Corp. | 8,500 | 266,658 | |||||||||
T&D Holdings, Inc. | 8,600 | 116,973 | |||||||||
Takeda Pharmaceutical Co., Ltd. | 15,400 | 714,756 | |||||||||
Toho Gas Co., Ltd. | 24,000 | 131,816 | |||||||||
Tokyo Electron, Ltd. | 3,900 | 265,802 | |||||||||
Tokyo Gas Co., Ltd. | 78,000 | 455,622 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Japan, continued | |||||||||||
Toray Industries, Inc. | 41,000 | $ | 269,781 | ||||||||
25,943,828 | |||||||||||
Luxembourg: 0.4% | |||||||||||
SES SA | 8,264 | 313,450 | |||||||||
Tenaris SA | 8,065 | 190,029 | |||||||||
503,479 | |||||||||||
Netherlands: 4.9% | |||||||||||
Aegon NV | 41,271 | 360,026 | |||||||||
Akzo Nobel NV | 5,648 | 423,483 | |||||||||
ASML Holding NV | 6,631 | 618,416 | |||||||||
CNH Industrial NV (a) | 19,057 | 195,542 | |||||||||
Gemalto NV | 1,119 | 116,158 | |||||||||
ING Groep NV (a) | 66,102 | 927,575 | |||||||||
Koninklijke Ahold NV | 17,075 | 320,175 | |||||||||
Koninklijke DSM NV | 4,590 | 334,025 | |||||||||
Koninklijke KPN NV (a) | 68,224 | 248,749 | |||||||||
Koninklijke Philips NV | 16,864 | 535,235 | |||||||||
Unilever NV | 31,824 | 1,393,034 | |||||||||
Wolters Kluwer NV | 11,577 | 342,927 | |||||||||
5,815,345 | |||||||||||
New Zealand: 0.2% | |||||||||||
Auckland International Airport, Ltd. | 59,347 | 202,630 | |||||||||
Norway: 1.2% | |||||||||||
DNB ASA | 23,633 | 431,805 | |||||||||
Statoil ASA | 24,618 | 756,729 | |||||||||
Telenor ASA | 7,422 | 168,987 | |||||||||
1,357,521 | |||||||||||
Portugal: 0.3% | |||||||||||
EDP - Energias de Portugal SA | 40,582 | 203,625 | |||||||||
Galp Energia SGPS SA | 6,300 | 115,477 | |||||||||
319,102 | |||||||||||
Singapore: 1.0% | |||||||||||
City Developments, Ltd. | 26,000 | 213,601 | |||||||||
Keppel Land, Ltd. | 71,000 | 192,589 | |||||||||
Singapore Press Holdings, Ltd. | 239,000 | 799,210 | |||||||||
1,205,400 | |||||||||||
Spain: 3.4% | |||||||||||
Amadeus IT Holding SA, Class A | 8,105 | 334,115 | |||||||||
Banco Bilbao Vizcaya Argentaria SA | 99,637 | 1,269,915 | |||||||||
CaixaBank SA | 32,212 | 198,718 |
SEE NOTES TO FINANCIAL STATEMENTS
64
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Spain, continued | |||||||||||
Distribuidora Internacional Alimentacion S | 20,003 | $ | 184,112 | ||||||||
Ferrovial SA | 10,390 | 231,499 | |||||||||
Iberdrola SA | 88,249 | 675,064 | |||||||||
Inditex SA | 4,496 | 691,956 | |||||||||
Repsol SA | 17,844 | 470,487 | |||||||||
4,055,866 | |||||||||||
Sweden: 4.4% | |||||||||||
Assa Abloy AB, Class B | 7,104 | 361,351 | |||||||||
Atlas Copco AB, Class A | 14,328 | 413,666 | |||||||||
Atlas Copco AB, Class B | 9,327 | 248,895 | |||||||||
Hennes & Mauritz AB, Class B | 19,493 | 851,061 | |||||||||
Nordea Bank AB | 59,273 | 835,627 | |||||||||
Sandvik AB | 20,610 | 281,474 | |||||||||
Skandinaviska Enskilda Banken AB, Class A | 30,868 | 412,018 | |||||||||
Skanska AB, Class B | 11,344 | 258,964 | |||||||||
Svenska Cellulosa AB SCA, Class B | 13,630 | 354,978 | |||||||||
Swedbank AB, Class A | 16,658 | 441,222 | |||||||||
TeliaSonera AB | 50,157 | 366,245 | |||||||||
Volvo AB, Class B | 26,412 | 363,604 | |||||||||
5,189,105 | |||||||||||
Switzerland: 9.3% | |||||||||||
Actelion, Ltd. (a) | 2,815 | 356,294 | |||||||||
Geberit AG | 858 | 300,981 | |||||||||
Givaudan SA (a) | 215 | 358,174 | |||||||||
Holcim, Ltd. (a) | 4,567 | 401,153 | |||||||||
Lindt & Spruengli AG | 46 | 234,150 | |||||||||
Lonza Group AG (a) | 1,084 | 117,883 | |||||||||
Novartis AG | 39,598 | 3,585,930 | |||||||||
Roche Holding AG | 12,438 | 3,705,986 | |||||||||
SGS SA | 160 | 382,868 | |||||||||
Sika AG | 48 | 196,109 | |||||||||
STMicroelectronics NV | 16,231 | 145,414 | |||||||||
Swiss Re AG (a) | 6,416 | 570,492 | |||||||||
Zurich Insurance Group AG (a) | 2,004 | 603,577 | |||||||||
10,959,011 | |||||||||||
United Kingdom: 20.3% | |||||||||||
Associated British Foods PLC | 8,458 | 441,106 | |||||||||
Aviva PLC | 56,960 | 496,963 | |||||||||
BG Group PLC | 56,893 | 1,200,519 | |||||||||
BT Group PLC | 137,907 | 906,195 | |||||||||
Bunzl PLC | 9,719 | 269,814 | |||||||||
Capita PLC | 17,964 | 351,938 | |||||||||
Centrica PLC | 90,840 | 485,415 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
United Kingdom, continued | |||||||||||
GKN PLC | 41,756 | $ | 259,220 | ||||||||
GlaxoSmithKline PLC | 81,424 | 2,167,929 | |||||||||
HSBC Holdings PLC | 328,255 | 3,330,171 | |||||||||
InterContinental Hotels Group | 6,160 | 254,847 | |||||||||
ITV PLC | 40,296 | 122,800 | |||||||||
Johnson Matthey PLC | 4,930 | 261,415 | |||||||||
Kingfisher PLC | 52,901 | 324,754 | |||||||||
Land Securities Group PLC, REIT | 18,879 | 334,526 | |||||||||
Legal & General Group PLC | 89,702 | 345,576 | |||||||||
Marks & Spencer Group PLC | 35,069 | 255,103 | |||||||||
Meggitt PLC | 26,964 | 233,456 | |||||||||
National Grid PLC | 69,082 | 994,560 | |||||||||
Next PLC | 3,887 | 430,303 | |||||||||
Old Mutual PLC | 97,114 | 328,193 | |||||||||
Pearson PLC | 20,844 | 411,660 | |||||||||
Prudential PLC | 46,427 | 1,063,710 | |||||||||
Reckitt Benckiser Group PLC | 12,350 | 1,076,860 | |||||||||
Reed Elsevier PLC | 29,711 | 477,453 | |||||||||
RSA Insurance Group PLC | 31,366 | 254,873 | |||||||||
Smiths Group PLC | 12,574 | 278,637 | |||||||||
SSE PLC | 17,256 | 462,272 | |||||||||
Standard Chartered PLC | 44,920 | 918,168 | |||||||||
Standard Life PLC | 50,907 | 325,677 | |||||||||
Tesco PLC | 161,713 | 785,955 | |||||||||
Tullow Oil PLC | 21,516 | 313,891 | |||||||||
Unilever PLC | 24,961 | 1,131,469 | |||||||||
United Utilities Group PLC | 7,903 | 119,257 | |||||||||
Vodafone Group PLC | 471,967 | 1,577,445 | |||||||||
Whitbread PLC | 3,896 | 293,916 | |||||||||
Wolseley PLC | 5,200 | 284,861 | |||||||||
WPP PLC | 23,581 | 513,874 | |||||||||
24,084,781 | |||||||||||
TOTAL COMMON STOCKS (Cost $105,590,378) | 116,267,543 | ||||||||||
PREFERRED STOCK: 0.3% | |||||||||||
Henkel AG & Co. KGaA | 3,155 | 364,505 | |||||||||
(Cost $334,934) | |||||||||||
EXCHANGE TRADED FUNDS: 0.4% | |||||||||||
iShares MSCI EAFE ETF | 6,813 | 465,805 | |||||||||
(Cost $474,989) |
SEE NOTES TO FINANCIAL STATEMENTS
65
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
RIGHTS: 0.0% | |||||||||||
Spain: 0.0% | |||||||||||
Repsol SA, Expires 07/07/2014 (a) | 17,844 | $ | 12,144 | ||||||||
(Cost $11,798) | |||||||||||
TIME DEPOSIT: 0.3% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/01/14 | $ | 327,000 | 327,000 | ||||||||
(Cost $327,000) | |||||||||||
TOTAL INVESTMENTS: 99.5% (Cost $106,739,099) | 117,436,997 | ||||||||||
OTHER ASSETS AND LIABILITIES— (Net): 0.5% | 583,474 | ||||||||||
NET ASSETS: 100.0% | $ | 118,020,471 |
(a) Non-income producing security.
(b) Fair Valued security.
(c) Illiquid security.
REIT Real Estate Investment Trust
SUMMARY OF INVESTMENTS BY SECTOR | |||||||||||
Percent of Net Assets | Value | Percent of Net Assets | |||||||||
Consumer Discretionary | $ | 15,176,641 | 12.9 | % | |||||||
Consumer Staples | 11,044,716 | 9.4 | % | ||||||||
Energy | 4,593,512 | 3.9 | % | ||||||||
Financials | 31,342,643 | 26.6 | % | ||||||||
Health Care | 14,087,655 | 11.9 | % | ||||||||
Industrials | 14,133,929 | 12.0 | % | ||||||||
Information Technology | 5,821,972 | 4.9 | % | ||||||||
Materials | 9,824,370 | 8.3 | % | ||||||||
Telecommunication Services | 6,303,801 | 5.3 | % | ||||||||
Utilities | 3,938,304 | 3.3 | % | ||||||||
Preferred Stock | 364,505 | 0.3 | % | ||||||||
Exchange Traded Funds | 465,805 | 0.4 | % | ||||||||
Rights | 12,144 | 0.0 | % | ||||||||
Time Deposit | 327,000 | 0.3 | % | ||||||||
Other assets and liabilities - (Net) | 583,474 | 0.5 | % | ||||||||
Total | $ | 118,020,471 | 100.0 | % |
Pax Ellevate Global Women's Index Fund
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS: 98.1% | |||||||||||
Consumer Discretionary: 13.2% | |||||||||||
Accor SA | 502 | $ | 26,092 | ||||||||
Best Buy Co., Inc. | 814 | 25,242 | |||||||||
Burberry Group PLC | 6,582 | 167,058 | |||||||||
Cablevision Systems Corp., Class A | 619 | 10,925 | |||||||||
Electrolux AB, Class B | 9,042 | 228,190 | |||||||||
Eutelsat Communications SA | 461 | 16,020 | |||||||||
Foschini Group, Ltd./The | 531 | 5,571 | |||||||||
Fossil Group, Inc. (a) | 153 | 15,992 | |||||||||
Gap Inc., The | 770 | 32,009 | |||||||||
Hennes & Mauritz AB, Class B | 11,397 | 497,591 | |||||||||
Home Depot, Inc., The | 4,402 | 356,386 | |||||||||
Husqvarna AB, Class B | 1,314 | 10,212 | |||||||||
InterContinental Hotels Group | 826 | 34,173 | |||||||||
JCDecaux SA | 218 | 8,142 | |||||||||
Kering | 2,343 | 513,986 | |||||||||
Kingfisher PLC | 7,923 | 48,638 | |||||||||
Kohl's Corp. | 661 | 34,821 | |||||||||
Lagardere SCA | 372 | 12,120 | |||||||||
Lojas Renner SA | 400 | 12,817 | |||||||||
Lululemon Athletica, Inc. (a) | 5,996 | 242,718 | |||||||||
Macy's, Inc. | 8,346 | 484,235 | |||||||||
Marks & Spencer Group PLC | 5,141 | 37,397 | |||||||||
Mattel, Inc. | 1,060 | 41,308 | |||||||||
McDonald's Corp. | 3,107 | 312,999 | |||||||||
MGM China Holdings, Ltd. | 3,600 | 12,508 | |||||||||
Michelin | 573 | 68,417 | |||||||||
Netflix, Inc. (a) | 158 | 69,615 | |||||||||
Next PLC | 503 | 55,684 | |||||||||
NIKE, Inc., Class B | 2,273 | 176,271 | |||||||||
Nordstrom, Inc. | 485 | 32,946 | |||||||||
Omnicom Group, Inc. | 813 | 57,902 | |||||||||
Oriental Land Co., Ltd./Japan | 200 | 34,277 | |||||||||
PetSmart, Inc. | 298 | 17,820 | |||||||||
Publicis Groupe SA | 5,612 | 475,653 | |||||||||
Reed Elsevier NV | 2,134 | 49,004 | |||||||||
Renault SA | 610 | 55,141 | |||||||||
Sanrio Co., Ltd. | 200 | 5,812 | |||||||||
Scripps Networks Interactive, Class A | 7,517 | 609,928 | |||||||||
Sharp Corp./Japan (a) | 5,000 | 16,054 | |||||||||
Sodexo | 3,541 | 381,009 | |||||||||
Sony Corp. | 3,300 | 55,145 | |||||||||
Staples, Inc. | 2,053 | 22,255 |
SEE NOTES TO FINANCIAL STATEMENTS
66
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Consumer Discretionary, continued | |||||||||||
Swatch Group AG/The (Bearer Shs) | 97 | $ | 58,488 | ||||||||
Swatch Group AG/The (Reg Shs) | 137 | 15,199 | |||||||||
Tabcorp Holdings, Ltd. | 2,235 | 7,079 | |||||||||
Telenet Group Holding NV (a) | 167 | 9,518 | |||||||||
Tiffany & Co. | 398 | 39,900 | |||||||||
Tim Hortons, Inc. | 500 | 27,351 | |||||||||
TJX Cos., Inc. | 2,218 | 117,887 | |||||||||
Tractor Supply Co. | 439 | 26,516 | |||||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 3,469 | 317,101 | |||||||||
UMW Holdings Bhd | 1,500 | 5,104 | |||||||||
VF Corp. | 1,119 | 70,497 | |||||||||
Walt Disney Co., The | 5,258 | 450,821 | |||||||||
Whitbread PLC | 548 | 41,341 | |||||||||
Wolters Kluwer NV | 941 | 27,874 | |||||||||
Woolworths Holdings, Ltd./South | 41,677 | 306,357 | |||||||||
Wyndham Worldwide Corp. | 414 | 31,348 | |||||||||
Yue Yuen Industrial Holdings, Ltd. | 2,500 | 8,462 | |||||||||
6,930,926 | |||||||||||
Consumer Staples: 14.8% | |||||||||||
Avon Products, Inc. | 9,515 | 139,014 | |||||||||
Beiersdorf AG | 324 | 31,313 | |||||||||
Campbell Soup Co. | 639 | 29,273 | |||||||||
Carlsberg A/S, Class B | 333 | 35,865 | |||||||||
Carrefour SA | 1,960 | 72,273 | |||||||||
Clorox Co., The | 399 | 36,469 | |||||||||
Coca-Cola Amatil, Ltd. | 1,807 | 16,135 | |||||||||
Coca-Cola Co., The | 12,387 | 524,713 | |||||||||
Coca-Cola Enterprises, Inc. | 777 | 37,125 | |||||||||
Colgate-Palmolive Co. | 2,906 | 198,131 | |||||||||
Danone SA | 1,825 | 135,704 | |||||||||
Delhaize Group SA | 335 | 22,668 | |||||||||
Diageo PLC | 19,525 | 621,853 | |||||||||
Dr. Pepper Snapple Group, Inc. | 619 | 36,261 | |||||||||
Estee Lauder Cos, Inc., Class A | 10,849 | 805,647 | |||||||||
General Mills, Inc. | 2,001 | 105,133 | |||||||||
Henkel AG & Co. KGaA | 406 | 40,830 | |||||||||
J Sainsbury PLC | 4,096 | 22,110 | |||||||||
JM Smucker Co., The | 317 | 33,783 | |||||||||
Kellogg Co. | 818 | 53,743 | |||||||||
Keurig Green Mountain, Inc. | 365 | 45,483 | |||||||||
Kimberly-Clark Corp. | 1,204 | 133,909 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Consumer Staples, continued | |||||||||||
Koninklijke Ahold NV | 2,889 | $ | 54,172 | ||||||||
Kraft Foods Group, Inc. | 1,861 | 111,567 | |||||||||
Mead Johnson Nutrition Co. | 632 | 58,883 | |||||||||
Mondelez International, Inc., Class A | 17,182 | 646,215 | |||||||||
Nestle SA | 10,259 | 794,938 | |||||||||
Orkla ASA | 2,382 | 21,197 | |||||||||
PepsiCo, Inc. | 11,063 | 988,367 | |||||||||
Pernod Ricard SA | 677 | 81,322 | |||||||||
Procter & Gamble Co., The | 11,169 | 877,772 | |||||||||
Remy Cointreau SA | 79 | 7,268 | |||||||||
Shiseido Co., Ltd. | 1,100 | 20,063 | |||||||||
Svenska Cellulosa AB SCA, Class B | 1,823 | 47,478 | |||||||||
Tate & Lyle PLC | 1,464 | 17,129 | |||||||||
Tesco PLC | 26,072 | 126,715 | |||||||||
Tiger Brands, Ltd. | 441 | 12,718 | |||||||||
Unilever NV | 5,016 | 219,566 | |||||||||
Unilever PLC | 3,966 | 179,777 | |||||||||
Wesfarmers, Ltd. | 3,726 | 147,033 | |||||||||
Whole Foods Market, Inc. | 1,058 | 40,871 | |||||||||
Woolworths, Ltd. | 4,072 | 135,217 | |||||||||
7,765,703 | |||||||||||
Energy: 1.8% | |||||||||||
Aker Solutions ASA | 481 | 8,348 | |||||||||
ConocoPhillips | 3,463 | 296,883 | |||||||||
Core Laboratories NV | 142 | 23,723 | |||||||||
Delek Group, Ltd. | 15 | 6,205 | |||||||||
Encana Corp. | 2,200 | 52,121 | |||||||||
Energen Corp. | 218 | 19,376 | |||||||||
Grupa Lotos SA (a) | 179 | 2,182 | |||||||||
Lundin Petroleum AB (a) | 695 | 14,048 | |||||||||
Marathon Oil Corp. | 2,071 | 82,674 | |||||||||
Neste Oil OYJ | 405 | 7,903 | |||||||||
Noble Corp PLC | 754 | 25,304 | |||||||||
Petronas Dagangan BHD | 800 | 5,994 | |||||||||
Phillips 66 | 1,791 | 144,050 | |||||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 4,578 | 7,909 | |||||||||
Statoil ASA | 3,411 | 104,850 | |||||||||
Technip SA | 320 | 34,964 | |||||||||
TransCanada Corp. | 2,200 | 105,005 | |||||||||
941,539 | |||||||||||
Financials: 22.8% | |||||||||||
3i Group PLC | 3,141 | 21,587 | |||||||||
Aberdeen Asset Management PLC | 2,977 | 23,104 | |||||||||
Alior Bank SA (a) | 119 | 3,251 |
SEE NOTES TO FINANCIAL STATEMENTS
67
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Financials, continued | |||||||||||
Allianz SE | 1,443 | $ | 240,857 | ||||||||
Allstate Corp., The | 1,396 | 81,973 | |||||||||
American Tower Corp., REIT | 1,250 | 112,475 | |||||||||
AMP, Ltd. | 9,071 | 45,345 | |||||||||
Aon PLC | 892 | 80,360 | |||||||||
Assicurazioni Generali SpA | 3,710 | 81,251 | |||||||||
Australia & New Zealand Banking Group, Ltd | 8,415 | 264,605 | |||||||||
AXA SA | 5,696 | 136,096 | |||||||||
Banca Monte dei Paschi di Siena SpA (a) | 10,090 | 19,550 | |||||||||
Banco Santander SA | 36,169 | 377,939 | |||||||||
Bank Hapoalim BM | 3,273 | 18,905 | |||||||||
Bank Leumi Le-Israel BM (a) | 3,928 | 15,310 | |||||||||
Bank of Montreal | 2,000 | 147,285 | |||||||||
Bank of Nova Scotia | 3,700 | 246,678 | |||||||||
Bank of the Philippine Islands | 2,100 | 4,378 | |||||||||
Bank Pekao SA | 376 | 21,536 | |||||||||
Barclays Africa Group, Ltd. | 927 | 14,077 | |||||||||
BDO Unibank, Inc. | 3,980 | 8,522 | |||||||||
Bendigo & Adelaide Bank, Ltd. | 13,031 | 149,920 | |||||||||
BNP Paribas SA | 3,077 | 209,109 | |||||||||
Canadian Imperial Bank of Commerce | 1,300 | 118,298 | |||||||||
CFS Retail Property Trust Group, REIT | 6,140 | 11,807 | |||||||||
Chubb Corp., The | 778 | 71,708 | |||||||||
CNP Assurances | 544 | 11,291 | |||||||||
Comerica, Inc. | 544 | 27,287 | |||||||||
Commonwealth Bank of Australia | 5,031 | 383,705 | |||||||||
DBS Group Holdings, Ltd. | 6,000 | 80,698 | |||||||||
Deutsche Bank AG | 4,326 | 152,037 | |||||||||
Deutsche Boerse AG | 605 | 46,908 | |||||||||
Dexus Property Group, REIT | 16,070 | 16,819 | |||||||||
Digital Realty Trust, Inc., REIT | 398 | 23,211 | |||||||||
Direct Line Insurance Group PLC | 3,332 | 15,377 | |||||||||
DNB ASA | 24,446 | 446,660 | |||||||||
Duke Realty Corp., REIT | 1,020 | 18,523 | |||||||||
Eaton Vance Corp. | 380 | 14,360 | |||||||||
Eurazeo SA | 104 | 8,654 | |||||||||
Federal Realty Investment Trust, REIT | 204 | 24,668 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Financials, continued | |||||||||||
First Capital Realty, Inc. | 300 | $ | 5,235 | ||||||||
Gjensidige Forsikring ASA | 5,404 | 96,911 | |||||||||
GPT Group, The, REIT | 5,010 | 18,144 | |||||||||
Haci Omer Sabanci Holding AS | 2,431 | 11,355 | |||||||||
Hang Seng Bank, Ltd. | 26,700 | 437,030 | |||||||||
Hartford Financial Services Group | 1,277 | 45,729 | |||||||||
HCP, Inc., REIT | 1,469 | 60,787 | |||||||||
Host Hotels & Resorts, Inc., REIT | 2,355 | 51,834 | |||||||||
Hysan Development Co, Ltd. | 3,000 | 14,090 | |||||||||
ICADE, REIT | 111 | 11,898 | |||||||||
ING Groep NV (a) | 11,823 | 165,906 | |||||||||
Insurance Australia Group, Ltd. | 7,252 | 39,944 | |||||||||
Intact Financial Corp | 11,400 | 786,104 | |||||||||
Investment AB Kinnevik, Class B | 679 | 28,931 | |||||||||
Investor AB, Class B | 1,453 | 54,446 | |||||||||
Keppel Land, Ltd. | 3,000 | 8,138 | |||||||||
KeyCorp. | 40,173 | 575,679 | |||||||||
Klepierre, REIT | 308 | 15,694 | |||||||||
Lend Lease Group | 1,692 | 20,917 | |||||||||
Liberty Property Trust, REIT (a) | 471 | 17,865 | |||||||||
Macquarie Group, Ltd. | 899 | 50,572 | |||||||||
Manulife Financial Corp. | 5,500 | 109,325 | |||||||||
MetLife, Inc. | 2,769 | 153,846 | |||||||||
Mirvac Group, REIT | 56,520 | 95,113 | |||||||||
Mizrahi Tefahot Bank, Ltd. | 406 | 5,249 | |||||||||
National Bank of Canada | 1,100 | 46,658 | |||||||||
Nedbank Group, Ltd. | 555 | 11,964 | |||||||||
Nordea Bank AB | 9,610 | 135,481 | |||||||||
People's United Financial, Inc. | 958 | 14,533 | |||||||||
Principal Financial Group, Inc. | 15,320 | 773,354 | |||||||||
Prudential Financial, Inc. | 1,332 | 118,242 | |||||||||
QBE Insurance Group, Ltd. | 3,953 | 40,488 | |||||||||
Realogy Holdings Corp. (a) | 473 | 17,837 | |||||||||
Regions Financial Corp. | 4,076 | 43,287 | |||||||||
Resona Holdings, Inc. | 6,800 | 39,626 | |||||||||
Royal Bank of Canada | 4,500 | 321,691 | |||||||||
Sampo OYJ, Class A | 1,390 | 70,268 | |||||||||
Sanlam, Ltd. | 4,872 | 28,287 | |||||||||
SEI Investments Co. | 457 | 14,976 |
SEE NOTES TO FINANCIAL STATEMENTS
68
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Financials, continued | |||||||||||
Skandinaviska Enskilda Banken AB, Class A | 4,729 | $ | 63,121 | ||||||||
Societe Generale SA | 2,283 | 119,727 | |||||||||
Sun Life Financial, Inc. | 1,900 | 69,836 | |||||||||
Suncorp Group, Ltd. | 3,977 | 50,786 | |||||||||
Svenska Handelsbanken AB, Class A | 1,593 | 77,897 | |||||||||
Swedbank AB, Class A | 15,728 | 416,589 | |||||||||
Toronto-Dominion Bank, The | 19,800 | 1,019,271 | |||||||||
Travelers Cos., Inc., The | 1,114 | 104,794 | |||||||||
Tryg A/S | 77 | 7,780 | |||||||||
UDR, Inc., REIT | 782 | 22,389 | |||||||||
UniCredit SpA | 13,283 | 111,064 | |||||||||
Unione di Banche Italiane SCpA | 2,586 | 22,346 | |||||||||
US Bancorp | 5,570 | 241,292 | |||||||||
Ventas, Inc., REIT | 977 | 62,626 | |||||||||
Wendel SA | 104 | 14,900 | |||||||||
Westpac Banking Corp. | 9,740 | 311,545 | |||||||||
Weyerhaeuser Co., REIT | 22,322 | 738,635 | |||||||||
Willis Group Holdings PLC | 512 | 22,170 | |||||||||
Zurich Insurance Group AG (a) | 474 | 142,762 | |||||||||
11,973,088 | |||||||||||
Health Care: 8.8% | |||||||||||
Aetna, Inc. | 10,839 | 878,825 | |||||||||
AmerisourceBergen Corp. | 732 | 53,187 | |||||||||
AstraZeneca PLC | 3,796 | 282,413 | |||||||||
Becton Dickinson & Co. | 605 | 71,572 | |||||||||
Biogen Idec, Inc. (a) | 772 | 243,419 | |||||||||
Boston Scientific Corp. (a) | 4,240 | 54,145 | |||||||||
Bristol-Myers Squibb Co. | 5,380 | 260,984 | |||||||||
Cardinal Health, Inc. | 1,103 | 75,622 | |||||||||
Catamaran Corp (a) | 700 | 30,911 | |||||||||
Celesio AG (a) | 143 | 5,085 | |||||||||
CSL, Ltd. | 1,582 | 99,307 | |||||||||
Elekta AB, Class B | 1,115 | 14,162 | |||||||||
Eli Lilly & Co. | 3,194 | 198,571 | |||||||||
Essilor International SA | 621 | 65,811 | |||||||||
Gilead Sciences, Inc. (a) | 4,865 | 403,357 | |||||||||
GlaxoSmithKline PLC | 15,119 | 402,546 | |||||||||
Hologic, Inc. (a) | 825 | 20,914 | |||||||||
McKesson Corp. | 737 | 137,237 | |||||||||
Medtronic, Inc. | 3,082 | 196,508 | |||||||||
Netcare, Ltd. | 2,734 | 7,377 | |||||||||
Patterson Cos., Inc. | 264 | 10,431 | |||||||||
Perrigo Co. PLC | 407 | 59,324 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Health Care, continued | |||||||||||
Sanofi | 3,701 | $ | 393,377 | ||||||||
Shire PLC | 1,705 | 133,745 | |||||||||
Smith & Nephew PLC | 2,693 | 47,661 | |||||||||
St. Jude Medical, Inc. | 886 | 61,356 | |||||||||
Taisho Pharmaceutical Holdings | 100 | 7,295 | |||||||||
Terumo Corp. | 1,000 | 22,403 | |||||||||
UCB SA | 334 | 28,257 | |||||||||
UnitedHealth Group, Inc. | 3,197 | 261,355 | |||||||||
Vertex Pharmaceuticals, Inc. (a) | 800 | 75,744 | |||||||||
Waters Corp. (a) | 253 | 26,423 | |||||||||
4,629,324 | |||||||||||
Industrials: 9.2% | |||||||||||
Aeroports de Paris | 92 | 12,129 | |||||||||
Alfa Laval AB | 1,005 | 25,879 | |||||||||
Atlas Copco AB, Class A | 2,120 | 61,207 | |||||||||
Atlas Copco AB, Class B | 1,249 | 33,330 | |||||||||
Auckland International Airport, Ltd. | 2,820 | 9,628 | |||||||||
Bouygues SA | 618 | 25,715 | |||||||||
Bureau Veritas SA | 746 | 20,719 | |||||||||
Canadian Pacific Railway, Ltd. | 600 | 108,698 | |||||||||
Capita PLC | 1,967 | 38,536 | |||||||||
CH Robinson Worldwide, Inc. | 455 | 29,024 | |||||||||
Cie de St-Gobain | 1,293 | 72,954 | |||||||||
Cummins, Inc. | 546 | 84,242 | |||||||||
Deutsche Lufthansa AG | 12,796 | 274,692 | |||||||||
Deutsche Post AG | 2,947 | 106,372 | |||||||||
DSV A/S | 579 | 18,880 | |||||||||
Dun & Bradstreet Corp., The | 117 | 12,893 | |||||||||
easyJet PLC | 518 | 12,097 | |||||||||
Experian PLC | 3,191 | 53,912 | |||||||||
FedEx Corp. | 965 | 146,082 | |||||||||
Fraport AG Frankfurt Airport Svc Worldwide | 124 | 8,749 | |||||||||
General Electric Co. | 31,445 | 826,375 | |||||||||
Groupe Eurotunnel SA | 1,728 | 23,378 | |||||||||
Hertz Global Holdings, Inc. (a) | 1,530 | 42,886 | |||||||||
Honeywell International, Inc. | 2,297 | 213,506 | |||||||||
Japan Airlines Co., Ltd. | 200 | 11,058 | |||||||||
Kone OYJ, Class B | 950 | 39,611 | |||||||||
Koninklijke Philips NV | 3,091 | 98,103 | |||||||||
Legrand SA | 847 | 51,871 | |||||||||
Lockheed Martin Corp. | 6,243 | 1,003,437 | |||||||||
Manpowergroup, Inc. | 241 | 20,449 |
SEE NOTES TO FINANCIAL STATEMENTS
69
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Industrials, continued | |||||||||||
Masco Corp. | 1,093 | $ | 24,265 | ||||||||
Metso OYJ | 408 | 15,446 | |||||||||
MISC Bhd | 3,200 | 6,478 | |||||||||
Mitsubishi Corp. | 4,400 | 91,583 | |||||||||
MTR Corp. Ltd. | 4,500 | 17,359 | |||||||||
Nippon Yusen KK | 6,000 | 17,307 | |||||||||
Pall Corp. | 349 | 29,801 | |||||||||
Qantas Airways, Ltd. (a) | 3,198 | 3,804 | |||||||||
Randstad Holding NV | 408 | 22,117 | |||||||||
Siemens AG | 2,449 | 323,352 | |||||||||
SKF AB, Class B | 1,226 | 31,260 | |||||||||
Societe BIC SA | 90 | 12,315 | |||||||||
Southwest Airlines Co. | 540 | 14,504 | |||||||||
Thales SA | 278 | 16,809 | |||||||||
TNT Express NV | 1,377 | 12,458 | |||||||||
Transurban Group | 5,177 | 36,076 | |||||||||
United Parcel Service, Inc., Class B | 2,282 | 234,270 | |||||||||
United Technologies Corp. | 2,699 | 311,600 | |||||||||
Vallourec SA | 396 | 17,751 | |||||||||
Vinci SA | 1,471 | 109,970 | |||||||||
Wartsila OYJ Abp | 554 | 27,457 | |||||||||
4,862,394 | |||||||||||
Information Technology: 14.8% | |||||||||||
Accenture PLC, Class A | 1,957 | 158,204 | |||||||||
Akamai Technologies, Inc. (a) | 530 | 32,362 | |||||||||
ASML Holding NV | 1,053 | 98,204 | |||||||||
Atos SE | 228 | 18,990 | |||||||||
Autodesk, Inc. (a) | 674 | 38,000 | |||||||||
Cap Gemini SA | 449 | 32,042 | |||||||||
Cisco Systems, Inc. | 16,749 | 416,213 | |||||||||
Computershare, Ltd. | 1,417 | 16,678 | |||||||||
Dassault Systemes SA | 195 | 25,073 | |||||||||
Ericsson, Class B | 46,700 | 564,171 | |||||||||
Facebook, Inc., Class A (a) | 5,655 | 380,525 | |||||||||
Google, Inc., Class A | 1,129 | 660,092 | |||||||||
Google, Inc., Class C (a) | 760 | 437,213 | |||||||||
Hewlett-Packard Co. | 5,750 | 193,660 | |||||||||
Hexagon AB, Class B | 735 | 23,681 | |||||||||
IBM | 3,253 | 589,671 | |||||||||
Intel Corp. | 14,718 | 454,786 | |||||||||
Intuit, Inc. | 849 | 68,370 | |||||||||
MasterCard, Inc., Class A | 3,313 | 243,406 | |||||||||
Microsoft Corp. | 24,283 | 1,012,601 | |||||||||
Nokia OYJ (a) | 11,832 | 89,530 | |||||||||
Open Text Corp. | 500 | 23,991 | |||||||||
Oracle Corp. | 11,285 | 457,381 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Information Technology, continued | |||||||||||
QUALCOMM, Inc. | 5,353 | $ | 423,958 | ||||||||
Texas Instruments, Inc. | 3,322 | 158,758 | |||||||||
Visa, Inc., Class A | 1,607 | 338,611 | |||||||||
Western Union Co., The | 1,712 | 29,686 | |||||||||
Xerox Corp | 58,194 | 723,933 | |||||||||
Yahoo!, Inc. (a) | 3,024 | 106,233 | |||||||||
7,816,023 | |||||||||||
Materials: 2.1% | |||||||||||
Air Liquide SA | 1,060 | 143,237 | |||||||||
Albemarle Corp. | 248 | 17,732 | |||||||||
Amcor, Ltd. | 3,797 | 37,346 | |||||||||
Boliden AB | 857 | 12,433 | |||||||||
Boral, Ltd. | 2,310 | 11,428 | |||||||||
Ecolab, Inc. | 857 | 95,418 | |||||||||
EI du Pont de Nemours & Co. | 2,953 | 193,244 | |||||||||
EMS-Chemie Holding AG | 26 | 10,375 | |||||||||
Fletcher Building, Ltd. | 2,037 | 15,703 | |||||||||
Gold Fields, Ltd. | 2,096 | 7,751 | |||||||||
International Flavors & Fragrances, Inc. | 251 | 26,174 | |||||||||
International Paper Co. | 1,287 | 64,955 | |||||||||
Kumba Iron Ore, Ltd. | 222 | 7,103 | |||||||||
Lafarge SA | 569 | 49,480 | |||||||||
Norsk Hydro ASA | 4,156 | 22,254 | |||||||||
Novozymes A/S, Class B | 705 | 35,360 | |||||||||
Orica, Ltd. | 1,217 | 22,352 | |||||||||
Potash Corp. of Saskatchewan, Inc. | 2,600 | 98,878 | |||||||||
Rexam PLC | 2,466 | 22,571 | |||||||||
Stora Enso OYJ | 1,759 | 17,101 | |||||||||
Syngenta AG | 301 | 111,204 | |||||||||
Umicore SA | 367 | 17,077 | |||||||||
UPM-Kymmene OYJ | 1,657 | 28,304 | |||||||||
Yara International ASA | 528 | 26,452 | |||||||||
1,093,932 | |||||||||||
Telecommunication Services: 5.4% | |||||||||||
Advanced Info Service PLC | 3,000 | 21,399 | |||||||||
AT&T, Inc. | 16,633 | 588,143 | |||||||||
Belgacom SA | 469 | 15,569 | |||||||||
Bell Aliant, Inc. | 300 | 7,841 | |||||||||
BT Group PLC | 25,279 | 166,110 | |||||||||
Deutsche Telekom AG | 24,440 | 428,654 | |||||||||
Elisa OYJ | 436 | 13,337 | |||||||||
Frontier Communications Corp. | 35,752 | 208,792 | |||||||||
Orange SA | 5,845 | 92,481 |
SEE NOTES TO FINANCIAL STATEMENTS
70
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax Ellevate Global Women's Index Fund, continued
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Telecommunication Services, continued | |||||||||||
Rogers Communications, Inc., Class B | 1,200 | $ | 48,290 | ||||||||
Singapore Telecommunications, Ltd. | 26,000 | 80,358 | |||||||||
Tele2 AB, Class B | 989 | 11,639 | |||||||||
Telecom Corp. of New Zealand, Ltd. | 5,400 | 12,671 | |||||||||
Telefonica Deutschland Holding AG (a) | 3,551 | 29,354 | |||||||||
Telekom Malaysia Bhd | 3,000 | 5,933 | |||||||||
Telenor ASA | 2,179 | 49,612 | |||||||||
TeliaSonera AB | 32,482 | 237,183 | |||||||||
Telstra Corp., Ltd. | 13,871 | 68,145 | |||||||||
Verizon Communications, Inc. | 13,086 | 640,298 | |||||||||
Vivendi SA (a) | 3,775 | 92,380 | |||||||||
Vodacom Group, Ltd. | 1,066 | 13,176 | |||||||||
2,831,365 | |||||||||||
Utilities: 5.2% | |||||||||||
AGL Energy, Ltd. | 1,751 | 25,577 | |||||||||
Alliant Energy Corp. | 346 | 21,058 | |||||||||
American Electric Power Co., Inc. | 1,535 | 85,607 | |||||||||
ATCO Ltd., Class I | 300 | 14,541 | |||||||||
Canadian Utilities, Ltd., Class A | 19,000 | 712,244 | |||||||||
Centrica PLC | 16,317 | 87,192 | |||||||||
Cheung Kong Infrastructure Holdings, Ltd. | 2,000 | 13,868 | |||||||||
Cia de Saneamento Basico do Estado de Sao | 1,000 | 10,659 | |||||||||
Contact Energy, Ltd. | 1,086 | 5,044 | |||||||||
Duke Energy Corp. | 2,213 | 164,182 | |||||||||
Electricite de France SA | 735 | 23,144 | |||||||||
Enea SA | 616 | 3,204 | |||||||||
Enel Green Power SpA | 5,281 | 14,946 | |||||||||
Fortum OYJ | 27,605 | 741,249 | |||||||||
GDF Suez | 4,136 | 113,953 | |||||||||
Integrys Energy Group, Inc. | 247 | 17,569 | |||||||||
National Grid PLC | 12,194 | 175,555 | |||||||||
NiSource, Inc. | 971 | 38,199 | |||||||||
Pepco Holdings, Inc. | 790 | 21,709 | |||||||||
Pinnacle West Capital Corp. | 350 | 20,244 | |||||||||
Public Service Enterprise Group, Inc. | 1,605 | 65,468 | |||||||||
Red Electrica Corp. SA | 328 | 29,983 | |||||||||
Sempra Energy | 717 | 75,077 | |||||||||
Snam SpA | 6,109 | 36,794 |
Percent of Net Assets Name of Issuer and Title of Issue | Shares/ Principal/ Contracts | Value | |||||||||
COMMON STOCKS, continued | |||||||||||
Utilities, continued | |||||||||||
SSE PLC | 2,968 | $ | 79,510 | ||||||||
Suez Environnement Co. | 868 | 16,605 | |||||||||
Tenaga Nasional Bhd | 8,100 | 30,772 | |||||||||
TransAlta Corp. | 900 | 11,032 | |||||||||
United Utilities Group PLC | 2,059 | 31,071 | |||||||||
Xcel Energy, Inc. | 1,558 | 50,214 | |||||||||
2,736,270 | |||||||||||
TOTAL COMMON STOCKS (Cost $48,313,040) | 51,580,564 | ||||||||||
PREFERRED STOCKS: 0.1% | |||||||||||
Henkel AG & Co. KGaA | 565 | 65,276 | |||||||||
TOTAL PREFERRED STOCKS (Cost $65,499) | 65,276 | ||||||||||
EXCHANGE TRADED FUNDS: 1.2% | |||||||||||
Vanguard Total World Stock ETF | 10,000 | 622,300 | |||||||||
(Cost $620,349) | |||||||||||
TIME DEPOSIT: 1.4% | |||||||||||
State Street Euro Dollar Time Deposit, 0.010%, 07/01/14 | $ | 750,000 | 750,000 | ||||||||
(Cost $750,000) | |||||||||||
TOTAL INVESTMENTS: 100.8% (Cost $49,748,888) | 53,018,140 | ||||||||||
OTHER ASSETS AND LIABILITIES— (Net): -0.8% | (401,391 | ) | |||||||||
NET ASSETS: 100.0% | $ | 52,616,749 |
(a) Non-income producing security.
REIT Real Estate Investment Trust
SEE NOTES TO FINANCIAL STATEMENTS
71
June 30, 2014
Schedule of Investments (Unaudited), continued
Pax Ellevate Global Women's Index Fund, continued
SUMMARY OF INVESTMENTS BY COUNTRY | |||||||||||
Percent of Net Assets | Value | Percent of Net Assets | |||||||||
Australia | $ | 2,125,886 | 4.0 | % | |||||||
Belgium | 93,089 | 0.2 | % | ||||||||
Brazil | 23,476 | 0.0 | % | ||||||||
Canada | 4,111,285 | 7.8 | % | ||||||||
Denmark | 97,885 | 0.2 | % | ||||||||
Finland | 1,050,206 | 2.0 | % | ||||||||
France | 3,845,664 | 7.3 | % | ||||||||
Germany | 1,753,479 | 3.3 | % | ||||||||
Hong Kong | 503,317 | 1.0 | % | ||||||||
Ireland | 217,528 | 0.4 | % | ||||||||
Israel | 45,669 | 0.1 | % | ||||||||
Italy | 285,951 | 0.6 | % | ||||||||
Japan | 320,623 | 0.6 | % | ||||||||
Malaysia | 54,281 | 0.1 | % | ||||||||
Netherlands | 771,127 | 1.5 | % | ||||||||
New Zealand | 43,046 | 0.1 | % | ||||||||
Norway | 776,284 | 1.5 | % | ||||||||
Philippines | 12,900 | 0.0 | % | ||||||||
Poland | 38,082 | 0.1 | % | ||||||||
Singapore | 169,194 | 0.3 | % | ||||||||
South Africa | 414,381 | 0.8 | % | ||||||||
Spain | 407,922 | 0.8 | % | ||||||||
Sweden | 2,588,928 | 4.9 | % | ||||||||
Switzerland | 1,132,966 | 2.2 | % | ||||||||
Thailand | 21,399 | 0.0 | % | ||||||||
Turkey | 11,355 | 0.0 | % | ||||||||
United Kingdom | 3,072,695 | 5.8 | % | ||||||||
United States | 27,657,222 | 52.6 | % | ||||||||
ETF | 622,300 | 1.2 | % | ||||||||
Time Deposit | 750,000 | 1.4 | % | ||||||||
Other assets and liabilities - (Net) | (401,391 | ) | -0.8 | % | |||||||
Total | $ | 52,616,749 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
72
THIS PAGE INTENTIONALLY LEFT BLANK
June 30, 2014
Statements of Assets and Liabilities (Unaudited)
Balanced Fund | Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||
Assets | |||||||||||||||||||
Investments, at cost—note A | $ | 1,682,404,442 | $ | 125,827,156 | $ | 140,486,067 | $ | 737,407,927 | |||||||||||
Investments in unaffiliated issuers, at value | $ | 1,976,555,194 | $ | 186,632,788 | $ | 146,085,914 | $ | 760,912,151 | |||||||||||
Investments in affiliated issuers, at value | 19,575,208 | — | — | — | |||||||||||||||
Total investments, at value—Note A1 | 1,996,130,402 | 186,632,788 | 146,085,914 | 760,912,151 | |||||||||||||||
Cash | 11,685 | 840 | 871 | 2,510,829 | |||||||||||||||
Foreign currency at value (cost $1,667; $452,624 and $13,258, respectively) | 1,693 | — | — | — | |||||||||||||||
Cash deposits for securities sold short | — | — | — | 2,984,000 | |||||||||||||||
Prepaid expenses | 92,502 | 12,413 | 13,505 | 68,519 | |||||||||||||||
Receivables: | |||||||||||||||||||
Capital stock sold | 626,985 | 286,981 | 335,090 | 1,047,811 | |||||||||||||||
Dividends and interest—Note A | 4,603,370 | 103,734 | 134,456 | 11,485,026 | |||||||||||||||
Investment securities sold | 24,297,484 | 916,956 | 66,842 | 267,405 | |||||||||||||||
Other | 13,501 | 31,659 | 2,767 | 15,520 | |||||||||||||||
Total Assets | 2,025,777,622 | 187,985,371 | 146,639,445 | 779,291,261 | |||||||||||||||
Liabilities | |||||||||||||||||||
Collateral on securities loaned, at value | 7,033,718 | 4,967,563 | 7,586,765 | 30,177,358 | |||||||||||||||
Payables: | |||||||||||||||||||
Capital stock reacquired | 1,918,107 | 74,836 | 101,158 | 1,466,208 | |||||||||||||||
Securities sold short (proceeds $2,701,019) | — | — | — | 2,941,260 | |||||||||||||||
Investment securities purchased | 12,764,309 | 713,035 | 10,517,947 | 20,626,900 | |||||||||||||||
Dividend payable—Note A | — | — | — | 518,766 | |||||||||||||||
Payable to foreign banks (cost $33,934) | — | — | — | — | |||||||||||||||
Accrued expenses: | |||||||||||||||||||
Investment advisory fees—Note B | 821,831 | 111,328 | 71,558 | 297,799 | |||||||||||||||
Distribution expense | 377,736 | 31,339 | 18,544 | 97,928 | |||||||||||||||
Compliance expense | 61 | — | — | — | |||||||||||||||
Transfer agent fees | 338,236 | 51,628 | 7,573 | 93,754 | |||||||||||||||
Printing and other shareholder communication fees | 17,030 | — | — | 1,622 | |||||||||||||||
Custodian fees | 29,544 | 4,151 | 1,371 | — | |||||||||||||||
Legal and audit fees | 41,416 | 26,768 | 12,510 | 30,600 | |||||||||||||||
Other accrued expenses | 15,621 | 4,281 | — | 950 | |||||||||||||||
Total Liabilities | 23,357,609 | 5,984,929 | 18,317,426 | 56,253,145 | |||||||||||||||
Net Assets | $ | 2,002,420,013 | $ | 182,000,442 | $ | 128,322,019 | $ | 723,038,116 |
1Investments at market value include securities loaned. At June 30, 2014, the Balanced Fund, Growth Fund, Small Cap Fund and High Yield Bond Fund had a total market value of securities on loan of $240,099,318; $33,340,489; $7,470,660 and $42,771,379, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
74
June 30, 2014
Global Environmental Markets Fund | Intl ESG Index Fund | Global Women's Index Fund | |||||||||||||
Assets | |||||||||||||||
Investments, at cost—note A | $ | 149,416,755 | $ | 106,739,099 | $ | 49,748,888 | |||||||||
Investments in unaffiliated issuers, at value | $ | 183,340,057 | $ | 117,436,997 | $ | 53,018,140 | |||||||||
Investments in affiliated issuers, at value | — | — | — | ||||||||||||
Total investments, at value—Note A1 | 183,340,057 | 117,436,997 | 53,018,140 | ||||||||||||
Cash | 3,395,655 | 1,368 | 909 | ||||||||||||
Foreign currency at value (cost $1,667; $452,624 and $13,258, respectively) | 454,165 | 13,272 | — | ||||||||||||
Cash deposits for securities sold short | — | — | — | ||||||||||||
Prepaid expenses | 16,751 | — | 2,476 | ||||||||||||
Receivables: | |||||||||||||||
Capital stock sold | 1,719,885 | 446,955 | 261,719 | ||||||||||||
Dividends and interest—Note A | 334,188 | 471,791 | 110,584 | ||||||||||||
Investment securities sold | 163,219 | 2,448,465 | — | ||||||||||||
Other | 47,277 | 135,609 | 24,758 | ||||||||||||
Total Assets | 189,471,197 | 120,954,457 | 53,418,586 | ||||||||||||
Liabilities | |||||||||||||||
Collateral on securities loaned, at value | — | — | — | ||||||||||||
Payables: | |||||||||||||||
Capital stock reacquired | 90,439 | 24,351 | 97,607 | ||||||||||||
Securities sold short (proceeds $2,701,019) | — | — | — | ||||||||||||
Investment securities purchased | — | 2,849,476 | 620,349 | ||||||||||||
Dividend payable—Note A | — | — | — | ||||||||||||
Payable to foreign banks (cost $33,934) | — | — | 34,121 | ||||||||||||
Accrued expenses: | |||||||||||||||
Investment advisory fees—Note B | 135,753 | 53,026 | 35,133 | ||||||||||||
Distribution expense | 24,279 | 7,133 | 14,627 | ||||||||||||
Compliance expense | — | — | — | ||||||||||||
Transfer agent fees | 20,229 | — | — | ||||||||||||
Printing and other shareholder communication fees | — | — | — | ||||||||||||
Custodian fees | 3,472 | — | — | ||||||||||||
Legal and audit fees | 13,885 | — | — | ||||||||||||
Other accrued expenses | 4,987 | — | — | ||||||||||||
Total Liabilities | 293,044 | 2,933,986 | 801,837 | ||||||||||||
Net Assets | $ | 189,178,153 | $ | 118,020,471 | $ | 52,616,749 |
SEE NOTES TO FINANCIAL STATEMENTS
75
June 30, 2014
Statements of Assets and Liabilities (Unaudited), continued
Balanced Fund | Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||
Net Assets Represented By | |||||||||||||||||||
Paid in Capital | $ | 1,601,015,814 | $ | 116,154,502 | $ | 118,092,877 | $ | 697,757,610 | |||||||||||
Undistributed (distributions in excess of) net investment income | 828,564 | (7,155 | ) | 33,667 | 609,314 | ||||||||||||||
Accumulated net realized gain (loss) | 86,840,909 | 5,046,667 | 4,595,628 | 1,404,252 | |||||||||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments | 313,725,960 | 60,805,632 | 5,599,847 | 23,263,984 | |||||||||||||||
Foreign currency translations | 8,766 | 796 | — | 2,956 | |||||||||||||||
Net Assets | $ | 2,002,420,013 | $ | 182,000,442 | $ | 128,322,019 | $ | 723,038,116 | |||||||||||
Individual Investor Class | |||||||||||||||||||
Net assets | $ | 1,766,110,398 | $ | 148,671,356 | $ | 81,404,068 | $ | 482,085,096 | |||||||||||
Capital Shares Outstanding | 70,312,098 | 8,384,393 | 5,727,531 | 62,642,021 | |||||||||||||||
Net asset value per share | $ | 25.12 | $ | 17.73 | $ | 14.21 | $ | 7.70 | |||||||||||
Class A | |||||||||||||||||||
Net assets | $ | 1,158,743 | $ | 13,515,748 | $ | 2,317,514 | |||||||||||||
Capital Shares Outstanding | 65,430 | 952,679 | 300,955 | ||||||||||||||||
Net asset value per share | $ | 17.71 | $ | 14.19 | $ | 7.70 | |||||||||||||
Institutional Class | |||||||||||||||||||
Net assets | $ | 231,223,564 | $ | 31,320,761 | $ | 32,589,798 | $ | 237,662,751 | |||||||||||
Capital Shares Outstanding | 9,108,669 | 1,729,111 | 2,280,592 | 30,993,357 | |||||||||||||||
Net asset value per share | $ | 25.39 | $ | 18.11 | $ | 14.29 | $ | 7.67 | |||||||||||
Class R | |||||||||||||||||||
Net assets | $ | 5,086,051 | $ | 849,582 | $ | 812,405 | $ | 972,755 | |||||||||||
Capital Shares Outstanding | 201,324 | 48,046 | 57,589 | 126,407 | |||||||||||||||
Net asset value per share | $ | 25.26 | $ | 17.68 | $ | 14.11 | $ | 7.70 |
SEE NOTES TO FINANCIAL STATEMENTS
76
June 30, 2014
Global Environmental Markets Fund | Intl ESG Index Fund | Global Women's Index Fund | |||||||||||||
Net Assets Represented By | |||||||||||||||
Paid in Capital | $ | 155,232,692 | $ | 107,434,551 | $ | 42,678,984 | |||||||||
Undistributed (distributions in excess of) net investment income | (1,230,234 | ) | 82,426 | 28,395 | |||||||||||
Accumulated net realized gain (loss) | 1,248,318 | (199,766 | ) | 6,638,904 | |||||||||||
Net unrealized appreciation (depreciation) of: | |||||||||||||||
Investments | 33,923,302 | 10,697,898 | 3,269,252 | ||||||||||||
Foreign currency translations | 4,075 | 5,362 | 1,214 | ||||||||||||
Net Assets | $ | 189,178,153 | $ | 118,020,471 | $ | 52,616,749 | |||||||||
Individual Investor Class | |||||||||||||||
Net assets | $ | 105,477,703 | $ | 33,177,419 | $ | 48,507,834 | |||||||||
Capital Shares Outstanding | 8,085,993 | 3,641,476 | 2,141,044 | ||||||||||||
Net asset value per share | $ | 13.04 | $ | 9.11 | $ | 22.66 | |||||||||
Class A | |||||||||||||||
Net assets | $ | 6,972,081 | |||||||||||||
Capital Shares Outstanding | 535,298 | ||||||||||||||
Net asset value per share | $ | 13.02 | |||||||||||||
Institutional Class | |||||||||||||||
Net assets | $ | 74,104,841 | $ | 84,448,362 | $ | 4,108,915 | |||||||||
Capital Shares Outstanding | 5,652,529 | 9,433,287 | 180,647 | ||||||||||||
Net asset value per share | $ | 13.11 | $ | 8.95 | $ | 22.75 | |||||||||
Class R | |||||||||||||||
Net assets | $ | 2,623,528 | $ | 394,690 | |||||||||||
Capital Shares Outstanding | 202,548 | 43,621 | |||||||||||||
Net asset value per share | $ | 12.95 | $ | 9.05 |
SEE NOTES TO FINANCIAL STATEMENTS
77
For the Period Ended June 30, 2014
Statements of Operations (Unaudited)
Balanced Fund | Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||
Investment Income | |||||||||||||||||||
Income | |||||||||||||||||||
Dividends (net of foreign withholding tax of $134,188; $20,898; $1,310; $0; $112,324; $194,875; and $61,097; respectively) | $ | 10,177,216 | $ | 2,137,372 | $ | 1,096,821 | $ | 475,129 | |||||||||||
Dividends from affiliate—Note C | 562,120 | — | — | — | |||||||||||||||
Interest | 6,673,467 | 209 | 207 | 23,214,260 | |||||||||||||||
Income from securities lending—Note A | 90,747 | 12,097 | 17,484 | 87,076 | |||||||||||||||
Total Income | 17,503,550 | 2,149,678 | 1,114,512 | 23,776,465 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees—Note B | 4,932,599 | 646,844 | 325,895 | 1,740,901 | |||||||||||||||
Distribution expenses—Individual Investor (Note B) | 2,170,467 | 178,823 | 81,253 | 613,280 | |||||||||||||||
Distribution expenses—Class A (Note B) | — | 295 | 3,110 | 390 | |||||||||||||||
Distribution expenses—Class R (Note B) | 5,687 | 1,072 | 851 | 915 | |||||||||||||||
Transfer agent fees—Note A | 952,062 | 120,691 | 56,148 | 355,991 | |||||||||||||||
Printing and other shareholder communication fees | 95,620 | 23,158 | 8,301 | 35,801 | |||||||||||||||
Custodian fees | 203,285 | 26,993 | 18,833 | 108,112 | |||||||||||||||
Legal fees and related expenses | 78,417 | 15,130 | 11,581 | 32,163 | |||||||||||||||
Trustees' fees and expenses—Note B | 81,623 | 15,166 | 12,154 | 33,072 | |||||||||||||||
Compliance expense | 15,508 | 6,972 | 6,221 | 8,884 | |||||||||||||||
Audit fees | 41,416 | 26,768 | 12,510 | 30,600 | |||||||||||||||
Registration fees | 25,747 | 40,525 | 44,425 | 50,632 | |||||||||||||||
Other expenses | 76,123 | 7,390 | 4,893 | 45,181 | |||||||||||||||
Total Expenses | 8,678,554 | 1,109,827 | 586,175 | 3,055,922 | |||||||||||||||
Less: Advisory fee waiver—Note B | (47,243 | ) | — | — | — | ||||||||||||||
Expenses assumed by Adviser—Note B | — | (47,549 | ) | (70,783 | ) | — | |||||||||||||
Net expenses | 8,631,311 | 1,062,278 | 515,392 | 3,055,922 | |||||||||||||||
Net investment income (loss) | 8,872,239 | 1,087,400 | 599,120 | 20,720,543 | |||||||||||||||
Realized and Unrealized Gain (Loss)—Notes A and C | |||||||||||||||||||
Net realized gain (loss) on: | |||||||||||||||||||
Investments in unaffiliated issuers (including premium on options exercised) | 86,057,027 | 5,043,557 | 4,669,606 | 5,293,601 | |||||||||||||||
Investment in affiliated issuers | 57,228 | — | — | — | |||||||||||||||
Closed short positions | — | — | — | (146,304 | ) | ||||||||||||||
Option contracts written | 692,912 | 30,554 | — | — | |||||||||||||||
Foreign currency transactions | (2,184 | ) | (15 | ) | — | (266,488 | ) | ||||||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||||||
Investments in unaffiliated issuers | (4,054,113 | ) | 2,472,260 | 1,190,089 | 7,463,054 | ||||||||||||||
Investment in affiliated issuers | (252,578 | ) | — | — | — | ||||||||||||||
Securities sold short | — | — | — | (372,198 | ) | ||||||||||||||
Option contracts written | 5,026,388 | (30,598 | ) | — | — | ||||||||||||||
Foreign currency translation | 4,984 | (270 | ) | — | (8,466 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 87,529,664 | 7,515,488 | 5,859,695 | 11,963,199 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 96,401,903 | $ | 8,602,888 | $ | 6,458,815 | $ | 32,683,742 |
SEE NOTES TO FINANCIAL STATEMENTS
78
For the Period Ended June 30, 2014
Global Environmental Markets Fund | Intl ESG Index Fund | Global Women's Index Fund | |||||||||||||
Investment Income | |||||||||||||||
Income | |||||||||||||||
Dividends (net of foreign withholding tax of $134,188; $20,898; $1,310; $0; $112,324; $194,875; and $61,097; respectively) | $ | 2,200,041 | $ | 3,104,181 | $ | 1,083,165 | |||||||||
Dividends from affiliate—Note C | — | — | — | ||||||||||||
Interest | — | 25 | 701 | ||||||||||||
Income from securities lending—Note A | — | 66 | 7,167 | ||||||||||||
Total Income | 2,200,041 | 3,104,272 | 1,091,033 | ||||||||||||
Expenses | |||||||||||||||
Investment advisory fees—Note B | 727,244 | 238,160 | 177,011 | ||||||||||||
Distribution expenses—Individual Investor (Note B) | 129,471 | 20,864 | 56,096 | ||||||||||||
Distribution expenses—Class A (Note B) | 2,150 | — | — | ||||||||||||
Distribution expenses—Class R (Note B) | 3,127 | — | — | ||||||||||||
Transfer agent fees—Note A | 86,285 | — | 37,851 | ||||||||||||
Printing and other shareholder communication fees | 11,428 | — | 14,139 | ||||||||||||
Custodian fees | 45,194 | — | 16,868 | ||||||||||||
Legal fees and related expenses | 14,202 | — | 11,028 | ||||||||||||
Trustees' fees and expenses—Note B | 14,721 | — | 9,500 | ||||||||||||
Compliance expense | 6,221 | — | 5,523 | ||||||||||||
Audit fees | 13,885 | — | 10,656 | ||||||||||||
Registration fees | 45,715 | — | 6,246 | ||||||||||||
Other expenses | 6,812 | — | 2,305 | ||||||||||||
Total Expenses | 1,106,455 | 259,024 | 347,223 | ||||||||||||
Less: Advisory fee waiver—Note B | — | — | — | ||||||||||||
Expenses assumed by Adviser—Note B | (43,111 | ) | — | (66,388 | ) | ||||||||||
Net expenses | 1,063,344 | 259,024 | 280,835 | ||||||||||||
Net investment income (loss) | 1,136,697 | 2,845,248 | 810,198 | ||||||||||||
Realized and Unrealized Gain (Loss)—Notes A and C | |||||||||||||||
Net realized gain (loss) on: | |||||||||||||||
Investments in unaffiliated issuers (including premium on options exercised) | 1,684,345 | (516,670 | ) | 8,799,569 | |||||||||||
Investment in affiliated issuers | — | — | — | ||||||||||||
Closed short positions | — | — | — | ||||||||||||
Option contracts written | — | — | — | ||||||||||||
Foreign currency transactions | (16,434 | ) | (8,116 | ) | (15,782 | ) | |||||||||
Change in unrealized appreciation (depreciation) on: | |||||||||||||||
Investments in unaffiliated issuers | 3,121,894 | 4,047,197 | (6,865,490 | ) | |||||||||||
Investment in affiliated issuers | — | — | — | ||||||||||||
Securities sold short | — | — | — | ||||||||||||
Option contracts written | — | — | — | ||||||||||||
Foreign currency translation | 3,195 | 2,647 | 417 | ||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 4,793,000 | 3,525,058 | 1,918,714 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 5,929,697 | $ | 6,370,306 | $ | 2,728,912 |
SEE NOTES TO FINANCIAL STATEMENTS
79
Statements of Changes in Net Assets
Balanced Fund | Growth Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | (Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 8,872,239 | $ | 21,882,816 | $ | 1,087,400 | $ | 331,064 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 86,804,983 | 240,793,676 | 5,074,096 | 6,953,647 | |||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 724,681 | 28,378,777 | 2,441,392 | 31,859,376 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 96,401,903 | 291,055,269 | 8,602,888 | 39,144,087 | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (13,485,436 | ) | (13,798,645 | ) | (874,714 | ) | (296,856 | ) | |||||||||||
Class A | (213,374 | ) | (74 | ) | |||||||||||||||
Institutional Class | (1,993,647 | ) | (2,171,251 | ) | (3,767 | ) | (80,977 | ) | |||||||||||
Class R | (33,031 | ) | (21,021 | ) | (6,794 | ) | (873 | ) | |||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (26,097,274 | ) | (187,226,952 | ) | (741,386 | ) | (2,996,622 | ) | |||||||||||
Class A | — | — | (152,000 | ) | (6,055 | ) | |||||||||||||
Institutional Class | (3,354,016 | ) | (23,364,926 | ) | (4,104 | ) | (590,465 | ) | |||||||||||
Class R | (74,044 | ) | (466,151 | ) | (5,401 | ) | (17,208 | ) | |||||||||||
Total distributions to shareholders | (45,037,448 | ) | (227,048,946 | ) | (2,001,540 | ) | (3,989,130 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 45,903,937 | 88,161,890 | 9,405,310 | 17,287,138 | |||||||||||||||
Shares issued in connection with fund reorganizations | |||||||||||||||||||
Proceeds from reinvestment of distributions | 37,979,267 | 192,727,793 | 1,562,739 | 3,189,935 | |||||||||||||||
Cost of shares redeemed | (134,455,433 | ) | (254,504,603 | ) | (9,395,296 | ) | (32,810,950 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | (50,572,229 | ) | 26,385,080 | 1,572,753 | (12,333,877 | ) | |||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 850,211 | 270,195 | |||||||||||||||||
Proceeds from reinvestment of distributions | 11,684 | 6,129 | |||||||||||||||||
Cost of shares redeemed | (24,852 | ) | (10,241 | ) | |||||||||||||||
Net increase from Class A transactions | 837,043 | 266,083 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 20,626,265 | 85,541,401 | 2,765,960 | 20,501,963 | |||||||||||||||
Shares issued in connection with fund reorganizations | |||||||||||||||||||
Proceeds from reinvestment of distributions | 5,150,494 | 24,743,263 | 304,928 | 575,359 | |||||||||||||||
Cost of shares redeemed | (25,953,549 | ) | (31,828,931 | ) | (1,475,162 | ) | (3,458,419 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | (176,790 | ) | 78,455,733 | 1,595,726 | 17,618,903 | ||||||||||||||
Class R | |||||||||||||||||||
Proceeds from shares sold | 674,040 | 2,187,255 | 163,017 | 200,620 | |||||||||||||||
Shares issued in connection with fund reorganizations | |||||||||||||||||||
Proceeds from reinvestment of distributions | 107,075 | 487,173 | 7,772 | 18,081 | |||||||||||||||
Cost of shares redeemed | (368,190 | ) | (1,536,259 | ) | (172,713 | ) | (35,128 | ) | |||||||||||
Net increase (decrease) from Class R transactions | 412,925 | 1,138,169 | (1,924 | ) | 183,573 | ||||||||||||||
NAV of shares issued in fund merger | |||||||||||||||||||
Net increase (decrease) from capital share transactions | (50,336,094 | ) | 105,978,982 | 4,003,598 | 5,734,682 | ||||||||||||||
Net increase (decrease) in net assets | 1,028,361 | 169,985,305 | 10,604,946 | 40,889,639 | |||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 2,001,391,652 | 1,831,406,347 | 171,395,496 | 130,505,857 | |||||||||||||||
End of period (1) | $ | 2,002,420,013 | $ | 2,001,391,652 | $ | 182,000,442 | $ | 171,395,496 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | 828,564 | $ | 7,468,438 | $ | (7,155 | ) | $ | 4,094 |
SEE NOTES TO FINANCIAL STATEMENTS
80
Small Cap Fund | High Yield Bond Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | (Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 599,120 | $ | 251,275 | $ | 20,720,543 | $ | 34,781,513 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 4,669,606 | 6,198,016 | 4,880,809 | (870,424 | ) | ||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 1,190,089 | 3,971,394 | 7,082,390 | 3,632,655 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 6,458,815 | 10,420,685 | 32,683,742 | 37,543,744 | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (335,188 | ) | (270,497 | ) | (14,450,942 | ) | (25,129,492 | ) | |||||||||||
Class A | (163,362 | ) | (13,525 | ) | (6,342,932 | ) | (8,714 | ) | |||||||||||
Institutional Class | (2,392 | ) | (59,711 | ) | (23,109 | ) | (9,501,589 | ) | |||||||||||
Class R | (64,511 | ) | (2,423 | ) | (41,888 | ) | (46,354 | ) | |||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (691,063 | ) | (4,237,883 | ) | — | (394,211 | ) | ||||||||||||
Class A | (280,147 | ) | (255,764 | ) | — | (6 | ) | ||||||||||||
Institutional Class | (6,854 | ) | (760,689 | ) | — | (145,021 | ) | ||||||||||||
Class R | (125,884 | ) | (47,171 | ) | — | (852 | ) | ||||||||||||
Total distributions to shareholders | (1,669,401 | ) | (5,647,663 | ) | (20,858,871 | ) | (35,226,239 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 42,730,609 | 28,357,589 | 103,371,451 | 292,457,664 | |||||||||||||||
Shares issued in connection with fund reorganizations | |||||||||||||||||||
Proceeds from reinvestment of distributions | 966,102 | 4,059,328 | 12,974,817 | 20,401,637 | |||||||||||||||
Cost of shares redeemed | (11,254,476 | ) | (6,357,076 | ) | (115,029,910 | ) | (188,104,077 | ) | |||||||||||
Net increase (decrease) from Individual Investor Class transactions | 32,442,235 | 26,059,841 | 1,316,358 | 124,755,224 | |||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 9,915,652 | 3,040,665 | 1,500,884 | 780,073 | |||||||||||||||
Proceeds from reinvestment of distributions | 178,936 | 249,793 | 33,889 | 6,866 | |||||||||||||||
Cost of shares redeemed | (212,340 | ) | (36,376 | ) | (27,802 | ) | (5,518 | ) | |||||||||||
Net increase from Class A transactions | 9,882,248 | 3,254,082 | 1,506,971 | 781,421 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 23,702,430 | 8,469,402 | 62,104,546 | 79,979,108 | |||||||||||||||
Shares issued in connection with fund reorganizations | |||||||||||||||||||
Proceeds from reinvestment of distributions | 391,034 | 600,980 | 4,259,093 | 5,622,939 | |||||||||||||||
Cost of shares redeemed | (1,210,768 | ) | (1,459,819 | ) | (19,725,413 | ) | (34,116,182 | ) | |||||||||||
Net increase (decrease) from Institutional Class transactions | 22,882,696 | 7,610,563 | 46,638,226 | 51,485,865 | |||||||||||||||
Class R | |||||||||||||||||||
Proceeds from shares sold | 202,285 | 458,746 | 259,556 | 302,947 | |||||||||||||||
Shares issued in connection with fund reorganizations | |||||||||||||||||||
Proceeds from reinvestment of distributions | 9,246 | 49,594 | 23,045 | 46,564 | |||||||||||||||
Cost of shares redeemed | (54,642 | ) | (37,092 | ) | (17,519 | ) | (537,454 | ) | |||||||||||
Net increase (decrease) from Class R transactions | 156,889 | 471,248 | 265,082 | (187,943 | ) | ||||||||||||||
NAV of shares issued in fund merger | |||||||||||||||||||
Net increase (decrease) from capital share transactions | 65,364,068 | 37,395,734 | 49,726,637 | 176,834,567 | |||||||||||||||
Net increase (decrease) in net assets | 70,153,482 | 42,168,756 | 61,551,508 | 179,152,072 | |||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 58,168,537 | 15,999,781 | 661,486,608 | 482,334,536 | |||||||||||||||
End of period (1) | $ | 128,322,019 | $ | 58,168,537 | $ | 723,038,116 | $ | 661,486,608 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | 33,667 | $ | — | $ | 609,314 | $ | 747,642 |
SEE NOTES TO FINANCIAL STATEMENTS
81
Statements of Changes in Net Assets, continued
Global Environmental Markets Fund | International ESG Index Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | (Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Increase (Decrease) in Net Assets | |||||||||||||||||||
Operations | |||||||||||||||||||
Investment income (loss), net | $ | 1,136,697 | $ | 608,038 | $ | 2,845,248 | $ | 775,106 | |||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 1,667,911 | 3,677,916 | (524,786 | ) | (110,191 | ) | |||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 3,125,089 | 21,781,408 | 4,049,844 | 6,139,468 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 5,929,697 | 26,067,362 | 6,370,306 | 6,804,383 | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | |||||||||||||||||||
Individual Investor Class | (842,445 | ) | (1,358,849 | ) | (348,544 | ) | — | ||||||||||||
Class A | (656,386 | ) | (22,513 | ) | — | ||||||||||||||
Institutional Class | (18,486 | ) | (575,579 | ) | (2,401,942 | ) | (761,762 | ) | |||||||||||
Class R | (55,961 | ) | (31,613 | ) | (4,525 | ) | — | ||||||||||||
Realized gains | |||||||||||||||||||
Individual Investor Class | (411,044 | ) | (151,631 | ) | — | — | |||||||||||||
Class A | (281,970 | ) | (3,283 | ) | — | — | |||||||||||||
Institutional Class | (10,499 | ) | (64,167 | ) | — | — | |||||||||||||
Class R | (26,291 | ) | (3,936 | ) | — | — | |||||||||||||
Total distributions to shareholders | (2,303,082 | ) | (2,211,571 | ) | (2,755,011 | ) | (761,762 | ) | |||||||||||
From capital share transactions: | |||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Proceeds from shares sold | 22,111,750 | 40,280,687 | 4,743,491 | ||||||||||||||||
Shares issued in connection with fund acquisition | 30,289,296 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 1,183,421 | 1,410,861 | 317,756 | ||||||||||||||||
Cost of shares redeemed | (14,078,889 | ) | (11,505,669 | ) | (3,116,453 | ) | |||||||||||||
Net increase (decrease) from Individual Investor Class transactions | 9,216,282 | 30,185,879 | 32,234,090 | ||||||||||||||||
Class A | |||||||||||||||||||
Proceeds from shares sold | 4,783,150 | 2,045,180 | |||||||||||||||||
Proceeds from reinvestment of distributions | 73,810 | 22,677 | |||||||||||||||||
Cost of shares redeemed | (216,288 | ) | (25,303 | ) | |||||||||||||||
Net increase from Class A transactions | 4,640,672 | 2,042,554 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Proceeds from shares sold | 30,625,015 | 27,894,535 | 17,024,605 | 39,344,324 | |||||||||||||||
Shares issued in connection with fund acquisition | 10,611,480 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 797,464 | 546,480 | 2,150,889 | — | |||||||||||||||
Cost of shares redeemed | (1,581,992 | ) | (1,785,928 | ) | (4,883,624 | ) | — | ||||||||||||
Net increase (decrease) from Institutional Class transactions | 29,840,487 | 26,655,087 | 24,903,350 | 39,344,324 | |||||||||||||||
Class R | |||||||||||||||||||
Proceeds from shares sold | 456,345 | 841,455 | 12,568 | ||||||||||||||||
Shares issued in connection with fund acquisition | 431,610 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 28,985 | 35,460 | 4,525 | ||||||||||||||||
Cost of shares redeemed | (387,878 | ) | (441,278 | ) | (66,565 | ) | |||||||||||||
Net increase (decrease) from Class R transactions | 97,452 | 435,637 | 382,138 | ||||||||||||||||
NAV of shares issued in fund merger | (1,663,332 | ) | |||||||||||||||||
Net increase (decrease) from capital share transactions | 43,794,893 | 59,319,157 | 55,856,246 | 39,344,324 | |||||||||||||||
Net increase (decrease) in net assets | 47,421,508 | 83,174,948 | 59,471,541 | 45,386,945 | |||||||||||||||
Net assets | |||||||||||||||||||
Beginning of period | 141,756,645 | 58,581,697 | 58,548,930 | 13,161,985 | |||||||||||||||
End of period (1) | $ | 189,178,153 | $ | 141,756,645 | $ | 118,020,471 | $ | 58,548,930 | |||||||||||
(1) Includes undistributed net investment income (loss) | $ | (1,230,234 | ) | $ | (793,653 | ) | $ | 82,426 | $ | (7,811 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
82
Global Women's Index Fund | |||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||
Increase (Decrease) in Net Assets | |||||||||||
Operations | |||||||||||
Investment income (loss), net | $ | 810,198 | $ | 482,026 | |||||||
Net realized gain (loss) on investments and foreign currency transactions | 8,783,787 | 731,238 | |||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | (6,865,073 | ) | 7,719,618 | ||||||||
Net increase (decrease) in net assets resulting from operations | 2,728,912 | 8,932,882 | |||||||||
Distributions to shareholders from: | |||||||||||
Net investment income | |||||||||||
Individual Investor Class | (785,234 | ) | (396,470 | ) | |||||||
Class A | |||||||||||
Institutional Class | (68,125 | ) | (15,235 | ) | |||||||
Class R | |||||||||||
Realized gains | |||||||||||
Individual Investor Class | — | — | |||||||||
Class A | |||||||||||
Institutional Class | — | — | |||||||||
Class R | |||||||||||
Total distributions to shareholders | (853,359 | ) | (411,705 | ) | |||||||
From capital share transactions: | |||||||||||
Individual Investor Class | |||||||||||
Proceeds from shares sold | 6,817,176 | 8,258,323 | |||||||||
Shares issued in connection with fund acquisition | |||||||||||
Proceeds from reinvestment of distributions | 714,008 | 358,768 | |||||||||
Cost of shares redeemed | (5,271,985 | ) | (6,319,339 | ) | |||||||
Net increase (decrease) from Individual Investor Class transactions | 2,259,199 | 2,297,752 | |||||||||
Class A | |||||||||||
Proceeds from shares sold | |||||||||||
Proceeds from reinvestment of distributions | |||||||||||
Cost of shares redeemed | |||||||||||
Net increase from Class A transactions | |||||||||||
Institutional Class | |||||||||||
Proceeds from shares sold | 2,132,469 | 938,589 | |||||||||
Shares issued in connection with fund acquisition | |||||||||||
Proceeds from reinvestment of distributions | 44,447 | 10,563 | |||||||||
Cost of shares redeemed | (70,262 | ) | (675,026 | ) | |||||||
Net increase (decrease) from Institutional Class transactions | 2,106,654 | 274,126 | |||||||||
Class R | |||||||||||
Proceeds from shares sold | |||||||||||
Shares issued in connection with fund acquisition | |||||||||||
Proceeds from reinvestment of distributions | |||||||||||
Cost of shares redeemed | |||||||||||
Net increase (decrease) from Class R transactions | |||||||||||
NAV of shares issued in fund merger | |||||||||||
Net increase (decrease) from capital share transactions | 4,365,853 | 2,571,878 | |||||||||
Net increase (decrease) in net assets | 6,241,406 | 11,093,055 | |||||||||
Net assets | |||||||||||
Beginning of period | 46,375,343 | 35,282,288 | |||||||||
End of period (1) | $ | 52,616,749 | $ | 46,375,343 | |||||||
(1) Includes undistributed net investment income (loss) | $ | 28,395 | $ | 71,556 |
SEE NOTES TO FINANCIAL STATEMENTS
83
Statements of Changes in Net Assets—Shares of Beneficial Interest
Balanced Fund | Growth Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | (Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 1,865,734 | 3,482,392 | 547,154 | 1,135,392 | |||||||||||||||
Shares issued in reinvestment of distributions | 1,514,278 | 7,967,290 | 88,141 | 192,787 | |||||||||||||||
Shares redeemed | (5,452,843 | ) | (10,088,835 | ) | (547,759 | ) | (2,206,463 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (2,072,831 | ) | 1,360,847 | 87,536 | (878,284 | ) | |||||||||||||
Class A | |||||||||||||||||||
Shares sold | 49,242 | 17,206 | |||||||||||||||||
Shares issued in reinvestment of distributions | 660 | 366 | |||||||||||||||||
Shares redeemed | (1,422 | ) | (622 | ) | |||||||||||||||
Net increase in shares outstanding | 48,480 | 16,950 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 827,244 | 3,369,606 | 157,265 | 1,380,487 | |||||||||||||||
Shares issued in reinvestment of distributions | 203,175 | 1,012,406 | 16,837 | 34,207 | |||||||||||||||
Shares redeemed | (1,034,924 | ) | (1,235,185 | ) | (84,303 | ) | (222,038 | ) | |||||||||||
Net increase (decrease) in shares outstanding | (4,505 | ) | 3,146,827 | 89,799 | 1,192,656 | ||||||||||||||
Class R | |||||||||||||||||||
Shares sold | 27,113 | 84,061 | 9,543 | 13,094 | |||||||||||||||
Shares issued in reinvestment of distributions | 4,344 | 20,028 | 440 | 1,088 | |||||||||||||||
Shares redeemed | (14,788 | ) | (59,383 | ) | (10,027 | ) | (2,388 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 16,669 | 44,706 | (44 | ) | 11,794 | ||||||||||||||
Global Environmental Markets Fund | International ESG Index Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | (Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 1,732,305 | 3,582,082 | 525,060 | ||||||||||||||||
Shares issued in connection with fund acquisition | 3,426,217 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 90,064 | 118,087 | 34,567 | ||||||||||||||||
Shares redeemed | (1,099,026 | ) | (1,034,590 | ) | (344,368 | ) | |||||||||||||
Net increase (decrease) in shares outstanding | 723,343 | 2,665,579 | 3,641,476 | ||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 375,272 | 171,557 | |||||||||||||||||
Shares issued in reinvestment of distributions | 5,626 | 1,827 | |||||||||||||||||
Shares redeemed | (16,840 | ) | (2,144 | ) | |||||||||||||||
Net increase in shares outstanding | 364,058 | 171,240 | |||||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 2,380,021 | 2,370,705 | 1,346,051 | 438,027 | |||||||||||||||
Shares issued in connection with fund acquisition | 1,200,069 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 60,368 | 44,986 | 235,141 | — | |||||||||||||||
Shares redeemed | (122,770 | ) | (153,963 | ) | (546,148 | ) | — | ||||||||||||
Net increase (decrease) in shares outstanding | 2,317,619 | 2,261,728 | 2,235,113 | 438,027 | |||||||||||||||
Class R | |||||||||||||||||||
Shares sold | 35,942 | 72,817 | 1,408 | ||||||||||||||||
Shares issued in connection with fund acquisition | 49,065 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 2,221 | 2,990 | 496 | ||||||||||||||||
Shares redeemed | (30,468 | ) | (38,442 | ) | (7,348 | ) | |||||||||||||
Net increase (decrease) in shares outstanding | 7,695 | 37,365 | 43,621 |
SEE NOTES TO FINANCIAL STATEMENTS
84
Small Cap Fund | High Yield Bond Fund | ||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | (Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 3,107,357 | 2,100,145 | 13,562,294 | 38,752,801 | |||||||||||||||
Shares issued in reinvestment of distributions | 68,131 | 304,210 | 1,695,840 | 2,705,383 | |||||||||||||||
Shares redeemed | (827,446 | ) | (484,576 | ) | (15,060,973 | ) | (24,961,973 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 2,348,042 | 1,919,779 | 197,161 | 16,496,211 | |||||||||||||||
Class A | |||||||||||||||||||
Shares sold | 723,222 | 216,194 | 196,322 | 103,669 | |||||||||||||||
Shares issued in reinvestment of distributions | 12,637 | 18,700 | 4,422 | 910 | |||||||||||||||
Shares redeemed | (15,530 | ) | (2,543 | ) | (3,638 | ) | (730 | ) | |||||||||||
Net increase in shares outstanding | 720,329 | 232,351 | 197,106 | 103,849 | |||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 1,717,555 | 640,432 | 8,151,646 | 10,622,071 | |||||||||||||||
Shares issued in reinvestment of distributions | 27,422 | 44,813 | 558,678 | 748,404 | |||||||||||||||
Shares redeemed | (87,676 | ) | (103,556 | ) | (2,590,563 | ) | (4,539,173 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 1,657,301 | 581,689 | 6,119,761 | 6,831,302 | |||||||||||||||
Class R | |||||||||||||||||||
Shares sold | 14,814 | 34,798 | 33,965 | 39,944 | |||||||||||||||
Shares issued in reinvestment of distributions | 657 | 3,744 | 3,012 | 6,178 | |||||||||||||||
Shares redeemed | (3,972 | ) | (2,986 | ) | (2,286 | ) | (71,610 | ) | |||||||||||
Net increase (decrease) in shares outstanding | 11,499 | 35,556 | 34,691 | (25,488 | ) | ||||||||||||||
Global Women's Index Fund | |||||||||||||||||||
(Unaudited) Period Ended 6/30/14 | Year Ended 12/31/13 | ||||||||||||||||||
Individual Investor Class | |||||||||||||||||||
Shares sold | 305,801 | 429,387 | |||||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Shares issued in reinvestment of distributions | 31,510 | 19,509 | |||||||||||||||||
Shares redeemed | (237,750 | ) | (330,967 | ) | |||||||||||||||
Net increase (decrease) in shares outstanding | 99,561 | 117,929 | |||||||||||||||||
Class A | |||||||||||||||||||
Shares sold | |||||||||||||||||||
Shares issued in reinvestment of distributions | |||||||||||||||||||
Shares redeemed | |||||||||||||||||||
Net increase in shares outstanding | |||||||||||||||||||
Institutional Class | |||||||||||||||||||
Shares sold | 94,256 | 48,309 | |||||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Shares issued in reinvestment of distributions | 1,954 | 573 | |||||||||||||||||
Shares redeemed | (3,132 | ) | (34,406 | ) | |||||||||||||||
Net increase (decrease) in shares outstanding | 93,078 | 14,476 | |||||||||||||||||
Class R | |||||||||||||||||||
Shares sold | |||||||||||||||||||
Shares issued in connection with fund acquisition | |||||||||||||||||||
Shares issued in reinvestment of distributions | |||||||||||||||||||
Shares redeemed | |||||||||||||||||||
Net increase (decrease) in shares outstanding |
SEE NOTES TO FINANCIAL STATEMENTS
85
June 30, 2014
Financial Highlights
Selected data for a share outstanding throughout each period.
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 24.47 | $ | 0.11 | $ | 1.12 | $ | 1.23 | $ | 0.20 | $ | 0.38 | $ | — | $ | 0.58 | |||||||||||||||||||
Year Ended December 31, 2013 | 23.73 | 0.28 | 3.54 | 3.82 | 0.21 | 2.87 | — | 3.08 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 21.67 | 0.34 | 2.09 | 2.43 | 0.37 | — | — | 0.37 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 22.36 | 0.34 | (0.74 | ) | (0.40 | ) | 0.29 | — | — | 0.29 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 20.30 | 0.32 | 2.06 | 2.38 | 0.32 | — | 0.006 | 0.32 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 17.00 | 0.31 | 3.30 | 3.61 | 0.31 | — | — | 0.31 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 24.73 | $ | 0.14 | $ | 1.11 | $ | 1.25 | $ | 0.22 | $ | 0.38 | $ | — | $ | 0.60 | |||||||||||||||||||
Year Ended December 31, 2013 | 23.94 | 0.35 | 3.58 | 3.93 | 0.27 | 2.87 | — | 3.14 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 21.86 | 0.41 | 2.10 | 2.51 | 0.43 | — | — | 0.43 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 22.56 | 0.40 | (0.75 | ) | (0.35 | ) | 0.35 | — | — | 0.35 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 20.47 | 0.37 | 2.09 | 2.46 | 0.37 | — | 0.006 | 0.37 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 17.14 | 0.36 | 3.33 | 3.69 | 0.36 | — | — | 0.36 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 24.62 | $ | 0.08 | $ | 1.11 | $ | 1.19 | $ | 0.17 | $ | 0.38 | $ | — | $ | 0.55 | |||||||||||||||||||
Year Ended December 31, 2013 | 23.86 | 0.22 | 3.56 | 3.78 | 0.15 | 2.87 | — | 3.02 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 21.79 | 0.29 | 2.10 | 2.39 | 0.32 | — | — | 0.32 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 22.49 | 0.29 | (0.76 | ) | (0.47 | ) | 0.23 | — | — | 0.23 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 20.42 | 0.28 | 2.07 | 2.35 | 0.28 | — | 0.006 | 0.28 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 17.13 | 0.25 | 3.34 | 3.59 | 0.30 | — | — | 0.30 |
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 Rounds to less than $0.01.
SEE NOTES TO FINANCIAL STATEMENTS
86
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 25.12 | 5.00 | % | $ | 1,766,110 | 0.91 | % | 0.88 | % | 0.91 | % | 23 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 24.47 | 16.34 | % | 1,771,519 | 0.91 | % | 1.12 | % | 0.92 | % | 62 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 23.73 | 11.28 | % | 1,685,217 | 0.94 | % | 1.50 | % | 0.94 | % | 31 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 21.67 | (1.83 | %) | 1,669,361 | 0.95 | % | 1.51 | % | 0.95 | % | 38 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 22.36 | 11.83 | % | 1,872,287 | 0.96 | % | 1.55 | % | 0.96 | % | 36 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 20.30 | 21.41 | % | 1,834,274 | 0.98 | % | 1.70 | % | 0.98 | % | 43 | %5 | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 25.38 | 5.07 | % | $ | 231,224 | �� | 0.66 | % | 1.13 | % | 0.66 | % | 23 | % | ||||||||||||||||||
Year Ended December 31, 2013 | — | 24.73 | 16.70 | % | 225,325 | 0.66 | % | 1.37 | % | 0.67 | % | 62 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 23.94 | 11.56 | % | 142,848 | 0.69 | % | 1.75 | % | 0.69 | % | 31 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 21.86 | (1.61 | %) | 116,204 | 0.70 | % | 1.77 | % | 0.70 | % | 38 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 22.56 | 12.16 | % | 110,437 | 0.71 | % | 1.81 | % | 0.71 | % | 36 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 20.47 | 21.70 | % | 101,791 | 0.73 | % | 1.94 | % | 0.73 | % | 43 | %5 | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 25.26 | 4.82 | % | $ | 5,086 | 1.16 | % | 0.63 | % | 1.16 | % | 23 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 24.62 | 16.09 | % | 4,548 | 1.16 | % | 0.86 | % | 1.17 | % | 62 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 23.86 | 11.02 | % | 3,341 | 1.19 | % | 1.25 | % | 1.19 | % | 31 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 21.79 | (2.09 | %) | 2,791 | 1.20 | % | 1.27 | % | 1.20 | % | 38 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 22.49 | 11.58 | % | 2,629 | 1.21 | % | 1.36 | % | 1.21 | % | 36 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 20.42 | 21.14 | % | 1,799 | 1.23 | % | 1.30 | % | 1.23 | % | 43 | %5 |
SEE NOTES TO FINANCIAL STATEMENTS
87
June 30, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period.
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 17.08 | $ | 0.10 | $ | 0.75 | $ | 0.85 | $ | 0.11 | $ | 0.09 | $ | — | $ | 0.20 | |||||||||||||||||||
Year Ended December 31, 2013 | 13.50 | 0.03 | 3.96 | 3.99 | 0.04 | 0.37 | — | 0.41 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 11.96 | 0.05 | 1.51 | 1.56 | 0.02 | — | — | 0.02 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 12.21 | — | (0.25 | ) | (0.25 | ) | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.99 | (0.03 | ) | 2.25 | 2.22 | — | — | — | — | ||||||||||||||||||||||||||
Year Ended December 31, 2009 | 7.19 | (0.01 | ) | 2.81 | 2.80 | — | — | — | — | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 17.06 | $ | 0.09 | $ | 0.76 | $ | 0.85 | $ | 0.11 | $ | 0.09 | $ | — | $ | 0.20 | |||||||||||||||||||
Period Ended December 31, 20136 | 14.39 | — | 3.09 | 3.09 | 0.05 | 0.37 | — | 0.42 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 17.44 | $ | 0.13 | $ | 0.76 | $ | 0.89 | $ | 0.13 | $ | 0.09 | $ | — | $ | 0.22 | |||||||||||||||||||
Year Ended December 31, 2013 | 13.76 | 0.07 | 4.03 | 4.10 | 0.05 | 0.37 | — | 0.42 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 12.19 | 0.08 | 1.56 | 1.64 | 0.07 | — | — | 0.07 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 12.41 | 0.04 | (0.26 | ) | (0.22 | ) | — | — | — | — | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 10.13 | — | 2.28 | 2.28 | — | — | — | — | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 7.27 | 0.015 | 2.85 | 2.86 | — | — | — | — | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 17.03 | $ | 0.09 | $ | 0.73 | $ | 0.82 | $ | 0.08 | $ | 0.09 | $ | — | $ | 0.17 | |||||||||||||||||||
Year Ended December 31, 2013 | 13.48 | (0.01 | )5 | 3.95 | 3.94 | 0.02 | 0.37 | — | 0.39 | ||||||||||||||||||||||||||
Year Ended December 31, 2012 | 11.95 | 0.01 | 1.52 | 1.53 | — | — | — | — | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 12.24 | (0.02 | )5 | (0.27 | ) | (0.29 | ) | — | — | — | — | ||||||||||||||||||||||||
Year Ended December 31, 2010 | 10.04 | (0.05 | ) | 2.25 | 2.20 | — | — | — | — | ||||||||||||||||||||||||||
Year Ended December 31, 2009 | 7.24 | (0.03 | ) | 2.83 | 2.80 | — | — | — | — |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 The amount shown for a share outstanding does not correspond with the aggregate net investment income for the period due to the timing of sales and repurchases of the shares in relation to fluctuating market value of the investments of the Fund.
6 Per share data is reflected from class inception date of May 1, 2013.
SEE NOTES TO FINANCIAL STATEMENTS
88
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Growth Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 17.73 | 4.94 | % | $ | 148,671 | 1.27 | % | 1.22 | % | 1.33 | % | 16 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 17.08 | 29,61 | % | 141,698 | 1.29 | % | 0.18 | % | 1.35 | % | 27 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 13.50 | 13.08 | % | 123,870 | 1.29 | % | 0.36 | % | 1.44 | % | 21 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 11.96 | (2.05 | %) | 112,042 | 1.32 | % | 0.04 | % | 1.47 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 12.21 | 22.22 | % | 111,403 | 1.41 | % | (0.28 | %) | 1.57 | % | 25 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 9.99 | 38.94 | % | 94,306 | 1.45 | % | (0.08 | %) | 1.78 | % | 39 | % | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 17.71 | 4.99 | % | $ | 1,159 | 1.27 | % | 1.06 | % | 1.33 | % | 16 | % | |||||||||||||||||||
Period Ended December 31, 20136 | — | 17.06 | 21.58 | % | 289 | 1.29 | % | 0.02 | % | 1.35 | % | 27 | % | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 18.11 | 5.07 | % | $ | 31,321 | 1.02 | % | 1.47 | % | 1.08 | % | 16 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 17.44 | 29.93 | % | 28,590 | 1.04 | % | 0.48 | % | 1.10 | % | 27 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 13.76 | 13.35 | % | 6,147 | 1.04 | % | 0.63 | % | 1.19 | % | 21 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 12.19 | (1.77 | %) | 4,883 | 1.07 | % | 0.31 | % | 1.22 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 12.41 | 22.51 | % | 3,231 | 1.16 | % | (0.04 | %) | 1.32 | % | 25 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 10.13 | 39.34 | % | 2,856 | 1.20 | % | 0.16 | % | 1.53 | % | 39 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 17.68 | 4.82 | % | $ | 850 | 1.52 | % | 1.02 | % | 1.58 | % | 16 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 17.03 | 29.30 | % | 819 | 1.54 | % | (0.07 | %) | 1.60 | % | 27 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 13.48 | 12.80 | % | 489 | 1.54 | % | 0.11 | % | 1.69 | % | 21 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 11.95 | (2.37 | %) | 421 | 1.57 | % | (0.13 | %) | 1.72 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 12.24 | 21.91 | % | 53 | 1.66 | % | (0.49 | %) | 1.82 | % | 25 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 10.04 | 38.67 | % | 4 | 1.70 | % | (0.37 | %) | 2.03 | % | 39 | % |
SEE NOTES TO FINANCIAL STATEMENTS
89
June 30, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period.
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Small Cap Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 13.58 | $ | 0.09 | $ | 0.75 | $ | 0.84 | $ | 0.07 | $ | 0.14 | $ | — | $ | 0.21 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.58 | 0.10 | 4.43 | 4.53 | 0.11 | 1.42 | — | 1.53 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 9.65 | 0.19 | 1.09 | 1.28 | 0.10 | 0.25 | — | 0.35 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 11.05 | 0.04 | (0.39 | ) | (0.35 | ) | 0.09 | 0.96 | — | 1.05 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.29 | 0.08 | 2.68 | 2.76 | 0.07 | 0.93 | — | 1.00 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.78 | (0.03 | ) | 2.54 | 2.51 | — | — | — | — | ||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 13.56 | $ | 0.10 | $ | 0.74 | $ | 0.84 | $ | 0.07 | $ | 0.14 | $ | — | $ | 0.21 | |||||||||||||||||||
Period Ended December 31, 20135 | 11.83 | 0.13 | 3.15 | 3.28 | 0.13 | 1.42 | — | 1.55 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 13.65 | $ | 0.12 | $ | 0.74 | $ | 0.86 | $ | 0.08 | $ | 0.14 | $ | — | $ | 0.22 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.62 | 0.15 | 4.44 | 4.59 | 0.14 | 1.42 | — | 1.56 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 9.69 | 0.17 | 1.13 | 1.30 | 0.12 | 0.25 | — | 0.37 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 11.08 | 0.07 | (0.38 | ) | (0.31 | ) | 0.12 | 0.96 | — | 1.08 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.31 | 0.15 | 2.64 | 2.79 | 0.09 | 0.93 | — | 1.02 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.78 | (0.02 | ) | 2.56 | 2.54 | 0.01 | — | — | 0.01 | ||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 13.48 | $ | 0.06 | $ | 0.76 | $ | 0.82 | $ | 0.05 | $ | 0.14 | $ | — | $ | 0.19 | |||||||||||||||||||
Year Ended December 31, 2013 | 10.52 | 0.08 | 4.39 | 4.47 | 0.09 | 1.42 | — | 1.51 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 9.61 | 0.21 | 1.03 | 1.24 | 0.08 | 0.25 | — | 0.33 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 10.99 | 0.02 | (0.39 | ) | (0.37 | ) | 0.05 | 0.96 | — | 1.01 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 9.26 | 0.16 | 2.57 | 2.73 | 0.07 | 0.93 | — | 1.00 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.78 | (0.05 | ) | 2.53 | 2.48 | — | — | — | — |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 Per share data is reflected from class inception date of May 1, 2013.
SEE NOTES TO FINANCIAL STATEMENTS
90
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Small Cap Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 14.21 | 6.12 | % | $ | 81,404 | 1.24 | % | 1.26 | % | 1.40 | % | 68 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 13.58 | 43.24 | % | 45,890 | 1.24 | % | 0.75 | % | 1.66 | % | 162 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 10.58 | 13.55 | % | 15,447 | 1.24 | % | 1.89 | % | 2.20 | % | 166 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 9.65 | (3.50 | %) | 13,290 | 1.24 | % | 0.40 | % | 2.71 | % | 161 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 11.05 | 30.17 | % | 9,192 | 1.24 | % | 0.80 | % | 4.47 | % | 179 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 9.29 | 37.02 | % | 3,266 | 1.24 | % | (0.41 | %) | 12.09 | % | 201 | % | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 14.19 | 6.16 | % | $ | 13,516 | 1.24 | % | 1.48 | % | 1.40 | % | 68 | % | |||||||||||||||||||
Period Ended December 31, 20135 | — | 13.56 | 28.10 | % | 3,151 | 1.24 | % | 1.36 | % | 1.66 | % | 162 | % | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 14.29 | 6.26 | % | $ | 32,590 | 0.99 | % | 1.71 | % | 1.15 | % | 68 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | �� | 13.65 | 43.64 | % | 8,507 | 0.99 | % | 1.10 | % | 1.41 | % | 162 | % | |||||||||||||||||||||
Year Ended December 31, 2012 | — | 10.62 | 13.75 | % | 442 | 0.99 | % | 1.69 | % | 1.95 | % | 166 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 9.69 | (3.17 | %) | 627 | 0.99 | % | 0.67 | % | 2.46 | % | 161 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 11.08 | 30.44 | % | 283 | 0.99 | % | 1.41 | % | 4.22 | % | 179 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 9.31 | 37.44 | % | 37 | 0.99 | % | (0.27 | %) | 11.84 | % | 201 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 14.11 | 6.03 | % | $ | 812 | 1.49 | % | 0.93 | % | 1.65 | % | 68 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 13.48 | 42.90 | % | 621 | 1.49 | % | 0.58 | % | 1.91 | % | 162 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 10.52 | 13.24 | % | 111 | 1.49 | % | 2.12 | % | 2.45 | % | 166 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 9.61 | (3.74 | %) | 46 | 1.49 | % | 0.15 | % | 2.96 | % | 161 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 10.99 | 29.94 | % | 15 | 1.49 | % | 1.62 | % | 4.72 | % | 179 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 9.26 | 36.58 | % | 4 | 1.49 | % | (0.62 | %) | 12.34 | % | 201 | % |
SEE NOTES TO FINANCIAL STATEMENTS
91
June 30, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period.
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 7.57 | $ | 0.22 | $ | 0.13 | $ | 0.35 | $ | 0.22 | $ | — | $ | — | $ | 0.22 | |||||||||||||||||||
Year Ended December 31, 2013 | 7.53 | 0.46 | 0.07 | 0.53 | 0.48 | 0.01 | — | 0.49 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 7.20 | 0.53 | 0.40 | 0.93 | 0.53 | 0.07 | — | 0.60 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 7.74 | 0.57 | (0.41 | ) | 0.16 | 0.58 | 0.12 | — | 0.70 | ||||||||||||||||||||||||||
Year Ended December 31, 2010 | 7.74 | 0.66 | 0.10 | 0.76 | 0.65 | 0.11 | — | 0.76 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.10 | 0.64 | 1.64 | 2.28 | 0.64 | — | — | 0.64 | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 7.57 | $ | 0.22 | $ | 0.13 | $ | 0.35 | $ | 0.22 | $ | — | $ | — | $ | 0.22 | |||||||||||||||||||
Period Ended December 31, 20135 | 7.67 | 0.29 | (0.08 | ) | 0.21 | 0.30 | 0.01 | — | 0.31 | ||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 7.54 | $ | 0.23 | $ | 0.13 | $ | 0.36 | $ | 0.23 | $ | — | $ | — | $ | 0.23 | |||||||||||||||||||
Year Ended December 31, 2013 | 7.50 | 0.47 | 0.05 | 0.52 | 0.47 | 0.01 | — | 0.48 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 7.17 | 0.55 | 0.40 | 0.95 | 0.55 | 0.07 | — | 0.62 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 7.72 | 0.59 | (0.43 | ) | 0.16 | 0.59 | 0.12 | — | 0.71 | ||||||||||||||||||||||||||
Year Ended December 31, 2010 | 7.70 | 0.67 | 0.13 | 0.80 | 0.67 | 0.11 | — | 0.78 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.08 | 0.65 | 1.62 | 2.27 | 0.65 | — | — | 0.65 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 7.57 | $ | 0.22 | $ | 0.13 | $ | 0.35 | $ | 0.22 | $ | — | $ | — | $ | 0.22 | |||||||||||||||||||
Year Ended December 31, 2013 | 7.53 | 0.44 | 0.05 | 0.49 | 0.44 | 0.01 | — | 0.45 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 7.19 | 0.52 | 0.41 | 0.93 | 0.52 | 0.07 | — | 0.59 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 7.72 | 0.55 | (0.40 | ) | 0.15 | 0.56 | 0.12 | — | 0.68 | ||||||||||||||||||||||||||
Year Ended December 31, 2010 | 7.71 | 0.63 | 0.12 | 0.75 | 0.63 | 0.11 | — | 0.74 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.08 | 0.63 | 1.62 | 2.25 | 0.62 | — | — | 0.62 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 Per share data is reflected from class inception date of May 1, 2013.
SEE NOTES TO FINANCIAL STATEMENTS
92
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
High Yield Bond Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 7.70 | 4.74 | % | $ | 482,085 | 0.95 | % | 5.88 | % | 0.95 | % | 35 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 7.57 | 6.91 | % | 472,484 | 0.96 | % | 6.05 | % | 0.96 | % | 58 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 7.53 | 13.41 | % | 346,071 | 0.98 | % | 7.20 | % | 0.98 | % | 73 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 7.20 | 2.00 | % | 295,597 | 0.97 | % | 7.54 | % | 0.97 | % | 49 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 7.74 | 10.35 | % | 296,349 | 0.99 | % | 8.45 | % | 0.99 | % | 70 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 7.74 | 38.70 | % | 298,915 | 0.97 | % | 8.88 | % | 1.04 | % | 58 | % | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 7.70 | 4.74 | % | $ | 2,318 | 0.95 | % | 5.84 | % | 0.95 | % | 35 | % | |||||||||||||||||||
Period Ended December 31, 20135 | — | 7.57 | 2.78 | % | 786 | 0.96 | % | 5.87 | % | 0.96 | % | 58 | % | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 7.67 | 4.88 | % | $ | 237,663 | 0.70 | % | 6.13 | % | 0.70 | % | 35 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 7.54 | 7.18 | % | 187,522 | 0.71 | % | 6.32 | % | 0.71 | % | 58 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 7.50 | 13.72 | % | 135,382 | 0.73 | % | 7.46 | % | 0.73 | % | 73 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 7.17 | 2.10 | % | 146,810 | 0.72 | % | 7.78 | % | 0.72 | % | 49 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 7.72 | 10.92 | % | 119,258 | 0.74 | % | 8.70 | % | 0.74 | % | 70 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 7.70 | 38.78 | % | 91,606 | 0.72 | % | 9.12 | % | 0.79 | % | 58 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 7.70 | 4.48 | % | $ | 973 | 1.20 | % | 5.62 | % | 1.20 | % | 35 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 7.57 | 6.63 | % | 694 | 1.21 | % | 5.82 | % | 1.21 | % | 58 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 7.53 | 13.29 | % | 882 | 1.23 | % | 6.96 | % | 1.23 | % | 73 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 7.19 | 1.87 | % | 452 | 1.22 | % | 7.30 | % | 1.22 | % | 49 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 7.72 | 10.23 | % | 214 | 1.24 | % | 8.21 | % | 1.24 | % | 70 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 7.71 | 38.27 | % | 106 | 1.22 | % | 8.52 | % | 1.29 | % | 58 | % |
SEE NOTES TO FINANCIAL STATEMENTS
93
June 30, 2014
Financial Highlights, continued
Selected data for a share outstanding throughout each period.
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.80 | $ | 0.08 | $ | 0.32 | $ | 0.40 | $ | 0.11 | $ | 0.05 | $ | — | $ | 0.16 | |||||||||||||||||||
Year Ended December 31, 2013 | 9.88 | 0.07 | 3.07 | 3.14 | 0.20 | 0.02 | — | 0.22 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 8.42 | 0.06 | 1.55 | 1.61 | 0.15 | — | — | 0.15 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 9.63 | 0.04 | (1.04 | ) | (1.00 | ) | — | 0.21 | — | 0.21 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.69 | 0.01 | 0.96 | 0.97 | 0.03 | — | — | 0.03 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.38 | 0.03 | 2.36 | 2.39 | 0.08 | — | — | 0.08 | |||||||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.78 | $ | 0.08 | $ | 0.32 | $ | 0.40 | $ | 0.11 | $ | 0.05 | $ | — | $ | 0.16 | |||||||||||||||||||
Period Ended December 31, 20135 | 10.75 | (0.02 | ) | 2.29 | 2.27 | 0.22 | 0.02 | — | 0.24 | ||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.86 | $ | 0.10 | $ | 0.32 | $ | 0.42 | $ | 0.12 | $ | 0.05 | $ | — | $ | 0.17 | |||||||||||||||||||
Year Ended December 31, 2013 | 9.92 | 0.09 | 3.10 | 3.19 | 0.23 | 0.02 | — | 0.25 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 8.46 | 0.08 | 1.56 | 1.64 | 0.18 | — | — | 0.18 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 9.64 | 0.07 | (1.04 | ) | (0.97 | ) | — | 0.21 | — | 0.21 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.69 | 0.03 | 0.97 | 1.00 | 0.05 | — | — | 0.05 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.38 | 0.04 | 2.37 | 2.41 | 0.10 | — | — | 0.10 | |||||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 12.71 | $ | 0.07 | $ | 0.31 | $ | 0.38 | $ | 0.09 | $ | 0.05 | $ | — | $ | 0.14 | |||||||||||||||||||
Year Ended December 31, 2013 | 9.81 | 0.05 | 3.05 | 3.10 | 0.18 | 0.02 | — | 0.20 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 8.37 | 0.04 | 1.54 | 1.58 | 0.14 | — | — | 0.14 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 9.60 | 0.02 | (1.04 | ) | (1.02 | ) | — | 0.21 | — | 0.21 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 8.66 | (0.02 | )6 | 0.97 | 0.95 | 0.01 | — | — | 0.01 | ||||||||||||||||||||||||||
Year Ended December 31, 2009 | 6.37 | (0.01 | )6 | 2.37 | 2.36 | 0.07 | — | — | 0.07 | ||||||||||||||||||||||||||
International ESG Index Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited)6 | $ | 8.84 | $ | 0.20 | $ | 0.33 | $ | 0.53 | $ | 0.09 | $ | 0.17 | $ | — | $ | 0.26 | |||||||||||||||||||
Institutional Class7 | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 8.85 | $ | 0.31 | $ | 0.22 | $ | 0.53 | $ | 0.26 | $ | 0.17 | $ | — | $ | 0.43 | |||||||||||||||||||
Year Ended December 31, 2013 | 7.24 | 0.19 | 1.51 | 1.70 | 0.17 | — | — | 0.17 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 6.36 | 0.22 | 0.77 | 0.99 | 0.19 | — | — | 0.19 | |||||||||||||||||||||||||||
Period Ended December 31, 20118 | 7.57 | 0.19 | (1.30 | ) | (1.11 | ) | 0.17 | — | — | 0.17 | |||||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited)6 | $ | 8.80 | $ | 0.19 | $ | 0.34 | $ | 0.53 | $ | 0.11 | $ | 0.17 | $ | — | $ | 0.28 |
1 Based on average shares outstanding during the period.
2 Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized.
3 Ratios representing periods of less than one year have been annualized.
4 Not annualized
5 Per share data is reflected from class inception date of May 1, 2013.
6 Per share data is reflected from class inception date of March 31, 2014.
7 Pax MSCI International ESG Index Fund acquired the assets of Pax World International Fund, a series of Pax World Funds Series Trust I, and the assets of Pax MSCI EAFE ESG Index ETF, a series of Pax World Funds Trust II, on March 31, 2014 (the "International Reorganizations"). Pax MSCI EAFE ESG Index ETF (the "Predecessor Fund") is treated as the survivor of the International Reorganizations for accounting and performance reporting purposes. Accordingly, performance information shown for PAX MSCI International ESG Index Fund is that of the Predecessor Fund. Per share data shown for periods prior to the International Reorganizations has been restated to reflect the share conversion that occurred upon completion of the International Reorganizations.
8 Per share data is reflected from class inception date of January 27, 2011.
SEE NOTES TO FINANCIAL STATEMENTS
94
June 30, 2014
Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Global Environmental Markets Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 13.04 | 3.09 | % | $ | 105,478 | 1.40 | % | 1.32 | % | 1.45 | % | 12 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 12.80 | 32.01 | % | 94,214 | 1.40 | % | 0.65 | % | 1.54 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 9.88 | 19.27 | % | 46,392 | 1.40 | % | 0.64 | % | 1.81 | % | 46 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 8.42 | (10.39 | %) | 33,444 | 1.40 | % | 0.44 | % | 1.99 | % | 79 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 9.63 | 11.20 | % | 28,210 | 1.40 | % | 0.09 | % | 2.38 | % | 62 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 8.69 | 37.52 | % | 17,765 | 1.40 | % | 0.35 | % | 3.78 | % | 81 | % | ||||||||||||||||||||||
Class A | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 13.02 | 3.13 | % | $ | 6,972 | 1.40 | % | 1.35 | % | 1.45 | % | 12 | % | |||||||||||||||||||
Period Ended December 31, 20135 | — | 12.78 | 21.32 | % | 2,188 | 1.40 | % | (0.23 | %) | 1.54 | % | 20 | % | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 13.11 | 3.27 | % | $ | 74,105 | 1.15 | % | 1.58 | % | 1.20 | % | 12 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 12.86 | 32.37 | % | 42,898 | 1.15 | % | 0.78 | % | 1.29 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 9.92 | 19.47 | % | 10,644 | 1.15 | % | 0.90 | % | 1.56 | % | 46 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 8.46 | (10.07 | %) | 2,511 | 1.15 | % | 0.73 | % | 1.74 | % | 79 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 9.64 | 11.56 | % | 1,767 | 1.15 | % | 0.32 | % | 2.13 | % | 62 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 8.69 | 37.79 | % | 404 | 1.15 | % | 0.56 | % | 3.53 | % | 81 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 12.95 | 3.00 | % | $ | 2,624 | 1.65 | % | 1.06 | % | 1.70 | % | 12 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 12.71 | 31.72 | % | 2,476 | 1.65 | % | 0.42 | % | 1.79 | % | 20 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 9.81 | 18.95 | % | 1,545 | 1.65 | % | 0.42 | % | 2.06 | % | 46 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 8.37 | (10.63 | %) | 658 | 1.65 | % | 0.18 | % | 2.24 | % | 79 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 9.60 | 11.01 | % | 653 | 1.65 | % | (0.18 | %) | 2.63 | % | 62 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 8.66 | 37.16 | % | 371 | 1.65 | % | (0.17 | %) | 4.03 | % | 81 | % | ||||||||||||||||||||||
International ESG Index Fund | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited)6 | $ | — | $ | 9.11 | 3.98 | % | $ | — | 0.80 | % | 4.58 | % | 0.80 | % | 41 | % | |||||||||||||||||||
Institutional Class7 | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 8.95 | 4.21 | % | $ | 84,448 | 0.55 | % | 7.04 | % | 0.55 | % | 41 | % | |||||||||||||||||||
Year Ended December 31, 2013 | 0.08 | 8.85 | 24.96 | % | 58,549 | 0.55 | % | 2.34 | % | 0.55 | % | 12 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | 0.08 | 7.24 | 16.98 | % | 13,162 | 0.55 | % | 3.21 | % | 0.55 | % | 8 | % | ||||||||||||||||||||||
Period Ended December 31, 20118 | 0.07 | 6.36 | (14.04 | %) | 4,207 | 0.55 | % | 2.91 | % | 0.55 | % | 11 | % | ||||||||||||||||||||||
Class R | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited)6 | $ | — | $ | 9.05 | 3.91 | % | $ | — | 1.05 | % | 4.57 | % | 1.05 | % | 41 | % |
SEE NOTES TO FINANCIAL STATEMENTS
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Financial Highlights, continued
Selected data for a share outstanding throughout each period.
Income (loss) from investment operations | Distributions to shareholders | ||||||||||||||||||||||||||||||||||
Net asset value, beginning of period | Net investment income1 | Net realized and unrealized gain (loss) | Total from investment operations | From net investment income | From net realized gains | Tax return of capital | Total distributions | ||||||||||||||||||||||||||||
Global Women's Index Fund5 | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 21.78 | $ | 0.37 | $ | 0.89 | $ | 1.26 | $ | 0.38 | $ | — | $ | — | $ | 0.38 | |||||||||||||||||||
Year Ended December 31, 2013 | 17.67 | 0.23 | 4.07 | 4.30 | 0.19 | — | — | 0.19 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 15.90 | 0.23 | 1.76 | 1.99 | 0.22 | — | — | 0.22 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 17.58 | 0.21 | (1.71 | ) | (1.50 | ) | 0.18 | — | — | 0.18 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 15.99 | 0.10 | 1.58 | 1.68 | 0.09 | — | — | 0.09 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 12.79 | 0.08 | 3.20 | 3.28 | 0.08 | — | 0.005 | 0.08 | |||||||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | 21.86 | $ | 0.39 | $ | 0.90 | $ | 1.29 | $ | 0.40 | $ | — | $ | — | $ | 0.40 | |||||||||||||||||||
Year Ended December 31, 2013 | 17.71 | 0.29 | 4.08 | 4.37 | 0.22 | — | — | 0.22 | |||||||||||||||||||||||||||
Year Ended December 31, 2012 | 15.94 | 0.27 | 1.77 | 2.04 | 0.27 | — | — | 0.27 | |||||||||||||||||||||||||||
Year Ended December 31, 2011 | 17.62 | 0.25 | (1.71 | ) | (1.46 | ) | 0.22 | — | — | 0.22 | |||||||||||||||||||||||||
Year Ended December 31, 2010 | 16.03 | 0.14 | 1.58 | 1.72 | 0.13 | — | — | 0.13 | |||||||||||||||||||||||||||
Year Ended December 31, 2009 | 12.80 | 0.12 | 3.20 | 3.32 | 0.09 | — | 0.005 | 0.09 |
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 Effective June 4, 2014, the Pax Ellevate Global Women's Index Fund acquired the assets of the Pax World Global Women's Equality Fund. Pax World Global Women's Equality Fund (the "Predecessor Fund") is treated as the survivor of the Global Women's Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for periods prior to June 4, 2014 is that of the Predecessor Fund.
SEE NOTES TO FINANCIAL STATEMENTS
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Ratios to average net assets3 | |||||||||||||||||||||||||||||||||||
Equalization Credits and Charges | Net asset value, end of period | Total return2 | Net assets end of period (in $000's) | Net expenses including reimbursements and waivers | Net investment income | Total expenses excluding reimbursements and waivers | Portfolio Turnover4 | ||||||||||||||||||||||||||||
Global Women's Index Fund5 | |||||||||||||||||||||||||||||||||||
Individual Investor Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 22.66 | 5.77 | % | $ | 48,508 | 1.20 | % | 3.42 | % | 1.48 | % | 87 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 21.78 | 24.56 | % | 44,461 | 1.24 | % | 1.17 | % | 1.59 | % | 28 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 17.67 | 12.67 | % | 33,988 | 1.24 | % | 1.37 | % | 1.69 | % | 35 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 15.90 | (8.60 | %) | 33,034 | 1.24 | % | 1.20 | % | 1.68 | % | 114 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 17.58 | 10.54 | % | 35,147 | 1.24 | % | 0.63 | % | 1.90 | % | 116 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 15.99 | 25.76 | % | 29,537 | 1.24 | % | 0.58 | % | 2.04 | % | 94 | % | ||||||||||||||||||||||
Institutional Class | |||||||||||||||||||||||||||||||||||
Period Ended June 30, 2014 (Unaudited) | $ | — | $ | 22.75 | 5.91 | % | $ | 4,109 | 0.95 | % | 3.56 | % | 1.23 | % | 87 | % | |||||||||||||||||||
Year Ended December 31, 2013 | — | 21.86 | 24.88 | % | 1,914 | 0.99 | % | 1.51 | % | 1.34 | % | 28 | % | ||||||||||||||||||||||
Year Ended December 31, 2012 | — | 17.71 | 12.92 | % | 1,295 | 0.99 | % | 1.56 | % | 1.44 | % | 35 | % | ||||||||||||||||||||||
Year Ended December 31, 2011 | — | 15.94 | (8.35 | %) | 2,719 | 0.99 | % | 1.47 | % | 1.43 | % | 114 | % | ||||||||||||||||||||||
Year Ended December 31, 2010 | — | 17.62 | 10.78 | % | 2,495 | 0.99 | % | 0.86 | % | 1.65 | % | 116 | % | ||||||||||||||||||||||
Year Ended December 31, 2009 | — | 16.03 | 26.11 | % | 2,518 | 0.99 | % | 0.86 | % | 1.79 | % | 94 | % |
SEE NOTES TO FINANCIAL STATEMENTS
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June 30, 2014
Notes to Financial Statements (Unaudited)
Pax World Funds Series Trust I and Pax World Funds Series Trust III
NOTE A—Organization and Summary of Significant Accounting Policies
Organization Pax World Funds Series Trust I ("Trust I"), which is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), is an open-end management investment company organized under the laws of the Commonwealth of Massachusetts on May 25, 2006. As of June 30, 2014, Trust I offered ten investment funds.
Pax World Funds Series Trust III ("Trust III") is an open-end management investment company that was organized under the laws of the Commonwealth of Massachusetts on December 4, 2013 and registered under the Investment Company Act of 1940, as amended (the "1940 Act"). Pax Ellevate Global Women's Index Fund (the "Global Women's Index Fund") is a diversified series of Trust III.
Effective March 31, 2014 the Pax MSCI International ESG Index Fund ("International Index Fund") acquired the assets of Pax World International Fund, a series of Trust I, and of Pax MSCI EAFE ESG Index ETF, a series of Pax World Funds Trust II, (the "Target Funds"), based on the respective valuations as of the close of business on March 28, 2014, pursuant to an Agreement and Plan of Reorganization dated March 31, 2014 (the "International Reorganizations"). The purpose of the International Reorganizations was to enhance efficiency by combining the international funds advised by Pax World Management LLC, so that management, administration, distribution and other resources can be focused more effectively. The International Reorganizations will result in reduced operating expenses for shareholders of Pax World International Fund, and enable shareholders of each Target Fund to invest in a larger, potentially more efficient portfolio. The International Reorganizations were accomplished by tax-free exchanges of shares. For financial reporting purposes, assets received and shares issued by the International Index Fund were recorded at fair value; however, the cost basis of the investments received from the Target Funds were carried forward to align ongoing reporting of realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
Shares and values for the Pax World International Fund were exchanged for shares and value of the International Index Fund's corresponding classes of shares on a 1:1 basis. At the close of business on March 28, 2014 the Pax
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World International Fund had $41,332,388 in net assets, including fair value of security investments of $41,235,001, identified cost of security investments of $39,573,455 and resulting unrealized appreciation of $1,661,546.
Because the International Index Fund had no investment operations prior to the closing of the International Reorganizations, and based on the similarity of the International Index Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the "Predecessor International Fund") is treated as the survivor of the International Reorganizations for accounting and performance reporting purposes. Accordingly, all performance and other information shown herein for the International Index Fund prior to March 31, 2014 is that of Predecessor International Fund. All shares and values of the Predecessor International Fund were exchanged for Institutional shares of the International Index Fund. Shareholders received identical value, but the number of shares exchanged were subject to a conversion ratio of 3.31029957 shares of the International Index Fund for every 1 share of the Predecessor International Fund. At the close of business on March 28, 2014 the Predecessor International Fund had $65,859,734 in net assets, including fair value of security investments of $65,523,411, identified cost of security investments of $60,349,234 and resulting unrealized appreciation of $5,174,177.
Shares and net assets of the Target Funds immediately prior to the International Reorganizations were as follows:
Shares Outstanding | NAV Per Share | Total Net Assets | |||||||||||||
Pax World International Fund | |||||||||||||||
Individual Investor Shares | 3,426,217 | $ | 8.84 | $ | 30,289,297 | ||||||||||
Institutional Shares | 1,200,069 | $ | 8.84 | $ | 10,611,481 | ||||||||||
Class R Shares | 49,065 | $ | 8.80 | $ | 431,610 | ||||||||||
Pax MSCI EAFE ESG Index ETF | 2,250,000 | $ | 29.27 | $ | 65,859,734 |
Shares and net assets of the International Index Fund immediately after the International Reorganizations were as follows:
Shares Outstanding | NAV Per Share | Total Net Assets | |||||||||||||
Pax MSCI International ESG Index Fund | |||||||||||||||
Individual Investor Shares | 3,426,217 | $ | 8.84 | $ | 30,289,297 | ||||||||||
Institutional Shares | 8,648,243 | $ | 8.84 | $ | 76,471,215 | ||||||||||
Class R Shares | 49,065 | $ | 8.80 | $ | 431,610 |
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Notes to Financial Statements (Unaudited), continued
Assuming the International Reorganizations had been completed on January 1, 2014, the International Index Fund's pro forma results of operations for the period ended June 30, 2014, are as follows:
Net investment income1 | $ | 3,068,342 | |||||
Net realized and unrealized gain (loss)2 | 2,106,846 | ||||||
Net increase (decrease) in net assets resulting from operations | $ | 5,175,188 |
1 Represented by $2,845,248 as reported, plus $30,179 for the International Fund pre-reorganization, plus approximately $192,915 of estimated pro-forma eliminated expenses.
2 Represented by $3,525,058 as reported, plus approximately ($1,418,212) for the International Fund pre-reorganization.
Because the combined investment portfolios have been managed as a single integrated portfolio since the International Reorganizations were completed, it is not practicable to separate the amounts of revenue and earnings of the International Predecessor Fund that have been included in the Statement of Operations of the International Index Fund since March 31, 2014.
Effective June 4, 2014, the Global Women's Index Fund, a series of Trust III, acquired the assets of Pax World Global Women's Equality Fund ("Target Fund"), a series of Trust I, based on the respective valuations as of the close of business on June 3, 2014, pursuant to an Agreement and Plan of Reorganization dated as of May 28, 2014 (the "Global Women's Reorganization"). The purpose of the Global Women's Reorganization was to permit the Target Fund's shareholders to continue to invest in companies that demonstrate a commitment to advancing and empowering women through gender diversity on their boards, in management or through other policies and programs, and an understanding of the potential business advantages associated with greater gender diversity, as rated by Pax World gender analytics, but at lower cost and through an index-based strategy rather than an actively-managed strategy. Because the Global Women's Index Fund had no investment operations prior to the closing of the Global Women's Reorganization, Pax World Global Women's Equality Fund (the "Predecessor Global Women's Fund") is treated as the survivor of the Global Women's Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown herein for the Global Women's Index Fund for periods prior to June 4, 2014 is that of the Predecessor Global Women's Fund.
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The Global Women's Reorganization was accomplished by tax-free exchanges of shares. For financial reporting purposes, assets received and shares issued by the Global Women's Index Fund were recorded at fair value; however, the cost basis of the investments received from the Predecessor Global Women's Fund were carried forward to align ongoing reporting of realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Shares and net assets of the Predecessor Global Women's Fund immediately prior to acquisition were as follows:
Shares Outstanding | NAV Per Share | Total Net Assets | |||||||||||||
Global Women's Equality Fund | |||||||||||||||
Individual Investor Shares | 1,996,478 | $ | 22.85 | $ | 45,609,710 | ||||||||||
Institutional Shares | 135,679 | $ | 22.95 | $ | 3,114,426 |
Shares and values for the Global Women's Index Fund were exchanged for shares and value of the Predecessor Global Women's Fund's corresponding classes of shares on a 1:1 basis. At the close of business on June 3, 2014, the Predecessor Global Women's Fund had $4,724,136 in net assets, including fair value of security investments of $48,510,468, identified cost of security investments of $37,388,747 and resulting unrealized appreciation of $11,121,722.
These financial statements relate only to the Pax World Balanced Fund (the "Balanced Fund"), Pax World Growth Fund (the "Growth Fund"), Pax World Small Cap Fund (the "Small Cap Fund"), Pax World High Yield Bond Fund (the "High Yield Bond Fund"), Pax World Global Environmental Markets Fund (the "Global Environmental Markets Fund"), the International Index Fund, and the Global Women's Index Fund, (each a "Fund", collectively, the "Funds").
The Global Women's Index Fund offers two classes of shares—Individual Investor Class shares and Institutional Class shares. The Balanced Fund and International Index Fund each offer three classes of shares—Individual Investor Class shares, Institutional Class shares and Class R shares. The Growth Fund, Small Cap Fund, High Yield Bond Fund and Global Environmental Markets Fund each offer four classes of shares—Individual Investor Class shares, Class A shares, Institutional Class shares and Class R shares. Although all share classes generally have identical voting, dividend and liquidation rights, each class votes separately when required by law. Different
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Notes to Financial Statements (Unaudited), continued
share classes pay different distribution amounts to the extent the expenses of such classes differ, and distributions in liquidation will be proportional to the net asset value of each share class. Each share class has its own expense structure and sales charges, as applicable.
The Funds seek to invest in forward-thinking companies with sustainable business models that meet positive environmental, social and governance standards. The Funds avoid investing in companies that their investment adviser determines are significantly involved in the manufacture of weapons or weapons-related products, manufacture tobacco products or engage in unethical business practices.
The Balanced Fund's primary investment objective is to seek income and conservation of principal. As a secondary investment objective, the Fund seeks long-term growth of capital. The Fund seeks to achieve its investment objective by investing approximately 60%-75% of its assets in equity securities (such as common stocks, preferred stocks and equity securities convertible into common or preferred stocks) and 25%-40% of the assets in debt securities (including but not limited to debt securities convertible into equity securities).
The Growth Fund's investment objective is to seek long-term growth of capital. The Fund seeks to achieve this objective by investing, under normal market conditions, primarily in equity securities (such as common stock, preferred stock and securities convertible into common stock and preferred stock) of companies that the Growth Fund's portfolio manager believes will have above-average growth prospects.
The Small Cap Fund's investment objective is to seek long-term growth of capital. The Fund seeks to achieve this objective by investing, under normal market conditions, at least 80% of its assets in equity securities (such as common stocks and securities convertible into common or preferred stocks and warrants) of companies that, when purchased, have capitalizations within the range of the Russell 2000 Index as measured by market capitalization.
The High Yield Bond Fund's primary investment objective is to seek high current income. As a secondary objective, the High Yield Bond Fund seeks capital appreciation. The Fund seeks to achieve this objective by investing, under normal market conditions, at least 80% of its total assets in high-yield, fixed income securities (such as bonds, notes and debentures) that are rated below BBB- by Standard & Poor's Ratings Group or below Baa3 by Moody's
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Investors Service and other fixed income securities that are determined by the High Yield Bond Fund's investment adviser to be of comparable quality (commonly referred to as "junk bonds").
The Global Environmental Markets Fund's investment objective is to seek long term growth of capital by investing in innovative companies around the world whose businesses and technologies focus on environmental markets, including alternative energy and energy efficiency; water infrastructure technologies and pollution control; environmental support services and waste management technologies; and sustainable food, agriculture and forestry. Under normal market conditions the Fund will primarily invest in equity securities (such as common stocks, preferred stocks and securities convertible into common or preferred stocks) of companies located around the world including at least 40% of its net assets in the securities of non-U.S. issuers.
The International Index Fund's investment objective is to seek investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index. The Fund seeks to achieve this objective by investing, under normal market conditions, more than 80% of its total assets in the component securities, or a representative sampling of the component securities, of the MSCI EAFE ESG Index.
The Global Women's Index Fund's investment objective is to seek investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women's Leadership Index (the "Women's Index"), while maintaining risk characteristics that the Adviser believes are generally similar to those of the Women's Index. The Fund seeks to achieve this objective by investing, under normal market conditions, more than 80% of its total assets in the component securities, or an enhanced, optimized or representative sampling of the component securities, of the Women's Index, including at least 40% of its net assets in the securities of non-U.S. issuers.
Under the Trusts' organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trusts. Additionally, in the normal course of business, the Trusts enter into contracts with service providers that contain general indemnification clauses. The Trusts' maximum exposure under these arrangements is unknown as this could involve future claims that may be made against the Trusts that
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Notes to Financial Statements (Unaudited), continued
have not yet occurred. However, based on experience, the Trusts expect 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. U.S. fixed income and non-U.S. securities are normally priced using data reflecting the earlier closing of the principal markets for those securities, subject to possible fair value adjustments. Information that becomes known to the Funds or their agents after NAV has been calculated on a particular day will not generally be used to retroactively adjust the price of a security or NAV determined earlier that day.
For the purpose of these financial statements, fair values for various types of securities and other instruments are determined on the basis of closing prices or last sales prices on an exchange or other market, or based on quotes or other market information obtained from quotation reporting systems, established market makers or pricing services. Short-term investments having a maturity of 60 days or less are generally valued at amortized cost, which approximates fair value.
Investments denominated in currencies other than the U.S. dollar are converted to U.S. dollars using daily exchange rates obtained from pricing services. As a result, the NAV of a Fund's shares may be affected by changes in the value of currencies in relation to the U.S. dollar.
If market quotations are not readily available (including in cases when available market quotations are deemed to be unreliable), the Funds'
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June 30, 2014
investments will be valued as determined in good faith pursuant to policies and procedures approved by the Boards of Trustees (so called "evaluated pricing"). The Boards have delegated to the Advisers' Best Execution and Valuation Committee the day-to-day responsibility for making evaluated pricing determinations with respect to Fund holdings. The Best Execution and Valuation Committee is comprised of representatives of the Advisers, including several members of the Portfolio Management team, the Director of Trading, the Chief Compliance Officer and the Chief Financial Officer. One of the functions of the Best Execution and Valuation Committee is to value securities where current and reliable market quotations are not readily available. The Committee meets periodically and reports to the Board at each quarterly meeting regarding any securities for which evaluated pricing was employed during the previous quarter. All actions taken by the Best Execution and Valuation Committee are reviewed and ratified by the Boards.
The Funds may determine that market quotations are not readily available due to events relating to a single issuer (e.g., corporate actions or announcements) or events relating to multiple issuers (e.g., governmental actions or natural disasters). The Funds may determine the fair value of investments based on information provided by pricing services and other third-party vendors, which may recommend fair value prices or adjustments with reference to other securities, indices or assets. Various factors may be considered in order to make a good faith determination of a security's fair value. These factors include, but are not limited to, the type and cost of the security; contractual or legal restrictions on resale of the security; relevant financial or business developments of the issuer; actively traded similar or related securities; conversion or exchange rights on the security; related corporate actions; significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the time at which Funds' net asset value is determined; and changes in overall market conditions. At June 30, 2014, five securities were fair valued in good faith pursuant to policies and procedures approved by the Boards of Trustees. The Balanced Fund held two securities fair valued at $748,870 representing 0.04% of the Fund's net asset value, the High Yield Bond Fund held two securities fair valued at $0, representing 0.00% of the Fund's net asset value, and the International Index Fund held one security fair valued at $67,451 representing 0.06% of the Fund's net asset value.
For those Funds that invest in non-U.S. securities, investors should be aware that many securities markets and exchanges outside the U.S. close prior to the
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June 30, 2014
Notes to Financial Statements (Unaudited), continued
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. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
• Level 1 – quoted prices in active markets for identical investments
• Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
• Level 3 – significant unobservable inputs (including the Funds' own assumptions in determining the fair value of investments)
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a general summary of valuation inputs and classifications for different categories of securities.
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Equity Securities Equity securities, including common stocks, preferred stocks and exchange-traded funds, for which market quotations are readily available, valued at the last reported sale price or official closing price as reported by an independent pricing service, are generally categorized as Level 1 in the hierarchy. Non-U.S. equity securities may also be valued at official close, or may be valued based on the fair value pricing procedures noted above. When third-party fair value pricing of foreign securities methods are applied, they are generally categorized as Level 2. To the extent that inputs for equity securities are unobservable, values are categorized as Level 3 in the hierarchy.
Fixed Income Securities Fixed income securities, including corporate Bonds (both investment-grade and high-yield), U.S. Treasury Obligations, Government Bonds, Mortgage-Backed and Asset-Backed Securities and Municipal Bonds, are valued at evaluated prices received from independent pricing services, which are evaluated using various inputs and techniques which may include trade activity, broker-dealer quotes, yield curves, coupon rates, default rates, cash flows, models and other inputs, and are generally categorized as Level 2 in the hierarchy. To the extent that inputs for fixed income securities are unobservable, values are categorized as Level 3 in the hierarchy.
Mutual Fund Investments Investments in mutual funds are valued at the Funds' closing net asset value and are generally categorized as Level 1.
Short-term Investments Short-term securities, including repurchase agreements, with remaining maturities of 60 days or less, which are valued at amortized cost, are generally categorized as Level 2 in the hierarchy.
Option Contracts Options on equity securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service, and are generally categorized as Level 1 in the hierarchy.
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Notes to Financial Statements (Unaudited), continued
The following is a summary of the inputs used to value the Funds' net assets as of June 30, 2014:
Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
Balanced | |||||||||||||||||||
Common Stocks—Domestic | $ | 1,202,351,755 | $ | — | $ | — | $ | 1,202,351,755 | |||||||||||
Common Stocks—Foreign | 15,845,165 | 33,696,945 | — | 49,542,110 | |||||||||||||||
Affiliated Investment Companies | 19,575,208 | — | — | 19,575,208 | |||||||||||||||
Exchange Traded Funds | 6,510,517 | — | — | 6,510,517 | |||||||||||||||
Community Investment Notes | — | 3,150,000 | 748,870 | 3,898,870 | |||||||||||||||
Corporate Bonds | — | 202,709,678 | — | 202,709,678 | |||||||||||||||
U.S. Govt Agency Bonds | — | 160,796,421 | — | 160,796,421 | |||||||||||||||
Government Bonds | — | 11,617,605 | — | 11,617,605 | |||||||||||||||
Municipal Bonds | — | 13,913,646 | — | 13,913,646 | |||||||||||||||
U.S. Treasury Notes | — | 182,690,765 | — | 182,690,765 | |||||||||||||||
Mortgage-Backed Securities | — | 111,524,420 | — | 111,524,420 | |||||||||||||||
Cash Equivalents | 7,450,407 | 23,549,000 | — | 30,999,407 | |||||||||||||||
Total | $ | 1,251,733,052 | $ | 743,648,480 | $ | 748,870 | $ | 1,996,130,402 | |||||||||||
Growth | |||||||||||||||||||
Common Stocks—Domestic | $ | 165,881,943 | $ | — | $ | — | $ | 165,881,943 | |||||||||||
Common Stocks—Foreign | 4,619,046 | 5,532,236 | — | 10,151,282 | |||||||||||||||
Cash Equivalents | 4,967,563 | 5,632,000 | — | 10,599,563 | |||||||||||||||
Total | $ | 175,468,552 | $ | 11,164,236 | $ | — | $ | 186,632,788 | |||||||||||
Small Cap | |||||||||||||||||||
Common Stocks—Domestic | $ | 121,425,686 | $ | — | $ | — | $ | 121,425,686 | |||||||||||
Common Stocks—Foreign | 6,852,463 | — | — | 6,852,463 | |||||||||||||||
Cash Equivalents | 7,586,765 | 10,221,000 | — | 17,807,765 | |||||||||||||||
Total | $ | 135,864,914 | $ | 10,221,000 | $ | — | $ | 146,085,914 | |||||||||||
High Yield Bond | |||||||||||||||||||
Common Stocks—Domestic | $ | 6,740,477 | $ | — | $ | 0 | $ | 6,740,477 | |||||||||||
Preferred Stocks | 14,356,400 | — | 0 | 14,356,400 | |||||||||||||||
Corporate Bonds | — | 641,058,624 | — | 641,058,624 | |||||||||||||||
Loans | — | 49,079,728 | — | 49,079,728 | |||||||||||||||
Cash Equivalents | 30,177,358 | 19,499,564 | — | 49,676,922 | |||||||||||||||
Securities Sold Short | (2,941,260 | ) | — | — | (2,941,260 | ) | |||||||||||||
Total | $ | 48,332,975 | $ | 709,637,916 | $ | 0 | $ | 757,970,891 |
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Level 1 | Level 2 | Level 3 | Totals | ||||||||||||||||
Global Environmental Markets | |||||||||||||||||||
Common Stocks—Domestic | $ | 65,621,615 | $ | — | $ | — | $ | 65,621,615 | |||||||||||
Common Stocks—Foreign | 17,487,507 | 100,230,935 | — | 117,718,442 | |||||||||||||||
Total | $ | 83,109,122 | $ | 100,230,935 | $ | — | $ | 183,340,057 | |||||||||||
International Index | |||||||||||||||||||
Common Stocks—Foreign | $ | 1,441,756 | $ | 114,758,336 | $ | 67,451 | $ | 116,267,543 | |||||||||||
Preferred Stocks—Foreign | — | 364,505 | — | 364,505 | |||||||||||||||
Rights | 12,144 | — | — | 12,144 | |||||||||||||||
Exchange Traded Funds | 465,805 | — | — | 465,805 | |||||||||||||||
Cash Equivalents | — | 327,000 | — | 327,000 | |||||||||||||||
Total | $ | 1,919,705 | $ | 115,449,841 | $ | 67,451 | $ | 117,436,997 | |||||||||||
Global Women's Index | |||||||||||||||||||
Common Stocks—Domestic | $ | 28,279,522 | $ | — | $ | — | $ | 28,279,522 | |||||||||||
Common Stocks—Foreign | 5,456,519 | 17,844,523 | — | 23,301,042 | |||||||||||||||
Preferred Stocks—Foreign | — | 65,276 | — | 65,276 | |||||||||||||||
Exchange Traded Funds | 622,300 | — | — | 622,300 | |||||||||||||||
Cash Equivalents | — | 750,000 | — | 750,000 | |||||||||||||||
Total | $ | 34,358,341 | $ | 18,659,799 | $ | — | $ | 53,018,140 |
* 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.
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
International Index | High Yield Bond | ||||||||||
Stocks | |||||||||||
Balance as of December 31, 2013 | $ | — | $ | — | |||||||
Realized gain (loss) | — | — | |||||||||
Amortization of premium | — | — | |||||||||
Change in unrealized appreciation (depreciation) | — | — | |||||||||
Purchases/Received in Exchange | 67,451 | 0 | |||||||||
Sales | — | — | |||||||||
Transfers in to and/or out of Level Three | — | — | |||||||||
Balance as of June 30, 2014 | $ | 67,451 | $ | 0 |
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Notes to Financial Statements (Unaudited), continued
Balanced | High Yield Bond | ||||||||||
Bonds and Notes | |||||||||||
Balance as of December 31, 2013 | $ | 748,566 | $ | 0 | |||||||
Realized gain (loss) | — | — | |||||||||
Amortization of premium | — | (28,221 | ) | ||||||||
Change in unrealized appreciation (depreciation) | 304 | 28,221 | |||||||||
Purchases | — | — | |||||||||
Sales/Delivered in Exchange | — | 0 | |||||||||
Transfers in to and/or out of Level Three | — | — | |||||||||
Balance as of June 30, 2014 | $ | 748,870 | $ | — |
Transfers in and out of Levels during the period are assumed to be transferred on the last day of the period at their current value. During the period, Level 1 to Level 2 transfers were: $3,466,747 for the Global Environmental Markets Fund and $79,701,350 for the International Index Fund; and Level 2 to Level 1 transfers were: $26,452 for the Global Women's Index Fund. All such transfers were due to utilization of the pricing vendor's fair value pricing of foreign securities. The predecessor to the International Index Fund, the Pax MSCI EAFE ESG Index ETF, did not utilize fair value pricing of foreign securities.
Significant unobservable inputs were used by three Funds for Level 3 fair value measurements. The Balanced Fund holds positions in Community Investment notes which are valued based on quarterly financial statements adjusted for any changes in credit quality indicated in such financial statements. The International Index Fund holds an equity security which has been delisted from the Hong Kong exchange. The security is valued based on the Hong Kong equivalent value of an affiliated U.S. dollar-denominated security which continues to trade in a secondary market.
Investment Transactions Investment transactions are recorded as of the date of purchase, sale or maturity. Net realized gains and losses from the sale or disposition of securities are determined on the identified cost basis, which is also used for federal income tax purposes. Corporate actions (including cash dividends) are recorded net of foreign tax withholdings.
Investment Income Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discount and amortization of premiums, if any. The value of additional securities received as dividend payments is recorded as income and as an
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increase to the cost basis of such securities. The Funds amortize purchase price premium and accrete discount on bonds, if any, over the remaining life of the bonds using the effective interest method of amortization; for callable bonds, the amortization period is to the most likely call date.
Distributions to Shareholders Distributions to shareholders are recorded by each of the Funds on the ex-dividend dates. The Balanced Fund, Growth Fund, Small Cap Fund, Global Environmental Markets Fund, International Index Fund and Global Women's Index Fund expect to pay dividends of net investment income, if any, semiannually and to make distributions of capital gains, if any, at least annually. The High Yield Bond Fund expects to pay dividends of net investment income, if any, monthly and to make distributions of capital gains, if any, at least annually. A shareholder begins earning dividends on High Yield Bond Fund shares the day after the Fund receives his or her purchase payment. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
Class Accounting Expenses directly attributable to a class of shares, such as 12b-1 distribution fees, are charged to that class. Each Fund has adopted a 12b-1 plan, applicable to certain classes of each of the Funds. Expenses of the Funds that are directly identifiable to a specific Fund, such as transfer agent fees, custody fees and registration fees, are applied to that Fund. Expenses that are not readily identifiable to a specific Fund, such as printing expense, Trustees' fees and legal fees, are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of the Funds. Investment income, realized and unrealized gains and losses are allocated based upon the relative daily net assets of each class of shares.
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.
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Notes to Financial Statements (Unaudited), continued
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 and auditing standards; the effect of political, social, diplomatic or economic events; seizure, expropriation or nationalization of the issuer or its assets; fluctuation in foreign currency exchange rates and the possible imposition of currency exchange controls. If the Fund invests substantially in securities of non-U.S. issuers tied economically to a particular country or geographic region, it will be subject to the risks associated with such country or geographic region to a greater extent than a fund that is more diversified across countries or geographic regions.
Securities Lending Each of the Funds may lend their securities pursuant to a securities lending agreement (Lending Agreement) with State Street Bank and Trust Company. Initial security loans made pursuant to the Lending Agreement are required to be secured by collateral not less than the percentage specified in the agreement, ranging from 102% to 105%, depending on the types of securities. Cash collateral received is invested in the State Street Institutional U.S. Government Money Market Fund, a registered Rule 2a-7 money market fund. Borrowers may also pledge non-cash collateral within the guidelines for acceptable forms of non-cash collateral approved by the Boards of Trustees. At June 30, 2014, non-cash collateral consisted of U.S. Treasuries and short-term U.S. Government Agency obligations.
The Funds have the right under the Lending Agreement to recover the securities from the borrower on demand. The primary risk associated with securities lending is if the Borrower defaults on its obligation to return the securities loaned
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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, 2014, the value of securities loaned, payable for collateral due to brokers and non-cash collateral pledged by brokers were as follows:
Fund | Market Value of Securities Loaned | Payable on Collateral Due to Broker | Non-Cash Collateral Value | Over Collateralized | |||||||||||||||
Balanced | $ | 240,099,318 | $ | 7,033,718 | $ | 238,244,134 | $ | 5,178,534 | |||||||||||
Growth | 33,340,489 | 4,967,563 | 29,058,982 | 686,056 | |||||||||||||||
Small Cap | 7,470,660 | 7,586,765 | — | 116,105 | |||||||||||||||
High Yield Bond | 42,771,379 | 30,177,358 | 13,468,065 | 874,044 |
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
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Notes to Financial Statements (Unaudited), continued
security to the counterparty by way of purchase or delivery of a long position owned). Although the potential for gain as a result of a short sale is limited to the price at which the Fund sold the security short less the cost of borrowing the security, the potential for loss is theoretically unlimited because there is no limit to the cost of replacing the borrowed security. There is no assurance the Fund will be able to close out a short position at a particular time or at an acceptable price.
The Fund is liable to the buyer for any dividends payable on securities while those securities are in a short position. These dividends are recorded as an expense of the Fund. Short sales held by the Fund are fully collateralized by restricted cash or other securities. At June 30, 2014, $2,984,000 in cash was segregated and restricted to cover collateral requirements. 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
Trust I and Trust III have entered into Investment Advisory Contracts (the "Agreements") with Pax World Management LLC and Pax Ellevate Management LLC, respectively (each, the "Adviser", and collectively, the "Advisers"). Pursuant to the terms of the agreements, the Advisers, subject to the supervision of the Boards of Trustees of the Trusts, are responsible for managing the assets of the Funds in accordance with the Funds' investment objective, investment programs and policies.
Pursuant to the Agreements, the Advisers have contracted to furnish the Funds continuously with an investment program, determining what investments to purchase, sell and exchange for the Funds and what assets to hold uninvested. The Advisers also have contracted to provide office space and certain management and administrative facilities for the Funds. In return for such services, the Funds pay an advisory fee to the Advisers at the following annual rates (expressed as a percentage of the average daily net assets of such Fund):
Average Net Asset Value of Fund | |||||||||||
Fund | Up to $25M | Over $25M | |||||||||
Balanced | 0.75 | % | 0.50 | % |
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Fund | Annual Rate | ||||||
Growth | 0.75 | % | |||||
Small Cap | 0.75 | % | |||||
High Yield Bond | 0.50 | % | |||||
Global Environmental Markets | 0.90 | % | |||||
International Index | 0.55 | %1 | |||||
Global Women's Index | 0.74 | %1,2 |
1The management fee is a unified fee that includes all of the operating costs and expenses of the Fund (other than taxes, charges of interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses. (For this purpose, The Advisers do not consider acquired fund fees and expenses to be operating costs and expenses of the Fund.)
2Effective June 4, 2014, the Global Women's Index Fund acquired the assets of the Pax World Global Women's Equality Fund, a series of Pax World Funds Series Trust I, pursuant to an Agreement and Plan of Reorganization dated May 28, 2014 (the "Global Women's Reorganization"). Because the Global Women's Index Fund had no investment operations prior to the closing of the Global Women's Reorganization. Ratios shown in the tables reflect amounts charged to the Fund after the Global Women's Reorganization. The advisory fee of the Global Women's Predecessor Fund was 0.75%.
For the period ended June 30, 2014, the Funds incurred the following advisory fees:
Fund | Amount | ||||||
Balanced | $ | 4,932,599 | |||||
Growth | 646,844 | ||||||
Small Cap | 325,895 | ||||||
High Yield Bond | 1,740,901 | ||||||
Global Environmental Markets | 727,244 | ||||||
International Index | 238,160 | ||||||
Global Women's Index | 177,011 |
The Advisers have 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:
Total Expenses Reimbursed by Adviser | |||||||||||||||||||
Fund | Individual Investor | Class A | Institutional | Class R | |||||||||||||||
Growth1,2 | 1.24 | % | 1.24 | % | 0.99 | % | 1.49 | % | |||||||||||
Small Cap2 | 1.24 | % | 1.24 | % | 0.99 | % | 1.49 | % |
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Notes to Financial Statements (Unaudited), continued
Total Expenses Reimbursed by Adviser | |||||||||||||||||||
Fund | Individual Investor | Class A | Institutional | Class R | |||||||||||||||
Global Environmental Markets2 | 1.40 | % | 1.40 | % | 1.15 | % | 1.65 | % | |||||||||||
International Index3 | 0.80 | % | 0.55 | % | 1.05 | % | |||||||||||||
Global Women's Index3,4 | 0.99 | % | 0.74 | % |
1Effective May 1, 2014, the Adviser has contractually agreed to reduce the expense caps. Prior to that date, expenses were capped at 1.29%, 1.29%, 1.04% and 1.54%, respectively.
2The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31, 2015.
3Expense caps for index funds represent their respective unified management fees plus distribution and/or service fees payable under a plan pursuant to Rule 12b-1, as applicable to particular classes of shares.
4Prior to June 4, 2014, the effective date of the Global Women's Reorganization, expenses of the Global Women's Predecessor Fund were capped at 1.24% and 0.99%, respectively.
In addition, the Adviser voluntarily waived $47,243 of its management fee from the Balanced Fund related to the Fund's investment in an affiliate.
Such expenses include (i) management and distribution fees; (ii) the fees of affiliated and unaffiliated Trustees; (iii) the fees of the Funds' custodian and transfer agent; (iv) the fees of the Funds' legal counsel and independent registered public accounting firm; (v) the reimbursement of organizational expenses; and (vi) expenses related to shareholder communications including all expenses of shareholders' and Boards of Trustees' meetings and of preparing, printing and mailing reports, proxy statements and prospectuses to shareholders.
For the period ended June 30, 2014, the dollar amount of expense reimbursements and fee waivers for each of the Funds were as follows:
Total Expenses Reimbursed by Adviser | |||||||||||||||||||
Fund | Individual Investor | Class A | Institutional | Class R | |||||||||||||||
Growth | $ | 39,042 | $ | 200 | $ | 8,074 | $ | 233 | |||||||||||
Small Cap | 48,778 | 6,118 | 15,301 | 586 | |||||||||||||||
Global Environmental Markets | 26,510 | 1,174 | 14,740 | 687 | |||||||||||||||
Global Women's Index | 62,999 | — | 3,389 | — |
The Trusts have adopted a plan ("Plan") pursuant to Rule 12b-1 under the Act that allows the Funds to pay distribution fees for the sale and distribution of certain shares as described below and for personal services rendered to the Fund shareholders in connection with the maintenance of shareholder
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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 Trusts are also employees of the Adviser.
NOTE C—Investment Information
Purchases and proceeds from sales of investments for the Funds for the period ended June 30, 2014 were as follows:
Purchases | Sales | ||||||||||||||||||
Fund | Investments* | U.S. Govt Bonds | Investments* | U.S. Govt Bonds | |||||||||||||||
Balanced | $ | 393,751,335 | $ | 55,100,550 | $ | 482,274,183 | $ | 68,704,141 | |||||||||||
Growth | 26,687,645 | 27,240,577 | |||||||||||||||||
Small Cap | 125,569,658 | 59,175,465 | |||||||||||||||||
High Yield Bond | 827,178,274 | 550,978,324 | |||||||||||||||||
Global Environmental Markets | 61,800,163 |
| 19,703,024 |
| |||||||||||||||
International Index | 46,099,150 | 36,954,150 | |||||||||||||||||
Global Women's Index | 46,135,754 | 550,978,324 |
*Excluding short-term investments and U.S. Government bonds.
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Notes to Financial Statements (Unaudited), continued
For federal income tax purposes, the identified cost of investments owned at June 30, 2014 as well as the gross unrealized appreciation (depreciation) of investments and resulting net unrealized appreciation (depreciation) as of June 30, 2014 were as follows for the Funds:
Identified cost of investments for Federal income tax basis | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) | ||||||||||||||||
Balanced | $ | 1,682,404,442 | $ | 320,079,611 | $ | 6,353,651 | $ | 313,725,960 | |||||||||||
Growth | 125,827,156 | 61,966,022 | 1,160,390 | 60,805,632 | |||||||||||||||
Small Cap | 140,486,067 | 7,331,462 | 1,731,615 | 5,599,847 | |||||||||||||||
High Yield Bond | 737,407,927 | 25,524,253 | 2,020,028 | 23,504,225 | |||||||||||||||
Global Environmental Markets | 149,416,755 | 34,772,468 | 849,166 | 33,923,302 | |||||||||||||||
International Index | 106,739,099 | 12,511,390 | 1,813,492 | 10,697,898 | |||||||||||||||
Global Women's Index | 49,748,888 | 3,683,850 | 414,598 | 3,269,252 |
At June 30, 2014, the Balanced Fund, Growth Fund, High Yield Bond Fund, Global Environmental Markets Fund, International Index Fund and Global Women's Index Fund had unrealized foreign currency gains of $8,766; $796; $2,956; $4,075; $5,362 and $1,214, 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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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, 2014 is as follows:
Outstanding at 12/31/13 | Written | Closed | Expired | Exercised | Outstanding at 06/30/14 | ||||||||||||||||||||||
Balanced Fund | |||||||||||||||||||||||||||
Call Options | |||||||||||||||||||||||||||
Number of contracts | 1,800 | — | — | — | (1,800 | ) | — | ||||||||||||||||||||
Premiums received | $ | 748,612 | $ | — | $ | — | $ | — | $ | (748,612 | ) | $ | — | ||||||||||||||
Growth Fund | |||||||||||||||||||||||||||
Put Options | |||||||||||||||||||||||||||
Number of contracts | 11 | — | (11 | ) | — | — | |||||||||||||||||||||
Premiums received | $ | 30,642 | $ | — | $ | (30,642 | ) | $ | — | $ | — | $ | — |
Affiliated Investments The term "affiliated company" includes other investment companies that are managed by a Fund's Adviser. At June 30, 2014, the Balanced Fund held 2,187,174 shares of the International Index Fund, valued at $19,575,208. During the period, including investment activity of the Predecessor Fund, gross additions to the affiliated position were $562,120 and gross reductions were $427,237. The Fund received $562,120 in income distributions from this affiliated investment during the period. Income distributions from affiliates are included as dividend income on the Statement of Operations. Gross Additions include reinvestment of dividends.
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Notes to Financial Statements (Unaudited), continued
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. The collateral is held by a third party, which the Funds may not recall. 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 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 Boards of Trustees. At June 30, 2014, the Balanced Fund held $9,108,972 or 0.45% of net assets and the High Yield Bond Fund held $403,528,411 or 56.89% of net assets in securities exempt from registration under Rule 144A of the Act.
At June 30, 2014, the Balanced Fund held $4,291,817 of illiquid securities representing 0.21% of net assets; the High Yield Bond Fund held $33,671,580 of illiquid securities, representing 4.75% of net assets and the International Index Fund held $67,451 of illiquid securities representing 0.06% of net assets. The Fund will classify as "illiquid" all securities that may no longer be disposed of within seven days in the ordinary course of business at approximately the amount at which the Fund has valued such security for the purpose of calculating the Fund's net asset value. Illiquid investments may include restricted securities, repurchase agreements that mature in more than seven days or that have a notice or demand feature more than seven days, certain over-the counter option contracts and participation interests in loans. Because illiquid securities trade less frequently and in smaller volume than liquid securities, the Fund may experience difficulty in closing out positions at prevailing market prices.
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Additional information on illiquid securities held at June 30, 2014, is as follows:
Security | Acquisition Date Range | Cost | Market Value | ||||||||||||
Balanced Fund | |||||||||||||||
America Movil SAB de CV, 9.000%, 01/15/16 | 11/20/06-02/08/07 | $ | 4,813,055 | $ | 4,291,817 | ||||||||||
High Yield Bond Fund | |||||||||||||||
America Movil SAB de CV, 9.000%, 01/15/16 | 10/05/07-02/12/09 | $ | 1,978,458 | $ | 2,063,373 | ||||||||||
Charlotte Russe, Inc., 6.750%, 05/21/19 | 05/21/13-11/20/13 | 9,818,164 | 9,877,850 | ||||||||||||
Charlotte Russe, Inc., 6.750%, 05/21/19 | 03/06/14-03/06/14 | 1,962,221 | 1,990,000 | ||||||||||||
FPL Energy National Wind Portfolio LLC, 144A, 6.125%, 03/25/19 | 02/16/05-06/28/05 | 44,968 | 44,929 | ||||||||||||
Hyva Global BV, 144A, 8.625%, 03/24/16 | 01/10/13-01/10/13 | 1,983,269 | 2,085,000 | ||||||||||||
Interactive Health, Inc. | 03/19/04-10/01/13 | 178,981 | — | ||||||||||||
Interactive Health, Inc., 0.000% | 03/19/04-10/01/13 | 357,962 | — | ||||||||||||
Maxcom Telecomunicaciones SAB de CV, 6.000%, 06/15/20 | 07/08/09-10/11/13 | 3,978,543 | 3,706,733 | ||||||||||||
Ormat Funding Corp., 8.250%, 12/30/20 | 02/06/04-01/06/05 | 425,061 | 422,035 | ||||||||||||
Pacnet, Ltd., 144A, 9.000%, 12/12/18 | 12/05/13-03/11/14 | 6,245,432 | 6,510,000 | ||||||||||||
Stuart Weitzman Acq Co., LLC, 1.000%, 03/04/20 | 03/04/14-03/04/14 | 3,980,698 | 3,986,660 | ||||||||||||
Tempel Steel Co., 144A, 12.000%, 08/15/16 | 05/08/13-05/08/13 | 2,958,304 | 2,985,000 | ||||||||||||
International Fund | |||||||||||||||
Chaoda Modern Agriculture (Holdings), Ltd. | 03/22/11-07/19/11 | $ | 377,812 | $ | 67,451 |
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 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.
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Notes to Financial Statements (Unaudited), continued
The tax character of distributions paid during 2014 and 2013 was as follows:
Distributions paid in 2014 | Distributions paid in 2013 | ||||||||||||||||||
Fund | Ordinary income | Long-term capital gains | Ordinary income | Long-term capital gains | |||||||||||||||
Balanced | $ | 22,381,220 | $ | 22,656,228 | $ | 31,603,300 | $ | 195,445,646 | |||||||||||
Growth | 1,098,646 | 902,894 | 378,780 | 3,610,350 | |||||||||||||||
Small Cap | 1,446,416 | 222,985 | 4,995,573 | 651,090 | |||||||||||||||
High Yield Bond | 20,858,871 | — | 35,226,239 | — | |||||||||||||||
Global Environmental Markets | 1,573,326 | 729,756 | 1,988,554 | 223,017 | |||||||||||||||
International Index | 2,755,011 | — | 678,342 | — | |||||||||||||||
Global Women's Index | 853,359 | — | 411,705 | — |
The RIC Modernization Act of 2010 (the "Act") was signed into law on December 22, 2010. Under the Act, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, losses incurred post-enactment will be required to be utilized prior to the losses incurred in pre-enactment years. As a result, pre-enactment capital loss carryforwards may be more likely to expire unused. Additionally, post-enactment losses that are carried forward will retain their character as either short-term or long-term capital losses, rather than being considered as all short-term as under previous law.
As of December 31, 2013, the Funds carried forward remaining losses as follows:
Expires | No Expiration | Total Carryforward | |||||||||||||||||
Fund | in 2017 | ST | LT | Loss Remaining | |||||||||||||||
High Yield Bond | $ | — | $ | 439,773 | $ | 2,581,628 | $ | 3,021,401 | |||||||||||
International Index | — | 36,435 | 154,896 | 191,331 | |||||||||||||||
Global Women's Index | 1,657,238 | 243,021 | — | 1,900,259 |
During the period from November 1, 2013 through December 31, 2013, the International Index Fund incurred a qualified late-year ordinary loss of $786. This loss is treated for federal income tax purposes as if it had occurred on January 1, 2014.
Uncertain Tax Position Management has analyzed the Funds' tax positions taken for all open tax years which remain subject to examination by the Funds'
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major tax jurisdictions (years 2009 through 2013). 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, 2014, no provision for federal income tax is necessary and, therefore, the Funds did not have a liability for any unrecognized tax expenses.
NOTE E—Board Approval of Advisory Agreements
Review Process. The Investment Company Act of 1940 (the "1940 Act") requires that the Trustees of Pax World Funds Series Trust I ("Trust I") and Pax World Funds Series Trust III ("Trust III") (each, a "Trust" and together, the "Trusts") request and evaluate, and that Pax World Management LLC ("PWM") and Pax Ellevate Management LLC ("PEM") (each, an "Adviser" and together the "Advisers"), with respect to Trust I and Trust III, respectively, furnish, such information as may reasonably be necessary for the Trustees of the Trusts to evaluate the terms of the relevant Trust's investment advisory contract (each, a "Management Contract" and together, the "Management Contracts"). Similarly, the 1940 Act requires that the Trustees of Trust I request and evaluate, and that Impax Group Plc ("Impax") furnish, such information as may reasonably be necessary for the Trustees of Trust I to evaluate the terms of the investment subadvisory contract (the "Subadvisory Contract") among Trust I, PWM and Impax. The Trustees who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Trusts (the "Independent Trustees") met in person in March and June of 2014 for the purpose of considering the Management Contracts and the Subadvisory Contract (the "contract review meetings"). In addition, the Trustees of each Trust consider matters bearing on the relevant 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 Advisers.
During the course of the contract review meetings, the Trustees, including the members of an ad hoc investment oversight committee of the Trustees of Trust I, met and discussed the Management Contracts and the Subadvisory Contract with representatives of the Advisers and Impax. The Independent Trustees were assisted in their evaluation of the Management Contracts 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,
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Notes to Financial Statements (Unaudited), continued
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 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 applicable 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 Contracts and the Subadvisory Contract, the Trustees, including the Independent Trustees, evaluated the nature, extent and quality of the advisory services provided to each Trust by the relevant Adviser and Impax, as applicable. They considered the terms of the relevant Management Contract and the Subadvisory Contract, as applicable, 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 Advisers 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 Advisers, and
• financial results, assets under management and other information relating to the financial resources of the Advisers.
In addition to considering the Funds' investment performance (see below), the Trustees of each Trust considered, among other matters, the general oversight of the relevant Trust by its Adviser. They also took into account information concerning the investment philosophies and investment processes used by the
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Advisers and Impax in managing the Funds as well as their in-house investment and sustainable research capabilities. They also considered various investment resources available to the Advisers, including research services acquired with "soft dollars" available to the Advisers as a result of securities transactions effected for the Funds.
The Trustees considered, among other matters, that each Adviser provides the relevant 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 Advisers' compliance and operational functions, as well as the resources being devoted by the Advisers to such functions.
The Trustees concluded, within the context of their overall conclusions regarding the Management Contracts and the Subadvisory Contract, that the scope of the services provided to each Fund under the relevant Management Contract, and to the Global Environmental Markets Fund by Impax, was consistent with such Fund's operational requirements; that the Advisers have 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 Advisers to the relevant Trust, and by Impax to the Global Environmental Markets Fund, were sufficient to warrant approval of the Management Contracts 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 within their Lipper peer group over the 1-, 3-, 5- and 10-year periods (to the extent the Fund had been in existence) ended March 31, 2014. 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 sustainable or 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 may represent a more appropriate comparison. The Independent Trustees considered, in particular, that the performance of
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Notes to Financial Statements (Unaudited), continued
the Balanced and Growth Funds was less favorable than that of their respective Lipper performance universe average for each period. The Independent Trustees considered that the Small Cap Fund had outperformed its Lipper performance universe average for the 1- and 3-year periods and had performed approximately the same as its Lipper performance universe average for the 5-year period. The Independent Trustees considered that the Global Environmental Markets Fund had outperformed its Lipper performance universe average for the 1- and 3-year periods, and had underperformed its performance universe average for the 5-year period. The Independent Trustees considered that the International Index Fund had outperformed its Lipper performance universe average for the 1- and 3-year periods. The Independent Trustees considered that the performance of the Global Women's Index Fund and the High Yield Bond Fund was less favorable than that of their respective Lipper performance universe averages for the 3-, 5- and 10-year periods, but each had outperformed its performance universe average for the 1-year period. The Trustees noted that the performance of the Global Women's Index Fund for periods prior to its inception as a series of Trust III was that of the Global Women's Equality Fund, which had followed a different investment strategy, and therefore may be of less relevance to an evaluation of PEM's performance in managing the Global Women's Index Fund.
The Trustees expressed their concerns regarding the underperformance of the Balanced Fund, and discussed at length with senior executives of PWM their analysis of such underperformance and steps being taken to address performance issues. In that regard, the Trustees organized an ad hoc investment oversight committee for the purpose of reviewing the performance of the Balanced Fund. The members of the committee met with the portfolio managers of the fixed income and equity portions of the Balanced Fund and considered PWM's staffing (including its recent hiring of a new chief investment officer and its analyst resources), sources of investment ideas, and sell discipline for the Balanced Fund. The Trustees have requested additional information from PWM regarding the Balanced Fund and plan to monitor closely PWM's efforts to improve the Balanced Fund's performance.
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 Contracts and the Subadvisory Contract, that the relevant performance record and process in managing each Fund were sufficient to support approval of the Management Contracts and the Subadvisory Contract.
Fees and Other Expenses. The Trustees, including the Independent Trustees, considered the advisory fees paid by each Fund to the relevant Adviser, and the Trustees of Trust I, including the Independent Trustees, considered subadvisory fees paid to Impax by PWM, as well as each Fund's distribution and service (Rule 12b-1) fees, "other expenses" and total expenses. 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 its Lipper peer group (or, for the Global Environmental Markets Fund, relative to a peer group identified by PWM as emphasizing clean technology investments). The Independent Trustees noted that although the total expenses of the Balanced, Growth, High Yield Bond and International Index Funds (after giving effect to the expense reimbursements described below, if applicable) exceeded the median total expenses of their Lipper peer groups, the management fees of each Fund other than the International Index and the Global Women's Index Funds (after giving effect to the expense reimbursements described below, where applicable) were below the median management fees of its Lipper peer group. In connection with their review, the Trustees of Trust I considered PWM's agreement to:
• reimburse the 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: 0.99% for Institutional Class shares, 1.24% for Individual Investor Class shares, and 1.49% for R Class shares through December 31, 2015.
• reimburse the 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: 1.15% for Institutional Class shares, 1.40% for Individual Investor 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: 0.99% for Institutional Class shares, 1.24% for Individual Investor Class shares,
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Notes to Financial Statements (Unaudited), continued
1.24% for Class A shares, and 1.49% for Class R shares through December 31, 2015.
The Independent Trustees noted that, under the Management Contracts with respect to the International Index Fund and the Global Women's Index Fund, the relevant Adviser was obligated to pay all expenses of the Fund (other than taxes, charges of governmental agencies, interest, brokerage commissions incurred in connection with portfolio transactions, distribution and/or service fees payable under a plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 and extraordinary expenses), including accounting expenses, administrator, transfer agent and custodian fees, Fund legal fees and other expenses. (For this purpose, the relevant Adviser does not consider acquired fund fees and expenses to be operating costs and expenses of the relevant Fund.)
The Trustees of each Trust noted that the relevant 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, PWM).
Based on this and other information, the Trustees concluded, within the context of their overall conclusions regarding the Management Contracts and the Subadvisory Contract, that the fees and expenses to be charged represented reasonable compensation to the Advisers 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 of each Trust, including the Independent Trustees, reviewed information regarding the cost of services provided by each Adviser and the estimated profitability of each Adviser's relationship with the relevant Trust, including a profitability report prepared by management detailing the costs of services provided to each Fund by the relevant Adviser, and the estimated profitability to PWM, for the year ended December 31, 2013, of its advisory relationship with each Fund, and the estimated profitability to PEM of its relationship with the Global Women's
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Index Fund for its first fiscal year. The Trustees recognized that each 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 Advisers' capital structure and cost of capital. The Trustees of each Trust concluded that, taking all of the foregoing into account, they were satisfied that the Advisers' level of profitability from its relationship with the relevant Trust was not excessive. The Trustees of Trust I 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 PWM, and the fees payable under the Subadvisory Contract are the product of arm's-length bargaining between Impax and PWM.
Possible Fall-Out Benefits. The Trustees of Trust I, including the Independent Trustees, considered information regarding the direct and indirect benefits to PWM and Impax from their relationships with Trust I, including reputational and other "fall out" benefits. During the course of the year, the Trustees of Trust I received presentations from PWM about its trading practices and brokerage arrangements, including its policies with respect to research provided in connection with trade execution for the relevant Funds (soft dollar arrangements), and the Trustees of Trust I accepted the representation of PWM that it fulfills its fiduciary obligation of seeking best execution when engaging in portfolio transactions for the Funds. The Trustees of Trust I considered the receipt of these benefits in light of PWM's profitability, and concluded that such benefits were not excessive.
The Trustees of Trust III, including the Independent Trustees, considered information regarding the direct and indirect benefits to PEM from its relationship with Trust III, including reputational and other "fall out" benefits. The Trustees of Trust III considered the receipt of these benefits in light of PEM'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 Advisers and Impax, as applicable, 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
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Notes to Financial Statements (Unaudited), continued
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 PWM was reimbursing expenses of all of the Funds other than the Balanced, High Yield Bond, International Index and Global Women's Index 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 relevant 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 of relevant Trust, including the Independent Trustees, unanimously concluded that the continuation of the Management Contracts 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.
NOTE F—Special Meetings of Shareholders
Pax World International Fund
A Special Meeting of Shareholders (the "Meeting") of Pax World International Fund (the "Target Fund") was held at 10:00 a.m. EST on March 17, 2014 at 30 Penhallow Street, Portsmouth, NH 03801. At the Meeting shareholders were asked to consider the following proposal:
1. To approve the Agreement and Plan of Reorganization (the "Agreement") by and among Pax World Funds Series Trust I, on behalf of its Pax World International Fund series (the "Target Fund"), certain other registered investment companies and Pax World Management LLC, pursuant to which the Target Fund will transfer that portion of its assets attributable to each class of its shares (in aggregate, all of its assets) to the Pax MSCI International ESG Index Fund (the "Acquiring Fund"), in exchange for
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shares of a corresponding class of the Acquiring Fund and the assumption by the Acquiring Fund of all of the liabilities of the Target Fund.
The number of votes cast for or against, as well as the number of abstentions is as follows:
FOR | AGAINST | ABSTAIN | PASSED | ||||||||||||
2,535,103 | 56,441 | 87,997 | YES |
Pax World Global Women's Equality Fund
A Special Meeting of Shareholders (the "Meeting") of Pax World Global Women's Equality Fund (the "Target Fund") was held at 10:00 a.m. EST on May 28, 2014 at 30 Penhallow Street, Portsmouth, NH 03801. At the Meeting, shareholders were asked to consider the following proposal:
1. To approve the Agreement and Plan of Reorganization (the "Agreement") by and among Pax World Funds Series Trust I, on behalf of its Pax World Global Women's Equality Fund series, Pax World Funds Series Trust III on behalf of its Pax Ellevate Global Women's Index Fund series (the "Acquiring Fund") and PaxWorld Management LLC, pursuant to which the Target Fund will transfer that portion of its assets attributable to each class of its shares (in aggregate, all of its assets) to the Acquiring Fund in exchange for shares of a corresponding class of the Acquiring Fund and the assumption by the Acquiring Fund of all of the liabilities of the Target Fund.
The number of votes cast for or against, as well as the number of abstentions is as follows:
FOR | AGAINST | ABSTAIN | PASSED | ||||||||||||
939,830 | 179,462 | 29,890 | YES |
NOTE G—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.
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Notes to Financial Statements (Unaudited), continued
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 H—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.
The Statement of Additional Information includes additional information about the trustees and is available upon request without charge by calling 800.767.1729 between the hours of 9:00 a.m. and 6:00 p.m. Eastern time or by visiting our website at www.paxworld.com.
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Account Options and Services
At Pax World, we are pleased to offer a variety of account options and shareholder services to help meet your investment needs.
Types of Accounts
Regular Accounts: Individual, business and trust accounts are available for all Pax World Funds.
Traditional IRA Contributions to an IRA may be tax-deductible. Taxes are paid only when funds are withdrawn, when investors may be in a lower tax bracket.
Roth IRA Contributions to a Roth IRA are not deductible, but after five years some types of withdrawals are tax-free.
SIMPLE IRA This is an easy-to maintain retirement plan designed for small businesses.
SEP IRA This is an employer funded retirement plan popular with small businesses and self-employed persons.
Education Savings Account & Uniform Gift to Minors Account (UGMA) These plans provide excellent ways to save for a child's education.
Services
Automatic Investment Plan You may arrange to have a fixed amount automatically deducted from your checking or savings account and invested in your Pax World account on a monthly or quarterly basis. Automatic investment plans do not assure a profit and do not protect against loss in declining markets.
Online Account Access Utilizing a unique ID number and PIN, you can access your Pax World account balances or histories; purchase or redeem fund shares; or make exchanges between different Pax World Funds.
www.paxworld.com Learn all about Pax World through our web site! You can check Fund performance, read about our portfolio managers, view Connection—our quarterly newsletter, and see how Pax World voted on various proxies for the companies in our portfolios.
Please note that the information contained herein does not constitute tax advice. Always consult your tax advisor before making any tax-related investment decisions.
This 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 (8/14).
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30 Penhallow Street, Suite 400
Portsmouth NH 03801
800.767.1729
www.paxworld.com
PAX004441
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.
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| (a) | (1) | The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR. |
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| (2) | Certifications of the principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached. |
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| (3) | Written solicitation to repurchase securities issued by closed-end companies: not applicable. |
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| (b) | Certification of the principal executive officer and principal financial officer of the Registrant required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Pax World Funds Series Trust I | ||
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By (Signature and Title) | /s/ Joseph F. Keefe | ||
| Joseph F. Keefe, President | ||
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Date | August 20, 2014 | ||
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf by the Registrant and in the capacities and on the dates indicated. | |||
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By (Signature and Title) | /s/ Joseph F. Keefe | ||
| Joseph F. Keefe, President (Principal Executive Officer) | ||
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Date | August 20, 2014 | ||
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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 20, 2014 | ||