Investment Company Act file number | 811-02064 |
PAX WORLD FUNDS SERIES TRUST I | ||
(Exact name of registrant as specified in charter) | ||
30 Penhallow Street, Suite 400, Portsmouth, NH | 03801 | |
(Address of principal executive offices) | (Zip code) | |
Pax World Management LLC | ||
30 Penhallow Street, Suite 400, Portsmouth, NH 03801 | ||
Attn.: Joseph Keefe | ||
(Name and address of agent for service) |
Registrant’s telephone number, including area code: | 800-767-1729 | ||
Date of fiscal year end: | December 31 | ||
Date of reporting period: | 06/30/15 |
Item 1. | Semi-Annual Report to Shareholders |
June 30, 2015
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 |
Table of Contents |
Letter to Shareholders | 2 |
Portfolio Commentary | 6 |
Portfolio Highlights | |
ESG Managers® Growth Portfolio | 10 |
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—Shares of Beneficial Interest | 40 |
Financial Highlights | 42 |
Notes to Financial Statements | 50 |
For More Information | |
General Fund Information 877.374.7678
Shareholder Account Information 888.374.8920
Account Inquiries ESG Managers Portfolios
Investment Advisers Pax World Management LLC |
Transfer and Boston Financial Data Services
Custodian State Street Bank and Trust Company |
ALPS Distributors, Inc. is the distributor for ESG Managers® Portfolios and Pax World Funds. ALPS Distributors, Inc., is not affiliated with Pax World Management LLC or Morningstar Associates, LLC.
Letter to Shareholders |
by Joseph Keefe, President & CEO |
Dear fellow shareholders,
The first six months of 2015 have been a tale of two markets. In the first quarter, global markets as measured by the MSCI All Country World Index (ACWI) were up 2.31% whereas in the second quarter they were up only 0.35%. Developed markets ex-U.S. and Canada, as measured by the MSCI Europe Australasia Far East Index (EAFE) were up 4.88% in the first quarter and only 0.62% in the second quarter. The S&P 500, which represents the performance of large U.S. companies, was up 0.95% in the first quarter but only 0.28% in the second quarter and was thus up only 1.23% for the first half of the year.
We have all seen the headlines: The debt crisis in Greece, a tumbling Chinese stock market, low energy prices and a strong US Dollar, worries over stock and other asset valuations presaging another market bubble, concerns over whether and when the U.S. Federal Reserve will raise interest rates, and whether it can adroitly manage the transition from accommodative to more restrictive monetary policy – to name just a few.
Markets have nevertheless continued to advance, if tepidly, and shareholders in Pax World’s ESG Managers Portfolios have generally benefited from continued rising markets.
The anticipated Fed policy change comes amidst evidence of a strengthening labor market and continued recovery in the underlying economy, although at mid-year one could make the case that relevant economic indicators were mixed. It’s probably fair to say that the outlook is somewhat murky for the remainder of 2015, and that is the economic environment our fund managers will be investing in.
As I have said before, confronting mixed signals and uncertainty is a constant in the investment business. We therefore try to steer clear of grandiose predictions or prognosticating at Pax World. Instead, our ESG Managers Portfolios are composed of strategies where we believe the managers stay focused on fundamentals and risk management.
As always, one of the best ways to protect against downside risk is through portfolio diversification and asset allocation. ESG Managers Portfolios offer investors four asset allocation funds to choose from, depending on their own
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investment objectives and risk appetites. Moreover, in our view each of these fund-of-funds is comprised of what we believe are some of the best managers in the sustainable investing landscape. All of them are committed to integrating environmental, social and governance (ESG) factors into investment analysis and decision making and to delivering competitive investment performance alongside positive social and environmental outcomes.
I would encourage you to read the pages that follow to learn about the performance of our funds during the first half of 2015. At Pax World, our goal has always been to deliver competitive returns to our shareholders while also having a positive impact on communities, society and the natural environment. We assess our own performance and progress by how well we do at delivering on that double bottom line of financial returns plus social and environmental returns. 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
The S&P 500 Index is an unmanaged index of large capitalization common stocks. One cannot invest directly in an index.
The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Performance for the MSCI ACWI Index is shown “net”, which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
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Past performance does not guarantee future results.
The 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 Index is shown “net”, which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
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). Past performance does not guarantee future results.
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.
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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 Sleeve 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 |
Eventide Asset Management, LLC | Eventide Gilead Fund |
Everence Capital Management | Praxis Intermediate Income Fund |
Miller/Howard Investments, Inc. | Touchstone Premium Yield Equity Fund |
Neuberger Berman Management, LLC | Neuberger Berman Socially Responsive Fund |
Parnassus Investments | Parnassus Core Equity Fund |
Pekin Singer Strauss Asset Management, Inc. | Appleseed 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 |
TIAA-CREF | TIAA-CREF Social Choice Equity Fund |
Trillium Asset Management | Portfolio 21 Global Equity Fund |
See Schedules of Investments
5
June 30, 2015 |
Portfolio Commentary |
Morningstar
Portfolio Construction Advisors
Peter DiTeresa, Portfolio Manager
Shannon Zimmerman, Senior Consultant and Portfolio Manager |
The first half of 2015 proved to be a challenging environment for the ESG Managers Portfolios’ performance relative to their Blended Benchmarks. While some features of portfolio positioning were additive to performance, others detracted. Likewise, a number of underlying holdings made strong contributions while others faltered. The overall result was that the more a Portfolio focuses on equities, the greater the extent to which it was likely to trail its benchmark. Thus, Growth lagged its benchmark by the greatest amount and Income beat its benchmark for the period.
Total returns for the six-month period ended June 30, 2015:
Class A Shares | Portfolio | Blended Benchmark1 |
Growth Portfolio | 1.57% | 2.70% |
Growth and Income Portfolio | 1.13% | 2.10% |
Balanced Portfolio | 1.33% | 1.55% |
Income Portfolio | 1.21% | 0.91% |
We entered 2015 with the view that stocks were more attractive than bonds. It’s a view that we have had for some time and it was reflected in overweights to equities in the three multi-asset portfolios and full investment in the all-equity Growth Portfolio. Stocks overall did in fact perform better than bonds during the past six months, so putting greater emphasis on stocks was a plus for performance. We also had a more positive outlook on U.S. stocks than international issues and maintained portfolio allocations consistent with that view, which proved to be a hindrance to performance. The Standard & Poor’s 500 Index2 (the S&P 500 Index), which represents most of the capitalization of the U.S. stock market, gained 1.23% for the first half of the year while the MSCI Europe, Australasia, Far East (EAFE) Index3 (the MSCI EAFE Index), which represents foreign developed markets, was up 5.52%.
While favoring stocks over bonds, we also set fixed-income allocations intended to address our concerns about the potential for rising interest rates and risks associated with high-yield bonds. Although economic conditions could forestall a move, the Federal Reserve appears ready to raise interest rates at some point in 2015. High-yield bonds are typically less sensitive to rate increases than are high-quality issues but their strength in recent periods suggests meaningful risk. Against that background, we have favored fixed-income funds that are either less
6
June 30, 2015 |
Portfolio Commentary, continued |
rate-sensitive or have flexibility around the amount of rate sensitivity or higher-yielding bond types they hold. The fixed-income benchmark for the Portfolios is the Barclays U.S. Aggregate Bond Index4 (the Barclays Index), which tracks high-quality U.S. government and corporate bonds. Our positioning relative to that benchmark was positive for performance, which is why Income Portfolio, which has the largest bond allocation, outperformed its blended benchmark. PIMCO Income, which pursues a risk-averse and flexible income-oriented strategy, was a notable contributor as it gained 2.98% while the index was down 0.10%.
A number of funds spread across asset classes made contributions to performance during the first half of the year. Eventide Gilead gained an impressive 10.65% while Ariel and Pax World Small Cap returned 4.43% and 4.12%, respectively. On the international side, Pax MSCI International ESG Index’s 6.85% was 1.33 percentage points more than the MSCI EAFE Index’s gain. All of the bond funds posted gains, putting them ahead of the Barclays Index for the six months. In addition to PIMCO Income’s strong performance, the fixed-income portfolios benefited from positive though modest returns from core holdings TIAA-CREF Social Choice Bond and Praxis Intermediate Income, which were up 0.39% and 0.11%.
Detractors from performance were Parnassus Core Equity and TIAA-CREF Social Choice Equity. As core U.S. equity positions, these funds’ losses for the period were the biggest issues for performance and the main reasons the equity-focused Portfolios underperformed the benchmarks. There were no detractors on the international side as Pax MSCI International ESG Index outperformed and Schroder Emerging Market Equity’s return was in line with the MSCI Emerging Markets Index.5 As we note above, all of the bond funds beat the Barclays Index over the first half of the year.
Portfolio Changes
We made no major changes to the Portfolios during 2015’s first half. We made modest adjustments to the bond portfolios, increasing exposure to PIMCO Income as a flexible source of income. We also like the risk-averse character of the strategy. We used inflows to incrementally add to international exposure as we found those markets more attractive, though the Portfolios remained underweight.
7
June 30, 2015 |
Portfolio Commentary, continued |
Outlook
Over the course of the past six months, encouraging developments, including a notable improvement in Japan’s gross domestic product (GDP) growth and improving fundamentals for European firms, led us to decide to begin reducing the Portfolios’ underweight to international markets. The resurgence of the Greek crisis late in the second quarter did not lead us to abandon that view: we expect that most of the market impact will be short term. Indeed, increased volatility in international markets presented buying opportunities during the quarter and may in the future. As we adjust the international allocation, we remain overweight in U.S. stocks. We believe that the fundamentals for the U.S. market remain solid and should benefit from a strengthening economy.
With that background, we continue to believe that stocks are overall more attractive than bonds. Within the fixed-income arena, we continue to be concerned about interest-rate risk and, to a lesser degree, about credit risk. Although long-term bonds sold off in the second quarter, they still appear somewhat richly valued, especially with the prospect of the Federal Reserve raising rates. Credit spreads also remain fairly tight, leading us to be cautious about credit risk as well. As we noted previously, this view is reflected in an emphasis in the Portfolios on funds that are more flexible in managing interest-rate and credit risk.
Note on Appleseed Advisor SEC Censure and Fine
Pekin Singer Strauss, the advisor to Appleseed Fund, which we use as a flexible allocation strategy in the Portfolios, was censured and fined by the Securities and Exchange Commission on June 23, 2015. The censure and fine concerned inadequate compliance procedures in 2009 and 2010. ESG Managers Portfolios were not affected by the issues leading to the SEC action but that action triggered a reassessment of the Fund. We believe that Pekin Singer Strauss has significantly improved its compliance resources and practices in recent years and we intend to retain Appleseed Fund in the Portfolios.
1 | Blended Benchmarks |
The Blended Benchmark for the Growth Portfolio is comprised of 66% S&P 500 Index and 34% MSCI EAFE Index. |
The Blended Benchmark for the Growth and Income Portfolio is comprised of 55% S&P 500 Index, 25% MSCI EAFE 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 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 Index and 65% Barclays U.S. Aggregate Bond Index. |
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June 30, 2015 |
Portfolio Commentary, continued |
2 | Standard & Poor’s 500 Composite Stock Index (the S&P 500 Index) is an unmanaged index of large capitalization common stocks. |
3 | 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 (Net) Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding tax. |
4 | 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. |
5 | MSCI Emerging Markets Index is an unmanaged index of stocks considered to be representative of stocks of developing countries. Performance for the MSCI Emerging Markets Index is shown “net”, which includes dividend reinvestments after deductions of foreign withholdings tax. |
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June 30, 2015 |
Growth Portfolio |
Portfolio Highlights (Unaudited) |
Returns—Period ended June 30, 2015
Total Return | Annualized Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | Since Inception1 |
Class A2,3 | PAGAX | NAV4 | 1.57% | 3.20% | 14.64% | 12.51% | 9.37% |
POP | -4.04% | -2.46% | 12.49% | 11.23% | 8.25% | ||
Institutional Class2 | PAGIX | 1.68% | 3.44% | 14.85% | 12.77% | 9.64% | |
Class C2,5 | PAGCX | NAV4 | 1.16% | 2.40% | 13.76% | 11.67% | 8.55% |
CDSC | 0.15% | 1.37% | |||||
Blended Index6,7,8,10 | 2.70% | 3.40% | 15.54% | 14.72% | 11.09% | ||
Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Index9,10 | 3.06% | 3.31% | 13.64% | 12.98% | 9.94% | ||
S&P 500 Index7,10 | 1.23% | 7.42% | 17.31% | 17.34% | 13.91% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is January 4, 2010. |
2 | Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com. |
3 | A 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. |
4 | NAV is Net Asset Value. |
5 | A 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. |
6 | The Blended Index is composed of 66% S&P 500 Index and 34% MSCI EAFE (Net) Index. |
7 | The S&P 500 Index is an index of large capitalization common stocks. |
8 | The 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. |
10
June 30, 2015 |
9 | The Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Aggressive Growth Funds Average, which is a total return performance average of mutual funds tracked by Lipper, Inc. and by practice, maintain at least 80% of assets in equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Aggressive 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. |
10 | Unlike the Growth Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Aggressive 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 Aggressive Growth Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index. |
Top Ten Holdings
Description | Percent of Net Assets |
Parnassus Core Equity Fund | 20.3% |
Neuberger Berman Socially Responsive Fund | 15.0% |
Pax MSCI International ESG Index Fund | 9.4% |
Pax World Small Cap Fund | 8.1% |
Eventide Gilead Fund | 7.8% |
Ariel Fund | 7.1% |
TIAA-CREF Social Choice Equity Fund | 5.4% |
Schroder Emerging Market Equity Fund | 4.7% |
Touchstone Premium Yield Equity Fund | 2.6% |
Pax World Global Environmental Markets Fund | 1.8% |
Total | 82.2% |
Holdings are subject to change.
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June 30, 2015 |
Growth Portfolio, continued |
Portfolio Highlights (Unaudited), continued |
Manager Allocations
Fund/Strategy | Percent of Net Assets |
EQUITY | |
Large-Cap Multi-Cap | |
ClearBridge ESG Large Cap Value | 17.7% |
Neuberger Berman Socially Responsive Fund | 15.0% |
Parnassus Core Equity Fund | 20.3% |
TIAA-CREF Social Choice Equity Fund | 5.4% |
Touchstone Premium Yield Equity Fund | 2.6% |
Small/Mid-Cap | |
Ariel Fund | 7.1% |
Eventide Gilead Fund | 7.8% |
Pax World Small Cap Fund | 8.1% |
International/World | |
Appleseed Fund | 0.1% |
Pax MSCI International ESG Index Fund | 9.4% |
Portfolio 21 Global Equity | 0.0%* |
Schroder Emerging Markets Equity Fund | 4.7% |
Sector Specific | |
Pax World Global Environmental Markets Fund | 1.8% |
Total Equities | 100.0% |
Other | 0.0%* |
Total | 100.0% |
* | Rounds to less than 0.05%. |
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June 30, 2015 |
Growth and Income Portfolio |
Portfolio Highlights (Unaudited) |
Returns—Period ended June 30, 2015
Total Return | Annualized Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | Since Inception1 |
Class A2,3 | PGPAX | NAV4 | 1.13% | 2.09% | 12.64% | 11.02% | 8.83% |
POP | -4.45% | -3.54% | 10.54% | 9.78% | 7.72% | ||
Institutional Class2 | PMIIX | 1.32% | 2.32% | 13.01% | 11.31% | 9.10% | |
Class C2,5 | PWCCX | NAV4 | 0.87% | 1.37% | 11.81% | 10.18% | 8.00% |
CDSC | -0.14% | 0.36% | |||||
Blended Index6,7,8,9,11 | 2.10% | 3.42% | 12.85% | 12.68% | 10.00% | ||
Lipper Mixed-Asset Target Allocation Growth Funds Index10,11 | 1.95% | 3.22% | 11.94% | 11.74% | 9.55% | ||
S&P 500 Index7,11 | 1.23% | 7.42% | 17.31% | 17.34% | 13.91% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is January 4, 2010. |
2 | Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com. |
3 | A 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. |
4 | NAV is Net Asset Value. |
5 | A 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. |
6 | The Blended Index is composed of 55% S&P 500 Index, 25% MSCI EAFE (Net) Index and 20% Barclays U.S. Aggregate Bond Index. |
7 | The S&P 500 Index is an index of large capitalization common stocks. |
8 | The 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. |
13
June 30, 2015 |
Growth and Income Portfolio, continued |
Portfolio Highlights (Unaudited), continued |
9 | The 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. |
10 | The 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 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. |
11 | Unlike 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. |
Top Ten Holdings
Description | Percent of Net Assets |
Parnassus Core Equity Fund | 14.9% |
Touchstone Premium Yield Equity Fund | 11.7% |
Neuberger Berman Socially Responsive Fund | 9.6% |
Pax MSCI International ESG Index Fund | 8.1% |
TIAA-CREF Social Choice Equity Fund | 7.6% |
Eventide Gilead Fund | 7.5% |
PIMCO Income Fund | 5.6% |
Pax World Small Cap Fund | 4.6% |
TIAA-CREF Social Choice Bond Fund | 4.3% |
Schroder Emerging Market Equity Fund | 4.3% |
Total | 78.2% |
Holdings are subject to change.
14
June 30, 2015 |
Manager Allocations
Fund/Strategy | Percent of Net Assets |
EQUITY | |
Large-Cap Multi-Cap | |
ClearBridge ESG Large Cap Value | 11.6% |
Neuberger Berman Socially Responsive Fund | 9.6% |
Parnassus Core Equity Fund | 14.9% |
TIAA-CREF Social Choice Equity Fund | 7.6% |
Touchstone Premium Yield Equity Fund | 11.7% |
Small/Mid-Cap | |
Ariel Fund | 3.4% |
Eventide Gilead Fund | 7.5% |
Pax World Small Cap Fund | 4.6% |
International/World | |
Appleseed Fund | 0.7% |
Pax MSCI International ESG Index Fund | 8.1% |
Portfolio 21 Global Equity | 0.5% |
Schroder Emerging Markets Equity Fund | 4.3% |
Sector Specific | |
Pax World Global Environmental Markets Fund | 0.9% |
Total Equities | 85.4% |
FIXED INCOME | |
Investment Grade | |
Access Capital Community Investment Fund | 0.0%* |
CRA Qualified Investment Fund | 0.0%* |
PIMCO Income Fund | 5.6% |
Praxis Intermediate Income Fund | 2.5% |
TIAA-CREF Social Choice Bond Fund | 4.3% |
High Yield | |
Pax World High Yield Bond Fund | 2.2% |
Total Fixed Income | 14.6% |
Other | 0.0%* |
Total | 100.0% |
* | Rounds to less than 0.05%. |
15
June 30, 2015 |
Balanced Portfolio |
Portfolio Highlights (Unaudited) |
Returns—Period ended June 30, 2015
Total Return | Annualized Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | Since Inception1 |
Class A2, 3 | PMPAX | NAV4 | 1.33% | 2.49% | 10.06% | 9.09% | 7.64% |
POP | -4.22% | -3.13% | 8.02% | 7.86% | 6.54% | ||
Institutional Class2 | PWPIX | 1.43% | 2.72% | 10.34% | 9.35% | 7.91% | |
Class C2, 5 | PWPCX | NAV4 | 0.91% | 1.72% | 9.22% | 8.27% | 6.84% |
CDSC | -0.10% | 0.70% | |||||
Blended Index6,7,8,9,11 | 1.55% | 3.16% | 10.08% | 10.45% | 8.66% | ||
Lipper Mixed-Asset Target Allocation Moderate Funds Index10,11 | 1.29% | 1.94% | 9.44% | 9.70% | 8.04% | ||
S&P 500 Index7,11 | 1.23% | 7.42% | 17.31% | 17.34% | 13.91% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is January 4, 2010. |
2 | Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com. |
3 | A 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. |
4 | NAV is Net Asset Value. |
5 | A 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. |
6 | The Blended Index is composed of 42% S&P 500 Index, 18% MSCI EAFE (Net) Index and 40% Barclays U.S. Aggregate Bond Index. |
7 | The S&P 500 Index is an index of large capitalization common stocks. |
8 | The 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. |
16
June 30, 2015 |
9 | The 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. |
10 | The 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 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. |
11 | Unlike 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. |
Top Ten Holdings
Description | Percent of Net Assets |
Parnassus Core Equity Fund | 11.5% |
TIAA-CREF Social Choice Bond Fund | 10.8% |
Neuberger Berman Socially Responsive Fund | 8.3% |
Praxis Intermediate Income Fund | 8.1% |
Pax MSCI International ESG Index Fund | 7.4% |
TIAA-CREF Social Choice Equity Fund | 6.6% |
Eventide Gilead Fund | 5.9% |
PIMCO Income Fund | 5.5% |
Touchstone Premium Yield Equity Fund | 4.6% |
Pax World Small Cap Fund | 4.4% |
Total | 73.1% |
Holdings are subject to change.
17
June 30, 2015 |
Balanced Portfolio, continued |
Portfolio Highlights (Unaudited), continued |
Manager Allocations
Fund/Strategy | Percent of Net Assets |
EQUITY | |
Large-Cap Multi-Cap | |
ClearBridge ESG Large Cap Value | 9.2% |
Neuberger Berman Socially Responsive Fund | 8.3% |
Parnassus Core Equity Fund | 11.5% |
TIAA-CREF Social Choice Equity Fund | 6.6% |
Touchstone Premium Yield Equity Fund | 4.6% |
Small/Mid-Cap | |
Ariel Fund | 3.1% |
Eventide Gilead Fund | 5.9% |
Pax World Small Cap Fund | 4.4% |
International/World | |
Appleseed Fund | 0.7% |
Pax MSCI International ESG Index Fund | 7.4% |
Portfolio 21 Global Equity | 0.6% |
Schroder Emerging Markets Equity Fund | 3.9% |
Sector Specific | |
Pax World Global Environmental Markets Fund | 1.2% |
Total Equities | 67.4% |
FIXED INCOME | |
Investment Grade | |
Access Capital Community Investment Fund | 3.1% |
CRA Qualified Investment Fund | 3.2% |
PIMCO Income Fund | 5.5% |
Praxis Intermediate Income Fund | 8.1% |
TIAA-CREF Social Choice Bond Fund | 10.8% |
High Yield | |
Pax World High Yield Bond Fund | 1.8% |
Total Fixed Income | 32.5% |
Other | 0.1% |
Total | 100.0% |
18
June 30, 2015 |
Income Portfolio |
Portfolio Highlights (Unaudited) |
Returns—Period ended June 30, 2015
Total Return | Annualized Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | Since Inception1 |
Class A2, 3 | PWMAX | NAV4 | 1.21% | 2.54% | 7.04% | 7.01% | 6.22% |
POP | -3.34% | -2.07% | 5.43% | 6.03% | 5.33% | ||
Institutional Class2 | PWMIX | 1.41% | 2.88% | 7.31% | 7.26% | 6.47% | |
Class C2, 5 | PWMCX | NAV4 | 0.83% | 1.82% | 6.24% | 6.21% | 5.41% |
CDSC | -0.18% | 0.80% | |||||
Blended Index6, 7, 8, 9, 11 | 0.91% | 2.60% | 6.58% | 7.49% | 6.75% | ||
Lipper Mixed-Asset Target Allocation Conservative Funds Index10, 11 | 0.68% | 0.28% | 5.62% | 6.48% | 5.98% | ||
Barclays U.S. Aggregate Bond Index9, 11 | -0.10% | 1.86% | 1.83% | 3.35% | 4.00% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is January 4, 2010. |
2 | Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com. |
3 | A 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. |
4 | NAV is Net Asset Value. |
5 | A 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. |
6 | The Blended Index is composed of 24% S&P 500 Index, 11% MSCI EAFE (Net) Index and 65% Barclays U.S. Aggregate Bond Index. |
7 | The S&P 500 Index is an index of large capitalization common stocks. |
8 | The 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. |
9 | The 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. |
19
June 30, 2015 |
Income Portfolio, continued |
Portfolio Highlights (Unaudited), continued |
10 | The 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 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. |
11 | Unlike 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. |
Top Ten Holdings
Description | Percent of Net Assets |
TIAA-CREF Social Choice Bond Fund | 16.0% |
Praxis Intermediate Income Fund | 15.1% |
PIMCO Income Fund | 14.4% |
Touchstone Premium Yield Equity Fund | 7.6% |
Parnassus Core Equity Fund | 6.9% |
Eventide Gilead Fund | 6.5% |
TIAA-CREF Social Choice Equity Fund | 6.4% |
Access Capital Community Investment Fund | 5.9% |
Pax MSCI International ESG Index Fund | 3.5% |
Neuberger Berman Socially Responsive Fund | 3.1% |
Total | 85.4% |
Holdings are subject to change.
20
June 30, 2015 |
Manager Allocations
Fund/Strategy | Percent of Net Assets |
EQUITY | |
Large-Cap Multi-Cap | |
ClearBridge ESG Large Cap Value | 4.1% |
Neuberger Berman Socially Responsive Fund | 3.1% |
Parnassus Core Equity Fund | 6.9% |
TIAA-CREF Social Choice Equity Fund | 6.4% |
Touchstone Premium Yield Equity Fund | 7.6% |
Small/Mid-Cap | |
Ariel Fund | 1.1% |
Eventide Gilead Fund | 6.5% |
Pax World Small Cap Fund | 2.9% |
Appleseed Fund | |
Appleseed Fund | 0.5% |
Pax MSCI International ESG Index Fund | 3.5% |
Portfolio 21 Global Equity | 0.2% |
Schroder Emerging Markets Equity Fund | 1.3% |
Sector Specific | |
Pax World Global Environmental Markets Fund | 1.1% |
Total Equities | 45.2% |
FIXED INCOME | |
Investment Grade | |
Access Capital Community Investment Fund | 5.9% |
CRA Qualified Investment Fund | 1.8% |
PIMCO Income Fund | 14.4% |
Praxis Intermediate Income Fund | 15.1% |
TIAA-CREF Social Choice Bond Fund | 16.0% |
High Yield | |
Pax World High Yield Bond Fund | 1.6% |
Total Fixed Income | 54.8% |
Other | 0.0%* |
Total | 100.0% |
* | Rounds to less than 0.05%. |
21
June 30, 2015 |
Shareholder Expense Examples (Unaudited) |
Examples As a shareholder of the ESG Managers Growth, Growth and Income, Balanced or Income Portfolios (each, a “Fund”), 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, 2015 and ending on June 30, 2015.
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, 2015 |
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 | Ending | Annualized | Expenses Paid During Period1 |
Growth - Class A | $1,000.00 | $1,015.70 | 1.09% | $5.43 |
Growth - Institutional | 1,000.00 | 1,016.80 | 0.84% | 4.18 |
Growth - Class C | 1,000.00 | 1,011.60 | 1.84% | 9.16 |
Growth and Income - Class A | 1,000.00 | 1,011.30 | 1.02% | 5.09 |
Growth and Income - Institutional | 1,000.00 | 1,013.20 | 0.77% | 3.84 |
Growth and Income - Class C | 1,000.00 | 1,008.70 | 1.77% | 8.82 |
Balanced - Class A | 1,000.00 | 1,013.30 | 0.96% | 4.79 |
Balanced - Institutional | 1,000.00 | 1,014.30 | 0.71% | 3.55 |
Balanced - Class C | 1,000.00 | 1,009.10 | 1.71% | 8.52 |
Income - Class A | 1,000.00 | 1,012.10 | 0.91% | 4.56 |
Income - Institutional | 1,000.00 | 1,014.10 | 0.66% | 3.32 |
Income - Class C | 1,000.00 | 1,008.30 | 1.66% | 8.29 |
Based on Hypothetical 5% Return (before expenses) | ||||
| Beginning Account Value | Ending | Annualized | Expenses Paid During Period1 |
Growth - Class A | $1,000.00 | $1,019.41 | 1.09% | $5.44 |
Growth - Institutional | 1,000.00 | 1,020.65 | 0.84% | 4.19 |
Growth - Class C | 1,000.00 | 1,015.69 | 1.84% | 9.18 |
Growth and Income - Class A | 1,000.00 | 1,019.74 | 1.02% | 5.11 |
Growth and Income - Institutional | 1,000.00 | 1,020.98 | 0.77% | 3.86 |
Growth and Income - Class C | 1,000.00 | 1,016.02 | 1.77% | 8.85 |
Balanced - Class A | 1,000.00 | 1,020.03 | 0.96% | 4.81 |
Balanced - Institutional | 1,000.00 | 1,021.27 | 0.71% | 3.56 |
Balanced - Class C | 1,000.00 | 1,016.31 | 1.71% | 8.55 |
Income - Class A | 1,000.00 | 1,020.26 | 0.91% | 4.58 |
Income - Institutional | 1,000.00 | 1,021.50 | 0.66% | 3.33 |
Income - Class C | 1,000.00 | 1,016.54 | 1.66% | 8.32 |
1 | Expenses are equal to each Fund’s 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, 2015 and ending on June 30, 2015). |
23
June 30, 2015 |
Schedule of Investments (Unaudited) |
Growth Portfolio
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 17.7% | ||||||||
Consumer Discretionary: 2.9% | ||||||||
DISH Network Corp., Class A (a) | 1,688 | $ | 114,295 | |||||
Home Depot, Inc., The | 356 | 39,562 | ||||||
SES SA | 913 | 30,693 | ||||||
Target Corp. | 906 | 73,957 | ||||||
Time Warner Cable, Inc. | 480 | 85,522 | ||||||
Time Warner, Inc. | 1,171 | 102,357 | ||||||
Twenty-First Century Fox, Inc., Class B | 1,847 | 59,510 | ||||||
505,896 | ||||||||
Consumer Staples: 1.9% | ||||||||
CVS Health Corp. | 1,208 | 126,695 | ||||||
Coca-Cola Co., The | 942 | 36,955 | ||||||
Kellogg Co. | 676 | 42,385 | ||||||
Kimberly-Clark Corp. | 384 | 40,692 | ||||||
PepsiCo, Inc. | 655 | 61,138 | ||||||
Sysco Corp. | 688 | 24,837 | ||||||
332,702 | ||||||||
Energy: 1.4% | ||||||||
Cameron International Corp. (a) | 638 | 33,412 | ||||||
ConocoPhillips | 951 | 58,401 | ||||||
National Oilwell Varco, Inc. | 736 | 35,534 | ||||||
Noble Corp PLC | 913 | 14,051 | ||||||
Royal Dutch Shell PLC, ADR | 715 | 40,762 | ||||||
Schlumberger, Ltd. | 734 | 63,263 | ||||||
245,423 | ||||||||
Financials: 4.6% | ||||||||
American Express Co. | 902 | 70,103 | ||||||
American Tower Corp., REIT | 453 | 42,260 | ||||||
Bank of New York Mellon Corp., The | 857 | 35,968 | ||||||
Capital One Financial Corp. | 444 | 39,059 | ||||||
Citigroup, Inc. | 959 | 52,975 | ||||||
JPMorgan Chase & Co. | 1,814 | 122,917 | ||||||
Marsh & McLennan Cos., Inc. | 861 | 48,819 | ||||||
MetLife, Inc. | 655 | 36,673 | ||||||
Progressive Corp., The | 655 | 18,229 | ||||||
State Street Corp. | 761 | 58,597 | ||||||
Synchrony Financial (a) | 1,017 | 33,490 | ||||||
Travelers Cos., Inc., The | 527 | 50,940 | ||||||
US Bancorp | 1,903 | 82,590 | ||||||
Wells Fargo & Co. | 2,019 | 113,549 | ||||||
806,169 | ||||||||
Health Care: 2.0% | ||||||||
Amgen, Inc. | 377 |
| 57,877 | |||||
Anthem, Inc. | 471 | 77,310 | ||||||
Johnson & Johnson | 489 | 47,658 | ||||||
Merck & Co., Inc. | 1,325 | 75,432 | ||||||
Novartis AG, ADR | 359 | 35,304 | ||||||
Teva Pharmaceutical Industries, Ltd., ADR | 862 | 50,944 | ||||||
344,525 | ||||||||
Industrials: 1.8% | ||||||||
Danaher Corp. | 811 | 69,414 | ||||||
Emerson Electric Co. | 726 | 40,242 | ||||||
General Electric Co. | 2,900 | 77,053 | ||||||
Honeywell International, Inc. | 723 | 73,724 | ||||||
Illinois Tool Works, Inc. | 626 | 57,461 | ||||||
317,894 | ||||||||
Information Technology: 1.7% | ||||||||
EMC Corp. | 1,864 | 49,191 | ||||||
IBM | 156 | 25,375 | ||||||
Microsoft Corp. | 925 | 40,839 | ||||||
Motorola Solutions, Inc. | 701 | 40,195 | ||||||
Nuance Communications, Inc. (a) | 2,474 | 43,320 | ||||||
TE Connectivity, Ltd. | 843 | 54,205 | ||||||
Xerox Corp | 4,036 | 42,943 | ||||||
296,068 | ||||||||
Materials: 0.9% | ||||||||
Air Products & Chemicals, Inc. | 199 | 27,229 | ||||||
Crown Holdings, Inc. (a) | 1,064 | 56,296 | ||||||
Martin Marietta Materials, Inc. | 547 | 77,406 | ||||||
160,931 | ||||||||
Telecommunication Services: 0.2% | ||||||||
Vodafone Group PLC, ADR | 896 | 32,659 | ||||||
Utilities: 0.3% | ||||||||
Sempra Energy | 493 | 48,777 | ||||||
TOTAL COMMON STOCKS | 3,091,044 | |||||||
(Cost $2,120,618) |
SEE NOTES TO FINANCIAL STATEMENTS
24
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Growth Portfolio, continued
Percent of Net Assets | Shares/ | Value | ||||||
AFFILIATED INVESTMENT COMPANIES: 19.3% | ||||||||
Pax MSCI International ESG Index Fund (b) | 193,375 | $ | 1,641,756 | |||||
Pax World Global Environmental Markets Fund (b) | 24,853 | 322,338 | ||||||
Pax World Small Cap Fund (b) | 98,042 | 1,426,504 | ||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $2,979,586) | 3,390,598 | |||||||
NON-AFFILIATED INVESTMENT COMPANIES: 63.0% | ||||||||
Appleseed Fund (b) | 920 | 11,650 | ||||||
Ariel Fund (b) | 16,700 | 1,252,536 | ||||||
Eventide Gilead Fund (a)(b) | 46,659 | 1,376,428 | ||||||
Neuberger Berman Socially Responsive Fund (b) | 75,098 | 2,614,912 | ||||||
Parnassus Core Equity Fund (b) | 89,042 | 3,568,823 | ||||||
Portfolio 21 Global Equity Fund (b) | 181 | 6,696 | ||||||
Schroder Emerging Market Equity Fund (c) | 63,113 | 817,944 | ||||||
TIAA-CREF Social Choice Equity Fund (b) | 57,084 | 953,868 | ||||||
Touchstone Premium Yield Equity Fund (d) | 48,477 | 449,869 | ||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $10,364,374) | 11,052,726 | |||||||
TOTAL INVESTMENTS: 100.0% | ||||||||
(Cost $15,464,578) | 17,534,368 | |||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(Net): 0.0% (e) | 8,229 | |||||||
NET ASSETS: 100.0% | $ | 17,542,597 |
(a) | Non income producing security |
(b) | Institutional Class shares |
(c) | Investor Class shares |
(d) | Class Y shares |
(e) | Rounds to less than 0.05%. |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
25
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Growth and Income Portfolio
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 11.6% | ||||||||
Consumer Discretionary: 1.9% | ||||||||
DISH Network Corp., Class A (a) | 1,206 | $ | 81,658 | |||||
Home Depot, Inc., The | 263 | 29,227 | ||||||
SES SA | 586 | 19,700 | ||||||
Target Corp. | 669 | 54,610 | ||||||
Time Warner Cable, Inc. | 345 | 61,469 | ||||||
Time Warner, Inc. | 863 | 75,435 | ||||||
Twenty-First Century Fox, Inc., Class B | 1,362 | 43,884 | ||||||
365,983 | ||||||||
Consumer Staples: 1.3% | ||||||||
CVS Health Corp. | 909 | 95,336 | ||||||
Coca-Cola Co., The | 706 | 27,696 | ||||||
Kellogg Co. | 495 | 31,037 | ||||||
Kimberly-Clark Corp. | 289 | 30,625 | ||||||
PepsiCo, Inc. | 498 | 46,483 | ||||||
Sysco Corp. | 509 | 18,375 | ||||||
249,552 | ||||||||
Energy: 0.9% | ||||||||
Cameron International Corp. (a) | 485 | 25,399 | ||||||
ConocoPhillips | 707 | 43,417 | ||||||
National Oilwell Varco, Inc. | 542 | 26,168 | ||||||
Noble Corp PLC | 683 | 10,511 | ||||||
Royal Dutch Shell PLC, ADR | 536 | 30,557 | ||||||
Schlumberger, Ltd. | 550 | 47,405 | ||||||
183,457 | ||||||||
Financials: 3.0% | ||||||||
American Express Co. | 666 | 51,762 | ||||||
American Tower Corp., REIT | 325 | 30,319 | ||||||
Bank of New York Mellon Corp., The | 651 | 27,322 | ||||||
Capital One Financial Corp. | 335 | 29,470 | ||||||
Citigroup, Inc. | 721 | 39,828 | ||||||
JPMorgan Chase & Co. | 1,318 | 89,307 | ||||||
Marsh & McLennan Cos., Inc. | 633 | 35,891 | ||||||
MetLife, Inc. | 482 | 26,987 | ||||||
Progressive Corp., The | 491 | 13,665 | ||||||
State Street Corp. | 542 | 41,734 | ||||||
Synchrony Financial (a) | 750 | 24,698 | ||||||
Travelers Cos., Inc., The | 402 | 38,857 | ||||||
US Bancorp | 1,367 | 59,328 | ||||||
Wells Fargo & Co. | 1,516 | 85,260 | ||||||
594,428 | ||||||||
Health Care: 1.3% | ||||||||
Amgen, Inc. | 269 |
| 41,297 | |||||
Anthem, Inc. | 339 | 55,643 | ||||||
Johnson & Johnson | 368 | 35,865 | ||||||
Merck & Co., Inc. | 978 | 55,678 | ||||||
Novartis AG, ADR | 264 | 25,962 | ||||||
Teva Pharmaceutical Industries, Ltd., ADR | 636 | 37,588 | ||||||
252,033 | ||||||||
Industrials: 1.2% | ||||||||
Danaher Corp. | 583 | 49,899 | ||||||
Emerson Electric Co. | 540 | 29,932 | ||||||
General Electric Co. | 2,148 | 57,072 | ||||||
Honeywell International, Inc. | 543 | 55,370 | ||||||
Illinois Tool Works, Inc. | 470 | 43,141 | ||||||
235,414 | ||||||||
Information Technology: 1.1% | ||||||||
EMC Corp. | 1,374 | 36,260 | ||||||
IBM | 112 | 18,218 | ||||||
Microsoft Corp. | 709 | 31,302 | ||||||
Motorola Solutions, Inc. | 512 | 29,358 | ||||||
Nuance Communications, Inc. (a) | 1,857 | 32,516 | ||||||
TE Connectivity, Ltd. | 625 | 40,188 | ||||||
Xerox Corp | 2,978 | 31,686 | ||||||
219,528 | ||||||||
Materials: 0.6% | ||||||||
Air Products & Chemicals, Inc. | 150 | 20,525 | ||||||
Crown Holdings, Inc. (a) | 772 | 40,847 | ||||||
Martin Marietta Materials, Inc. | 403 | 57,028 | ||||||
118,400 | ||||||||
Telecommunication Services: 0.1% | ||||||||
Vodafone Group PLC, ADR | 659 | 24,020 | ||||||
Utilities: 0.2% | ||||||||
Sempra Energy | 354 | 35,025 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $1,572,008) | 2,277,840 |
SEE NOTES TO FINANCIAL STATEMENTS
26
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Growth and Income Portfolio, continued
Percent of Net Assets | Shares/ | Value | ||||||
AFFILIATED INVESTMENT COMPANIES: 15.6% | ||||||||
Pax MSCI International ESG Index Fund (b) | 187,903 | $ | 1,595,294 | |||||
Pax World Balanced Fund (b) | 41 | 984 | ||||||
Pax World Global Environmental Markets Fund (b) | 11,981 | 155,397 | ||||||
Pax World High Yield Bond Fund (b) | 61,620 | 425,175 | ||||||
Pax World Small Cap Fund (b) | 62,924 | 915,543 | ||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $2,905,519) | 3,092,393 | |||||||
NON-AFFILIATED INVESTMENT COMPANIES: 72.8% | ||||||||
Access Capital Community Investment Fund (b) | 582 | 5,380 | ||||||
Appleseed Fund (b) | 10,762 | 136,253 | ||||||
Ariel Fund (b) | 8,851 | 663,839 | ||||||
CRA Qualified Investment Fund (b) | 544 | 5,836 | ||||||
Eventide Gilead Fund (a)(b) | 50,352 | 1,485,382 | ||||||
Neuberger Berman Socially Responsive Fund (b) | 54,717 | 1,905,235 | ||||||
PIMCO Income Fund (b) | 90,345 | 1,116,669 | ||||||
Parnassus Core Equity Fund (b) | 73,699 | 2,953,836 | ||||||
Praxis Intermediate Income Fund (b) | 48,303 | 500,898 | ||||||
NON-AFFILIATED INVESTMENT COMPANIES, continued | ||||||||
Portfolio 21 Global Equity Fund (b) | 2,927 | $ | 108,446 | |||||
Schroder Emerging Market Equity Fund (c) | 65,552 | 849,559 | ||||||
TIAA-CREF Social Choice Bond Fund (b) | 83,468 | 852,213 | ||||||
TIAA-CREF Social Choice Equity Fund (b) | 90,336 | 1,509,516 | ||||||
Touchstone Premium Yield Equity Fund (d) | 249,304 | 2,313,538 | ||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $13,889,618) | 14,406,600 | |||||||
TOTAL INVESTMENTS: 100.0% | ||||||||
(Cost $18,367,145) | 19,776,833 | |||||||
OTHER ASSETS AND LIABILITIES — | ||||||||
(Net): 0.0% (e) | (4,604 | ) | ||||||
NET ASSETS: 100.0% | $ | 19,772,229 |
(a) | Non income producing security |
(b) | Institutional Class shares |
(c) | Investor Class shares |
(d) | Class Y shares |
(e) | Rounds to less than 0.05%. |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
27
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Balanced Portfolio
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 9.2% | ||||||||
Consumer Discretionary: 1.5% | ||||||||
DISH Network Corp., Class A (a) | 1,351 | $ | 91,477 | |||||
Home Depot, Inc., The | 294 | 32,672 | ||||||
SES SA | 785 | 26,390 | ||||||
Target Corp. | 748 | 61,059 | ||||||
Time Warner Cable, Inc. | 395 | 70,377 | ||||||
Time Warner, Inc. | 993 | 86,798 | ||||||
Twenty-First Century Fox, Inc., Class B | 1,484 | 47,814 | ||||||
416,587 | ||||||||
Consumer Staples: 1.0% | ||||||||
CVS Health Corp. | 1,008 | 105,720 | ||||||
Coca-Cola Co., The | 784 | 30,756 | ||||||
Kellogg Co. | 550 | 34,485 | ||||||
Kimberly-Clark Corp. | 319 | 33,804 | ||||||
PepsiCo, Inc. | 560 | 52,270 | ||||||
Sysco Corp. | 562 | 20,288 | ||||||
277,323 | ||||||||
Energy: 0.7% | ||||||||
Cameron International Corp. (a) | 531 | 27,808 | ||||||
ConocoPhillips | 790 | 48,514 | ||||||
National Oilwell Varco, Inc. | 607 | 29,306 | ||||||
Noble Corp PLC | 757 | 11,650 | ||||||
Royal Dutch Shell PLC, ADR | 595 | 33,921 | ||||||
Schlumberger, Ltd. | 610 | 52,576 | ||||||
203,775 | ||||||||
Financials: 2.4% | ||||||||
American Express Co. | 745 | 57,901 | ||||||
American Tower Corp., REIT | 381 | 35,543 | ||||||
Bank of New York Mellon Corp., The | 709 | 29,757 | ||||||
Capital One Financial Corp. | 374 | 32,901 | ||||||
Citigroup, Inc. | 799 | 44,137 | ||||||
JPMorgan Chase & Co. | 1,480 | 100,285 | ||||||
Marsh & McLennan Cos., Inc. | 671 | 38,046 | ||||||
MetLife, Inc. | 536 | 30,011 | ||||||
Progressive Corp., The | 516 | 14,360 | ||||||
State Street Corp. | 611 | 47,047 | ||||||
Synchrony Financial (a) | 834 | 27,464 | ||||||
Travelers Cos., Inc., The | 433 | 41,854 | ||||||
US Bancorp | 1,576 | 68,398 | ||||||
Wells Fargo & Co. | 1,680 | 94,483 | ||||||
662,187 | ||||||||
Health Care: 1.0% | ||||||||
Amgen, Inc. | 310 |
| 47,591 | |||||
Anthem, Inc. | 384 | 63,030 | ||||||
Johnson & Johnson | 401 | 39,081 | ||||||
Merck & Co., Inc. | 1,094 | 62,281 | ||||||
Novartis AG, ADR | 269 | 26,453 | ||||||
Teva Pharmaceutical Industries, Ltd., ADR | 713 | 42,138 | ||||||
280,574 | ||||||||
Industrials: 1.0% | ||||||||
Danaher Corp. | 674 | 57,688 | ||||||
Emerson Electric Co. | 620 | 34,367 | ||||||
General Electric Co. | 2,404 | 63,874 | ||||||
Honeywell International, Inc. | 613 | 62,508 | ||||||
Illinois Tool Works, Inc. | 521 | 47,823 | ||||||
266,260 | ||||||||
Information Technology: 0.9% | ||||||||
EMC Corp. | 1,582 | 41,749 | ||||||
IBM | 129 | 20,983 | ||||||
Microsoft Corp. | 757 | 33,422 | ||||||
Motorola Solutions, Inc. | 583 | 33,429 | ||||||
Nuance Communications, Inc. (a) | 2,058 | 36,036 | ||||||
TE Connectivity, Ltd. | 691 | 44,431 | ||||||
Xerox Corp | 3,334 | 35,474 | ||||||
245,524 | ||||||||
Materials: 0.5% | ||||||||
Air Products & Chemicals, Inc. | 165 | 22,577 | ||||||
Crown Holdings, Inc. (a) | 882 | 46,667 | ||||||
Martin Marietta Materials, Inc. | 451 | 63,821 | ||||||
133,065 | ||||||||
Telecommunication Services: 0.1% | ||||||||
Vodafone Group PLC, ADR | 740 | 26,973 | ||||||
Utilities: 0.1% | ||||||||
Sempra Energy | 410 | 40,565 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $1,824,387) | 2,552,833 |
SEE NOTES TO FINANCIAL STATEMENTS
28
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Balanced Portfolio, continued
Percent of Net Assets | Shares/ | Value | ||||||
AFFILIATED INVESTMENT COMPANIES: 14.8% | ||||||||
Pax MSCI International ESG Index Fund (b) | 239,902 | $ | 2,036,765 | |||||
Pax World Global Environmental Markets Fund (b) | 26,039 | 337,723 | ||||||
Pax World High Yield Bond Fund (b) | 74,839 | 516,391 | ||||||
Pax World Small Cap Fund (b) | 83,979 | 1,221,899 | ||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $3,856,739) | 4,112,778 | |||||||
NON-AFFILIATED INVESTMENT COMPANIES: 75.9% | ||||||||
Access Capital Community Investment Fund (b) | 92,258 | 852,461 | ||||||
Appleseed Fund (b) | 15,429 | 195,327 | ||||||
Ariel Fund (b) | 11,543 | 865,732 | ||||||
CRA Qualified Investment Fund (b) | 83,554 | 895,698 | ||||||
Eventide Gilead Fund (a)(b) | 55,140 | 1,626,639 | ||||||
Neuberger Berman Socially Responsive Fund (b) | 65,732 | 2,288,799 | ||||||
PIMCO Income Fund (b) | 124,246 | 1,535,685 | ||||||
Parnassus Core Equity Fund (b) | 79,153 | 3,172,442 | ||||||
Praxis Intermediate Income Fund (b) | 217,825 | 2,258,843 | ||||||
NON-AFFILIATED INVESTMENT COMPANIES, continued | ||||||||
Portfolio 21 Global Equity Fund (b) | 4,234 | $ | 156,855 | |||||
Schroder Emerging Market Equity Fund (c) | 82,653 | 1,071,180 | ||||||
TIAA-CREF Social Choice Bond Fund (b) | 292,797 | 2,989,456 | ||||||
TIAA-CREF Social Choice Equity Fund (b) | 108,989 | 1,821,213 | ||||||
Touchstone Premium Yield Equity Fund (d) | 137,383 | 1,274,918 | ||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $20,522,511) | 21,005,248 | |||||||
TOTAL INVESTMENTS: 99.9% | ||||||||
(Cost $26,203,637) | 27,670,859 | |||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(Net): 0.1% | 24,727 | |||||||
NET ASSETS: 100.0% | $ | 27,695,586 |
(a) | Non income producing security |
(b) | Institutional Class shares |
(c) | Investor Class shares |
(d) | Class Y shares |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
29
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Income Portfolio
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 4.1% | ||||||||
Consumer Discretionary: 0.7% | ||||||||
DISH Network Corp., Class A (a) | 218 | $ | 14,761 | |||||
Home Depot, Inc., The | 48 | 5,334 | ||||||
SES SA | 137 | 4,606 | ||||||
Target Corp. | 122 | 9,959 | ||||||
Time Warner Cable, Inc. | 63 | 11,225 | ||||||
Time Warner, Inc. | 159 | 13,898 | ||||||
Twenty-First Century Fox, Inc., Class B | 247 | 7,958 | ||||||
67,741 | ||||||||
Consumer Staples: 0.4% | ||||||||
CVS Health Corp. | 164 | 17,202 | ||||||
Coca-Cola Co., The | 128 | 5,021 | ||||||
Kellogg Co. | 89 | 5,580 | ||||||
Kimberly-Clark Corp. | 53 | 5,616 | ||||||
PepsiCo, Inc. | 91 | 8,494 | ||||||
Sysco Corp. | 92 | 3,321 | ||||||
45,234 | ||||||||
Energy: 0.3% | ||||||||
Cameron International Corp. (a) | 92 | 4,818 | ||||||
ConocoPhillips | 134 | 8,229 | ||||||
National Oilwell Varco, Inc. | 100 | 4,828 | ||||||
Noble Corp PLC | 125 | 1,924 | ||||||
Royal Dutch Shell PLC, ADR | 98 | 5,587 | ||||||
Schlumberger, Ltd. | 101 | 8,705 | ||||||
34,091 | ||||||||
Financials: 1.1% | ||||||||
American Express Co. | 122 | 9,482 | ||||||
American Tower Corp., REIT | 65 | 6,064 | ||||||
Bank of New York Mellon Corp., The | 117 | 4,910 | ||||||
Capital One Financial Corp. | 60 | 5,278 | ||||||
Citigroup, Inc. | 130 | 7,181 | ||||||
JPMorgan Chase & Co. | 239 | 16,195 | ||||||
Marsh & McLennan Cos., Inc. | 117 | 6,634 | ||||||
MetLife, Inc. | 86 | 4,815 | ||||||
Progressive Corp., The | 88 | 2,449 | ||||||
State Street Corp. | 102 | 7,854 | ||||||
Synchrony Financial (a) | 139 | 4,577 | ||||||
Travelers Cos., Inc., The | 70 | 6,766 | ||||||
US Bancorp | 258 | 11,197 | ||||||
Wells Fargo & Co. | 273 | 15,354 | ||||||
108,756 | ||||||||
Health Care: 0.5% | ||||||||
Amgen, Inc. | 51 |
| 7,830 | |||||
Anthem, Inc. | 62 | 10,177 | ||||||
Johnson & Johnson | 67 | 6,530 | ||||||
Merck & Co., Inc. | 179 | 10,190 | ||||||
Novartis AG, ADR | 48 | 4,720 | ||||||
Teva Pharmaceutical Industries, Ltd., ADR | 117 | 6,915 | ||||||
46,362 | ||||||||
Industrials: 0.4% | ||||||||
Danaher Corp. | 108 | 9,244 | ||||||
Emerson Electric Co. | 100 | 5,543 | ||||||
General Electric Co. | 393 | 10,442 | ||||||
Honeywell International, Inc. | 102 | 10,401 | ||||||
Illinois Tool Works, Inc. | 86 | 7,894 | ||||||
43,524 | ||||||||
Information Technology: 0.4% | ||||||||
EMC Corp. | 252 | 6,650 | ||||||
IBM | 21 | 3,416 | ||||||
Microsoft Corp. | 125 | 5,519 | ||||||
Motorola Solutions, Inc. | 94 | 5,390 | ||||||
Nuance Communications, Inc. (a) | 335 | 5,866 | ||||||
TE Connectivity, Ltd. | 113 | 7,266 | ||||||
Xerox Corp | 546 | 5,809 | ||||||
39,916 | ||||||||
Materials: 0.2% | ||||||||
Air Products & Chemicals, Inc. | 28 | 3,831 | ||||||
Crown Holdings, Inc. (a) | 143 | 7,566 | ||||||
Martin Marietta Materials, Inc. | 74 | 10,472 | ||||||
21,869 | ||||||||
Telecommunication Services: 0.0% (e) | ||||||||
Vodafone Group PLC, ADR | 121 | 4,410 | ||||||
Utilities: 0.1% | ||||||||
Sempra Energy | 67 | 6,629 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $268,801) | 418,532 |
SEE NOTES TO FINANCIAL STATEMENTS
30
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Income Portfolio, continued
Percent of Net Assets | Shares/ | Value | ||||||
AFFILIATED INVESTMENT COMPANIES: 9.1% | ||||||||
Pax MSCI International ESG Index Fund (b) | 42,434 | $ | 360,264 | |||||
Pax World Global Environmental Markets Fund (b) | 8,964 | 116,257 | ||||||
Pax World High Yield Bond Fund (b) | 22,029 | 151,997 | ||||||
Pax World Small Cap Fund (b) | 20,628 | 300,132 | ||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $854,272) | 928,650 | |||||||
NON-AFFILIATED INVESTMENT COMPANIES: 86.8% | ||||||||
Access Capital Community Investment Fund (b) | 65,639 | 606,509 | ||||||
Appleseed Fund (b) | 3,859 | 48,855 | ||||||
Ariel Fund (b) | 1,435 | 107,650 | ||||||
CRA Qualified Investment Fund (b) | 18,243 | 195,567 | ||||||
Eventide Gilead Fund (a)(b) | 22,420 | 661,392 | ||||||
Neuberger Berman Socially Responsive Fund (b) | 9,046 | 314,984 | ||||||
PIMCO Income Fund (b) | 118,645 | 1,466,452 | ||||||
Parnassus Core Equity Fund (b) | 17,521 | 702,251 | ||||||
Praxis Intermediate Income Fund (b) | 148,263 | 1,537,492 | ||||||
Portfolio 21 Global Equity Fund (b) | 452 |
| 16,748 | |||||
Schroder Emerging Market Equity Fund (c) | 11,280 | 146,195 | ||||||
TIAA-CREF Social Choice Bond Fund (b) | 159,450 | 1,627,985 | ||||||
TIAA-CREF Social Choice Equity Fund (b) | 39,292 | 656,571 | ||||||
Touchstone Premium Yield Equity Fund (d) | 83,196 | 772,055 | ||||||
TOTAL NON-AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $8,679,251) | 8,860,706 | |||||||
TOTAL INVESTMENTS: 100.0% | ||||||||
(Cost $9,802,324) | 10,207,888 | |||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(Net): 0.0% (e) | (2,628 | ) | ||||||
NET ASSETS: 100.0% | $ | 10,205,260 |
(a) | Non income producing security |
(b) | Institutional Class shares |
(c) | Investor Class shares |
(d) | Class Y shares |
(e) | Rounds to less than 0.05% |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
31
June 30, 2015 |
Statements of Assets and Liabilities (Unaudited) |
ASSETS | Growth | |||
Investments, at cost - Note A | $ | 15,464,578 | ||
Investments in unaffiliated issuers, at value - Note A | $ | 14,143,770 | ||
Investments in affiliated issuers, at value - Note C | 3,390,598 | |||
Total Investments | 17,534,368 | |||
Cash | — | |||
Foreign currency at value (cost: $0; $0; $1; and $1, respectively) | — | |||
Prepaid expenses | 411 | |||
Receivables: | ||||
Capital stock sold | 153,172 | |||
Dividends and interest - Note A | 17,901 | |||
Total Assets | 17,705,852 | |||
LIABILITIES | ||||
Payables: | ||||
Capital stock reacquired | 290 | |||
Investment securities purchased | 11,134 | |||
Payable to bank | 71,201 | |||
Accrued expenses: | ||||
Investment advisory fees - Note B | 7,578 | |||
Distribution expense | 4,401 | |||
Trustees fees | 3,231 | |||
Compliance expense | 1,160 | |||
Transfer agent fees | 4,223 | |||
Custodian fees | 16,823 | |||
Legal and audit fees | 26,415 | |||
Other accrued expenses | 16,799 | |||
Total Liabilities | 163,255 | |||
NET ASSETS | $ | 17,542,597 |
SEE NOTES TO FINANCIAL STATEMENTS
32
June 30, 2015 |
|
ASSETS | Growth and Income | Balanced | Income | |||||||||
Investments, at cost - Note A | $ | 18,367,145 | $ | 26,203,637 | $ | 9,802,324 | ||||||
Investments in unaffiliated issuers, at value - Note A | $ | 16,684,440 | $ | 23,558,081 | $ | 9,279,238 | ||||||
Investments in affiliated issuers, at value - Note C | 3,092,393 | 4,112,778 | 928,650 | |||||||||
Total Investments | 19,776,833 | 27,670,859 | 10,207,888 | |||||||||
Cash | 31,312 | 51,450 | 7,403 | |||||||||
Foreign currency at value (cost: $0; $0; $1; and $1, respectively) | — | 1 | 1 | |||||||||
Prepaid expenses | 1,418 | 985 | 780 | |||||||||
Receivables: | ||||||||||||
Capital stock sold | 45,664 | 57,996 | 71,812 | |||||||||
Dividends and interest - Note A | 25,071 | 41,894 | 20,541 | |||||||||
Total Assets | 19,880,298 | 27,823,185 | 10,308,425 | |||||||||
LIABILITIES | ||||||||||||
Payables: | ||||||||||||
Capital stock reacquired | — | 83 | 8,098 | |||||||||
Investment securities purchased | 19,098 | 34,123 | 17,850 | |||||||||
Payable to bank | — | — | — | |||||||||
Accrued expenses: | ||||||||||||
Investment advisory fees - Note B | 7,392 | 9,681 | 3,462 | |||||||||
Distribution expense | 6,063 | 8,850 | 2,955 | |||||||||
Trustees fees | 3,272 | 3,308 | 3,143 | |||||||||
Compliance expense | 1,160 | 1,160 | 1,160 | |||||||||
Transfer agent fees | 4,198 | 4,672 | 2,605 | |||||||||
Custodian fees | 17,499 | 17,910 | 16,489 | |||||||||
Legal and audit fees | 30,249 | 30,286 | 30,115 | |||||||||
Other accrued expenses | 19,138 | 17,526 | 17,288 | |||||||||
Total Liabilities | 108,069 | 127,599 | 103,165 | |||||||||
NET ASSETS | $ | 19,772,229 | $ | 27,695,586 | $ | 10,205,260 |
SEE NOTES TO FINANCIAL STATEMENTS
33
June 30, 2015 |
Statements of Assets and Liabilities (Unaudited), continued |
| Growth | |||
NET ASSETS REPRESENTED BY | ||||
Paid in Capital | $ | 15,474,086 | ||
Undistributed (distributions in excess of) net investment income | (11,213 | ) | ||
Accumulated net realized gain (loss) | 9,934 | |||
Net unrealized appreciation of: | ||||
Investments | 2,069,790 | |||
NET ASSETS | $ | 17,542,597 | ||
Class A | ||||
Net assets | $ | 10,836,695 | ||
Capital Shares Outstanding | 849,989 | |||
Net asset value per share | $ | 12.75 | ||
Institutional Class | ||||
Net assets | $ | 4,049,846 | ||
Capital Shares Outstanding | 316,852 | |||
Net asset value per share | $ | 12.78 | ||
Class C | ||||
Net assets | $ | 2,656,056 | ||
Capital Shares Outstanding | 211,582 | |||
Net asset value per share | $ | 12.55 |
SEE NOTES TO FINANCIAL STATEMENTS
34
June 30, 2015 |
|
| Growth and Income | Balanced | Income | |||||||||
NET ASSETS REPRESENTED BY | ||||||||||||
Paid in Capital | $ | 18,360,118 | $ | 26,259,560 | $ | 9,793,892 | ||||||
Undistributed (distributions in excess of) net investment income | 42,448 | 54,333 | 17,716 | |||||||||
Accumulated net realized gain (loss) | (40,025 | ) | (85,529 | ) | (11,912 | ) | ||||||
Net unrealized appreciation of: | ||||||||||||
Investments | 1,409,688 | 1,467,222 | 405,564 | |||||||||
NET ASSETS | $ | 19,772,229 | $ | 27,695,586 | $ | 10,205,260 | ||||||
Class A | ||||||||||||
Net assets | $ | 12,598,694 | $ | 13,705,643 | $ | 4,971,703 | ||||||
Capital Shares Outstanding | 1,020,599 | 1,158,201 | 454,874 | |||||||||
Net asset value per share | $ | 12.34 | $ | 11.83 | $ | 10.93 | ||||||
Institutional Class | ||||||||||||
Net assets | $ | 3,001,452 | $ | 6,583,451 | $ | 2,624,534 | ||||||
Capital Shares Outstanding | 242,548 | 555,101 | 239,733 | |||||||||
Net asset value per share | $ | 12.37 | $ | 11.86 | $ | 10.95 | ||||||
Class C | ||||||||||||
Net assets | $ | 4,172,083 | $ | 7,406,492 | $ | 2,609,023 | ||||||
Capital Shares Outstanding | 340,032 | 633,000 | 242,066 | |||||||||
Net asset value per share | $ | 12.27 | $ | 11.70 | $ | 10.78 |
SEE NOTES TO FINANCIAL STATEMENTS
35
Period Ended June 30, 2015 |
Statements of Operations (Unaudited) |
| Growth | |||
INVESTMENT INCOME | ||||
Income | ||||
Dividends (net of foreign withholding tax of $620; $441; $483; and $90 respectively) | $ | 61,055 | ||
Dividends from affiliate - Note C | 24,938 | |||
Total Income | 85,993 | |||
Expenses | ||||
Investment advisory fees | 45,526 | |||
Distribution expenses—Class A (Note B) | 14,983 | |||
Distribution expenses—Class C (Note B) | 1,452 | |||
Service plan expenses—Class C (Note B) | 9,163 | |||
Transfer agent fees | 16,056 | |||
Printing and other shareholder communication fees | 5,306 | |||
Custodian fees | 30,165 | |||
Legal fees and related expenses | 14,331 | |||
Trustees' fees and expenses | 12,484 | |||
Compliance expense | 6,590 | |||
Audit fees | 13,215 | |||
Registration fees | 30,792 | |||
Other expenses | 1,196 | |||
Total Expenses | 201,259 | |||
Less: | ||||
Advisory fee waiver - Note B | (7,212 | ) | ||
Expenses assumed by Adviser - Note B | (96,701 | ) | ||
Net expenses | 97,346 | |||
Net investment income (loss) | (11,353 | ) | ||
REALIZED AND UNREALIZED GAIN (LOSS) - Notes A and C | ||||
Net realized gain (loss) on: | ||||
Investments in unaffiliated issuers | 31,533 | |||
Investments in affiliated issuers | 3,225 | |||
Foreign currency transactions | 8 | |||
Change in unrealized appreciation (depreciation) on: | ||||
Investments in unaffiliated issuers | 100,156 | |||
Investments in affiliated issuers | 143,324 | |||
Foreign currency translation | — | |||
Net realized and unrealized gain (loss) on investments and foreign currency | 278,246 | |||
Net increase in net assets resulting from operations | $ | 266,893 |
SEE NOTES TO FINANCIAL STATEMENTS
36
Period Ended June 30, 2015 |
|
| Growth and Income | Balanced | Income | |||||||||
INVESTMENT INCOME | ||||||||||||
Income | ||||||||||||
Dividends (net of foreign withholding tax of $620; $441; $483; and $90 respectively) | $ | 118,439 | $ | 174,782 | $ | 102,642 | ||||||
Dividends from affiliate - Note C | 35,638 | 44,919 | 9,429 | |||||||||
Total Income | 154,077 | 219,701 | 112,071 | |||||||||
Expenses | ||||||||||||
Investment advisory fees | 46,705 | 60,612 | 21,819 | |||||||||
Distribution expenses—Class A (Note B) | 17,554 | 20,261 | 7,252 | |||||||||
Distribution expenses—Class C (Note B) | 2,438 | 3,837 | 1,205 | |||||||||
Service plan expenses—Class C (Note B) | 15,014 | 24,744 | 7,876 | |||||||||
Transfer agent fees | 18,598 | 18,881 | 12,601 | |||||||||
Printing and other shareholder communication fees | 5,433 | 6,058 | 2,858 | |||||||||
Custodian fees | 28,443 | 31,716 | 30,751 | |||||||||
Legal fees and related expenses | 14,353 | 14,475 | 14,017 | |||||||||
Trustees' fees and expenses | 12,562 | 13,161 | 12,235 | |||||||||
Compliance expense | 6,588 | 6,585 | 6,588 | |||||||||
Audit fees | 15,875 | 15,875 | 15,875 | |||||||||
Registration fees | 32,495 | 32,599 | 30,889 | |||||||||
Other expenses | 1,837 | 2,212 | 1,069 | |||||||||
Total Expenses | 217,895 | 251,016 | 165,035 | |||||||||
Less: | ||||||||||||
Advisory fee waiver - Note B | (6,301 | ) | (8,151 | ) | (1,820 | ) | ||||||
Expenses assumed by Adviser - Note B | (104,411 | ) | (105,317 | ) | (115,615 | ) | ||||||
Net expenses | 107,183 | 137,548 | 47,600 | |||||||||
Net investment income (loss) | 46,894 | 82,153 | 64,471 | |||||||||
REALIZED AND UNREALIZED GAIN (LOSS) - Notes A and C | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments in unaffiliated issuers | 8,326 | (337 | ) | 6,835 | ||||||||
Investments in affiliated issuers | (6,968 | ) | (8,245 | ) | (4,913 | ) | ||||||
Foreign currency transactions | 5 | 8 | — | |||||||||
Change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments in unaffiliated issuers | 51,179 | 60,544 | 1,733 | |||||||||
Investments in affiliated issuers | 101,272 | 126,915 | 31,738 | |||||||||
Foreign currency translation | (4 | ) | — | — | ||||||||
Net realized and unrealized gain (loss) on investments and foreign currency | 153,810 | 178,885 | 35,393 | |||||||||
Net increase in net assets resulting from operations | $ | 200,704 | $ | 261,038 | $ | 99,864 |
SEE NOTES TO FINANCIAL STATEMENTS
37
June 30, 2015 |
Statements of Changes in Net Assets |
| Growth | |||||||
INCREASE (DECREASE)IN NET ASSETS | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | ||||||
Operations | ||||||||
Investment income (loss), net | $ | (11,353 | ) | $ | 119,129 | |||
Net realized gain (loss) on investments and foreign currency transactions | 34,766 | 705,706 | ||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 243,480 | 276,373 | ||||||
Net increase in net assets resulting from operations | 266,893 | 1,101,208 | ||||||
Distributions to shareholders from: | ||||||||
Net investment income | ||||||||
Class A | (13,731 | ) | (54,387 | ) | ||||
Institutional Class | (9,369 | ) | (30,602 | ) | ||||
Class C | — | (10,883 | ) | |||||
Realized gains | ||||||||
Class A | (359,524 | ) | (278,058 | ) | ||||
Institutional Class | (129,646 | ) | (102,077 | ) | ||||
Class C | (83,947 | ) | (57,773 | ) | ||||
Total distributions to shareholders | (596,217 | ) | (533,780 | ) | ||||
From capital share transactions: | ||||||||
Class A | ||||||||
Proceeds from shares sold | 1,367,437 | 2,887,030 | ||||||
Proceeds from reinvestment of distributions | 367,112 | 329,376 | ||||||
Cost of shares redeemed | (1,070,592 | ) | (2,641,932 | ) | ||||
Net increase from Class A transactions | 663,957 | 574,474 | ||||||
Institutional Class | ||||||||
Proceeds from shares sold | 366,570 | 454,832 | ||||||
Proceeds from reinvestment of distributions | 138,922 | 130,249 | ||||||
Cost of shares redeemed | (543,225 | ) | (72,402 | ) | ||||
Net increase (decrease) from Institutional Class transactions | (37,733 | ) | 512,679 | |||||
Class C | ||||||||
Proceeds from shares sold | 537,825 | 132,705 | ||||||
Proceeds from reinvestment of distributions | 74,903 | 59,105 | ||||||
Cost of shares redeemed | (94,818 | ) | (219,361 | ) | ||||
Net increase (decrease) from Class C transactions | 517,910 | (27,551 | ) | |||||
Net increase from capital share transactions | 1,144,134 | 1,059,602 | ||||||
Net increase in net assets | 814,810 | 1,627,030 | ||||||
Net assets | ||||||||
Beginning of period | 16,727,787 | 15,100,757 | ||||||
End of period (1) | $ | 17,542,597 | $ | 16,727,787 | ||||
(1) Includes undistributed net investment income (loss) | $ | (11,213 | ) | $ | 23,240 |
SEE NOTES TO FINANCIAL STATEMENTS
38
June 30, 2015 |
|
| Growth and Income | Balanced | Income | |||||||||||||||||||||
INCREASE (DECREASE)IN NET ASSETS | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | ||||||||||||||||||
Operations | ||||||||||||||||||||||||
Investment income (loss), net | $ | 46,894 | $ | 211,662 | $ | 82,153 | $ | 261,985 | $ | 64,471 | $ | 171,472 | ||||||||||||
Net realized gain (loss) on investments and foreign currency transactions | 1,363 | 490,786 | (8,574 | ) | 496,699 | 1,922 | 170,532 | |||||||||||||||||
Change in unrealized appreciation (depreciation) on investments and foreign currency translations | 152,447 | 250,732 | 187,459 | 302,972 | 33,471 | 158,150 | ||||||||||||||||||
Net increase in net assets resulting from operations | 200,704 | 953,180 | 261,038 | 1,061,656 | 99,864 | 500,154 | ||||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Class A | (24,119 | ) | (126,321 | ) | (36,018 | ) | (128,935 | ) | (34,583 | ) | (80,583 | ) | ||||||||||||
Institutional Class | (9,129 | ) | (35,381 | ) | (24,364 | ) | (66,969 | ) | (21,239 | ) | (52,308 | ) | ||||||||||||
Class C | — | (21,147 | ) | — | (33,506 | ) | (9,647 | ) | (23,426 | ) | ||||||||||||||
Realized gains | ||||||||||||||||||||||||
Class A | (283,213 | ) | (204,878 | ) | (240,160 | ) | (176,658 | ) | (74,928 | ) | (57,312 | ) | ||||||||||||
Institutional Class | (67,126 | ) | (51,465 | ) | (114,653 | ) | (79,200 | ) | (39,250 | ) | (31,605 | ) | ||||||||||||
Class C | (95,439 | ) | (102,057 | ) | (129,454 | ) | (68,832 | ) | (36,080 | ) | (23,447 | ) | ||||||||||||
Total distributions to shareholders | (479,026 | ) | (541,249 | ) | (544,649 | ) | (554,100 | ) | (215,727 | ) | (268,681 | ) | ||||||||||||
From capital share transactions: | ||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||
Proceeds from shares sold | 2,372,150 | 4,841,148 | 2,889,761 | 4,545,854 | 927,438 | 2,894,398 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 283,812 | 306,513 | 261,885 | 293,128 | 97,295 | 123,799 | ||||||||||||||||||
Cost of shares redeemed | (682,286 | ) | (541,074 | ) | (679,686 | ) | (1,205,578 | ) | (289,175 | ) | (1,580,916 | ) | ||||||||||||
Net increase from Class A transactions | 1,973,676 | 4,606,587 | 2,471,960 | 3,633,404 | 735,558 | 1,437,281 | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||
Proceeds from shares sold | 832,698 | 934,971 | 2,016,637 | 1,192,456 | 350,784 | 277,364 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 76,468 | 87,058 | 139,034 | 146,185 | 60,246 | 83,496 | ||||||||||||||||||
Cost of shares redeemed | (384,001 | ) | (45,615 | ) | (437,945 | ) | (844,061 | ) | (286,673 | ) | (68,372 | ) | ||||||||||||
Net increase (decrease) from Institutional Class transactions | 525,165 | 976,414 | 1,717,726 | 494,580 | 124,357 | 292,488 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
Proceeds from shares sold | 871,275 | 1,440,938 | 1,727,323 | 3,245,828 | 740,305 | 492,020 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 94,869 | 120,761 | 125,262 | 100,343 | 44,005 | 45,063 | ||||||||||||||||||
Cost of shares redeemed | (1,007,349 | ) | (1,111,570 | ) | (427,257 | ) | (461,376 | ) | (27,180 | ) | (140,133 | ) | ||||||||||||
Net increase (decrease) from Class C transactions | (41,205 | ) | 450,129 | 1,425,328 | 2,884,795 | 757,130 | 396,950 | |||||||||||||||||
Net increase from capital share transactions | 2,457,636 | 6,033,130 | 5,615,014 | 7,012,779 | 1,617,045 | 2,126,719 | ||||||||||||||||||
Net increase in net assets | 2,179,314 | 6,445,061 | 5,331,403 | 7,520,335 | 1,501,182 | 2,358,192 | ||||||||||||||||||
Net assets | ||||||||||||||||||||||||
Beginning of period | 17,592,915 | 11,147,854 | 22,364,183 | 14,843,848 | 8,704,078 | 6,345,886 | ||||||||||||||||||
End of period (1) | $ | 19,772,229 | $ | 17,592,915 | $ | 27,695,586 | $ | 22,364,183 | $ | 10,205,260 | $ | 8,704,078 | ||||||||||||
(1) Includes undistributed net investment income (loss) | $ | 42,448 | $ | 28,802 | $ | 54,333 | $ | 32,562 | $ | 17,716 | $ | 18,714 |
SEE NOTES TO FINANCIAL STATEMENTS
39
June 30, 2015 |
Statements of Changes in Net Assets—Shares of Beneficial Interest |
| Growth | |||||||
(Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | |||||||
Class A | ||||||||
Shares sold | 103,608 | 228,987 | ||||||
Shares issued in reinvestment of distributions | 28,045 | 25,383 | ||||||
Shares redeemed | (81,311 | ) | (208,536 | ) | ||||
Net increase in shares outstanding | 50,342 | 45,834 | ||||||
Institutional Class | ||||||||
Shares sold | 27,636 | 35,769 | ||||||
Shares issued in reinvestment of distributions | 10,589 | 10,009 | ||||||
Shares redeemed | (41,252 | ) | (5,699 | ) | ||||
Net increase (decrease) in shares outstanding | (3,027 | ) | 40,079 | |||||
Class C | ||||||||
Shares sold | 42,057 | 10,518 | ||||||
Shares issued in reinvestment of distributions | 5,811 | 4,597 | ||||||
Shares redeemed | (7,190 | ) | (17,702 | ) | ||||
Net increase (decrease) in shares outstanding | 40,678 | (2,587 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
40
June 30, 2015 |
|
| Growth and Income | Balanced | Income | |||||||||||||||||||||
(Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | |||||||||||||||||||
Class A | ||||||||||||||||||||||||
Shares sold | 188,022 | 391,582 | 238,679 | 387,424 | 83,131 | 266,000 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 22,453 | 24,476 | 21,733 | 24,621 | 8,789 | 11,223 | ||||||||||||||||||
Shares redeemed | (53,534 | ) | (44,388 | ) | (56,125 | ) | (102,116 | ) | (25,863 | ) | (142,898 | ) | ||||||||||||
Net increase in shares outstanding | 156,941 | 371,670 | 204,287 | 309,929 | 66,057 | 134,325 | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||
Shares sold | 65,044 | 76,009 | 166,371 | 101,067 | 31,556 | 25,209 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 6,035 | 6,944 | 11,509 | 12,253 | 5,432 | 7,554 | ||||||||||||||||||
Shares redeemed | (30,222 | ) | (3,656 | ) | (36,046 | ) | (72,331 | ) | (25,615 | ) | (6,426 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | 40,857 | 79,297 | 141,834 | 40,989 | 11,373 | 26,337 | ||||||||||||||||||
Class C | ||||||||||||||||||||||||
Shares sold | 68,943 | 118,410 | 144,346 | 276,350 | 67,353 | 45,241 | ||||||||||||||||||
Shares issued in reinvestment of distributions | 7,547 | 9,693 | 10,509 | 8,505 | 4,030 | 4,135 | ||||||||||||||||||
Shares redeemed | (80,804 | ) | (89,684 | ) | (35,991 | ) | (39,809 | ) | (2,473 | ) | (13,088 | ) | ||||||||||||
Net increase (decrease) in shares outstanding | (4,314 | ) | 38,419 | 118,864 | 245,046 | 68,910 | 36,288 |
SEE NOTES TO FINANCIAL STATEMENTS
41
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized gains |
Growth Portfolio | ||||||
Class A |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $12.98 | $(0.01) | $0.23 | $ 0.22 | $0.02 | $0.43 |
Year Ended December 31, 2014 | 12.51 | 0.10 | 0.79 | 0.89 | 0.07 | 0.35 |
Year Ended December 31, 2013 | 11.33 | 0.11 | 3.10 | 3.21 | 0.07 | 1.96 |
Year Ended December 31, 2012 | 10.30 | 0.11 | 1.02 | 1.13 | 0.10 | — |
Year Ended December 31, 2011 | 10.89 | 0.12 | (0.61) | (0.49) | 0.07 | 0.03 |
Year Ended December 31, 20105 | 10.00 | 0.13 | 0.86 | 0.99 | 0.10 | — |
Institutional Class |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $13.01 | $0.01 | $0.22 | $0.23 | $0.03 | $0.43 |
Year Ended December 31, 2014 | 12.54 | 0.13 | 0.79 | 0.92 | 0.10 | 0.35 |
Year Ended December 31, 2013 | 11.37 | 0.12 | 3.12 | 3.24 | 0.11 | 1.96 |
Year Ended December 31, 2012 | 10.34 | 0.12 | 1.04 | 1.16 | 0.13 | — |
Year Ended December 31, 2011 | 10.91 | 0.14 | (0.59) | (0.45) | 0.09 | 0.03 |
Year Ended December 31, 20105 | 10.00 | 0.13 | 0.90 | 1.03 | 0.12 | — |
Class C |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $12.82 | $(0.05) | $0.21 | $0.16 | $— | $0.43 |
Year Ended December 31, 2014 | 12.45 | 0.00 | 0.79 | 0.79 | 0.07 | 0.35 |
Year Ended December 31, 2013 | 11.31 | (0.01) | 3.11 | 3.10 | — | 1.96 |
Year Ended December 31, 2012 | 10.29 | 0.02 | 1.03 | 1.05 | 0.03 | — |
Year Ended December 31, 2011 | 10.88 | 0.03 | (0.58) | (0.55) | 0.01 | 0.03 |
Year Ended December 31, 20105 | 10.00 | 0.04 | 0.88 | 0.92 | 0.04 | — |
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. |
SEE NOTES TO FINANCIAL STATEMENTS
42
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total | Net assets end of period (in $000’s) | Net | Net | Gross | Portfolio Turnover4 |
Growth Portfolio | ||||||||
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.45 | $12.75 | 1.57% | $10,837 | 1.09% | (0.08%) | 2.30% | 7% |
Year Ended December 31, 2014 | 0.42 | 12.98 | 7.11% | 10,377 | 1.08% | 0.80% | 2.44% | 21% |
Year Ended December 31, 2013 | 2.03 | 12.51 | 28.84% | 9,432 | 1.26% | 0.88% | 2.87% | 126% |
Year Ended December 31, 2012 | 0.10 | 11.33 | 11.04% | 9,751 | 1.32% | 1.04% | 3.19% | 45% |
Year Ended December 31, 2011 | 0.10 | 10.30 | (4.50%) | 1,463 | 1.19% | 1.09% | 6.37% | 53% |
Year Ended December 31, 20105 | 0.10 | 10.89 | 9.96% | 768 | 1.23% | 1.32% | 8.40% | 40% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.46 | $12.78 | 1.68% | $4,050 | 0.84% | 0.15% | 2.05% | 7% |
Year Ended December 31, 2014 | 0.45 | 13.01 | 7.35% | 4,160 | 0.83% | 1.02% | 2.19% | 21% |
Year Ended December 31, 2013 | 2.07 | 12.54 | 28.98% | 3,508 | 1.01% | 0.90% | 2.62% | 126% |
Year Ended December 31, 2012 | 0.13 | 11.37 | 11.24% | 1,753 | 1.06% | 1.12% | 2.94% | 45% |
Year Ended December 31, 2011 | 0.12 | 10.34 | (4.12%) | 2,582 | 0.94% | 1.27% | 6.12% | 53% |
Year Ended December 31, 20105 | 0.12 | 10.91 | 10.33% | 2,579 | 0.98% | 1.32% | 8.15% | 40% |
Class C |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.43 | $12.55 | 1.16% | $2,656 | 1.84% | (0.82%) | 3.05% | 7% |
Year Ended December 31, 2014 | 0.42 | 12.82 | 6.31% | 2,190 | 1.83% | 0.00% | 3.19% | 21% |
Year Ended December 31, 2013 | 1.96 | 12.45 | 27.84% | 2,160 | 2.01% | (0.10%) | 3.62% | 126% |
Year Ended December 31, 2012 | 0.03 | 11.31 | 10.15% | 1,667 | 2.06% | 0.21% | 3.93% | 45% |
Year Ended December 31, 2011 | 0.04 | 10.29 | (5.10%) | 1,501 | 1.94% | 0.27% | 7.12% | 53% |
Year Ended December 31, 20105 | 0.04 | 10.88 | 9.16% | 1,324 | 1.98% | 0.43% | 9.15% | 40% |
4 | Not annualized |
5 | Commencement of operations - January 4, 2010 |
SEE NOTES TO FINANCIAL STATEMENTS
43
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized |
Growth and Income Portfolio | ||||||
Class A |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $12.49 | $0.04 | $0.11 | $0.15 | $0.02 | $0.28 |
Year Ended December 31, 2014 | 12.13 | 0.20 | 0.62 | 0.82 | 0.16 | 0.30 |
Year Ended December 31, 2013 | 11.30 | 0.16 | 2.50 | 2.66 | 0.13 | 1.70 |
Year Ended December 31, 2012 | 10.38 | 0.18 | 0.91 | 1.09 | 0.17 | — |
Year Ended December 31, 2011 | 10.80 | 0.20 | (0.43) | (0.23) | 0.19 | 0.006 |
Year Ended December 31, 20105 | 10.00 | 0.25 | 0.72 | 0.97 | 0.17 | — |
Institutional Class |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $12.52 | $0.06 | $0.11 | $0.17 | $0.04 | $0.28 |
Year Ended December 31, 2014 | 12.15 | 0.24 | 0.62 | 0.86 | 0.19 | 0.30 |
Year Ended December 31, 2013 | 11.30 | 0.22 | 2.49 | 2.71 | 0.16 | 1.70 |
Year Ended December 31, 2012 | 10.37 | 0.20 | 0.93 | 1.13 | 0.20 | — |
Year Ended December 31, 2011 | 10.80 | 0.22 | (0.44) | (0.22) | 0.21 | 0.006 |
Year Ended December 31, 20105 | 10.00 | 0.22 | 0.76 | 0.98 | 0.19 | — |
Class C |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $12.44 | $(0.01) | $0.12 | $0.11 | $— | $0.28 |
Year Ended December 31, 2014 | 12.08 | 0.11 | 0.61 | 0.72 | 0.06 | 0.30 |
Year Ended December 31, 2013 | 11.27 | 0.06 | 2.50 | 2.56 | 0.05 | 1.70 |
Year Ended December 31, 2012 | 10.34 | 0.09 | 0.95 | 1.04 | 0.08 | — |
Year Ended December 31, 2011 | 10.78 | 0.11 | (0.44) | (0.33) | 0.11 | 0.006 |
Year Ended December 31, 20105 | 10.00 | 0.14 | 0.75 | 0.89 | 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. |
SEE NOTES TO FINANCIAL STATEMENTS
44
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total | Net assets end of period (in $000’s) | Net | Net | Gross | Portfolio Turnover4 |
Growth and Income Portfolio | ||||||||
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.30 | $12.34 | 1.13% | $12,599 | 1.02% | 0.63% | 2.21% | 3% |
Year Ended December 31, 2014 | 0.46 | 12.49 | 6.83% | 10,785 | 1.02% | 1.65% | 2.76% | 12% |
Year Ended December 31, 2013 | 1.83 | 12.13 | 23.86% | 5,966 | 1.12% | 1.25% | 3.02% | 140% |
Year Ended December 31, 2012 | 0.17 | 11.30 | 10.60% | 3,618 | 1.13% | 1.64% | 3.61% | 48% |
Year Ended December 31, 2011 | 0.19 | 10.38 | (2.16%) | 2,460 | 1.00% | 1.84% | 4.12% | 51% |
Year Ended December 31, 20105 | 0.17 | 10.80 | 9.79% | 2,068 | 1.08% | 2.42% | 5.17% | 30% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.32 | $12.37 | 1.32% | $3,001 | 0.77% | 0.89% | 1.96% | 3% |
Year Ended December 31, 2014 | 0.49 | 12.52 | 7.13% | 2,525 | 0.77% | 1.96% | 2.52% | 12% |
Year Ended December 31, 2013 | 1.86 | 12.15 | 24.32% | 1,487 | 0.87% | 1.77% | 2.77% | 140% |
Year Ended December 31, 2012 | 0.20 | 11.30 | 10.96% | 5,286 | 0.88% | 1.86% | 3.36% | 48% |
Year Ended December 31, 2011 | 0.21 | 10.37 | (2.01%) | 4,785 | 0.78% | 2.07% | 3.89% | 51% |
Year Ended December 31, 20105 | 0.19 | 10.80 | 9.93% | 4,705 | 0.83% | 2.18% | 4.92% | 30% |
Class C |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.28 | $12.27 | 0.87% | $4,172 | 1.77% | (0.14%) | 2.96% | 3% |
Year Ended December 31, 2014 | 0.36 | 12.44 | 6.02% | 4,283 | 1.77% | 0.89% | 3.52% | 12% |
Year Ended December 31, 2013 | 1.75 | 12.08 | 22.94% | 3,694 | 1.87% | 0.44% | 3.77% | 140% |
Year Ended December 31, 2012 | 0.08 | 11.27 | 9.80% | 2,240 | 1.88% | 0.84% | 4.35% | 48% |
Year Ended December 31, 2011 | 0.11 | 10.34 | (3.01%) | 2,244 | 1.79% | 1.08% | 4.91% | 51% |
Year Ended December 31, 20105 | 0.11 | 10.78 | 8.93% | 1,516 | 1.83% | 1.36% | 5.93% | 30% |
4 | Not annualized |
5 | Commencement of operations - January 4, 2010 |
6 | Rounds to less than $0.01. |
SEE NOTES TO FINANCIAL STATEMENTS
45
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized |
Balanced Portfolio | ||||||
Class A |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $11.91 | $0.05 | $0.11 | $0.16 | $0.03 | $0.21 |
Year Ended December 31, 2014 | 11.56 | 0.19 | 0.54 | 0.73 | 0.15 | 0.23 |
Year Ended December 31, 2013 | 11.22 | 0.17 | 1.76 | 1.93 | 0.14 | 1.45 |
Year Ended December 31, 2012 | 10.45 | 0.19 | 0.75 | 0.94 | 0.16 | 0.01 |
Year Ended December 31, 2011 | 10.57 | 0.22 | (0.10) | 0.12 | 0.20 | 0.04 |
Year Ended December 31, 20105 | 10.00 | 0.21 | 0.53 | 0.74 | 0.17 | — |
Institutional Class |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $11.94 | $0.06 | $0.11 | $0.17 | $0.04 | $0.21 |
Year Ended December 31, 2014 | 11.58 | 0.23 | 0.53 | 0.76 | 0.17 | 0.23 |
Year Ended December 31, 2013 | 11.23 | 0.21 | 1.76 | 1.97 | 0.17 | 1.45 |
Year Ended December 31, 2012 | 10.46 | 0.22 | 0.74 | 0.96 | 0.18 | 0.01 |
Year Ended December 31, 2011 | 10.58 | 0.24 | (0.10) | 0.14 | 0.22 | 0.04 |
Year Ended December 31, 20105 | 10.00 | 0.21 | 0.56 | 0.77 | 0.19 | — |
Class C |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $11.80 | $0.00 | $0.11 | $0.11 | $— | $0.21 |
Year Ended December 31, 2014 | 11.47 | 0.08 | 0.56 | 0.64 | 0.08 | 0.23 |
Year Ended December 31, 2013 | 11.14 | 0.07 | 1.76 | 1.83 | 0.05 | 1.45 |
Year Ended December 31, 2012 | 10.39 | 0.11 | 0.74 | 0.85 | 0.09 | 0.01 |
Year Ended December 31, 2011 | 10.53 | 0.14 | (0.10) | 0.04 | 0.14 | 0.04 |
Year Ended December 31, 20105 | 10.00 | 0.13 | 0.53 | 0.66 | 0.13 | — |
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. |
SEE NOTES TO FINANCIAL STATEMENTS
46
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total | Net assets end of period (in $000’s) | Net | Net | Gross | Portfolio Turnover4 |
Balanced Portfolio | ||||||||
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.24 | $11.83 | 1.33% | $13,706 | 0.96% | 0.79% | 1.87% | 3% |
Year Ended December 31, 2014 | 0.38 | 11.91 | 6.28% | 11,365 | 0.96% | 1.64% | 2.40% | 16% |
Year Ended December 31, 2013 | 1.59 | 11.56 | 17.48% | 7,446 | 1.08% | 1.36% | 2.47% | 106% |
Year Ended December 31, 2012 | 0.17 | 11.22 | 9.02% | 7,167 | 1.08% | 1.75% | 3.02% | 42% |
Year Ended December 31, 2011 | 0.24 | 10.45 | 1.04% | 4,399 | 1.01% | 2.07% | 4.24% | 46% |
Year Ended December 31, 20105 | 0.17 | 10.57 | 7.50% | 2,071 | 1.10% | 2.05% | 5.19% | 36% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.25 | $11.86 | 1.43% | $6,583 | 0.71% | 1.07% | 1.62% | 3% |
Year Ended December 31, 2014 | 0.40 | 11.94 | 6.59% | 4,934 | 0.71% | 1.91% | 2.15% | 16% |
Year Ended December 31, 2013 | 1.62 | 11.58 | 17.86% | 4,312 | 0.83% | 1.71% | 2.22% | 106% |
Year Ended December 31, 2012 | 0.19 | 11.23 | 9.26% | 7,169 | 0.83% | 1.99% | 2.77% | 42% |
Year Ended December 31, 2011 | 0.26 | 10.46 | 1.24% | 5,380 | 0.76% | 2.27% | 4.02% | 46% |
Year Ended December 31, 20105 | 0.19 | 10.58 | 7.74% | 5,292 | 0.85% | 2.09% | 4.93% | 36% |
Class C |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.21 | $11.70 | 0.91% | $7,406 | 1.71% | 0.05% | 2.62% | 3% |
Year Ended December 31, 2014 | 0.31 | 11.80 | 5.52% | 6,065 | 1.71% | 0.70% | 3.14% | 16% |
Year Ended December 31, 2013 | 1.50 | 11.47 | 16.70% | 3,086 | 1.83% | 0.57% | 3.22% | 106% |
Year Ended December 31, 2012 | 0.10 | 11.14 | 8.17% | 2,108 | 1.83% | 1.02% | 3.77% | 42% |
Year Ended December 31, 2011 | 0.18 | 10.39 | 0.28% | 931 | 1.76% | 1.30% | 5.00% | 46% |
Year Ended December 31, 20105 | 0.13 | 10.53 | 6.68% | 390 | 1.85% | 1.34% | 5.94% | 36% |
3 | Ratios representing periods of less than one year have been annualized. |
4 | Not annualized |
5 | Commencement of operations - January 4, 2010 |
SEE NOTES TO FINANCIAL STATEMENTS
47
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized |
Income Portfolio | ||||||
Class A |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $11.04 | $0.08 | $0.06 | $0.14 | $0.08 | $0.17 |
Year Ended December 31, 2014 | 10.72 | 0.25 | 0.44 | 0.69 | 0.22 | 0.15 |
Year Ended December 31, 2013 | 10.92 | 0.22 | 0.81 | 1.03 | 0.20 | 1.03 |
Year Ended December 31, 2012 | 10.51 | 0.22 | 0.51 | 0.73 | 0.22 | 0.10 |
Year Ended December 31, 2011 | 10.55 | 0.25 | 0.02 | 0.27 | 0.24 | 0.07 |
Year Ended December 31, 20105 | 10.00 | 0.21 | 0.53 | 0.74 | 0.19 | — |
Institutional Class |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $11.06 | $0.09 | $0.06 | $0.15 | $0.09 | $0.17 |
Year Ended December 31, 2014 | 10.73 | 0.28 | 0.44 | 0.72 | 0.24 | 0.15 |
Year Ended December 31, 2013 | 10.93 | 0.25 | 0.81 | 1.06 | 0.23 | 1.03 |
Year Ended December 31, 2012 | 10.52 | 0.24 | 0.52 | 0.76 | 0.25 | 0.10 |
Year Ended December 31, 2011 | 10.56 | 0.28 | 0.01 | 0.29 | 0.26 | 0.07 |
Year Ended December 31, 20105 | 10.00 | 0.22 | 0.54 | 0.76 | 0.20 | — |
Class C |
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $10.90 | $0.04 | $0.05 | $0.09 | $0.04 | $0.17 |
Year Ended December 31, 2014 | 10.60 | 0.16 | 0.43 | 0.59 | 0.14 | 0.15 |
Year Ended December 31, 2013 | 10.82 | 0.13 | 0.81 | 0.94 | 0.13 | 1.03 |
Year Ended December 31, 2012 | 10.42 | 0.14 | 0.51 | 0.65 | 0.15 | 0.10 |
Year Ended December 31, 2011 | 10.50 | 0.18 | 0.01 | 0.19 | 0.20 | 0.07 |
Year Ended December 31, 20105 | 10.00 | 0.13 | 0.52 | 0.65 | 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. |
SEE NOTES TO FINANCIAL STATEMENTS
48
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total | Net assets end of period (in $000’s) | Net | Net | Gross | Portfolio Turnover4 |
Income Portfolio | ||||||||
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.25 | $10.93 | 1.21% | $4,972 | 0.91% | 1.47% | 3.41% | 6% |
Year Ended December 31, 2014 | 0.37 | 11.04 | 6.46% | 4,292 | 0.92% | 2.24% | 4.11% | 27% |
Year Ended December 31, 2013 | 1.23 | 10.72 | 9.65% | 2,728 | 0.99% | 1.93% | 4.16% | 97% |
Year Ended December 31, 2012 | 0.32 | 10.92 | 6.99% | 1,835 | 1.00% | 2.01% | 4.34% | 84% |
Year Ended December 31, 2011 | 0.31 | 10.51 | 2.51% | 1,596 | 0.95% | 2.35% | 5.64% | 45% |
Year Ended December 31, 20105 | 0.19 | 10.55 | 7.46% | 1,164 | 1.10% | 2.04% | 6.67% | 27% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.26 | $10.95 | 1.41% | $2,625 | 0.66% | 1.70% | 3.16% | 6% |
Year Ended December 31, 2014 | 0.39 | 11.06 | 6.80% | 2,525 | 0.67% | 2.54% | 3.86% | 27% |
Year Ended December 31, 2013 | 1.26 | 10.73 | 9.89% | 2,168 | 0.74% | 2.17% | 3.91% | 97% |
Year Ended December 31, 2012 | 0.35 | 10.93 | 7.23% | 4,761 | 0.75% | 2.25% | 4.08% | 84% |
Year Ended December 31, 2011 | 0.33 | 10.52 | 2.74% | 4,586 | 0.70% | 2.61% | 5.41% | 45% |
Year Ended December 31, 20105 | 0.20 | 10.56 | 7.68% | 4,107 | 0.85% | 2.14% | 6.41% | 27% |
Class C |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 (Unaudited) | $0.21 | $10.78 | 0.83% | $2,609 | 1.66% | 0.75% | 4.16% | 6% |
Year Ended December 31, 2014 | 0.29 | 10.90 | 5.65% | 1,887 | 1.67% | 1.50% | 4.86% | 27% |
Year Ended December 31, 2013 | 1.16 | 10.60 | 8.82% | 1,450 | 1.74% | 1.19% | 4.91% | 97% |
Year Ended December 31, 2012 | 0.25 | 10.82 | 6.23% | 882 | 1.75% | 1.27% | 5.09% | 84% |
Year Ended December 31, 2011 | 0.27 | 10.42 | 1.78% | 661 | 1.70% | 1.68% | 6.35% | 45% |
Year Ended December 31, 20105 | 0.15 | 10.50 | 6.54% | 27 | 1.85% | 1.27% | 7.41% | 27% |
3 | Ratios representing periods of less than one year have been annualized. |
4 | Not annualized |
5 | Commencement of operations - January 4, 2010 |
SEE NOTES TO FINANCIAL STATEMENTS
49
June 30, 2015 |
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, 2015, 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, 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, funds managed by 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),
50
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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 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
51
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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 Sleeve 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.
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.
52
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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. The Funds apply Investment Company accounting and reporting guidance.
Valuation of Investments For purposes of calculating the net asset value (“NAV”), determined ordinarily as of the close of regular trading (normally 4:00 p.m. Eastern time) (the “NYSE Close”) on the New York Stock Exchange (“NYSE”) on each day (a “Business Day”) that the NYSE is open for trading, the Funds normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. U.S. 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.
53
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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 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
54
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
and before the time at which Funds’ net asset value is determined; and changes in overall market conditions. At June 30, 2015, 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 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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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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.
Affiliated and Unaffiliated Investment Companies Investments in investment companies are valued at the Funds’ closing net asset value and are generally categorized as Level 1.
Short-term Investments Short-term securities, including repurchase agreements with remaining maturities of 60 days or less, which are valued at amortized cost, are generally categorized as Level 2 in the hierarchy.
The following is a summary of the inputs used to value the Funds’ net assets as of June 30, 2015:
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||
Growth | ||||||||||||||||
Common Stocks | $ | 3,060,351 | $ | 30,693 | $ | — | $ | 3,091,044 | ||||||||
Affiliated Investment Companies | 3,390,598 | — | — | 3,390,598 | ||||||||||||
Unaffiliated Investment Companies | 11,052,726 | — | — | 11,052,726 | ||||||||||||
Total | $ | 17,503,675 | $ | 30,693 | $ | — | $ | 17,534,368 | ||||||||
Growth and Income | ||||||||||||||||
Common Stocks | $ | 2,258,140 | $ | 19,700 | $ | — | $ | 2,277,840 | ||||||||
Affiliated Investment Companies | 3,092,393 | — | — | 3,092,393 | ||||||||||||
Unaffiliated Investment Companies | 14,406,600 | — | — | 14,406,600 | ||||||||||||
Total | $ | 19,757,133 | $ | 19,700 | $ | — | $ | 19,776,833 |
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||
Balanced | ||||||||||||||||
Common Stocks | $ | 2,526,443 | $ | 26,390 | $ | — | $ | 2,552,833 | ||||||||
Affiliated Investment Companies | 4,112,778 | — | — | 4,112,778 | ||||||||||||
Unaffiliated Investment Companies | 21,005,248 | — | — | 21,005,248 | ||||||||||||
Total | $ | 27,644,469 | $ | 26,390 | $ | — | $ | 27,670,859 | ||||||||
Income | ||||||||||||||||
Common Stocks | $ | 413,926 | $ | 4,606 | $ | — | $ | 418,532 | ||||||||
Affiliated Investment Companies | 928,650 | — | — | 928,650 | ||||||||||||
Unaffiliated Investment Companies | 8,860,706 | — | — | 8,860,706 | ||||||||||||
Total | $ | 10,203,282 | $ | 4,606 | $ | — | $ | 10,207,888 |
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 $30,693 for the Growth Portfolio, $19,700 for the Growth and Income Portfolio, $26,390 for the Balanced Portfolio, and $4,606 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.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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.
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
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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.
NOTE B—Investment Advisory Fee and Transactions with Affiliated and Other Parties
The Trust has entered into an Investment Advisory Contract (the “Management Contract”) with the Adviser. Pursuant to the terms of the Management Contract, the Adviser, subject to the supervision of the Board of Trustees of the Trust, is responsible for managing the assets of the Funds in accordance with the Funds’ investment objective, investment programs and policies.
Pursuant to the Management Contract, the Adviser has contracted to furnish the Funds continuously with an investment program, determining what investments to purchase, sell and exchange for the Funds and what assets to hold uninvested. The Adviser also has contracted to provide office space and certain management and administrative facilities for the Funds. In return for such services, the Funds pay an advisory fee to the Adviser. With respect to the portion of assets invested in mutual funds 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 | Fund | YTD 2015 |
Growth | 0.90% | 0.45% | 0.53% |
Growth and Income | 0.85% | 0.45% | 0.50% |
Balanced | 0.80% | 0.45% | 0.48% |
Income | 0.75% | 0.45% | 0.46% |
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
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
subadvisers to manage portions of the assets of each Fund, 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, 2015, 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 subadvisers is the responsibility of the Adviser, and is not an additional expense of the Funds.
During the period, the Adviser waived advisory fees related to a portion of the Acquired Fund Fees (operating expenses of underlying funds) for investments in other investment companies managed by the Adviser. For the period ended June 30, 2015, the Funds incurred the following advisory fees and fee waivers:
Fund | Gross | Fees Waived | Net | |||||||||
Growth | $ | 45,526 | $ | 7,212 | $ | 38,314 | ||||||
Growth and Income | 46,705 | 6,301 | 40,404 | |||||||||
Balanced | 60,612 | 8,151 | 52,461 | |||||||||
Income | 21,819 | 1,820 | 19,999 |
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 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, respectively.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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. 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 | |||
Fund | Managed | Fund | YTD 2015 |
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% | 1.09% |
Institutional | 1.19% | 0.79% | 0.84% |
Class C | 2.19% | 1.79% | 1.84% |
Balanced | |||
Class A | 1.34% | 0.99% | 1.02% |
Institutional | 1.09% | 0.74% | 0.77% |
Class C | 2.09% | 1.74% | 1.77% |
Income | |||
Class A | 1.24% | 0.94% | 0.95% |
Institutional | 0.99% | 0.69% | 0.70% |
Class C | 1.99% | 1.69% | 1.70% |
The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31, 2016. This reimbursement arrangement will continue in effect until at least December 31, 2016 unless modified or terminated by the Fund’s Trustees.
With the exception of advisory fee waivers on affiliated investments noted above, each of the Funds is subject to the expenses, including advisory fees, of the underlying funds in which it invests.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
For the period ended June 30, 2015, 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 | $ | 60,343 | $ | 22,584 | $ | 13,774 | ||||||
Growth and Income | 66,942 | 15,115 | 22,354 | |||||||||
Balanced | 53,399 | 24,130 | 27,788 | |||||||||
Income | 57,359 | 32,436 | 25,820 |
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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June 30, 2015 |
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, 2015 were as follows:
Fund | Purchases | Sales | ||||||
Growth | $ | 1,726,640 | $ | 1,228,365 | ||||
Growth and Income | 2,654,488 | 633,998 | ||||||
Balanced | 5,903,685 | 804,927 | ||||||
Income | 1,960,218 | 534,824 |
* | Excluding short-term investments and U.S. Government bonds. |
For federal income tax purposes, the identified cost of investments owned at June 30, 2015 as well as the gross unrealized appreciation (depreciation) of investments and resulting net unrealized appreciation (depreciation) as of June 30, 2015 were as follows for the Funds:
Fund | Identified cost of investments for Federal income tax basis | Gross | Gross | Net unrealized appreciation (depreciation) | ||||||||||||
Growth | $ | 15,464,578 | $ | 2,132,513 | $ | 62,723 | $ | 2,069,790 | ||||||||
Growth and Income | 18,367,145 | 1,516,663 | 106,975 | 1,409,688 | ||||||||||||
Balanced | 26,203,637 | 1,634,091 | 166,869 | 1,467,222 | ||||||||||||
Income | 9,802,324 | 439,189 | 33,625 | 405,564 |
At June 30, 2015, the Funds had no unrealized foreign currency gains or losses.
The term “affiliated company” includes other investment companies that are managed by a Fund’s Adviser. At June 30, 2015, the Funds held the following investments in affiliated companies:
Fund | Shares Held at 06/30/15 | Value at 12/31/14 | Gross Additions | Gross Reductions | Value at 06/30/15 | Income Distributions | ||||||||||||||||||
Growth | ||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 193,375 | $ | 1,499,748 | $ | 217,767 | $ | 148,854 | $ | 1,641,756 | $ | 21,306 | |||||||||||||
Pax World Global Environmental Markets Fund | 24,853 | 301,852 | 4,470 | — | 322,338 | 1,303 | ||||||||||||||||||
Pax World Small Cap Fund | 98,042 | 1,238,978 | 236,004 | 105,194 | 1,426,504 | 2,329 | ||||||||||||||||||
Total | $ | 3,040,578 | $ | 458,241 | $ | 254,048 | $ | 3,390,598 | $ | 24,938 |
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
Fund | Shares Held at 06/30/15 | Value at 12/31/14 | Gross Additions | Gross Reductions | Value at 06/30/15 | Income Distributions | ||||||||||||||||||
Growth and Income | ||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 187,903 | $ | 1,342,718 | $ | 280,687 | $ | 89,000 | $ | 1,595,294 | $ | 21,271 | |||||||||||||
Pax World Balanced Fund | 41 | — | 1,014 | — | 984 | 7 | ||||||||||||||||||
Pax World Global Environmental Markets Fund | 11,981 | 146,835 | 709 | — | 155,397 | 628 | ||||||||||||||||||
Pax World High Yield Bond Fund | 61,620 | 412,444 | 22,456 | 3,000 | 425,175 | 112,284 | ||||||||||||||||||
Pax World Small Cap Fund | 62,924 | 762,987 | 135,712 | 15,000 | 915,543 | 1,448 | ||||||||||||||||||
Total | $ | 2,664,984 | $ | 440,578 | $ | 107,000 | $ | 3,092,393 | $ | 35,638 | ||||||||||||||
Balanced | ||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 239,902 | $ | 1,540,641 | $ | 513,475 | $ | 85,346 | $ | 2,036,765 | $ | 26,885 | |||||||||||||
Pax World Global Environmental Markets Fund | 26,039 | 303,253 | 18,540 | — | 337,723 | 1,365 | ||||||||||||||||||
Pax World High Yield Bond Fund | 74,839 | 482,273 | 62,591 | 20,000 | 516,391 | 14,744 | ||||||||||||||||||
Pax World Small Cap Fund | 83,979 | 1,085,251 | 111,273 | 17,150 | 1,221,899 | 1,925 | ||||||||||||||||||
Total | $ | 3,411,418 | $ | 705,879 | $ | 122,496 | $ | 4,112,778 | $ | 44,919 | ||||||||||||||
Income | ||||||||||||||||||||||||
Pax MSCI International ESG Index Fund | 42,434 | $ | 304,890 | $ | 107,276 | $ | 63,698 | $ | 360,264 | $ | 4,513 | |||||||||||||
Pax World Global Environmental Markets Fund | 8,964 | 109,851 | 530 | — | 116,257 | 470 | ||||||||||||||||||
Pax World High Yield Bond Fund | 22,029 | 132,240 | 22,009 | — | 151,997 | 3,987 | ||||||||||||||||||
Pax World Small Cap Fund | 20,628 | 254,714 | 44,334 | 10,150 | 300,132 | 459 | ||||||||||||||||||
Total | $ | 801,695 | $ | 174,149 | $ | 73,848 | $ | 928,650 | $ | 9,429 |
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.
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
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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 invest, at June 30, 2015, 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, 2015, 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 2015 and 2014 was as follows:
Distributions paid in 2015 | Distributions paid in 2014 | |||||||||||||||
Fund | Ordinary | Long-term | Ordinary | Long-term | ||||||||||||
Growth | $ | 66,461 | $ | 529,756 | $ | 266,506 | $ | 267,274 | ||||||||
Growth and Income | 65,539 | 413,487 | 353,780 | 187,469 | ||||||||||||
Balanced | 133,717 | 410,932 | 403,983 | 150,117 | ||||||||||||
Income | 112,343 | 103,384 | 193,480 | 75,201 |
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
As of June 30, 2015, 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 2011 through 2014). The Funds recognize interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. Management has concluded that, as of and during the period ended June 30, 2015, 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 1940 Act requires that the Trustees request and evaluate, and that the Adviser furnish, such information as may reasonably be necessary for the Trustees to evaluate the terms of the Trust’s Management Contract. Similarly, the 1940 Act requires that the Trustees request and evaluate, and that 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 2015 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 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.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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. |
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.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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-, 3- and 5-year periods ended March 31, 2015. The Independent Trustees considered that, with the exception of the ESG Managers Growth Portfolio having underperformed its Lipper performance universe average for the 5-year period, each Fund had outperformed its Lipper performance universe average for all periods. 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
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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 of funds-of-affiliated 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, 2016 to 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.
69
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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, 2014. The Trustees recognized that the Adviser should, in the abstract, be entitled to earn a reasonable level of profit for the services provided to each Fund, and that it is difficult to make comparisons of profitability from mutual fund advisory contracts because comparative information is not generally available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions about cost allocations and the Adviser’s capital structure and cost of capital. The Trustees concluded that, taking all of the foregoing into account, they were satisfied that the Adviser’s level of profitability from its relationship with the Trust was not excessive. The Trustees did not consider the profitability of 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.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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.
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.
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June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
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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June 30, 2015 |
|
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 (8/15).
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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 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 Individual Investor Class (PXWEX) Institutional Class (PXWIX)
|
Table of Contents |
Letter to Shareholders | 1 |
Portfolio Manager Comments and Highlights | |
Pax World Balanced Fund | 5 |
Pax World Growth Fund | 10 |
Pax World Small Cap Fund | 14 |
Pax World High Yield Bond Fund | 18 |
Pax World Global Environmental Markets Fund | 23 |
Pax MSCI International ESG Index Fund | 29 |
Pax Ellevate Global Women’s Index Fund | 34 |
Sustainability Update | 41 |
Shareholder Expense Examples | 43 |
Schedule of Investments | 46 |
Statements of Assets and Liabilities | 80 |
Statements of Operations | 84 |
Statements of Changes in Net Assets | 86 |
Statements of Changes—Shares of Beneficial Interest | 90 |
Financial Highlights | 92 |
Notes to Financial Statements | 106 |
Account Options and Services | 132 |
For More Information | |
General Fund Information 800.767.1729
Shareholder Account Information 800.372.7827
Account Inquiries Pax World
Investment Advisers Pax World Management LLC |
Transfer and Boston Financial Data Services
Custodian State Street Bank |
Letter to Shareholders |
by Joseph Keefe, President & CEO |
Dear fellow shareholders,
The first six months of 2015 have been a tale of two markets. In the first quarter, global markets as measured by the MSCI All Country World Index (ACWI) were up 2.31% whereas in the second quarter they were up only 0.35%. Developed markets ex-U.S. and Canada, as measured by the MSCI Europe Australasia Far East Index (EAFE) were up 4.88% in the first quarter and only 0.62% in the second quarter. The S&P 500, which represents the performance of large U.S. companies, was up 0.95% in the first quarter but only 0.28% in the second quarter and was thus up only 1.23% for the first half of the year.
We have all seen the headlines: The debt crisis in Greece, a tumbling Chinese stock market, low energy prices and a strong U.S. Dollar, worries over stock and other asset valuations presaging another market bubble, concerns over whether and when the U.S. Federal Reserve (Fed) will raise interest rates, and whether it can adroitly manage the transition from accommodative to more restrictive monetary policy – to name just a few.
Markets have nevertheless continued to advance, if tepidly, and shareholders in Pax World Funds have generally benefited from continued rising markets.
The anticipated Fed policy change comes amidst evidence of a strengthening labor market and continued recovery in the underlying economy, although at mid-year one could make the case that relevant economic indicators were mixed. It’s probably fair to say that the outlook is somewhat murky for the remainder of 2015, and that is the economic environment our fund managers will be investing in.
As I have said before, confronting mixed signals and uncertainty is a constant in the investment business. We therefore try to steer clear of grandiose predictions or prognosticating at Pax World. Instead, our portfolio managers stay focused on fundamentals and are ever attentive to risk. At mid-year, I think it’s fair to say that they remained less than exuberant but still cautiously optimistic about the second half of 2015.
As always, one of the best ways to protect against downside risk is through portfolio diversification. In this regard, Pax World offers investors an array of funds that include active management and passive management, large cap and
1
small cap, domestic, global and international, a Balanced Fund that combines equity and fixed income allocations, plus a High Yield Bond Fund. We also offer thematic funds that provide our investors with access to leading innovators in environmental solutions and technologies as well as the highest-rated companies in the world in advancing women’s leadership. Finally, we offer two fossil fuel-free funds for investors who wish to divest fossil fuel companies from their portfolios in order to have a greater impact on mitigating climate change.
I would encourage you to read the pages that follow to learn about the performance of our funds during the first half of 2015 as well as the initiatives we have pursued to better integrate environmental, social and governance (ESG) factors into our investments and to have a greater impact on the companies we own in order to improve their ESG performance.
At Pax World, our goal is to deliver competitive returns to our shareholders while also having a positive impact on communities, society and the natural environment. We assess our own performance and progress by how well we do at delivering on that double bottom line of financial returns plus social and environmental returns. 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
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The MSCI ACWI Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 46 country indexes comprising 23 developed and 23 emerging market country indexes. The developed market country indexes included are: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. The emerging market country indexes included are: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. Performance for the MSCI ACWI Index is shown “net”, which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
The 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 Index is shown “net”, which includes dividend reinvestments after deduction of foreign withholding tax. One cannot invest directly in an index.
The S&P 500 Index is an unmanaged index of large capitalization common stocks. One cannot invest directly in an index.
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).
The Fund’s distributor, ALPS Distributors, Inc., is not affiliated with Pax World Management LLC, or Pax Ellevate Management LLC.
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June 30, 2015 |
Pax World Balanced Fund |
Portfolio Manager |
Portfolio Manager |
Portfolio Manager |
Portfolio Managers’ Comments |
How did the Pax World Balanced Fund (the Fund) perform for the period?
For the six-month period ended June 30, 2015, the Individual Investor Class, Institutional Class, and Class R shares of the Fund had total returns of 0.33%, 0.44%, and 0.22%, respectively, compared to 0.79% for the 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index (BARCAP) (the Blended Index) and 1.36% for the Lipper Balanced Funds Index.
What factors contributed to the Fund’s performance?
The Fund was overweight equities (64.32% avg. weight) and underweight bonds (34.83% avg. weight) versus the benchmark (60% S&P 500/40% BARCAP) which was a positive contributor to the Fund’s performance. Generally, stocks outperformed bonds during the period. An underweight and stock selection in the utility sector helped relative performance while stock selection and an overweight allocation to financials hurt relative performance. The Fund’s bond component slightly outperformed the BARCAP during the period.
Can you discuss any significant changes to the Fund’s positioning throughout the period?
During the period, we increased the Fund’s equity allocation while reducing its bond exposure in the belief equities will outperform bonds. The Fund continued to increase duration in the bond portfolio vs. BARCAP to better align with the benchmark (BARCAP). We continued to add more to foreign markets during the period mainly through purchases of the Pax MSCI International ESG Index Fund. Despite the recent debt impasse between Greece and the European Union, we believe valuations continue to look attractive in the European markets.
5
June 30, 2015 |
Pax World Balanced Fund, continued |
What portfolio holdings contributed positively to performance?
UnitedHealth Group, Inc., a health maintenance company that provides healthcare plans for businesses and their employees, released a strong quarterly earnings for the past two quarters, as well as raising their future guidance for earnings. As a result of this news, the stock appreciated during the period.
Hologic, Inc., a manufacturer and marketer of x-ray systems that measures bone density, beat earnings estimates for the past two quarters and raised future guidance for earnings. This positive news helped the stock post a strong return for the period.
Amdocs, Ltd., a provider of customer care and billing systems to telecom service providers, released better than expected 1st quarter earnings that beat Wall Street’s expectations. The stock appreciated substantially during the period.
What portfolio holdings detracted from performance?
American Express Co., (AXP) a credit card and travel company, declined significantly during the period. Although they beat earnings estimates for the last two quarters, revenues missed expectations in the latest quarter. Investors felt the company will be challenged going forward by a slowdown in billings as well as a strong dollar. In addition, AXP lost a lucrative partnership deal with COSTCO which further pressured the shares. The equity is no longer held in the Fund.
EMC Corp., a provider of storage systems and software, declined significantly during the period. Fourth quarter results were generally good. However, management lowered future earnings and revenue guidance and indicated the VMware spin-off, a positive catalyst for the stock, was less likely in the near-term. The company continues to struggle with weak storage product sales, especially in China and Russia. A strong dollar has also negatively impacted their most recent earnings.
National Oilwell Varco, Inc., an energy services company, declined significantly during the period. The main cause of the decline was attributed to lower energy prices and its potential negative impact on the company’s future earnings. The equity is no longer held in the Fund.
6
June 30, 2015 |
Portfolio Highlights (Unaudited) |
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | |||||
Share class | Ticker | YTD | 1 year | 3 years | 5 years | 10 years |
Individual Investor Class1 | PAXWX | 0.33% | 3.19% | 10.18% | 10.54% | 5.11% |
Institutional Class1,2 | PAXIX | 0.44% | 3.45% | 10.46% | 10.81% | 5.32% |
Class R1,3 | PAXRX | 0.22% | 2.95% | 9.92% | 10.26% | 4.91% |
S&P 500 Index4,8 | 1.23% | 7.42% | 17.31% | 17.34% | 7.89% | |
Blended Index5,6,8 | 0.79% | 5.28% | 10.98% | 11.76% | 6.79% | |
Lipper Balanced Funds Index7,8 | 1.36% | 3.11% | 10.22% | 10.39% | 6.10% |
Total returns for periods of less than one year have not been annualized.
1 | Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729. |
2 | Inception 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. |
3 | Inception 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. |
4 | The S&P 500 Index is an index of large capitalization common stocks. |
5 | The Blended Index is composed of 60% S&P 500 Index/40% Barclays U.S. Aggregate Bond Index. |
6 | The 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. |
7 | The 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. |
8 | Unlike 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. |
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June 30, 2015 |
Pax World Balanced Fund, continued |
Portfolio Highlights (Unaudited), continued |
Asset Allocation | Percent of Investments |
U.S. Stocks | 58.9% |
U.S. Bonds | 31.5% |
Affiliated Investment Companies | 6.7% |
Foreign Stocks | 1.9% |
Foreign Bonds | 0.6% |
Cash & Cash Equivalents | 0.4% |
Total | 100.0% |
Top Ten Holdings
Company | Percent of Net Assets |
Pax MSCI International ESG Index Fund | 6.7% |
Apple, Inc. | 3.1% |
Becton Dickinson & Co. | 2.5% |
UnitedHealth Group, Inc. | 2.5% |
BlackRock, Inc. | 2.0% |
American Tower Corp., REIT | 1.8% |
Morgan Stanley | 1.5% |
Merck & Co., Inc. | 1.5% |
Walt Disney Co., The | 1.3% |
Bank of New York Mellon Corp., The | 1.3% |
Total | 24.2% |
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, 2015 |
Sector Diversification
Sector | Percent of Net Assets |
Fixed Income | 32.1% |
Corporate Bonds 10.6%, Agency/Gov’t Related Bonds 4.3%, Treasury Bonds 7.1%, Mortgage Backed Bonds 7.5%, Municipal Bonds 2.1%, Gov’t Bonds 0.3% and Community Investing Bonds 0.2%. | |
Information Technology | 12.4% |
Health Care | 11.8% |
Financials | 11.5% |
Consumer Discretionary | 8.9% |
Affiliated Investment Companies | 6.7% |
Industrials | 4.6% |
Energy | 4.2% |
Consumer Staples | 3.9% |
Materials | 1.7% |
Utilities | 0.8% |
Telecommunication Services | 0.7% |
Other | 0.7% |
Total | 100.0% |
May include companies representing multiple industries within a single “Sector”.
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June 30, 2015 |
Pax World Growth Fund |
Portfolio Manager |
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, 2015, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 2.69%, 2.73%, 2.86%, and 2.62%, respectively, compared to 3.96% for the Russell 1000 Growth Index (the Index) and 5.46% for the Lipper Multi-Cap Growth Funds Index.
What factors contributed to the Fund’s performance?
Health care and industrial sectors have been positive contributors to the Fund’s performance. There have been a number of acquisitions or banking-related events in those sectors that boosted the performance of companies like Mylan Corp., Pall Corp., and Stanley Black & Decker, Inc.
Our stock selection within consumer staples and consumer discretionary sectors hurt performance. In particular Procter & Gamble Co., V.F. Corp. and Scripps Network Interactive, Inc., Class A have underperformed.
Can you discuss any significant changes to the Fund’s positioning throughout the period?
The Fund continues to maintain a conservative positioning of the portfolio. We have been actively trying to reduce some of our risk characteristics. One area in particular is predicted beta. The Fund has trimmed a number of higher valued, higher beta1 securities like Priceline Group, Inc. and Whirlpool Corp.
In addition we continue to look to add or add to holdings that will benefit from the modestly improving U.S. economy. PNC Financial Services Group, Inc. and Lowe’s Companies, Inc. are two examples of companies that we added that get a majority of their revenue from the U.S.
1 | Beta reflects the sensitivity of a Fund’s return to fluctuations in its benchmark; a beta for a benchmark is 1.00: a beta greater than 1.00 indicates above average volatility and risk. |
10
June 30, 2015 |
What portfolio holdings contributed positively to performance?
Hologic, Inc., Mylan NV and SalesForce.com, Inc. have been positive contributors to the Fund’s performance. Hologic has benefited from strong financial results driven in part from the roll-out of new digital mammography systems. Mylan and Salesforce have benefited from potential mergers and acquisitions. Both companies have been cited as having takeover offers.
What portfolio holdings detracted from performance?
Procter & Gamble Co., EMC Corp., and V.F. Corp. have been laggards for the Fund. P&G and V.F. Corp. have been hit hard on the currency front. A large percentage of revenues for both companies come from overseas and were negatively impacted by a strong dollar. EMC is struggling to enlarge its new, faster-growing businesses to offset its slowing core business. We continue to like both P&G and V.F. Corp. as we believe their core businesses are strong and many of the negative issues are transitory. We are not as confident about EMC, which is currently under review.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | 10 years |
Individual Investor Class1 | PXWGX | 2.69% | 9.26% | 17.04% | 16.11% | 7.03% | |
Class A1,2,4 | PXGAX | NAV3 | 2.73% | 9.27% | 17.06% | 16.12% | 7.03% |
POP | -2.92% | 3.26% | 14.87% | 14.82% | 6.43% | ||
Institutional Class1,5 | PWGIX | 2.86% | 9.55% | 17.35% | 16.42% | 7.23% | |
Class R1,6 | PXGRX | 2.62% | 9.03% | 16.79% | 15.83% | 6.84% | |
Russell 1000 Growth Index7,9 | 3.96% | 10.56% | 17.99% | 18.59% | 9.10% | ||
Lipper Multi-Cap Growth Funds Index8,9 | 5.46% | 11.41% | 19.24% | 17.89% | 8.92% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call 800.767.1729. |
11
June 30, 2015 |
Pax World Growth Fund, continued |
Portfolio Highlights (Unaudited), continued |
2 | A 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. |
3 | NAV is Net Asset Value. |
4 | Inception 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. |
5 | Inception 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. |
6 | Inception 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. |
7 | The 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. |
8 | The 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. |
9 | Unlike the Growth Fund, the Russell 1000 Growth Index and the Lipper Multi-Cap Growth Funds Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Multi-Cap Growth Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index. |
Asset Allocation | Percent of Investments |
U.S. Stocks | 95.0% |
Cash & Cash Equivalents | 3.7% |
Foreign Stocks | 1.3% |
Total | 100.0% |
12
June 30, 2015 |
Top Ten Holdings
Company | Percent of Net Assets |
Apple, Inc. | 5.9% |
PepsiCo, Inc. | 2.7% |
Abbott Laboratories | 2.5% |
PNC Financial Services Group, Inc. | 2.4% |
3M Co. | 2.2% |
Google, Inc., Class A | 2.2% |
Time Warner, Inc. | 2.1% |
Laboratory Corp of America Holdings | 2.1% |
Thermo Fisher Scientific, Inc. | 1.9% |
Newell Rubbermaid, Inc. | 1.8% |
Total | 25.8% |
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.
Sector Diversification
Sector | Percent of Net Assets |
Information Technology | 27.7% |
Consumer Discretionary | 17.5% |
Health Care | 16.7% |
Industrials | 12.9% |
Financials | 9.4% |
Consumer Staples | 7.2% |
Materials | 2.5% |
Telecommunication Services | 1.5% |
Utilities | 1.1% |
Other | 3.5% |
Total | 100.0% |
May include companies representing multiple industries within a single “Sector”.
13
June 30, 2015 |
Pax World Small Cap Fund |
Portfolio Manager |
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, 2015, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 3.98%, 3.91%, 4.12% and 3.79%, respectively, compared to 4.75% for the Russell 2000 Index (the Index) and 3.63% for the Lipper Small-Cap Core Funds Index.
What factors contributed to the Fund’s performance?
The Fund benefited from strong stock selection within the consumer discretionary, financials and energy sectors. This was offset by poor stock selection within technology, health care and materials. Our lack of exposure to biotech was a significant negative during the period.
Can you discuss any significant changes to the Fund’s positioning throughout the period?
We haven’t made significant changes to the Fund’s positioning. We remain defensively positioned with overweight positions in financials and utilities, offset by underweights to energy, materials and industrials. At the margin, we have tilted the Fund more towards value by reducing some of our health care exposure.
What portfolio holdings contributed positively to performance?
Hologic, Inc., a medical device company focused on women’s healthcare, was our strongest performer during the period. The company has benefited from strong financial results driven in part from the roll-out of new digital mammography systems. Columbia Sportswear Co., an outdoor clothing company, increased significantly due to the combination of low investor expectations and much better than expected results.
14
June 30, 2015 |
What portfolio holdings detracted from performance?
Sonus Networks, Inc., a communication equipment company, declined sharply during the period. The company pre-announced significantly weaker than expected financial results as industry fundamentals deteriorated. TiVo, Inc., a consumer electronics company, declined during the period despite stronger than expected results. In our view, investors remain focused on the decline in royalty revenues in 2018 and what impact that may have on profitability.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | Since Inception |
Individual Investor Class1 | PXSCX | 3.98% | 4.90% | 20.31% | 17.32% | 10.88% | |
Class A1,2,4 | PXSAX | NAV3 | 3.91% | 4.83% | 20.29% | 17.32% | 10.87% |
POP | -1.82% | -0.96% | 18.04% | 16.00% | 10.01% | ||
Institutional Class1 | PXSIX | 4.12% | 5.15% | 20.61% | 17.62% | 11.17% | |
Class R1 | PXSRX | 3.79% | 4.54% | 19.97% | 17.03% | 10.59% | |
Russell 2000 Index5,7 | 4.75% | 6.49% | 17.81% | 17.08% | 10.04% | ||
Lipper Small-Cap Core Funds Index6,7 | 3.63% | 3.89% | 17.02% | 16.02% | 9.69% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is March 27, 2008. The Fund’s investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729. |
2 | A 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. |
3 | NAV is Net Asset Value. |
4 | Inception 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. |
15
June 30, 2015 |
Pax World Small Cap Fund, continued |
Portfolio Highlights (Unaudited), continued |
5 | The 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. |
6 | The 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. |
7 | Unlike 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 | 93.2% |
Cash & Cash Equivalents | 6.0% |
Foreign Stocks | 0.8% |
Total | 100.0% |
Top Ten Holdings
Company | Percent of Net Assets |
Investors Bancorp, Inc. | 3.4% |
Capitol Federal Financial, Inc. | 3.4% |
Brookdale Senior Living, Inc. | 3.2% |
Ingram Micro, Inc., Class A | 2.8% |
Knoll, Inc. | 2.8% |
Laclede Group, Inc., The | 2.8% |
Cabela's, Inc. | 2.7% |
Natus Medical, Inc. | 2.6% |
White Mountains Insurance Group, Ltd. | 2.6% |
Independent Bank Corp. | 2.6% |
Total | 28.9% |
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.
16
June 30, 2015 |
Sector Diversification
Sector | Percent of Net Assets |
Financials | 25.7% |
Information Technology | 21.8% |
Health Care | 13.7% |
Industrials | 13.4% |
Consumer Discretionary | 12.5% |
Utilities | 4.3% |
Materials | 2.1% |
Energy | 1.2% |
Consumer Staples | 0.8% |
Other | 4.5% |
Total | 100.0% |
May include companies representing multiple industries within a single “Sector”.
17
June 30, 2015 |
Pax World High Yield Bond Fund |
Portfolio Manager |
Assistant Portfolio Manager |
Portfolio Managers’ Comments |
How did the Pax World High Yield Bond Fund (the Fund) perform for the period?
For the six-month period ended June 30, 2015, the Individual Investor Class, Class A, Institutional Class, and Class R shares of the Fund had total returns of 1.26%, 1.25%, 1.37% and 1.13%, respectively, compared to 2.69% for the BofA Merrill Lynch U.S. High Yield—Cash Pay—BB-B (Constrained 2%) Index (the Index) and 2.57% for the Lipper High Yield Bond Funds Index.
What factors contributed to the Fund’s performance?
Fund performance was helped by the selection of BB rated bonds and the selection and allocation of B rated bonds. Allocation and selection of CCC’s detracted from performance during the six month period.
Overall, much of our underperformance can be attributed to Syniverse Corp. and ION Geophysical Corp. – both companies were downgraded to a CCC bond rating during the first half of 2015.
The largest positive contributors to performance were our selections in media, basic industries and financial services. The largest detractors during the period were our allocation and selection in energy, and selections in technology and transportation.
Can you discuss any significant changes to the Fund’s positioning throughout the period?
Some positions in media, retail and technology were reduced because of valuation. We increased our positions in basic industry and telecommunications, sectors that outperformed due to our bond selection.
18
June 30, 2015 |
Liquidity in the high yield market, which has been constrained, appears to have been reduced further due to the events in Greece, China and uncertainty concerning oil prices. In response, we have reduced our holdings in small, niche players that were affected by decreased liquidity and increased our positions in larger, more easily traded securities.
What portfolio holdings contributed positively to performance?
T-Mobile USX, Inc. is a U.S. national wireless telecommunication provider. Their stock outperformed in the first half of the year due to strong first quarter financial results and rumors of a potential acquisition by a larger telecommunication company.
Rosetta Resources, Inc., an energy exploration and production company, was purchased by Noble Energy, an investment grade worldwide energy company in May. As a result, the bonds outperformed relative to the index.
Columbus International, Inc., a cable television and broadband undersea and terrestrial cable provider, outperformed in the first half of 2015 after it was acquired by Cable and Wireless, a higher credit quality company.
What portfolio holdings detracted from performance?
Jack Cooper Holdings Corp. is a trucking company that transports autos. The company underperformed mostly because of quality control issues at GM, one of its largest customers, which caused inefficiencies in deliveries and reduced profitability.
Syncreon Global BV, a specialized provider of integrated logistics services to global industries, reported weaker than expected first quarter results due to foreign currency headwinds. The company also faced increased expenses due to a new customer launch in Europe.
ION Geophysical Corp. is a seismic company operating in the oil and gas services sector. The company reported weaker than expected first quarter results which increased liquidity concerns. Since the end of the second quarter, ION announced that a lawsuit judgement against it was cut by almost 80%, positively enhancing its credit profile dramatically.
19
June 30, 2015 |
Pax World High Yield Bond Fund, continued |
Portfolio Highlights (Unaudited) |
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | 10 years |
Individual Investor Class1 | PAXHX | 1.26% | -4.69% | 4.63% | 6.01% | 5.98% | |
Class A1,2,4 | PXHAX | NAV3 | 1.25% | -4.56% | 4.67% | 6.04% | 5.99% |
POP | -3.28% | -8.82% | 3.06% | 5.05% | 5.50% | ||
Institutional Class1,5 | PXHIX | 1.37% | -4.35% | 4.89% | 6.31% | 6.22% | |
Class R1,6 | PXHRX | 1.13% | -4.79% | 4.38% | 5.81% | 5.77% | |
BofA Merrill Lynch U.S. High Yield - Cash Pay - BB-B (Constrained 2%) Index7,9 | 2.69% | 0.68% | 6.73% | 8.32% | 7.21% | ||
Lipper High Yield Bond Funds Index8,9 | 2.57% | -0.39% | 6.82% | 8.21% | 6.56% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call 800.767.1729. |
2 | A 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. |
3 | NAV is Net Asset Value. |
4 | Inception 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. |
5 | Inception 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. |
6 | Inception 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. |
7 | The 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%. |
8 | The 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 |
20
June 30, 2015 |
| 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. |
9 | Unlike 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 | 65.2% |
Foreign Bonds | 22.6% |
Loans | 6.8% |
U.S. Stocks | 4.0% |
Cash & Cash Equivalents | 1.4% |
Total | 100.0% |
Fixed Income Sector Diversification
Sector | Percent of Net Assets |
Media | 15.6% |
Energy | 11.2% |
Telecommunications | 10.7% |
Basic Industry | 10.2% |
Retail | 8.6% |
Technology & Electronics | 6.4% |
Health Care | 5.5% |
Financial Services | 5.3% |
Capital Goods | 5.0% |
Service | 5.0% |
Transportation | 4.6% |
Automotive | 2.8% |
Real Estate | 2.6% |
Banking | 2.1% |
Consumer Goods | 0.8% |
Leisure | 0.1% |
Utility | 0.1% |
Other | 3.4% |
Total | 100.0% |
May include companies representing multiple industries within a single “Sector”.
21
June 30, 2015 |
Pax World High Yield Bond Fund, continued |
Portfolio Highlights (Unaudited), continued |
Top Ten Holdings
Company | Percent of Net Assets |
Ingles Markets, Inc., 5.750%, 06/15/23 | 2.0% |
Kennedy-Wilson, Inc., 5.875%, 04/01/24 | 2.0% |
Charlotte Russe, Inc., Term B, 6.750%, 05/21/19 | 1.8% |
Expo Event Transco, Inc., 144A, 9.000%, 06/15/21 | 1.8% |
Columbus International, Inc., 144A, 7.375%, 03/30/21 | 1.8% |
B Communications, Ltd., 144A, 7.375%, 02/15/21 | 1.6% |
Air Canada, 144A, 7.750%, 04/15/21 | 1.6% |
Navios Maritime Acquisition Corp./Finance US, Inc., 144A, 8.125%, 11/15/21 | 1.6% |
United States Treasury Note, 2.000%, 02/15/25 | 1.5% |
VTR Finance BV, 144A, 6.875%, 01/15/24 | 1.5% |
Total | 17.2% |
Holdings are subject to change. Ten largest holdings do not include money market securities, certificates of deposit, commercial paper or cash and equivalents, if applicable.
Credit Quality
Bond Rating | Percent of Bonds |
A- | 0.4% |
AA+ | 1.5% |
B | 17.6% |
B- | 13.6% |
B+ | 16.9% |
BB | 15.0% |
BB- | 20.9% |
BB+ | 3.1% |
BBB- | 0.2% |
CCC | 0.2% |
CCC+ | 4.8% |
Not Rated | 5.8% |
Total | 100.0% |
1 | Credit 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 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. |
22
June 30, 2015 |
Pax World Global Environmental Markets Fund |
Portfolio Manager |
Portfolio Manager |
Portfolio Manager
Sub-Adviser |
Portfolio Managers’ Comments |
How did the Pax World Global Environmental Markets Fund perform for the period?
For the six-month period ended June 30, 2015, the Individual Investor Class, Class A, Institutional Class and Class R shares of the Fund had total returns of 5.66%, 5.68%, 5.83% and 5.59%, respectively, versus 2.63% for the MSCI World Index and 4.43% for the FTSE Environmental Opportunities Index Series (“FTSE EOAS”).
What factors contributed to the Fund’s performance?
The climate change debate persists and we have seen further evidence of the impact of changing and more extreme weather patterns. The California drought, now in its fourth year, is bankrupting farmers and causing severe disruption to the local economy. At the same time, interesting technology developments in desalination and water re-use technologies are now becoming viable and investment opportunities are emerging.
Global policy responses are also strengthening. Later this year China will publish its 13th 5-Year Plan. Indications are that this will include an even stronger investment in environmental protection as the Chinese government takes a long term view on pollution control, recognizing the important role this plays in the country’s economic development. The Fund’s overweight positioning to China/Hong Kong proved advantageous.
Renewable energy markets recovered in the first half of the year and the myth around these markets being linked to oil prices now appears to have been correctly dispelled: Oil is a transportation fuel, not an electricity generation fuel.
23
June 30, 2015 |
Pax World Global Environmental Markets Fund, continued |
The markets and investment case for holding energy efficiency stocks endures and the sub-sector delivered superior returns. Buildings Energy Efficiency holdings delivered strong returns, benefiting from the cyclical recovery in construction activity, compounded by the “multiplier” effect of new energy efficiency regulations in many countries.
Water utilities were weaker, driven by investor selling as utilities are often seen as bond proxies amid expectations of rising interest rates. This rotation is presenting opportunities as these companies’ business models should not be adversely affected by rising interest rates.
Can you discuss any significant changes to the Fund’s positioning throughout the period?
The Fund increased exposure to sustainable food, agriculture and forestry markets with the purchase of Marine Harvest (Norway), the global leader in sustainably farmed salmon. There were no other significant changes to positioning during the period. Sub-sectors with exposure to Pollution Control and Capital Expenditure continue as favorites, retaining the Fund’s large weightings to the Energy Efficiency and Water Infrastructure sub-sectors.
What portfolio holdings contributed positively to performance relative to the FTSE EOAS?
The market rally in Japan drove performance of companies with strong export businesses including Murata Manufacturing Co., Ltd (Consumer Energy Efficiency, Japan). The company additionally benefited from positive news flow on its capacitor product demand, which in turn triggered earnings upgrades on the stock. Positive company announcements also resulted in strong performance for Kingspan Group PLC (Buildings Energy Efficiency, Ireland), with a strong trading update and a successful M&A transaction in the U.S.
Renewable energy companies delivered strong returns. Huaneng Renewables Corp. (Renewable Energy Developers and IPPs, Hong Kong) performed well, driven by favorable wind conditions and strong pipeline build-out.
24
June 30, 2015 |
What portfolio holdings detracted from performance relative to the FTSE EOAS?
While the decline in oil prices experienced in the latter part of 2014 had a limited overall impact on the Fund, stocks with exposure to the oil and gas industry were impacted by weaker order books resulting from lower oil prices. This impacted some water infrastructure companies including Watts Water Technologies (U.S.).
Consumer energy efficiency company Epistar Corp. (Taiwan) suffered from weakness in light emitting diodes (“LED”) markets, where increased pricing pressure and delayed seasonal pick-up in TV backlighting resulted in underperformance. Pennon Group PLC (Water Utilities, UK) experienced sector rotation as investor preference moved away from more fully valued defensive stocks.
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | ||||||
Share class | Ticker |
| YTD | 1 year | 3 years | 5 years | Since Inception |
Individual Investor Class1 | PGRNX | 5.66% | -0.36% | 15.39% | 12.44% | 4.95% | |
Class A1,2,4 | PXEAX | NAV3 | 5.68% | -0.33% | 15.41% | 12.45% | 4.96% |
POP | -0.12% | -5.83% | 13.27% | 11.20% | 4.15% | ||
Institutional Class1 | PGINX | 5.83% | -0.11% | 15.72% | 12.73% | 5.22% | |
Class R1 | PGRGX | 5.59% | -0.60% | 15.13% | 12.16% | 4.68% | |
MSCI World (Net) Index5,7 | 2.63% | 1.43% | 14.27% | 13.10% | 4.82% | ||
FTSE Environmental Opportunities Index Series6,7 | 4.43% | -0.29% | 16.19% | 12.32% | N/A |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is March 27, 2008. The Fund’s investment adviser assumed certain expenses during the period; total returns would have been lower had these expenses not been assumed. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729. |
2 | A 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. |
25
June 30, 2015 |
Pax World Global Environmental Markets Fund, continued |
Portfolio Highlights (Unaudited), continued |
3 | NAV is Net Asset Value. |
4 | Inception 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. |
5 | The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consisted of the following 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. |
6 | The 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. |
7 | Unlike the Global Environmental Markets Fund, the MSCI World Index and the FTSE Environmental Opportunities Index Series are not investments, are not professionally managed, have no policy of sustainable investing and do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index. |
Asset Allocation | Percent of Investments |
Foreign Stocks | 60.8% |
U.S. Stocks | 37.0% |
Cash & Cash Equivalents | 2.2% |
Total | 100.0% |
26
June 30, 2015 |
Top Ten Holdings
Company | Percent of Net Assets |
Pentair PLC | 2.9% |
Xylem, Inc. | 2.9% |
BorgWarner, Inc. | 2.8% |
Delphi Automotive PLC | 2.8% |
Murata Manufacturing Co., Ltd. | 2.8% |
American Water Works Co., Inc. | 2.8% |
Stericycle, Inc. | 2.8% |
Enel Green Power SpA | 2.7% |
Agilent Technologies, Inc. | 2.6% |
GEA Group AG | 2.6% |
Total | 27.7% |
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.
Geographical Diversification
Country | Percent of Net Assets |
United States | 36.8% |
United Kingdom | 11.5% |
Japan | 10.8% |
Ireland | 7.6% |
China | 6.1% |
Germany | 5.8% |
France | 4.9% |
Italy | 2.7% |
Taiwan | 2.1% |
Finland | 2.0% |
Norway | 1.9% |
Hong Kong | 1.7% |
Spain | 1.6% |
Belgium | 1.0% |
Brazil | 0.9% |
Other | 2.6% |
Total | 100.0% |
27
June 30, 2015 |
Pax World Global Environmental Markets Fund, continued |
Portfolio Highlights (Unaudited), continued |
Environmental Markets Classification System (EMCS)
Sector | Sub Sector | Percent of Net Assets | |
Renewable & Alternative Energy | 6.9% | ||
Solar Energy Generation Equipment | 1.8% | ||
Renewable Energy Developers & Independent Power Producers (IPPs) | 5.1% | ||
Energy Efficiency | 35.3% | ||
Power Network Efficiency | 3.3% | ||
Industrial Energy Efficiency | 11.1% | ||
Buildings Energy Efficiency | 10.4% | ||
Transport Energy Efficiency | 5.7% | ||
Consumer Energy Efficiency | 4.0% | ||
Diversified Energy Efficiency | 0.8% | ||
Water Infrastructure & Technologies | 25.7% | ||
Water Infrastructure | 13.7% | ||
Water Treatment Equipment | 3.4% | ||
Water Utilities | 8.6% | ||
Pollution Control | 12.5% | ||
Pollution Control Solutions | 3.7% | ||
Environmental Testing & Gas Sensing | 8.8% | ||
Waste Management & Technologies | 8.5% | ||
Hazardous Waste Management | 5.2% | ||
General Waste Management | 3.3% | ||
Food, Agriculture & Forestry | 4.2% | ||
Logistics, Food Safety and Packaging | 1.5% | ||
Sustainable and Efficient Agriculture | 2.7% | ||
Diversified Environmental | 4.3% | ||
Diversified Environmental | 4.3% | ||
Other | 2.6% | ||
100.0% |
May include companies representing multiple industries within a single “Sector”.
28
June 30, 2015 |
Pax MSCI International ESG Index Fund |
Portfolio Manager |
Portfolio Manager |
Portfolio Manager |
Portfolio Managers’ Comments |
How did the Pax MSCI International ESG Index Fund (the Fund) perform for the period?
For the six-month period ended June 30, 2015, the Institutional Class, Individual Investor Class and Class R of the Fund had total returns of 6.85%, 6.75% and 6.67%, respectively, compared to 6.85% for the MSCI EAFE ESG Index (the Index) and 5.52% for the MSCI EAFE Index (EAFE Index).
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, 2015, 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
Most of the gains over the first six-months of the year came in Q1, when international developed markets (as measured by the EAFE Index) rose by 6% in February, before relinquishing some of those gains in March. Q2 started strong, with the EAFE Index rising more than 4% in April. However, later in the quarter, international developed markets came under pressure in the face of renewed investor concern about the viability of Greece’s membership in the European Union and the consequences for other EU nations if Greece were to leave the union. This uncertainty caused ripples across international developed markets and they lost 2.83% in June. Nevertheless, the end result was solid, with international developed markets returning 5.52% over the first half of 2015 with developed Asia/Pacific outperforming Europe, largely on the back of a 14% return in Japan.
International developed markets, as represented by the EAFE Index, outpaced domestic markets over the first half of the year (1.23% return for the six-month period for the S&P 500 Index). Large daily currency fluctuations were impactful
29
June 30, 2015 |
Pax MSCI International ESG Index Fund, continued |
over the first half of the year. In Q1, the U.S. dollar rose by 13% against the euro and by 5% vs. the pound, before weakening in Q2, when the U.S. dollar lost 4% against the euro and lost 6% vs. the pound.
What portfolio holdings contributed positively to performance?
The Fund’s ESG emphasis relative to the EAFE Index was beneficial for the six-month period. By delineating stocks into three tiers based on MSCI IVA ratings (Top Tier: AAA /AA/A - highest rated companies, Middle Tier: BBB/BB - average rated companies, Bottom Tier: B/CCC - lowest rated companies) we were able to analyze the ESG contribution to relative performance. For the six-month period, the highest rated companies within the top tier contributed the most to relative performance, followed by the average tier, while the lowest tier detracted from relative performance.
On a regional basis, the Fund’s holdings within Europe and the Pacific regions contributed positively to relative performance vs. the EAFE Index. On a sector basis, 9 out of the 10 sectors contributed positively to relative performance, with health care, energy and materials contributing the most versus the EAFE Index. The financial sector was the only relative detractor.
The top contributors to the Fund’s performance relative to the EAFE Index were Novo Nordisk A/S, Class B, Hong Kong Exchanges & Clearing, Ltd., and ING Groep NV. Novo Nordisk A/S, Class B, a Danish based pharmaceutical company, increased based on improved sales growth and earnings. Hong Kong Exchanges & Clearing, a Hong Kong based stock exchange, increased in value based on improved earnings results and positive investor sentiment due to rising trading volumes and competitive positioning. ING Groep NV, a Netherlands based bank, increased in value based on improved earnings.
What portfolio holdings detracted from performance?
The top detractors from the Fund’s performance relative to the EAFE Index were HSBC Bank PLC, Commonwealth Bank of Australia and Westpac Banking Corp. HSBC Bank, a UK based bank, declined in value based on negative investor sentiment due to new regulations and challenging conditions in its operating regions. Commonwealth Bank of Australia and Westpac Banking Corp., both Australian domiciled banks, decreased in value based on lower earnings guidance due to extended margin pressures.
30
June 30, 2015 |
1 | 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). |
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | ||||
Share class | Ticker | YTD | 1 year | 3 years | Since Inception |
Institutional Class1 | PXNIX | 6.85% | -3.09% | 12.34% | 5.53% |
Individual Investor Class1,2 | PXINX | 6.75% | -3.36% | 12.03% | 5.26% |
Class R1,2 | PXIRX | 6.67% | -3.57% | 11.76% | 5.03% |
MSCI EAFE ESG (Net) Index3,6 | 6.85% | -2.11% | 12.78% | 5.89% | |
MSCI EAFE (Net) Index4,6 | 5.52% | -4.22% | 11.97% | 4.73% | |
Lipper International Large-Cap Core Funds Index5,6 | 5.87% | -3.67% | 11.68% | 4.43% |
Total returns for periods of less than one year have not been annualized.
1 | The Fund’s inception date is January 27, 2011. On March 31, 2014 Pax World International Fund and Pax MSCI EAFE ESG Index ETF merged into the Pax MSCI International ESG Index Fund (the Fund), a passively managed index fund which seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index. Based on the similarity of the Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the Predecessor Fund) is treated as the survivor of the mergers for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to March 31, 2014 is that of the Predecessor Fund. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For more recent month-end performance data, please visit www.paxworld.com or call us at 800.767.1729. |
2 | Inception 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 for periods prior to March 31, 2014 includes the performance of the Predecessor Fund. These returns have been adjusted to reflect the expenses allocable to Individual Investor Class and Class R shares. |
3 | The 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 |
31
June 30, 2015 |
Pax MSCI International ESG Index Fund, continued |
Portfolio Highlights (Unaudited), continued |
| 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 Index is shown “net”, which includes dividend reinvestments after deduction of foreign withholding tax. |
4 | The 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. |
5 | The Lipper International Large-Cap Core Funds Index tracks the results of funds that, by portfolio practice, invest at least 75% of their equity assets in companies strictly outside of the U.S. with market capitalizations (on a three-year weighted basis) above Lipper’s international large-cap floor. International large-cap core funds typically have an average price-to-cash flow ratio, price-to-book ration, and three-year sales-per-share growth value compared to the S&P/Citigroup World ex-U.S. BMI. The Lipper International Large-Cap Core Funds Index is not what is typically considered to be an “index” because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index, or some other traditional economic indicator. |
6 | Unlike the International ESG Index Fund, the MSCI EAFE ESG Index, the MSCI EAFE Index and the Lipper International Large-Cap Core Funds Index are not investments and are not professionally managed, have (with the exception of the MSCI EAFE ESG Index) no policy of sustainable investing and (with the exception of the Lipper International Large-Cap Core Fund’s Index) and do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index. |
Asset Allocation | Percent of Investments |
Foreign Stocks | 99.4% |
Exchange Traded Funds: Commodity | 0.5% |
Cash & Cash Equivalents | 0.1% |
Total | 100.0% |
Top Ten Holdings
Company | Percent of Net Assets |
Novartis AG | 3.5% |
Roche Holding AG | 3.0% |
HSBC Holdings PLC | 2.5% |
Novo Nordisk A/S, Class B | 1.6% |
Commonwealth Bank of Australia | 1.6% |
GlaxoSmithKline PLC | 1.4% |
Vodafone Group PLC | 1.4% |
Westpac Banking Corp. | 1.2% |
BASF SE | 1.2% |
Australia & New Zealand Banking Group, Ltd | 1.1% |
Total | 18.5% |
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.
32
June 30, 2015 |
Sector Diversification
Sector | Percent of Net Assets |
Financials | 27.2% |
Consumer Discretionary | 13.3% |
Health Care | 12.6% |
Industrials | 12.3% |
Consumer Staples | 9.2% |
Materials | 8.0% |
Telecommunication Services | 5.1% |
Information Technology | 4.7% |
Utilities | 3.8% |
Energy | 2.7% |
Exchange Traded Funds | 0.5% |
Other | 0.6% |
Total | 100.0% |
May include companies representing multiple industries within a single “Sector”.
Geographical Diversification
Country | Percent of Net Assets |
Japan | 22.9% |
United Kingdom | 20.1% |
Switzerland | 9.3% |
Australia | 8.3% |
France | 8.3% |
Germany | 7.5% |
Netherlands | 4.7% |
Sweden | 4.2% |
Spain | 3.5% |
Denmark | 2.3% |
Hong Kong | 1.7% |
Italy | 1.6% |
Singapore | 1.5% |
Norway | 0.9% |
Belgium | 0.5% |
Ireland | 0.5% |
Finland | 0.4% |
Luxembourg | 0.3% |
Portugal | 0.2% |
Austria | 0.1% |
New Zealand | 0.1% |
Israel | 0.0%* |
Other | 1.1% |
Total | 100.0% |
* | Rounds to less than 0.05%. |
33
June 30, 2015 |
Pax Ellevate Global Women’s Index Fund |
Portfolio Manager |
Portfolio Manager |
Portfolio Manager |
Portfolio Managers’ 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, 2015, the Individual Investor Class and Institutional Class had total returns of 0.65% and 0.76%, respectively, compared to 1.21% for the Pax Global Women’s Leadership Index (the Women’s Index), and 2.63% for the MSCI World Index (the World Index).
What is the investment objective of the Fund?
The Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Women’s Index, 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. Among the companies in the Fund, 32% of board seats and 25% of executive management positions are held by women, as compared to global averages of 12% and 11% respectively. Companies in the Women’s Index also meet threshold environmental, social and governance (ESG) standards, as rated by MSCI ESG Research.
How are the Fund’s investments positioned?
The Fund employs an enhanced index-based investment approach intended to closely correspond to or exceed the performance of the Women’s Index, while maintaining risk characteristics that Pax Ellevate Management (PEM) believes are generally similar to those of the Women’s Index. Under normal circumstances, the Fund invests more than 80% of its total assets in the component securities of the Women’s Index and other financial instruments.
34
June 30, 2015 |
What factors contributed to the Fund’s performance?
Most of the gains in global developed markets (as measured by the World Index) over the first six months of the year came in Q1, with an increase of 2.31%. The six month return was 2.63% with developed Asia/Pacific and Europe leading. There were ups and downs during the first half-year, which was characterized by higher-than-normal volatility. The Fund gained some ground relative to the World Index in June, when global markets declined by 2.33%, due to investor concern over the possibility of a Greek default.
On a regional basis, Europe and Emerging Markets contributed positively to the Fund’s relative performance over the first six months of year, while the Fund’s lower weight in the Pacific region detracted. The Fund has no allocation to Japan, as no Japanese companies are among the top 400 companies in the world on gender diversity. Japanese stocks in the World Index increased by 14% over the first half of the year. The second largest regional detractor was North America. Canada accounted for about two-thirds of this region’s underperformance, while the U.S. accounted for the rest. Canadian stocks have declined based on its currency weakening relative to the U.S. dollar, and from continued oil and natural gas declines, as it is primarily a commodity based economy. Within the U.S., several of the Fund’s top performing companies from 2014, including Xerox Corp., Weyerhaeuser Co., Lockheed Martin Corp., and Procter & Gamble Co., have underperformed in 2015.
The Fund’s positioning in higher quality and lower risk companies detracted from returns during the first half of year, as lower quality and higher beta stocks outperformed. From a style perspective, the Fund’s core positioning with a value tilt detracted from returns as growth style stocks outpaced value style stocks over the first six months (six month return: MSCI World Growth Index2: 4.97% vs. MSCI World Value Index3: 0.26%).
On a sector basis, our holdings within health care and materials, and our underweight in energy, added to relative performance. Fund holdings in information technology, financials and consumer discretionary were detractors from performance. Within financials, Real Estate Investment Trusts (“REITs”), banks and insurance companies were the leading detractors, while the negative results in the consumer discretionary and information technology sectors were primarily driven by three companies: Michael Kors Holdings, Ltd., Xerox Corp. and Apple, Inc. The Fund does not own Apple as it is not among the top 400 companies in the world on gender diversity. The Fund does own Michael Kors and Xerox.
35
June 30, 2015
|
Pax Ellevate Global Women’s Index Fund, continued |
What portfolio holdings contributed positively to performance?
The top contributors to the Fund’s performance relative to the World Index over the first six months of the year include Aetna, Inc., Estee Lauder Cos, Inc., Class A, and Woolworths Holding, Ltd.
Aetna, a U.S. health care benefits provider, increased over the last six months based on improved earnings guidance and stock buy-back plans. Aetna is the highest ranked health care company in the world for advancing women’s leadership, per Pax Gender Analytics (PGA). Women comprise nearly 40% of the company’s board of directors and 27% of senior executives.
Estee Lauder, a U.S. manufacturer and marketer of skin care, makeup, fragrance and hair care products, increased in value based on positive earnings results. Estee Lauder is among the highest ranked consumer staples companies in the world for advancing women’s leadership, according to PGA. Women comprise 47% of the company’s board of directors and 33% of its senior executives.
Woolworths Holding, Ltd., a South African multiline retailer that operates food and clothing stores, increased during the first half of the year based on positive investor sentiment. Women comprise 33% of the company’s executive team.
What portfolio holdings detracted from performance?
The top detractors to the Fund’s performance relative to the World Index over the first six months of the year include Xerox Corp., Michael Kors Holdings, Ltd., and Weyerhaeuser Co.
Xerox, a U.S. technology services company, decreased in value based on lower earnings guidance. Xerox is one of the highest ranked information technology companies in the world for advancing women’s leadership, per PGA. The CEO and CFO of Xerox are women, and women comprise 44% of the board of directors.
Michael Kors, a U.S. apparel and accessories company, declined during the first six months of the year due to lower earnings guidance. According to PGA, Michael Kors is one of the highest ranked consumer discretionary companies in the world for advancing women’s leadership. Women are 50% of Michael Kors’ board of directors.
36
June 30, 2015 |
Weyerhaeuser Co., a U.S. REIT that manufactures, distributes and sells forest products, fell based on lower earnings and pricing pressure from the strengthening dollar. Weyerhaeuser is the highest ranked REIT in the world for advancing women’s leadership, per PGA. Women account for 30% of the company’s board of directors and 57% of its senior executives.
1 | A custom index calculated by MSCI. |
2 | The MSCI World Growth Index captures large- and mid-cap securities exhibiting overall growth style characteristics across 23 Developed Markets countries*. The growth investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend. |
3 | The MSCI World Value Index captures large- and mid-cap securities exhibiting overall value style characteristics across 23 Developed Markets countries*. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. With 854 constituents, the index targets 50% coverage of the free float-adjusted market capitalization of the MSCI World Index. |
* | Developed Markets countries include: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the UK and the US. |
Portfolio Highlights (Unaudited)
Returns—Period ended June 30, 2015
Total Return | Average Annual Return | |||||
Share class | Ticker | YTD | 1 year | 3 years | 5 years | 10 years |
Individual Investor Class1 | PXWEX | 0.65% | 0.82% | 12.97% | 11.01% | 3.61% |
Institutional Class1,2 | PXWIX | 0.76% | 1.04% | 13.26% | 11.28% | 3.86% |
Pax Global Women's Leadership (Net) Index*,3,6 | 1.21% | 1.55% | N/A | N/A | N/A | |
MSCI World (Net) Index4,6 | 2.63% | 1.43% | 14.27% | 13.10% | 6.38% | |
Lipper Global Multi-Cap Core Funds Index5,6 | 3.45% | 0.59% | 13.79% | 12.75% | 6.97% |
Total returns for periods of less than one year have not been annualized.
* | A custom index calculated by MSCI. |
1 | On June 4, 2014 the Pax World Global Women’s Equality Fund merged into the Pax Ellevate Global Women’s Index Fund (the Fund), pursuant to an Agreement and Plan of Reorganization dated March 4, 2014 (the “Reorganization”). Because the Fund had no investment operations prior to the closing of the Reorganization, 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. Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not |
37
June 30, 2015 |
Pax Ellevate Global Women’s Index Fund, continued |
Portfolio Highlights (Unaudited), continued |
| 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. |
2 | Inception of Institutional Class Shares is April 19, 2006. Pax 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 for Institutional Class Shares 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. |
3 | The 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. Performance for the Women’s Index is shown “net”, which includes dividend reinvestments after deduction of foreign withholding taxes. Inception date of Women’s Index is February 28, 2014. |
4 | The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 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. |
5 | The Lipper Global Multi-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Global Multi-Cap Funds Average. The Lipper Global Multi-Cap Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. The Lipper Global 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 changes in the value of a group of securities, a securities index or some other traditional economic indicator. |
6 | Unlike the Pax Ellevate Global Women’s Index Fund, the Pax Global Women’s Leadership Index, the MSCI World Index and the Lipper Global Multi-Cap Core Funds Index are not investments, are not professionally managed, have (with the exception of the Pax Global Women’s Leadership Index) no policy of sustainable investing and (with the exception of the Lipper Global Multi-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. One cannot invest directly in an index. |
38
June 30, 2015 |
Asset Allocation | Percent of Investments |
U.S. Stocks | 57.5% |
Foreign Stocks | 42.4% |
Cash & Cash Equivalents | 0.1% |
Total | 100.0% |
Top Ten Holdings
Company | Percent of Net Assets |
Aetna, Inc. | 2.3% |
Microsoft Corp. | 2.0% |
KeyCorp. | 1.9% |
Estee Lauder Cos, Inc., Class A | 1.8% |
Procter & Gamble Co., The | 1.8% |
Xerox Corp | 1.8% |
Coca-Cola Enterprises, Inc. | 1.7% |
Lockheed Martin Corp. | 1.7% |
PepsiCo, Inc. | 1.6% |
Kellogg Co. | 1.6% |
Total | 18.2% |
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 | 22.2% |
Consumer Staples | 17.6% |
Information Technology | 14.9% |
Consumer Discretionary | 12.8% |
Health Care | 10.3% |
Industrials | 9.4% |
Telecommunication Services | 5.6% |
Utilities | 3.6% |
Materials | 2.1% |
Energy | 1.2% |
Other | 0.3% |
Total | 100.0% |
May include companies representing multiple industries within a single “Sector”.
39
June 30, 2015 |
Pax Ellevate Global Women’s Index Fund, continued |
Portfolio Highlights (Unaudited), continued |
Geographical Diversification
Country | Percent of Net Assets |
United States | 56.6% |
France | 7.8% |
United Kingdom | 6.2% |
Canada | 5.4% |
Sweden | 4.6% |
Australia | 4.1% |
Germany | 3.7% |
Switzerland | 2.1% |
Norway | 2.0% |
Netherlands | 1.5% |
South Africa | 1.4% |
Denmark | 0.9% |
Finland | 0.6% |
Italy | 0.5% |
Ireland | 0.5% |
Hong Kong | 0.4% |
Singapore | 0.3% |
Malaysia | 0.2% |
New Zealand | 0.2% |
Belgium | 0.2% |
Thailand | 0.1% |
Israel | 0.1% |
China | 0.1% |
Taiwan | 0.1% |
Spain | 0.1% |
Poland | 0.0%* |
Chile | 0.0%* |
Philippines | 0.0%* |
Brazil | 0.0%* |
Greece | 0.0%* |
Indonesia | 0.0%* |
Other | 0.3% |
Total | 100.0% |
* | Rounds to less than 0.05%. |
40
June 30, 2015 |
Sustainable Investing Update (Unaudited) |
Senior Vice President
Julie Gorte, Ph.D., |
Sustainability Research
Sustainable investment has two aims: to deliver returns, and to make the world a more sustainable enterprise. Everything we do is aimed at those targets, and often a single arrow hits both of them. Our advocacy on gender diversity is a good example.
Pax has long been a key advocate for improving board diversity, led by our Lead Sustainability Analyst, Heather Smith. In the past three years, we have filed or co-filed seven shareholder proposals urging companies to amend their nominating committee charters to make diversity a component of every director search. Six of the seven were successfully withdrawn after the companies agreed to make those charter amendments (eBay1, Territorial Bancorp, Oasis Petroleum, Stericycle, Hospitality Properties Trust and Roper Technologies). One, at Riverbed Technologies, was withdrawn for technical reasons, but the company agreed to engage with us and ultimately made the requested change to its charter. Moreover, in the years since the resolutions were filed, three of the companies—Roper Technologies, Stericycle and Riverbed Technology—added women to their boards as well.
Filing shareholder proposals is a direct way to help achieve greater gender parity on boards, but it’s not the only arrow in the quiver. We vote against all board slates that do not include any women, and in most instances, we will not support a full board slate unless it contains at least two women. This proxy season, we voted against directors at more than 160 companies due to insufficient gender diversity. Since 2010, we have voted against directors at over 900 companies with insufficient gender diversity on their boards. After voting, we send letters to the companies letting them know why we voted as we did, since they would otherwise be unaware of the rationale behind our vote decision.
Moreover, Pax has conducted several letter writing campaigns on women’s empowerment over the years, such as:
● | Five rounds of letters urging companies to endorse and implement the Women’s Empowerment Principles (WEPs) that have included: |
1 | Pax co-filed this resolution. Trillium Asset Management and the New York State Common Retirement Fund were the lead filers. |
41
June 30, 2015
|
Sustainable Investing Update (Unaudited), continued |
o | letters to board members at apparel companies urging them to endorse the WEPs as a way to address safety concerns in garment manufacture after the Rana Plaza tragedy in Bangladesh; |
o | letters to companies that are constituents of the Pax Ellevate Global Women’s Index Fund that have not yet signed onto the WEPs, urging that they do so. |
Pax is also a founding member of The Thirty Percent Coalition, a group of investors and women’s organizations working toward greater gender diversity on boards. Since 2012, the Coalition has written to over 160 U.S. companies with no women on their boards. The response rate to the most recent round of 100 letters is an impressive 41%, and 25% of the companies contacted have added at least one woman to their boards.
Small steps on a long journey, perhaps. The pace of change has been far too slow, and much of that is due to the slow turnover on boards overall. A recent study2 by Spencer Stuart and Equilar found that companies with moderate board turnover—adding 3-4 new directors over a three-year period—outperformed their peers, while companies with both higher and lower turnover rates underperformed. The kicker: only 1/3 of companies fell into that optimal “moderate turnover” zone, and the largest category was the low-turnover zone. In short, the typical board has low turnover, which is suboptimal for shareholders.
That is why we work so diligently on board diversity. There is a healthy body of research3 showing that having more gender diverse boards and senior managers is associated with better financial performance, and that is underpinned by research4 showing that gender-diverse groups do a better job of decision making. Combine that with research showing that moderate turnover is also associated with better financial performance, and you have a solid rationale for why we work so hard on board diversity. It helps us hit both our targets.
2 | George M. Anderson, Julie Hembrock Daum, Noah A. Shamosh, Ph.D.,“How Much Board Turnover Is Best?” Spencer Stuart Research & Insight, June 2014. |
https://www.spencerstuart.com/research-and-insight/how-much-board-turnover-is-best-commentary |
3 | Gender Research available at http://www.paxellevate.com/resources/gender-research |
4 | Katherine W. Phillips, “How Diversity Makes Us Smarter” Scientific American, September 16, 2014. |
http://www.scientificamerican.com/article/how-diversity-makes-us-smarter/ |
42
June 30, 2015 |
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, 2015 and ending on June 30, 2015.
Please note that Individual Retirement Account (IRA), Coverdell Education Savings, Roth IRA, SEP-IRA, SIMPLE IRA, and 403(b)(7) accounts are charged an annual custodial fee of twelve dollars. If you are invested in one of these account types, you should add an additional six dollars to the estimated expenses paid during the period.
Actual Expenses For each Fund, the first table on the next page provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. For the Fund, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Examples for Comparison Purposes For each Fund, the second table on the following page provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
43
June 30, 2015 |
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 | Ending 6/30/15 | Annualized | Expenses Period1 |
Balanced Fund - Individual Investor | $1,000.00 | $1,003.30 | 0.89% | $4.40 |
Balanced Fund - Institutional | 1,000.00 | 1,004.40 | 0.64% | 3.16 |
Balanced Fund - R Class | 1,000.00 | 1,002.20 | 1.14% | 5.64 |
Growth Fund - Individual Investor | 1,000.00 | 1,026.90 | 1.24% | 6.23 |
Growth Fund - A Class | 1,000.00 | 1,027.30 | 1.24% | 6.23 |
Growth Fund - Institutional | 1,000.00 | 1,028.60 | 0.99% | 4.98 |
Growth Fund - R Class | 1,000.00 | 1,026.20 | 1.49% | 7.49 |
Small Cap Fund - Individual Investor | 1,000.00 | 1,039.80 | 1.22% | 6.18 |
Small Cap Fund - A Class | 1,000.00 | 1,039.10 | 1.22% | 6.17 |
Small Cap Fund - Institutional | 1,000.00 | 1,041.20 | 0.97% | 4.91 |
Small Cap Fund - R Class | 1,000.00 | 1,037.90 | 1.47% | 7.43 |
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,012.60 | 0.96% | 4.80 |
High Yield Bond Fund - A Class | 1,000.00 | 1,012.50 | 0.96% | 4.80 |
High Yield Bond Fund - Institutional | 1,000.00 | 1,013.70 | 0.71% | 3.55 |
High Yield Bond Fund - R Class | 1,000.00 | 1,011.30 | 1.21% | 6.04 |
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,056.60 | 1.40% | 7.13 |
Global Environmental Markets Fund - A Class | 1,000.00 | 1,056.80 | 1.40% | 7.14 |
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,058.30 | 1.15% | 5.86 |
Global Environmental Markets Fund - R Class | 1,000.00 | 1,055.90 | 1.65% | 8.41 |
MSCI International ESG Index Fund - Individual Investor | 1,000.00 | 1,067.50 | 0.80% | 4.10 |
MSCI International ESG Index Fund - Institutional | 1,000.00 | 1,068.50 | 0.55% | 2.82 |
MSCI International ESG Index Fund - R Class | 1,000.00 | 1,066.70 | 1.05% | 5.38 |
Global Women's Index Fund - Individual Investor | 1,000.00 | 1,006.50 | 0.99% | 4.93 |
Global Women's Index Fund - Institutional | 1,000.00 | 1,007.60 | 0.74% | 3.68 |
1 | Expenses are equal to each Fund’s 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, 2015 and ending on June 30, 2015). |
44
June 30, 2015 |
Shareholder Expense Examples (Unaudited), continued |
Based on Hypothetical 5% Return (before expenses) | ||||
| Beginning Account Value | Ending 6/30/15 | Annualized | Expenses Period1 |
Balanced Fund - Individual Investor | $1,000.00 | $1,020.40 | 0.89% | $4.44 |
Balanced Fund - Institutional | 1,000.00 | 1,021.64 | 0.64% | 3.19 |
Balanced Fund - R Class | 1,000.00 | 1,019.16 | 1.14% | 5.69 |
Growth Fund - Individual Investor | 1,000.00 | 1,018.65 | 1.24% | 6.21 |
Growth Fund - A Class | 1,000.00 | 1,018.65 | 1.24% | 6.21 |
Growth Fund - Institutional | 1,000.00 | 1,019.89 | 0.99% | 4.96 |
Growth Fund - R Class | 1,000.00 | 1,017.41 | 1.49% | 7.45 |
Small Cap Fund - Individual Investor | 1,000.00 | 1,018.74 | 1.22% | 6.11 |
Small Cap Fund - A Class | 1,000.00 | 1,018.74 | 1.22% | 6.11 |
Small Cap Fund - Institutional | 1,000.00 | 1,019.98 | 0.97% | 4.86 |
Small Cap Fund - R Class | 1,000.00 | 1,017.50 | 1.47% | 7.36 |
High Yield Bond Fund - Individual Investor | 1,000.00 | 1,020.02 | 0.96% | 4.82 |
High Yield Bond Fund - A Class | 1,000.00 | 1,020.02 | 0.96% | 4.82 |
High Yield Bond Fund - Institutional | 1,000.00 | 1,021.26 | 0.71% | 3.57 |
High Yield Bond Fund - R Class | 1,000.00 | 1,018.79 | 1.21% | 6.07 |
Global Environmental Markets Fund - Individual Investor | 1,000.00 | 1,017.86 | 1.40% | 6.99 |
Global Environmental Markets Fund - A Class | 1,000.00 | 1,017.85 | 1.40% | 7.00 |
Global Environmental Markets Fund - Institutional | 1,000.00 | 1,019.10 | 1.15% | 5.75 |
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 Investor | 1,000.00 | 1,019.89 | 0.99% | 4.96 |
Global Women's Index Fund - Institutional | 1,000.00 | 1,021.12 | 0.74% | 3.71 |
1 | Expenses are equal to each Fund’s 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, 2015 and ending on June 30, 2015). |
45
June 30, 2015 |
Schedule of Investments (Unaudited) |
Pax World Balanced Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 60.5% | ||||||||
Consumer Discretionary: 8.9% | ||||||||
Amazon.com, Inc. (a) | 27,500 | $ | 11,937,475 | |||||
BorgWarner, Inc. | 138,565 | 7,876,035 | ||||||
Cabela's, Inc. (a)(d) | 127,126 | 6,353,757 | ||||||
Carter's, Inc. | 72,471 | 7,703,667 | ||||||
Ford Motor Co. | 1,100,700 | 16,521,507 | ||||||
Home Depot, Inc., The | 145,000 | 16,113,850 | ||||||
McDonald's Corp. | 135,000 | 12,834,450 | ||||||
Newell Rubbermaid, Inc. | 303,603 | 12,481,119 | ||||||
NIKE, Inc., Class B | 177,667 | 19,191,589 | ||||||
Sally Beauty Holdings Inc. (a) | 18,878 | 596,167 | ||||||
Time Warner, Inc. | 234,416 | 20,490,303 | ||||||
VF Corp. | 228,987 | 15,969,553 | ||||||
Walt Disney Co., The | 229,100 | 26,149,474 | ||||||
174,218,946 | ||||||||
Consumer Staples: 3.9% | ||||||||
Estee Lauder Cos, Inc., Class A | 245,812 | 21,302,068 | ||||||
Mead Johnson Nutrition Co. | 172,775 | 15,587,761 | ||||||
PepsiCo, Inc. | 205,000 | 19,134,700 | ||||||
Procter & Gamble Co., The | 235,000 | 18,386,400 | ||||||
Whole Foods Market, Inc. | 60,000 | 2,366,400 | ||||||
76,777,329 | ||||||||
Energy: 4.2% | ||||||||
Apache Corp. | 270,500 | 15,588,915 | ||||||
ConocoPhillips | 130,000 | 7,983,300 | ||||||
Core Laboratories NV (d) | 45,000 | 5,131,800 | ||||||
EQT Corp. | 92,906 | 7,556,974 | ||||||
Hess Corp. | 292,300 | 19,549,024 | ||||||
Occidental Petroleum Corp. | 175,000 | 13,609,750 | ||||||
Pioneer Natural Resources Co. | 94,000 | 13,036,860 | ||||||
82,456,623 | ||||||||
Financials: 11.5% | ||||||||
American Tower Corp., REIT | 368,100 | 34,340,049 | ||||||
Bank of New York Mellon Corp., The | 621,300 | 26,075,961 | ||||||
BlackRock, Inc. | 112,500 | 38,922,750 | ||||||
Capitol Federal Financial, Inc. | 695,407 | 8,372,700 | ||||||
Citigroup, Inc. | 430,000 | 23,753,200 | ||||||
Goldman Sachs Group, Inc., The | 87,500 | 18,269,125 | ||||||
Investors Bancorp, Inc. | 726,719 | 8,938,644 | ||||||
LaSalle Hotel Properties, REIT | 180,000 | 6,382,800 | ||||||
Morgan Stanley | 760,300 |
| 29,492,037 | |||||
T Rowe Price Group, Inc. | 244,500 | 19,004,985 | ||||||
White Mountains Insurance Group, Ltd. | 14,218 | 9,311,937 | ||||||
222,864,188 | ||||||||
Health Care: 11.8% | ||||||||
AbbVie, Inc. | 250,000 | 16,797,500 | ||||||
Becton Dickinson & Co. | 348,052 | 49,301,566 | ||||||
Brookdale Senior Living, Inc. (a) | 235,000 | 8,154,500 | ||||||
Celgene Corp. (a) | 195,000 | 22,568,325 | ||||||
Express Scripts Holding Co. (a) | 229,669 | 20,426,761 | ||||||
Gilead Sciences, Inc. | 120,000 | 14,049,600 | ||||||
Hologic, Inc. (a) | 300,000 | 11,418,000 | ||||||
Merck & Co., Inc. | 505,000 | 28,749,650 | ||||||
UnitedHealth Group, Inc. | 395,000 | 48,190,000 | ||||||
Zoetis, Inc. | 233,502 | 11,259,466 | ||||||
230,915,368 | ||||||||
Industrials: 4.6% | ||||||||
3M Co. | 155,000 | 23,916,499 | ||||||
Delta Air Lines, Inc. | 325,000 | 13,351,000 | ||||||
Masco Corp. | 215,597 | 5,749,972 | ||||||
Nordson Corp. | 69,020 | 5,375,968 | ||||||
Oshkosh Corp. | 111,681 | 4,733,041 | ||||||
Ryder System, Inc. | 60,996 | 5,329,221 | ||||||
Stericycle, Inc. (a) | 175,000 | 23,434,250 | ||||||
United Parcel Service, Inc., Class B | 70,000 | 6,783,700 | ||||||
88,673,651 | ||||||||
Information Technology: 12.4% | ||||||||
ACI Worldwide, Inc. (a) | 237,599 | 5,837,807 | ||||||
Amdocs, Ltd. | 248,147 | 13,546,345 | ||||||
Apple, Inc. | 477,500 | 59,890,438 | ||||||
ARRIS Group, Inc. (a) | 199,308 | 6,098,825 | ||||||
Cognizant Technology Solutions, Class A (a) | 326,188 | 19,926,825 | ||||||
eBay, Inc. (a) | 130,000 | 7,831,200 | ||||||
EMC Corp. | 560,000 | 14,778,400 | ||||||
Facebook, Inc., Class A (a) | 245,000 | 21,012,425 | ||||||
Google, Inc., Class A (a) | 18,000 | 9,720,720 | ||||||
Google, Inc., Class C | 18,049 | 9,394,684 | ||||||
Ingram Micro, Inc., Class A (a) | 201,022 | 5,031,581 | ||||||
Intel Corp. | 450,000 | 13,686,750 |
SEE NOTES TO FINANCIAL STATEMENTS
46
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Information Technology, continued | ||||||||
Microsoft Corp. | 580,786 | $ | 25,641,702 | |||||
NXP Semiconductor NV (a) | 70,000 | 6,874,000 | ||||||
Oracle Corp. | 410,000 | 16,523,000 | ||||||
Syntel, Inc. (a) | 123,477 | 5,862,688 | ||||||
241,657,390 | ||||||||
Materials: 1.7% | ||||||||
Axiall Corp. | 155,873 | 5,619,222 | ||||||
Ecolab, Inc. | 59,200 | 6,693,744 | ||||||
LyondellBasell Industries NV, Class A | 105,000 | 10,869,600 | ||||||
Nucor Corp. | 220,000 | 9,695,400 | ||||||
32,877,966 | ||||||||
Telecommunication Services: 0.7% | ||||||||
AT&T, Inc. | 380,000 | 13,497,600 | ||||||
Utilities: 0.8% | ||||||||
Laclede Group, Inc., The | 99,977 | 5,204,803 | ||||||
ONE Gas, Inc. | 226,277 | 9,630,349 | ||||||
14,835,152 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $972,787,391) | 1,178,774,213 | |||||||
AFFILIATED INVESTMENT COMPANIES: 6.7% | ||||||||
Pax MSCI International ESG Index Fund (e) | 15,350,469 | 130,325,483 | ||||||
TOTAL AFFILIATED INVESTMENT COMPANIES | ||||||||
(Cost $132,878,773) | 130,325,483 | |||||||
BONDS: 32.1% | ||||||||
Community Investment Notes: 0.2% | ||||||||
Calvert Social Investment Foundation, | ||||||||
1.500%, 04/30/20 | $ | 3,000,000 | 3,000,000 | |||||
CINI Investment Note, | ||||||||
2.000%, 11/01/17 (b) | 260,300 | 255,927 | ||||||
Enterprise Community Impact, | ||||||||
1.500%, 12/11/15 (b)(f) | 500,000 | 499,990 | ||||||
Total Community Investment Notes | ||||||||
(Cost $3,760,300) | 3,755,917 | |||||||
BONDS, continued | ||||||||
CORPORATE BONDS: 10.6% | ||||||||
Consumer Discretionary: 1.2% | ||||||||
Best Buy Co., Inc., | ||||||||
3.750%, 03/15/16 |
| 2,396,000 |
| 2,437,930 | ||||
DIRECTV Holdings, LLC/Financing Co., | ||||||||
3.800%, 03/15/22 | 1,000,000 | 1,007,229 | ||||||
Expedia, Inc., | ||||||||
5.950%, 08/15/20 | 2,000,000 | 2,231,710 | ||||||
Kohl's Corp., | ||||||||
3.250%, 02/01/23 | 3,000,000 | 2,927,715 | ||||||
Marriott International, Inc., | ||||||||
3.250%, 09/15/22 | 3,000,000 | 2,962,641 | ||||||
Newell Rubbermaid, Inc., | ||||||||
2.050%, 12/01/17 | 170,000 | 171,678 | ||||||
Ross Stores, Inc., | ||||||||
3.375%, 09/15/24 | 3,000,000 | 2,964,486 | ||||||
Time Warner Cable, Inc., | ||||||||
6.750%, 07/01/18 | 3,000,000 | 3,347,145 | ||||||
VF Corp., | ||||||||
5.950%, 11/01/17 | 2,235,000 | 2,474,386 | ||||||
Walt Disney Co., The, | ||||||||
3.750%, 06/01/21 | 3,026,000 | 3,238,141 | ||||||
23,763,061 | ||||||||
Consumer Staples: 0.9% | ||||||||
Anheuser-Busch Inbev Finance, Inc., | ||||||||
3.700%, 02/01/24 | 4,000,000 | 4,098,528 | ||||||
Campbell Soup Co., | ||||||||
3.300%, 03/19/25 | 3,000,000 | 2,944,479 | ||||||
Coca-Cola Refreshments USA, Inc., | ||||||||
6.750%, 09/15/28 | 1,000,000 | 1,280,113 | ||||||
Costco Wholesale Corp., | ||||||||
1.125%, 12/15/17 | 3,000,000 | 2,996,409 | ||||||
Kellogg Co., | ||||||||
4.150%, 11/15/19 | 2,000,000 | 2,134,496 | ||||||
Kimberly-Clark Corp., | ||||||||
2.650%, 03/01/25 | 2,000,000 | 1,935,704 | ||||||
Mondelez International, Inc., | ||||||||
6.125%, 08/23/18 | 2,000,000 | 2,238,034 | ||||||
PepsiCo, Inc., | ||||||||
2.750%, 04/30/25 | 1,000,000 | 956,897 | ||||||
18,584,660 | ||||||||
Energy: 0.7% | ||||||||
Cameron International Corp., | ||||||||
3.700%, 06/15/24 | 1,250,000 | 1,205,008 | ||||||
ConocoPhillips Co., | ||||||||
2.875%, 11/15/21 | 3,000,000 | 3,028,614 |
SEE NOTES TO FINANCIAL STATEMENTS
47
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
CORPORATE BONDS, continued | ||||||||
Energy, continued | ||||||||
Hess Corp, | ||||||||
3.500%, 07/15/24 (d) | $ | 2,000,000 | $ | 1,931,260 | ||||
Noble Energy, Inc., | ||||||||
3.900%, 11/15/24 | 2,000,000 | 1,975,754 | ||||||
ONEOK Partners, LP, | ||||||||
8.625%, 03/01/19 | 3,775,000 | 4,493,903 | ||||||
Talisman Energy, Inc., | ||||||||
3.750%, 02/01/21 | 1,000,000 | 991,211 | ||||||
13,625,750 | ||||||||
Financials: 4.2% | ||||||||
American Express Co., | ||||||||
7.000%, 03/19/18 | 1,000,000 | 1,134,813 | ||||||
American Tower Corp., REIT, | ||||||||
7.250%, 05/15/19 | 1,665,000 | 1,923,281 | ||||||
Asian Development Bank, | ||||||||
2.125%, 03/19/25 | 2,000,000 | 1,939,302 | ||||||
Bank of America Corp., | ||||||||
1.350%, 11/21/16 | 4,950,000 | 4,950,667 | ||||||
BB&T Corp., | ||||||||
1.450%, 01/12/18 | 3,134,000 | 3,121,991 | ||||||
BlackRock, Inc., | ||||||||
3.375%, 06/01/22 | 2,350,000 | 2,420,526 | ||||||
Branch Banking & Trust Co., | ||||||||
0.713%, 12/01/16 | 1,000,000 | 1,001,396 | ||||||
Branch Banking & Trust Co./Wilson NC, | ||||||||
0.606%, 09/13/16 | 4,000,000 | 3,989,988 | ||||||
Digital Realty Trust LP, REIT, | ||||||||
3.950%, 07/01/22 | 2,000,000 | 1,998,874 | ||||||
Discover Bank, | ||||||||
3.200%, 08/09/21 | 3,000,000 | 2,961,354 | ||||||
Discover Bank, | ||||||||
4.250%, 03/13/26 | 1,300,000 | 1,289,850 | ||||||
Ford Motor Credit Co., LLC, | ||||||||
1.526%, 11/20/18 | 3,000,000 | 2,989,593 | ||||||
Ford Motor Credit Co., LLC, | ||||||||
1.118%, 03/12/19 | 3,000,000 | 2,979,777 | ||||||
Goldman Sachs Group, Inc., The, | ||||||||
1.478%, 04/30/18 | 4,000,000 | 4,044,992 | ||||||
Goldman Sachs Group, Inc., The, | ||||||||
5.750%, 01/24/22 | 3,000,000 | 3,415,239 | ||||||
Goldman Sachs Group, Inc., The, | ||||||||
2.000%, 10/30/22 | 3,000,000 | 2,842,482 | ||||||
Goldman Sachs Group, Inc., The, | ||||||||
6.750%, 10/01/37 | 2,000,000 | 2,353,114 | ||||||
International Bank for Reconstruction & Development, | ||||||||
0.625%, 07/12/17 |
| 2,000,000 |
| 1,995,700 | ||||
International Bank for Reconstruction & Development, | ||||||||
2.125%, 03/03/25 | 4,000,000 | 3,873,600 | ||||||
International Finance Corp., | ||||||||
2.000%, 09/15/24 | 3,000,000 | 3,002,943 | ||||||
Morgan Stanley, | ||||||||
0.755%, 10/15/15 | 2,000,000 | 2,001,780 | ||||||
Morgan Stanley, | ||||||||
1.557%, 04/25/18 | 4,000,000 | 4,060,328 | ||||||
Morgan Stanley, | ||||||||
3.100%, 11/09/18 | 1,177,000 | 1,238,096 | ||||||
Morgan Stanley, | ||||||||
2.200%, 12/07/18 | 2,000,000 | 2,012,422 | ||||||
North American Development Bank, | ||||||||
2.400%, 10/26/22 | 2,000,000 | 1,942,630 | ||||||
PNC Bank NA, | ||||||||
6.875%, 04/01/18 | 2,000,000 | 2,261,436 | ||||||
Prudential Financial, Inc., | ||||||||
7.375%, 06/15/19 | 2,000,000 | 2,373,398 | ||||||
Prudential Financial, Inc., | ||||||||
1.930%, 11/02/20 | 3,000,000 | 3,112,770 | ||||||
State Street Corp., | ||||||||
4.956%, 03/15/18 | 4,010,000 | 4,313,396 | ||||||
Toyota Motor Credit Corp., | ||||||||
4.250%, 01/11/21 | 1,480,000 | 1,615,345 | ||||||
US Bancorp, | ||||||||
1.950%, 11/15/18 | 2,064,000 | 2,083,596 | ||||||
81,244,679 | ||||||||
Health Care: 1.0% | ||||||||
Becton Dickinson & Co., | ||||||||
3.250%, 11/12/20 | 3,000,000 | 3,083,664 | ||||||
Becton Dickinson & Co., | ||||||||
7.000%, 08/01/27 | 2,250,000 | 2,816,912 | ||||||
Celgene Corp., | ||||||||
3.950%, 10/15/20 | 2,000,000 | 2,127,544 | ||||||
Celgene Corp., | ||||||||
3.250%, 08/15/22 | 3,000,000 | 2,971,452 | ||||||
Gilead Sciences, Inc., | ||||||||
3.700%, 04/01/24 | 2,000,000 | 2,045,896 | ||||||
Merck & Co., Inc., | ||||||||
2.350%, 02/10/22 | 2,000,000 | 1,936,142 |
SEE NOTES TO FINANCIAL STATEMENTS
48
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
CORPORATE BONDS, continued | ||||||||
Health Care, continued | ||||||||
UnitedHealth Group, Inc., | ||||||||
2.875%, 03/15/23 | $ | 4,000,000 | $ | 3,854,468 | ||||
18,836,078 | ||||||||
Industrials: 1.1% | ||||||||
Atlas Copco AB, 144A, | ||||||||
5.600%, 05/22/17 (c) | 2,505,000 | 2,702,356 | ||||||
CSX Corp., | ||||||||
7.375%, 02/01/19 | 2,000,000 | 2,346,498 | ||||||
Cummins, Inc., | ||||||||
7.125%, 03/01/28 | 3,200,000 | 4,235,427 | ||||||
Ingersoll-Rand Co., | ||||||||
6.443%, 11/15/27 | 2,000,000 | 2,399,656 | ||||||
Pentair PLC, | ||||||||
5.000%, 05/15/21 | 1,550,000 | 1,697,543 | ||||||
Ryder System, Inc., | ||||||||
2.500%, 05/11/20 | 2,000,000 | 1,987,594 | ||||||
SolarCity Corp., | ||||||||
4.700%, 05/29/25 | 2,000,000 | 1,995,366 | ||||||
United Parcel Service, Inc., | ||||||||
5.500%, 01/15/18 | 1,000,000 | 1,103,179 | ||||||
Waste Management, Inc., | ||||||||
2.900%, 09/15/22 | 2,500,000 | 2,461,373 | ||||||
20,928,992 | ||||||||
Information Technology: 1.0% | ||||||||
Adobe Systems, Inc., | ||||||||
4.750%, 02/01/20 | 1,150,000 | 1,267,567 | ||||||
Apple, Inc., | ||||||||
2.850%, 05/06/21 | 4,000,000 | 4,062,052 | ||||||
CA, Inc., | ||||||||
5.375%, 12/01/19 | 3,000,000 | 3,342,798 | ||||||
Cisco Systems, Inc., | ||||||||
0.783%, 03/01/19 | 2,000,000 | 2,009,744 | ||||||
Corning, Inc., | ||||||||
8.875%, 08/15/21 | 2,000,000 | 2,638,170 | ||||||
IBM Corp., | ||||||||
5.700%, 09/14/17 | 2,000,000 | 2,193,378 | ||||||
IBM Corp., | ||||||||
3.625%, 02/12/24 | 2,503,000 | 2,537,817 | ||||||
NetApp, Inc., | ||||||||
3.250%, 12/15/22 | 671,000 | 636,527 | ||||||
18,688,053 | ||||||||
Materials: 0.4% | ||||||||
LyondellBasell Industries NV, | ||||||||
6.000%, 11/15/21 | 3,000,000 | 3,438,423 | ||||||
Potash Corp of Saskatchewan, Inc., | ||||||||
3.250%, 12/01/17 |
| 2,000,000 |
| 2,084,558 | ||||
Rock-Tenn Co., | ||||||||
4.900%, 03/01/22 | 2,000,000 | 2,156,628 | ||||||
7,679,609 | ||||||||
Telecommunication Services: 0.1% | ||||||||
Verizon Communications, Inc., | ||||||||
3.500%, 11/01/24 | 2,500,000 | 2,436,430 | ||||||
Utilities: 0.0% (g) | ||||||||
CenterPoint Energy Houston Electric LLC, | ||||||||
2.250%, 08/01/22 | 1,000,000 | 948,451 | ||||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $204,455,936) | 206,735,763 | |||||||
U.S. GOVERNMENT AGENCY BONDS: 4.3% | ||||||||
Federal Farm Credit Bank (Agency): 1.0% | ||||||||
Federal Farm Credit Bank, | ||||||||
1.120%, 08/20/18 | 4,000,000 | 3,968,848 | ||||||
Federal Farm Credit Bank, | ||||||||
1.140%, 09/04/18 | 3,500,000 | 3,489,619 | ||||||
Federal Farm Credit Bank, | ||||||||
1.950%, 08/05/19 | 3,000,000 | 3,004,755 | ||||||
Federal Farm Credit Bank, | ||||||||
1.740%, 03/11/20 | 3,000,000 | 2,982,735 | ||||||
Federal Farm Credit Bank, | ||||||||
1.840%, 02/04/21 | 3,000,000 | 2,959,932 | ||||||
Federal Farm Credit Bank, | ||||||||
3.190%, 07/07/23 | 2,000,000 | 2,000,066 | ||||||
Federal Farm Credit Bank, | ||||||||
3.280%, 08/06/24 | 2,000,000 | 2,003,238 | ||||||
20,409,193 | ||||||||
Federal Home Loan Bank System (Agency): 1.2% | ||||||||
Federal Home Loan Bank, | ||||||||
1.000%, 02/05/18 | 5,000,000 | 4,985,415 | ||||||
Federal Home Loan Bank, | ||||||||
1.150%, 07/25/18 | 3,000,000 | 2,985,606 | ||||||
Federal Home Loan Bank, | ||||||||
1.000%, 10/28/19 | 3,000,000 | 3,010,665 | ||||||
Federal Home Loan Bank, | ||||||||
1.550%, 02/05/20 | 3,000,000 | 2,934,960 |
SEE NOTES TO FINANCIAL STATEMENTS
49
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
U.S. GOVERNMENT AGENCY BONDS, continued | ||||||||
Federal Home Loan Bank System (Agency), continued | ||||||||
Federal Home Loan Bank, | ||||||||
2.375%, 03/12/21 | $ | 1,000,000 | $ | 1,024,807 | ||||
Federal Home Loan Bank, | ||||||||
1.500%, 09/26/22 | 3,000,000 | 2,964,090 | ||||||
Federal Home Loan Bank, | ||||||||
2.250%, 10/11/22 | 3,000,000 | 2,888,619 | ||||||
Federal Home Loan Bank, | ||||||||
2.220%, 12/27/22 | 3,000,000 | 2,894,529 | ||||||
23,688,691 | ||||||||
Freddie Mac (Agency): 0.6% | ||||||||
Freddie Mac, | ||||||||
1.250%, 03/13/18 | 3,000,000 | 2,999,577 | ||||||
Freddie Mac, | ||||||||
1.050%, 03/26/18 | 3,000,000 | 2,998,233 | ||||||
Freddie Mac, | ||||||||
1.125%, 05/25/18 | 5,000,000 | 4,989,920 | ||||||
10,987,730 | ||||||||
Fannie Mae (Agency): 1.5% | ||||||||
Fannie Mae, | ||||||||
1.050%, 01/30/18 | 3,000,000 | 2,989,611 | ||||||
Fannie Mae, | ||||||||
1.050%, 05/25/18 | 3,000,000 | 2,986,962 | ||||||
Fannie Mae, | ||||||||
1.000%, 12/20/18 | 4,000,000 | 3,940,876 | ||||||
Fannie Mae, | ||||||||
1.000%, 03/13/19 | 6,645,000 | 6,649,725 | ||||||
Fannie Mae, | ||||||||
1.625%, 08/08/19 | 2,000,000 | 1,999,260 | ||||||
Fannie Mae, | ||||||||
1.500%, 10/23/19 | 3,000,000 | 2,957,598 | ||||||
Fannie Mae, | ||||||||
2.000%, 05/21/21 | 925,000 | 914,204 | ||||||
Fannie Mae, | ||||||||
2.000%, 11/14/22 | 6,000,000 | 5,778,294 | ||||||
28,216,530 | ||||||||
TOTAL U.S. GOVERNMENT AGENCY BONDS | ||||||||
(Cost $83,402,732) | 83,302,144 | |||||||
GOVERNMENT BONDS: 0.3% | ||||||||
U.S. Dept of Housing & Urban Development, | ||||||||
4.620%, 08/01/18 | 5,000,000 | 5,525,895 | ||||||
(Cost $4,985,536) | ||||||||
MUNICIPAL BONDS: 2.1% | ||||||||
City of San Francisco CA Public Utilities Commission, | ||||||||
6.000%, 11/01/40 |
| 2,815,000 |
| 3,396,607 | ||||
Commonwealth of Massachusetts, | ||||||||
4.200%, 12/01/21 | 2,000,000 | 2,188,860 | ||||||
Dallas Independent School District, | ||||||||
6.450%, 02/15/35 | 3,000,000 | 3,508,230 | ||||||
Long Island Power Authority, | ||||||||
3.983%, 09/01/25 | 3,000,000 | 3,133,530 | ||||||
New Jersey Transportation Trust Fund Authority, | ||||||||
6.104%, 12/15/28 | 2,500,000 | 2,613,775 | ||||||
New York City Transitional Finance Authority, | ||||||||
3.190%, 08/01/25 | 3,000,000 | 2,985,870 | ||||||
New York City Transitional Finance Authority, | ||||||||
4.100%, 11/01/27 | 2,550,000 | 2,651,082 | ||||||
State Board of Administration Finance Corp., | ||||||||
1.298%, 07/01/16 | 2,260,000 | 2,273,153 | ||||||
State Board of Administration Finance Corp., Ser A, | ||||||||
2.995%, 07/01/20 | 2,000,000 | 2,040,200 | ||||||
State of California, | ||||||||
5.000%, 10/01/28 | 3,000,000 | 3,515,100 | ||||||
State of Illinois, | ||||||||
5.000%, 07/01/21 | 2,930,000 | 3,181,980 | ||||||
University of California, | ||||||||
4.059%, 05/15/31 | 5,000,000 | 4,968,550 | ||||||
University of Massachusetts Building Authority, | ||||||||
6.573%, 05/01/39 | 3,800,000 | 4,249,844 | ||||||
TOTAL MUNICIPAL BONDS | ||||||||
(Cost $41,849,712) | 40,706,781 | |||||||
U.S. TREASURY NOTES: 7.1% | ||||||||
United States Treasury Note (TIPS), | ||||||||
1.875%, 07/15/15 | 3,040,750 | 3,050,252 | ||||||
United States Treasury Note (TIPS), | ||||||||
2.000%, 01/15/16 | 2,383,980 | 2,418,996 | ||||||
United States Treasury Note, | ||||||||
0.375%, 03/15/16 | 7,000,000 | 7,008,750 | ||||||
United States Treasury Note, | ||||||||
0.625%, 02/15/17 | 905,000 | 906,272 |
SEE NOTES TO FINANCIAL STATEMENTS
50
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
U.S. TREASURY NOTES, continued | ||||||||
United States Treasury Note (TIPS), | ||||||||
0.125%, 04/15/18 | $ | 1,002,991 | $ | 1,019,055 | ||||
United States Treasury Note, | ||||||||
1.500%, 05/31/19 | 5,000,000 | 5,028,125 | ||||||
United States Treasury Note, | ||||||||
1.750%, 09/30/19 | 8,000,000 | 8,096,872 | ||||||
United States Treasury Note, | ||||||||
3.375%, 11/15/19 | 5,000,000 | 5,398,440 | ||||||
United States Treasury Note, | ||||||||
3.625%, 02/15/20 | 2,000,000 | 2,184,376 | ||||||
United States Treasury Note, | ||||||||
1.375%, 02/29/20 | 3,000,000 | 2,974,218 | ||||||
United States Treasury Note (TIPS), | ||||||||
1.250%, 07/15/20 | 4,339,280 | 4,648,454 | ||||||
United States Treasury Note, | ||||||||
2.125%, 09/30/21 | 10,000,000 | 10,100,780 | ||||||
United States Treasury Note, | ||||||||
2.000%, 10/31/21 | 3,000,000 | 3,005,625 | ||||||
United States Treasury Note, | ||||||||
2.000%, 11/15/21 | 3,000,000 | 3,005,625 | ||||||
United States Treasury Note, | ||||||||
2.375%, 08/15/24 | 41,000,000 | 41,224,229 | ||||||
United States Treasury Note, | ||||||||
2.250%, 11/15/24 | 6,000,000 | 5,963,904 | ||||||
United States Treasury Note, | ||||||||
2.000%, 02/15/25 (d) | 3,000,000 | 2,914,923 | ||||||
United States Treasury Note, | ||||||||
6.250%, 05/15/30 | 2,000,000 | 2,886,562 | ||||||
United States Treasury Note, | ||||||||
4.500%, 02/15/36 | 5,000,000 | 6,288,280 | ||||||
United States Treasury Note, | ||||||||
4.375%, 11/15/39 | 4,000,000 | 4,920,624 | ||||||
United States Treasury Note, | ||||||||
3.125%, 08/15/44 | 15,000,000 | 15,026,955 | ||||||
TOTAL U.S. TREASURY NOTES | ||||||||
(Cost $138,469,103) | 138,071,317 | |||||||
MORTGAGE-BACKED SECURITIES: 7.5% | ||||||||
Ginnie Mae (Mortgage-Backed): 1.0% | ||||||||
Ginnie Mae, | ||||||||
6.000%, 05/15/21 | 129,101 | 135,734 | ||||||
Ginnie Mae, | ||||||||
6.000%, 07/15/21 | 6,951 | 7,258 | ||||||
Ginnie Mae, | ||||||||
6.000%, 02/15/22 | 156,621 | 162,744 | ||||||
Ginnie Mae, | ||||||||
1.625%, 11/20/33 |
| 1,964,075 |
| 2,041,455 | ||||
Ginnie Mae, | ||||||||
1.625%, 05/20/34 | 2,142,868 | 2,229,878 | ||||||
Ginnie Mae, | ||||||||
1.625%, 08/20/34 | 1,146,996 | 1,192,890 | ||||||
Ginnie Mae, | ||||||||
1.625%, 04/20/35 | 2,160,475 | 2,249,733 | ||||||
Ginnie Mae, | ||||||||
1.625%, 07/20/35 | 1,557,425 | 1,619,878 | ||||||
Ginnie Mae, | ||||||||
6.000%, 08/15/35 | 597,786 | 698,779 | ||||||
Ginnie Mae, | ||||||||
6.000%, 05/20/36 | 312,345 | 353,331 | ||||||
Ginnie Mae, | ||||||||
6.000%, 01/15/38 | 578,377 | 668,976 | ||||||
Ginnie Mae, | ||||||||
2.000%, 06/20/43 | 2,396,711 | 2,473,012 | ||||||
Ginnie Mae, | ||||||||
3.458%, 05/16/53 | 2,713,350 | 2,763,391 | ||||||
Ginnie Mae, | ||||||||
2.545%, 03/16/55 | 2,976,088 | 2,976,417 | ||||||
19,573,476 | ||||||||
Freddie Mac (Mortgage-Backed): 1.9% | ||||||||
Freddie Mac, | ||||||||
4.500%, 09/01/18 | 77,390 | 80,638 | ||||||
Freddie Mac, | ||||||||
4.000%, 09/01/18 | 55,718 | 58,397 | ||||||
Freddie Mac, | ||||||||
5.500%, 10/01/18 | 45,336 | 46,853 | ||||||
Freddie Mac, | ||||||||
5.000%, 11/01/18 | 41,297 | 43,157 | ||||||
Freddie Mac, | ||||||||
5.000%, 11/01/18 | 69,990 | 73,148 | ||||||
Freddie Mac, | ||||||||
2.313%, 03/25/20 | 4,000,000 | 4,074,052 | ||||||
Freddie Mac, | ||||||||
3.062%, 12/25/24 | 2,250,000 | 2,278,013 | ||||||
Freddie Mac, | ||||||||
3.500%, 11/01/25 | 917,307 | 969,486 | ||||||
Freddie Mac, | ||||||||
3.000%, 11/01/28 | 2,059,069 | 2,125,387 | ||||||
Freddie Mac, | ||||||||
3.500%, 01/01/29 | 1,673,881 | 1,768,863 |
SEE NOTES TO FINANCIAL STATEMENTS
51
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
MORTGAGE-BACKED SECURITIES, continued | ||||||||
Freddie Mac (Mortgage-Backed), continued | ||||||||
Freddie Mac, | ||||||||
4.000%, 08/01/31 | $ | 2,481,518 | $ | 2,631,291 | ||||
Freddie Mac, | ||||||||
3.000%, 07/01/33 | 2,738,506 | 2,785,120 | ||||||
Freddie Mac, | ||||||||
3.500%, 01/01/34 | 2,671,612 | 2,790,376 | ||||||
Freddie Mac, | ||||||||
2.354%, 12/01/35 | 1,318,617 | 1,411,455 | ||||||
Freddie Mac, | ||||||||
2.275%, 05/01/36 | 13,426 | 13,455 | ||||||
Freddie Mac, | ||||||||
2.396%, 11/01/36 | 1,083,837 | 1,158,512 | ||||||
Freddie Mac, | ||||||||
2.398%, 01/01/38 | 1,413,352 | 1,510,985 | ||||||
Freddie Mac, | ||||||||
5.000%, 07/01/39 | 807,020 | 892,341 | ||||||
Freddie Mac, | ||||||||
5.000%, 08/01/39 | 562,091 | 621,439 | ||||||
Freddie Mac, | ||||||||
5.500%, 10/01/39 | 863,144 | 977,610 | ||||||
Freddie Mac, | ||||||||
2.203%, 12/01/39 | 2,960,616 | 3,148,980 | ||||||
Freddie Mac, | ||||||||
3.500%, 01/01/41 | 1,438,706 | 1,483,721 | ||||||
Freddie Mac, | ||||||||
2.439%, 01/01/43 | 3,865,612 | 3,923,637 | ||||||
Freddie Mac, | ||||||||
3.500%, 02/01/45 | 2,853,042 | 2,952,961 | ||||||
37,819,877 | ||||||||
Fannie Mae (Mortgage-Backed): 4.1% | ||||||||
Fannie Mae, | ||||||||
4.500%, 07/01/18 | 189,450 | 197,435 | ||||||
Fannie Mae, | ||||||||
3.500%, 09/01/18 | 204,237 | 215,516 | ||||||
Fannie Mae, | ||||||||
3.500%, 10/01/18 | 27,049 | 28,543 | ||||||
Fannie Mae, | ||||||||
3.500%, 10/01/18 | 117,727 | 124,228 | ||||||
Fannie Mae, | ||||||||
5.000%, 11/01/18 | 15,511 | 16,245 | ||||||
Fannie Mae, | ||||||||
5.000%, 11/01/18 | 70,420 | 73,755 | ||||||
Fannie Mae, | ||||||||
5.000%, 11/01/18 | 128,989 | 135,098 | ||||||
Fannie Mae, | ||||||||
5.000%, 10/01/20 |
| 381,432 |
| 409,359 | ||||
Fannie Mae, | ||||||||
3.500%, 01/01/26 | 1,466,116 | 1,552,213 | ||||||
Fannie Mae, | ||||||||
3.500%, 02/01/26 | 1,267,390 | 1,340,667 | ||||||
Fannie Mae, | ||||||||
4.000%, 10/01/26 | 2,174,853 | 2,325,458 | ||||||
Fannie Mae, | ||||||||
3.000%, 11/01/26 | 1,344,270 | 1,397,796 | ||||||
Fannie Mae, | ||||||||
3.000%, 11/01/26 | 1,767,726 | 1,836,302 | ||||||
Fannie Mae, | ||||||||
3.500%, 12/01/26 | 2,254,526 | 2,387,548 | ||||||
Fannie Mae, | ||||||||
2.500%, 03/01/27 | 1,761,662 | 1,796,793 | ||||||
Fannie Mae, | ||||||||
2.500%, 06/01/27 | 4,758,373 | 4,853,412 | ||||||
Fannie Mae, | ||||||||
2.500%, 09/01/27 | 2,116,056 | 2,158,410 | ||||||
Fannie Mae, | ||||||||
2.500%, 12/01/27 | 3,094,185 | 3,152,332 | ||||||
Fannie Mae, | ||||||||
3.000%, 09/01/28 | 2,795,081 | 2,884,092 | ||||||
Fannie Mae, | ||||||||
4.000%, 01/01/31 | 2,132,385 | 2,277,548 | ||||||
Fannie Mae, | ||||||||
4.000%, 01/01/32 | 1,823,630 | 1,966,852 | ||||||
Fannie Mae, | ||||||||
6.500%, 06/01/32 | 250,143 | 287,503 | ||||||
Fannie Mae, | ||||||||
2.425%, 12/01/33 | 114,304 | 123,607 | ||||||
Fannie Mae, | ||||||||
6.000%, 02/01/34 | 286,331 | 325,164 | ||||||
Fannie Mae, | ||||||||
2.355%, 03/01/34 | 3,341,414 | 3,565,138 | ||||||
Fannie Mae, | ||||||||
4.500%, 04/01/34 | 2,512,919 | 2,739,075 | ||||||
Fannie Mae, | ||||||||
2.461%, 07/01/34 | 1,359,334 | 1,447,605 | ||||||
Fannie Mae, | ||||||||
2.270%, 06/01/35 | 160,561 | 169,811 | ||||||
Fannie Mae, | ||||||||
1.865%, 10/01/35 | 2,546,970 | 2,681,127 |
SEE NOTES TO FINANCIAL STATEMENTS
52
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
MORTGAGE-BACKED SECURITIES, continued | ||||||||
Fannie Mae (Mortgage-Backed), continued | ||||||||
Fannie Mae, | ||||||||
2.236%, 05/01/36 | $ | 103,660 | $ | 108,261 | ||||
Fannie Mae, | ||||||||
2.121%, 09/01/37 | 3,003,184 | 3,190,702 | ||||||
Fannie Mae, | ||||||||
2.336%, 09/01/39 | 3,104,111 | 3,293,778 | ||||||
Fannie Mae, | ||||||||
6.000%, 06/01/40 | 1,365,654 | 1,570,779 | ||||||
Fannie Mae, | ||||||||
4.000%, 01/01/41 | 2,933,824 | 3,125,616 | ||||||
Fannie Mae, | ||||||||
4.000%, 02/01/41 | 2,095,730 | 2,239,003 | ||||||
Fannie Mae, | ||||||||
3.500%, 10/01/41 | 2,080,443 | 2,153,890 | ||||||
Fannie Mae, | ||||||||
2.704%, 04/01/42 | 1,887,939 | 1,935,623 | ||||||
Fannie Mae, | ||||||||
3.500%, 07/01/42 | 2,538,669 | 2,621,072 | ||||||
Fannie Mae, | ||||||||
2.067%, 09/01/42 | 2,003,934 | 2,072,806 | ||||||
Fannie Mae, | ||||||||
2.800%, 09/01/43 | 3,299,080 | 3,461,546 | ||||||
Fannie Mae, | ||||||||
3.097%, 08/01/44 | 2,683,719 | 2,825,465 | ||||||
Fannie Mae, | ||||||||
4.000%, 01/01/45 | 2,952,223 | 3,134,713 | ||||||
Fannie Mae, | ||||||||
3.500%, 04/01/45 | 1,993,815 | 2,057,656 | ||||||
Fannie Mae, | ||||||||
4.000%, 06/01/45 | 2,801,356 | 2,992,727 | ||||||
79,252,269 | ||||||||
Commercial Mortgage-Backed: 0.5% | ||||||||
FREMF Mortgage Trust, 144A, | ||||||||
5.624%, 04/25/20 (c) |
| 3,264,000 |
| 3,660,501 | ||||
FREMF Mortgage Trust, 144A, | ||||||||
5.333%, 02/25/47 (c) | 3,300,000 | 3,674,745 | ||||||
FREMF Mortgage Trust, 144A, | ||||||||
4.756%, 01/25/48 (c) | 2,986,504 | 3,235,069 | ||||||
10,570,315 | ||||||||
TOTAL MORTGAGE-BACKED SECURITIES | ||||||||
(Cost $146,047,376) | 147,215,937 | |||||||
TOTAL BONDS | ||||||||
(Cost $622,970,695) | 625,313,754 | |||||||
CERTIFICATES OF DEPOSIT: 0.0% (g) | ||||||||
Hope Community Credit Union, | ||||||||
0.750%, 05/09/16 | 100,000 | 100,000 | ||||||
Urban Partnership Bank, | ||||||||
0.200%, 03/19/16 | 248,000 | 248,000 | ||||||
TOTAL CERTIFICATES OF DEPOSIT | ||||||||
(Cost $348,000) | 348,000 | |||||||
MONEY MARKET: 0.0% (g) | ||||||||
Self Help Credit Union Money Market Account | 418,507 | 418,507 | ||||||
(Cost $418,507) | ||||||||
TIME DEPOSIT: 0.4% | ||||||||
State Street Euro Dollar Time Deposit, | ||||||||
0.010%, 07/01/15 | 8,543,000 | 8,543,000 | ||||||
(Cost $8,543,000) |
SEE NOTES TO FINANCIAL STATEMENTS
53
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Balanced Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
SECURITIES PURCHASED WITH CASH COLLATERAL | ||||||||
FROM SECURITIES LENDING: 0.5% | ||||||||
State Street Navigator Securities Lending Prime Portfolio | 9,577,940 | $ | 9,577,940 | |||||
(Cost $9,577,940) | ||||||||
TOTAL INVESTMENTS: 100.2% | ||||||||
(Cost $1,747,524,306) | 1,953,300,897 | |||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— | ||||||||
(NET): -0.5% | (9,577,940 | ) | ||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): 0.3% | 5,097,382 | |||||||
NET ASSETS: 100.0% | $ | 1,948,820,339 |
(a) | Non-income producing security. |
(b) | Fair valued security. |
(c) | Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers. |
(d) | Security or partial position of this security was on loan as of June 30, 2015. The total market value of securities on loan as of June 30, 2015 was $9,373,663. |
(e) | Institutional Class shares - See Note C in the Notes to Financial Statements. |
(f) | Illiquid security. |
(g) | Rounds to less than 0.05%. |
LP | Limited Partnership |
REIT | Real Estate Investment Trust |
TIPS | Treasury Inflation Protected Securities |
SEE NOTES TO FINANCIAL STATEMENTS
54
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Growth Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 96.5% | ||||||||
Consumer Discretionary: 17.5% | ||||||||
Amazon.com, Inc. (a) | 6,750 | $ | 2,930,108 | |||||
BorgWarner, Inc. | 47,300 | 2,688,532 | ||||||
Home Depot, Inc., The | 13,500 | 1,500,255 | ||||||
Lowe's Cos., Inc. | 33,000 | 2,210,010 | ||||||
Macy's, Inc. | 48,500 | 3,272,295 | ||||||
Marriott International, Inc., Class A | 37,000 | 2,752,430 | ||||||
Newell Rubbermaid, Inc. | 92,000 | 3,782,119 | ||||||
NIKE, Inc., Class B | 31,278 | 3,378,650 | ||||||
Scripps Networks Interactive, Inc, Class A (c) | 34,500 | 2,255,265 | ||||||
Starbucks Corp. | 50,300 | 2,696,835 | ||||||
Time Warner, Inc. | 49,850 | 4,357,388 | ||||||
VF Corp. | 40,300 | 2,810,522 | ||||||
Walt Disney Co., The | 13,500 | 1,540,890 | ||||||
36,175,299 | ||||||||
Consumer Staples: 7.2% | ||||||||
Estee Lauder Cos, Inc., Class A | 35,800 | 3,102,428 | ||||||
General Mills, Inc. | 45,000 | 2,507,400 | ||||||
Keurig Green Mountain, Inc. (c) | 11,750 | 900,403 | ||||||
PepsiCo, Inc. | 59,180 | 5,523,861 | ||||||
Procter & Gamble Co., The | 35,600 | 2,785,344 | ||||||
14,819,436 | ||||||||
Financials: 9.4% | ||||||||
American Express Co. | 25,500 | 1,981,860 | ||||||
American Tower Corp., REIT | 33,450 | 3,120,551 | ||||||
CBRE Group, Inc., Class A (a) | 68,500 | 2,534,500 | ||||||
Morgan Stanley | 68,800 | 2,668,752 | ||||||
PNC Financial Services Group, Inc. | 51,200 | 4,897,280 | ||||||
State Street Corp. | 32,400 | 2,494,800 | ||||||
Weyerhaeuser Co., REIT | 53,500 | 1,685,250 | ||||||
19,382,993 | ||||||||
Health Care: 16.7% | ||||||||
Abbott Laboratories | 104,500 | 5,128,859 | ||||||
Agilent Technologies, Inc. | 56,500 | 2,179,770 | ||||||
Alexion Pharmaceuticals, Inc. (a) | 7,350 | 1,328,660 | ||||||
Biogen, Inc. (a) | 4,500 | 1,817,730 | ||||||
Bristol-Myers Squibb Co. | 40,500 |
| 2,694,870 | |||||
Celgene Corp. (a) | 27,000 | 3,124,845 | ||||||
Express Scripts Holding Co. (a) | 32,750 | 2,912,785 | ||||||
Gilead Sciences, Inc. | 31,150 | 3,647,042 | ||||||
Hologic, Inc. (a) | 47,250 | 1,798,335 | ||||||
Laboratory Corp of America Holdings (a) | 35,890 | 4,350,586 | ||||||
Mylan NV (a) | 26,000 | 1,764,360 | ||||||
Thermo Fisher Scientific, Inc. | 29,712 | 3,855,429 | ||||||
34,603,271 | ||||||||
Industrials: 12.9% | ||||||||
3M Co. | 30,000 | 4,628,999 | ||||||
Air Lease Corp. | 28,000 | 949,200 | ||||||
Cummins, Inc. | 17,500 | 2,295,825 | ||||||
Eaton Corp PLC | 37,050 | 2,500,505 | ||||||
Expeditors International of Washington, Inc. | 46,000 | 2,120,830 | ||||||
Landstar System, Inc. | 24,250 | 1,621,598 | ||||||
Quanta Services, Inc. (a) | 58,700 | 1,691,734 | ||||||
Roper Technologies, Inc. | 16,100 | 2,776,606 | ||||||
SolarCity Corp. (a)(c) | 31,675 | 1,696,196 | ||||||
Stanley Black & Decker, Inc. | 31,500 | 3,315,060 | ||||||
United Parcel Service, Inc., Class B | 32,201 | 3,120,599 | ||||||
26,717,152 | ||||||||
Information Technology: 27.7% (b) | ||||||||
Apple, Inc. | 96,925 | 12,156,817 | ||||||
Cognizant Technology Solutions, Class A (a) | 50,000 | 3,054,499 | ||||||
eBay, Inc. (a) | 50,750 | 3,057,179 | ||||||
EMC Corp. | 111,000 | 2,929,290 | ||||||
Facebook, Inc., Class A (a) | 31,500 | 2,701,598 | ||||||
Google, Inc., Class A (a) | 8,305 | 4,485,031 | ||||||
Google, Inc., Class C | 5,319 | 2,768,594 | ||||||
Ingram Micro, Inc., Class A (a) | 71,500 | 1,789,645 | ||||||
Intuit, Inc. | 20,400 | 2,055,708 | ||||||
MasterCard, Inc., Class A | 31,000 | 2,897,880 | ||||||
Microsoft Corp. | 69,000 | 3,046,350 | ||||||
Oracle Corp. | 58,820 | 2,370,446 |
SEE NOTES TO FINANCIAL STATEMENTS
55
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Growth Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Information Technology, continued | ||||||||
QUALCOMM, Inc. | 33,750 | $ | 2,113,763 | |||||
Red Hat, Inc. (a) | 23,200 | 1,761,576 | ||||||
salesforce.com, Inc. (a) | 35,250 | 2,454,458 | ||||||
SunPower Corp. (a)(c) | 55,750 | 1,583,858 | ||||||
Tableau Software, Inc., Class A (a) | 9,115 | 1,050,960 | ||||||
Texas Instruments, Inc. | 48,500 | 2,498,235 | ||||||
Visa, Inc., Class A | 39,000 | 2,618,850 | ||||||
57,394,737 | ||||||||
Materials: 2.5% | ||||||||
Nucor Corp. | 60,000 | 2,644,200 | ||||||
Praxair, Inc. | 21,500 | 2,570,325 | ||||||
5,214,525 | ||||||||
Telecommunication Services: 1.5% | ||||||||
Verizon Communications, Inc. | 46,370 | 2,161,306 | ||||||
Vodafone Group PLC, ADR | 27,729 | 1,010,722 | ||||||
3,172,028 | ||||||||
Utilities: 1.1% | ||||||||
American Water Works Co., Inc. | 47,404 | 2,305,257 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $134,293,965) | 199,784,698 | |||||||
TIME DEPOSIT: 3.6% | ||||||||
State Street Euro Dollar Time Deposit, | ||||||||
0.010%, 07/01/15 | $ | 7,343,000 | 7,343,000 | |||||
(Cost $7,343,000) | ||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL | ||||||||
FROM SECURITIES LENDING: 2.9% | ||||||||
State Street Navigator Securities Lending Prime Portfolio | 6,067,904 |
| 6,067,904 | |||||
(Cost $6,067,904) | ||||||||
TOTAL INVESTMENTS: 103.0% | ||||||||
(Cost $147,704,869) | 213,195,602 | |||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— | ||||||||
(NET): -2.9% | (6,067,904 | ) | ||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): -0.1% | (246,134 | ) | ||||||
NET ASSETS: 100.0% | $ | 206,881,564 |
(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, 2015. The total market value of securities on loan as of June 30, 2015 was $5,956,597. |
ADR | American Depositary Receipt |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
56
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Small Cap Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCK: 95.5% | ||||||||
Consumer Discretionary: 12.5% | ||||||||
Cabela's, Inc. (a)(b) | 237,800 | $ | 11,885,244 | |||||
Carter's, Inc. | 93,434 | 9,932,034 | ||||||
Jamba, Inc. (a)(b) | 406,042 | 6,289,591 | ||||||
Libbey, Inc. | 98,988 | 4,091,174 | ||||||
Men's Wearhouse, Inc., The | 132,129 | 8,465,505 | ||||||
Sally Beauty Holdings Inc (a) | 140,000 | 4,421,200 | ||||||
WCI Communities, Inc. (a) | 381,882 | 9,314,102 | ||||||
54,398,850 | ||||||||
Consumer Staple: 0.8% | ||||||||
Maple Leaf Foods Inc. | 187,800 | 3,562,035 | ||||||
Energy: 1.2% | ||||||||
Ultra Petroleum Corp. (a)(b) | 420,217 | 5,261,117 | ||||||
Financials: 25.7% (c) | ||||||||
Berkshire Hills Bancorp, Inc. | 238,592 | 6,795,100 | ||||||
Cape Bancorp, Inc. | 134,303 | 1,270,506 | ||||||
Capitol Federal Financial, Inc. | 1,219,068 | 14,677,579 | ||||||
FBR & Co. (a)(b) | 235,676 | 5,453,543 | ||||||
Fox Chase Bancorp, Inc. | 421,834 | 7,137,431 | ||||||
HomeTrust Bancshares, Inc. (a) | 483,554 | 8,104,365 | ||||||
Independent Bank Corp. | 236,828 | 11,104,865 | ||||||
Investors Bancorp, Inc. | 1,202,994 | 14,796,826 | ||||||
LaSalle Hotel Properties, REIT | 251,692 | 8,924,998 | ||||||
Meridian Bancorp, Inc. (a) | 801,407 | 10,746,868 | ||||||
Physicians Realty Trust, REIT | 433,117 | 6,652,677 | ||||||
United Financial Bancorp, Inc. | 349,039 | 4,694,575 | ||||||
White Mountains Insurance Group, Ltd. | 17,404 | 11,398,576 | ||||||
111,757,909 | ||||||||
Health Care: 13.7% | ||||||||
Brookdale Senior Living, Inc. (a) | 399,616 | 13,866,675 | ||||||
Cantel Medical Corp. | 167,074 | 8,966,862 | ||||||
Exactech, Inc. (a) | 208,295 | 4,338,785 | ||||||
Halyard Health, Inc. (a)(b) | 95,856 | 3,882,168 | ||||||
Natus Medical, Inc. (a) | 270,300 | 11,503,968 | ||||||
Quintiles Transnational Holdings, Inc. (a) | 92,077 |
| 6,685,711 | |||||
Sirona Dental Systems, Inc. (a) | 103,791 | 10,422,692 | ||||||
59,666,861 | ||||||||
Industrials: 13.4% | ||||||||
Essendant Inc | 205,938 | 8,083,067 | ||||||
ICF International, Inc. (a) | 108,443 | 3,780,323 | ||||||
Knoll, Inc. | 480,693 | 12,031,746 | ||||||
Lydall, Inc. (a) | 119,521 | 3,533,041 | ||||||
MRC Global, Inc. (a) | 567,551 | 8,762,987 | ||||||
NN, Inc. | 267,963 | 6,838,416 | ||||||
Oshkosh Corp. | 132,188 | 5,602,127 | ||||||
Thermon Group Holdings, Inc. (a) | 398,714 | 9,597,046 | ||||||
58,228,753 | ||||||||
Information Technology: 21.8% | ||||||||
ACI Worldwide, Inc. (a) | 434,954 | 10,686,820 | ||||||
ARRIS Group, Inc. (a) | 252,970 | 7,740,882 | ||||||
Amdocs, Ltd. | 173,676 | 9,480,973 | ||||||
ExlService Holdings, Inc. (a) | 297,405 | 10,284,265 | ||||||
Ingram Micro, Inc., Class A (a) | 481,550 | 12,053,197 | ||||||
Plantronics, Inc. | 94,989 | 5,348,831 | ||||||
Syntel, Inc. (a) | 232,765 | 11,051,682 | ||||||
Teradyne, Inc. | 311,223 | 6,003,490 | ||||||
TheStreet, Inc. | 1,371,653 | 2,482,692 | ||||||
TiVo, Inc. (a) | 823,070 | 8,345,930 | ||||||
Verint Systems, Inc. (a) | 168,777 | 10,252,359 | ||||||
Westell Technologies, Inc., Class A (a) | 1,250,986 | 1,238,476 | ||||||
94,969,597 | ||||||||
Materials: 2.1% | ||||||||
Axiall Corp. | 249,905 | 9,009,075 | ||||||
Utilities: 4.3% | ||||||||
Laclede Group, Inc., The | 230,771 | 12,013,938 | ||||||
Unitil Corp. | 203,426 | 6,717,127 | ||||||
18,731,065 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $404,909,753) | 415,585,262 |
SEE NOTES TO FINANCIAL STATEMENTS
57
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Small Cap Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
TIME DEPOSIT: 6.0% | ||||||||
State Street Euro Dollar Time Deposit, | ||||||||
0.010%, 07/01/15 | $ | 26,021,000 | $ | 26,021,000 | ||||
(Cost $26,021,000) | ||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL | ||||||||
FROM SECURITIES LENDING: 2.1% | ||||||||
State Street Navigator Securities Lending Prime Portfolio | 8,954,253 | 8,954,253 | ||||||
(Cost $8,954,253) | ||||||||
TOTAL INVESTMENTS: 103.6% | ||||||||
(Cost $439,885,006) | 450,560,515 | |||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— | ||||||||
(NET): -2.1% | (8,954,253 | ) | ||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): -1.5% | (6,645,069 | ) | ||||||
NET ASSETS: 100.0% | $ | 434,961,193 |
(a) | Non-income producing security. |
(b) | Security or partial position of this security was on loan as of June 30, 2015. The total market value of securities on loan as of June 30, 2015 was $8,698,233. |
(c) | Broad industry sectors used for financial reporting purposes. Diversification compliance testing is based on narrower industries within broad sector. |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
58
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World High Yield Bond Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 1.6% | ||||||||
Health Care: 0.0% | ||||||||
Interactive Health, Inc. (b)(c)(e) | 706 | $ | 0 | |||||
Telecommunications: 1.6% | ||||||||
T-Mobile US, Inc. (e) | 41,105 | 1,593,641 | ||||||
Verizon Communications, Inc. | 140,000 | 6,525,400 | ||||||
8,119,041 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $8,060,743) | 8,119,041 | |||||||
PREFERRED STOCKS: 2.4% | ||||||||
Banking: 0.8% | ||||||||
Goldman Sachs Group, Inc., The, | ||||||||
6.375%(d) | 77,400 | 2,010,078 | ||||||
Morgan Stanley, | ||||||||
6.375% | 78,400 | 1,996,064 | ||||||
4,006,142 | ||||||||
Energy: 0.2% | ||||||||
Vanguard Natural Resources LLC, | ||||||||
7.625% (b)(d) | 57,779 | 1,299,450 | ||||||
Financial Services: 1.4% | ||||||||
Hercules Tech Growth Capital, Inc., | ||||||||
6.250% (b)(d) | 276,125 | 6,972,156 | ||||||
Health Care: 0.0% | ||||||||
Interactive Health, Inc., | ||||||||
0.000% (b)(c) | 1,412 | 0 | ||||||
TOTAL PREFERRED STOCKS | ||||||||
(Cost $12,794,223) | 12,277,748 | |||||||
BONDS: 94.1% | ||||||||
CORPORATE BONDS: 85.9% | ||||||||
Automotive: 2.8% | ||||||||
Lear Corp., | ||||||||
5.375%, 03/15/24 | $ | 1,000,000 | 1,020,000 | |||||
Nexteer Automotive Group Ltd., 144A, | ||||||||
5.875%, 11/15/21 (a) | 6,000,000 | 6,180,000 | ||||||
Stackpole International Intermediate Co., 144A, | ||||||||
7.750%, 10/15/21 (a)(d) | 7,000,000 | 6,930,000 | ||||||
14,130,000 | ||||||||
Banking: 1.3% | ||||||||
Ally Financial, Inc., | ||||||||
4.125%, 03/30/20 | 500,000 | 500,310 | ||||||
Ally Financial, Inc., | ||||||||
4.625%, 03/30/25 | 500,000 | 477,500 | ||||||
Bank of America Corp., | ||||||||
1.350%, 11/21/16 (b) | 2,000,000 | 2,000,270 | ||||||
Citigroup Inc., | ||||||||
5.950%, 05/15/25 | 4,000,000 | 3,865,800 | ||||||
6,843,880 | ||||||||
Basic Industry: 10.2% | ||||||||
ArcelorMittal, | ||||||||
6.250%, 03/01/21 | 2,000,000 | 2,102,500 | ||||||
Brookfield Residential Properties, Inc., 144A, | ||||||||
6.375%, 05/15/25 (a) | 3,000,000 | 2,955,000 | ||||||
Kissner Milling Co., Ltd., 144A, | ||||||||
7.250%, 06/01/19 (a)(b) | 6,000,000 | 6,135,000 | ||||||
Lennar Corp., | ||||||||
4.750%, 05/30/25 | 4,000,000 | 3,900,000 | ||||||
Neenah Paper, Inc., 144A, | ||||||||
5.250%, 05/15/21 (a) | 4,500,000 | 4,533,750 | ||||||
Nexeo Solutions LLC/Finance Corp., | ||||||||
8.375%, 03/01/18 (b) | 5,000,000 | 4,650,000 | ||||||
Petra Diamonds US Treasury PLC, 144A, | ||||||||
8.250%, 05/31/20 (a)(d) | 4,000,000 | 4,080,000 | ||||||
Polymer Group, Inc., | ||||||||
7.750%, 02/01/19 | 603,000 | 622,598 | ||||||
Polymer Group, Inc., 144A, | ||||||||
6.875%, 06/01/19 (a) | 6,000,000 | 5,542,500 | ||||||
Sappi Papier Holding GmbH, 144A, | ||||||||
6.625%, 04/15/21 (a) | 6,750,000 | 7,036,874 | ||||||
Sappi Papier Holding GmbH, 144A, | ||||||||
7.500%, 06/15/32 (a) | 2,955,000 | 2,807,250 | ||||||
Taylor Morrison Communities, Inc., 144A, | ||||||||
5.875%, 04/15/23 (a) | 2,000,000 | 1,985,000 | ||||||
Taylor Morrison Communities, Inc., 144A, | ||||||||
5.625%, 03/01/24 (a) | 5,000,000 | 4,837,500 | ||||||
Zachry Holdings, Inc., 144A, | ||||||||
7.500%, 02/01/20 (a) | 1,000,000 | 1,000,000 | ||||||
52,187,972 | ||||||||
Capital Goods: 5.0% | ||||||||
CTP Transportation Products LLC/Finance, Inc., 144A, | ||||||||
8.250%, 12/15/19 (a) | 6,000,000 | 6,240,000 |
SEE NOTES TO FINANCIAL STATEMENTS
59
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World High Yield Bond Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
CORPORATE BONDS, continued | ||||||||
Capital Goods, continued | ||||||||
Milacron LLC/Mcron Finance Corp., 144A, | ||||||||
7.750%, 02/15/21 (a) | $ | 1,615,000 | $ | 1,671,525 | ||||
PaperWorks Industries, Inc., 144A, | ||||||||
9.500%, 08/15/19 (a) | 3,000,000 | 2,996,250 | ||||||
Plastipak Holdings, Inc., 144A, | ||||||||
6.500%, 10/01/21 (a) | 1,000,000 | 1,022,500 | ||||||
SPL Logistics Escrow LLC/Finance Corp., 144A, | ||||||||
8.875%, 08/01/20 (a) | 5,000,000 | 5,325,000 | ||||||
Unifrax I, LLC/Holding Co., 144A, | ||||||||
7.500%, 02/15/19 (a) | 6,916,000 | 6,985,160 | ||||||
Waterjet Holdings, Inc., 144A, | ||||||||
7.625%, 02/01/20 (a) | 1,400,000 | 1,463,000 | ||||||
25,703,435 | ||||||||
Consumer Goods: 0.8% | ||||||||
Apex Tool Group LLC, 144A, | ||||||||
7.000%, 02/01/21 (a) | 250,000 | 224,375 | ||||||
HJ Heinz Co., | ||||||||
6.375%, 07/15/28 | 1,000,000 | 1,120,000 | ||||||
KeHE Distributors, LLC/Finance Corp., 144A, | ||||||||
7.625%, 08/15/21 (a) | 2,500,000 | 2,631,250 | ||||||
3,975,625 | ||||||||
Energy: 9.9% | ||||||||
Carrizo Oil & Gas, Inc., | ||||||||
7.500%, 09/15/20 | 2,000,000 | 2,115,000 | ||||||
Chaparral Energy, Inc., | ||||||||
7.625%, 11/15/22 | 7,000,000 | 5,075,000 | ||||||
Energy XXI Gulf Coast, Inc., 144A, | ||||||||
11.000%, 03/15/20 (a)(d) | 4,000,000 | 3,520,000 | ||||||
Exterran Partners LP/EXLP Finance Corp., | ||||||||
6.000%, 04/01/21 | 2,250,000 | 2,182,500 | ||||||
Exterran Partners LP/EXLP Finance Corp., | ||||||||
6.000%, 10/01/22 | 2,000,000 | 1,910,000 | ||||||
Ferrellgas LP/Finance Corp., | ||||||||
6.750%, 01/15/22 | 3,600,000 | 3,627,000 | ||||||
Hilcorp Energy I LP/Finance Co., 144A, | ||||||||
5.750%, 10/01/25 (a) | 3,000,000 | 2,895,000 | ||||||
ION Geophysical Corp., | ||||||||
8.125%, 05/15/18 | 8,000,000 | 5,639,999 | ||||||
Laredo Petroleum, Inc., | ||||||||
7.375%, 05/01/22 |
| 4,350,000 |
| 4,600,125 | ||||
Laredo Petroleum, Inc., | ||||||||
6.250%, 03/15/23 | 2,285,000 | 2,336,413 | ||||||
PHI, Inc., | ||||||||
5.250%, 03/15/19 | 400,000 | 372,000 | ||||||
Rosetta Resources, Inc., | ||||||||
5.875%, 06/01/22 | 4,000,000 | 4,290,000 | ||||||
Rosetta Resources, Inc., | ||||||||
5.875%, 06/01/24 | 2,000,000 | 2,165,000 | ||||||
Sabine Pass Liquefaction, LLC, | ||||||||
5.625%, 02/01/21 | 1,710,000 | 1,752,750 | ||||||
Sabine Pass Liquefaction, LLC, | ||||||||
5.750%, 05/15/24 | 1,450,000 | 1,451,813 | ||||||
SM Energy Co., 144A, | ||||||||
6.125%, 11/15/22 (a) | 3,000,000 | 3,098,100 | ||||||
SM Energy Co., | ||||||||
6.500%, 01/01/23 | 430,000 | 442,900 | ||||||
SM Energy Co., | ||||||||
5.625%, 06/01/25 | 500,000 | 496,150 | ||||||
Vanguard Natural Resources LLC/Finance Corp., | ||||||||
7.875%, 04/01/20 | 2,500,000 | 2,400,000 | ||||||
50,369,750 | ||||||||
Financial Services: 3.9% | ||||||||
Fly Leasing, Ltd., | ||||||||
6.750%, 12/15/20 | 2,000,000 | 2,065,000 | ||||||
Fly Leasing, Ltd., | ||||||||
6.375%, 10/15/21 | 7,000,000 | 7,105,000 | ||||||
Jefferies Finance LLC, 144A, | ||||||||
7.500%, 04/15/21 (a) | 4,000,000 | 4,009,400 | ||||||
KCG Holdings, Inc., 144A, | ||||||||
6.875%, 03/15/20 (a) | 7,000,000 | 6,772,500 | ||||||
19,951,900 | ||||||||
Health Care: 4.9% | ||||||||
Endo Finance LLC/ Endo Ltd/ Endo Finco Inc., 144A, | ||||||||
6.000%, 07/15/23 (a) | 750,000 | 767,813 | ||||||
Hanger, Inc., | ||||||||
7.125%, 11/15/18 | 3,550,000 | 3,558,875 | ||||||
Hologic Inc, 144A, | ||||||||
5.250%, 07/15/22 (a) | 250,000 | 255,938 | ||||||
Kindred Healthcare, Inc., | ||||||||
6.375%, 04/15/22 | 2,500,000 | 2,506,250 |
SEE NOTES TO FINANCIAL STATEMENTS
60
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World High Yield Bond Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
CORPORATE BONDS, continued | ||||||||
Health Care, continued | ||||||||
Kindred Healthcare, Inc., 144A, | ||||||||
8.750%, 01/15/23 (a) | $ | 7,000,000 | $ | 7,630,000 | ||||
Mallinckrodt International Finance SA, | ||||||||
4.750%, 04/15/23 | 3,000,000 | 2,812,500 | ||||||
Mallinckrodt International Finance SA, 144A, | ||||||||
5.500%, 04/15/25 (a) | 2,250,000 | 2,190,938 | ||||||
Tenet Healthcare Corp, | ||||||||
6.875%, 11/15/31 | 3,600,000 | 3,348,000 | ||||||
THC Escrow Corp II, 144A, | ||||||||
6.750%, 06/15/23 (a) | 2,000,000 | 2,042,500 | ||||||
25,112,814 | ||||||||
Leisure: 0.1% | ||||||||
Viking Cruises, Ltd., 144A, | ||||||||
8.500%, 10/15/22 (a) | 500,000 | 557,500 | ||||||
Media: 15.6% | ||||||||
Altice Financing SA, 144A, | ||||||||
6.500%, 01/15/22 (a) | 4,000,000 | 4,010,000 | ||||||
Altice Financing SA, 144A, | ||||||||
6.625%, 02/15/23 (a) | 1,000,000 | 995,300 | ||||||
Altice Finco SA, 144A, | ||||||||
8.125%, 01/15/24 (a)(d) | 4,250,000 | 4,303,125 | ||||||
Columbus International, Inc., 144A, | ||||||||
7.375%, 03/30/21 (a) | 8,500,000 | 9,169,375 | ||||||
Dish DBS Corp., | ||||||||
5.875%, 07/15/22 | 2,000,000 | 1,965,000 | ||||||
Dish DBS Corp., | ||||||||
5.875%, 11/15/24 | 7,500,000 | 7,223,438 | ||||||
Expo Event Transco, Inc., 144A, | ||||||||
9.000%, 06/15/21 (a) | 9,050,000 | 9,411,999 | ||||||
Harland Clarke Holdings Corp., 144A, | ||||||||
6.875%, 03/01/20 (a) | 5,000,000 | 4,825,000 | ||||||
Harland Clarke Holdings Corp., 144A, | ||||||||
9.250%, 03/01/21 (a)(d) | 5,000,000 | 4,393,750 | ||||||
Lee Enterprises, Inc., 144A, | ||||||||
9.500%, 03/15/22 (a) | 3,520,000 | 3,594,800 | ||||||
Nexstar Broadcasting, Inc., 144A, | ||||||||
6.125%, 02/15/22 (a) | 3,000,000 | 3,052,500 | ||||||
Quad/Graphics, Inc., | ||||||||
7.000%, 05/01/22 | 7,000,000 | 6,842,500 | ||||||
Sirius XM Radio, Inc., 144A, | ||||||||
6.000%, 07/15/24 (a) | 2,950,000 | 2,986,875 | ||||||
Sirius XM Radio, Inc., 144A, | ||||||||
5.375%, 04/15/25 (a)(d) |
| 4,000,000 |
| 3,870,000 | ||||
TiVo, Inc., 144A, | ||||||||
2.000%, 10/01/21 (a)(d) | 1,000,000 | 915,625 | ||||||
Townsquare Media, Inc., 144A, | ||||||||
6.500%, 04/01/23 (a) | 2,000,000 | 1,987,500 | ||||||
Unitymedia GmbH, 144A, | ||||||||
6.125%, 01/15/25 (a) | 2,000,000 | 2,095,000 | ||||||
VTR Finance BV, 144A, | ||||||||
6.875%, 01/15/24 (a) | 7,500,000 | 7,682,625 | ||||||
79,324,412 | ||||||||
Real Estate: 2.6% | ||||||||
Forestar USA Real Estate Group, Inc., 144A, | ||||||||
8.500%, 06/01/22 (a) | 3,100,000 | 3,231,750 | ||||||
Kennedy-Wilson, Inc., | ||||||||
5.875%, 04/01/24 | 10,000,000 | 9,975,000 | ||||||
13,206,750 | ||||||||
Retail: 4.7% | ||||||||
CST Brands, Inc., | ||||||||
5.000%, 05/01/23 | 4,000,000 | 4,000,000 | ||||||
Ingles Markets, Inc., | ||||||||
5.750%, 06/15/23 | 10,000,000 | 10,213,000 | ||||||
Levi Strauss & Co., 144A, | ||||||||
5.000%, 05/01/25 (a)(d) | 100,000 | 97,250 | ||||||
Outerwall, Inc., | ||||||||
6.000%, 03/15/19 | 3,700,000 | 3,727,750 | ||||||
Outerwall, Inc., | ||||||||
5.875%, 06/15/21 | 1,000,000 | 940,000 | ||||||
Radio Systems Corp., 144A, | ||||||||
8.375%, 11/01/19 (a) | 2,350,000 | 2,496,875 | ||||||
Sally Holdings LLC/Capital, Inc., | ||||||||
5.750%, 06/01/22 | 2,425,000 | 2,540,188 | ||||||
24,015,063 | ||||||||
Services: 5.0% | ||||||||
Ahern Rentals, Inc., 144A, | ||||||||
7.375%, 05/15/23 (a) | 7,500,000 | 7,443,750 | ||||||
BlueLine Rental Finance Corp., 144A, | ||||||||
7.000%, 02/01/19 (a) | 4,100,000 | 4,233,250 | ||||||
Jurassic Holdings III, Inc., 144A, | ||||||||
6.875%, 02/15/21 (a) | 2,750,000 | 2,158,750 | ||||||
Michael Baker Holdings LLC/Finance Corp., 144A, | ||||||||
8.875%, 04/15/19 (a)(b) | 8,000,000 | 7,360,000 |
SEE NOTES TO FINANCIAL STATEMENTS
61
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World High Yield Bond Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
CORPORATE BONDS, continued | ||||||||
Services, continued | ||||||||
United Rentals North America, Inc., | ||||||||
7.375%, 05/15/20 | $ | 2,000,000 | $ | 2,143,980 | ||||
United Rentals North America, Inc., | ||||||||
5.750%, 11/15/24 | 2,000,000 | 1,980,000 | ||||||
25,319,730 | ||||||||
Technology & Electronics: 5.8% | ||||||||
BCP Singapore VI Cayman Financing Co., Ltd., 144A, | ||||||||
8.000%, 04/15/21 (a) | 4,500,000 | 4,550,625 | ||||||
Entegris, Inc., 144A, | ||||||||
6.000%, 04/01/22 (a) | 4,510,000 | 4,650,938 | ||||||
j2 Global, Inc., | ||||||||
8.000%, 08/01/20 | 7,000,000 | 7,594,999 | ||||||
Micron Technology, Inc., 144A, | ||||||||
5.250%, 08/01/23 (a) | 3,100,000 | 2,979,875 | ||||||
Micron Technology, Inc., 144A, | ||||||||
5.625%, 01/15/26 (a) | 3,000,000 | 2,778,750 | ||||||
Syncreon Group BV/Global Finance US, Inc., 144A, | ||||||||
8.625%, 11/01/21 (a) | 1,050,000 | 800,625 | ||||||
Syniverse Holdings, Inc., | ||||||||
9.125%, 01/15/19 | 7,013,000 | 6,206,505 | ||||||
29,562,317 | ||||||||
Telecommunications: 8.6% | ||||||||
B Communications, Ltd., 144A, | ||||||||
7.375%, 02/15/21 (a) | 7,750,000 | 8,350,624 | ||||||
CenturyLink, Inc., 144A, | ||||||||
5.625%, 04/01/25 (a) | 5,000,000 | 4,531,250 | ||||||
Cogent Communications Group, Inc., 144A, | ||||||||
5.375%, 03/01/22 (a) | 4,500,000 | 4,460,625 | ||||||
Eileme 2 AB, 144A, | ||||||||
11.625%, 01/31/20 (a) | 5,400,000 | 6,020,460 | ||||||
Frontier Communications Corp., | ||||||||
6.875%, 01/15/25 (d) | 7,000,000 | 5,880,000 | ||||||
Sprint Corp., | ||||||||
7.875%, 09/15/23 | 3,000,000 | 2,933,400 | ||||||
Sprint Corp., | ||||||||
7.125%, 06/15/24 | 4,500,000 | 4,185,450 | ||||||
Sprint Corp., | ||||||||
7.625%, 02/15/25 | 2,000,000 | 1,890,000 | ||||||
T-Mobile USA, Inc., | ||||||||
6.375%, 03/01/25 | 2,000,000 | 2,050,000 | ||||||
Windstream Services LLC, | ||||||||
7.750%, 10/01/21 |
| 4,000,000 |
| 3,680,000 | ||||
43,981,809 | ||||||||
Transportation: 4.6% | ||||||||
Air Canada, 144A, | ||||||||
7.750%, 04/15/21 (a)(d) | 7,500,000 | 8,025,000 | ||||||
Allegiant Travel Co., | ||||||||
5.500%, 07/15/19 | 1,500,000 | 1,518,750 | ||||||
Kenan Advantage Group, Inc., The, 144A, | ||||||||
8.375%, 12/15/18 (a) | 5,650,000 | 5,897,188 | ||||||
Navios Maritime Acquisition Corp./Finance US, Inc., 144A, | ||||||||
8.125%, 11/15/21 (a) | 8,000,000 | 7,910,000 | ||||||
23,350,938 | ||||||||
Utility: 0.1% | ||||||||
FPL Energy National Wind Portfolio LLC, 144A, | ||||||||
6.125%, 03/25/19 (a)(b) | 38,330 | 38,617 | ||||||
Ormat Funding Corp., | ||||||||
8.250%, 12/30/20 (b) | 391,228 | 401,009 | ||||||
439,626 | ||||||||
TOTAL CORPORATE BONDS | ||||||||
(Cost $446,331,444) | 438,033,521 | |||||||
LOANS: 6.7% | ||||||||
Energy: 1.1% | ||||||||
Green Plains Processing LLC, | ||||||||
6.500%, 06/30/20 (b) | 5,489,986 | 5,515,683 | ||||||
Health Care: 0.6% | ||||||||
Alvogen Pharma US, Inc., | ||||||||
1.000%, 04/22/22 (b) | 2,962,500 | 2,977,313 | ||||||
Media: 0.0% (f) | ||||||||
Lee Enterprises, Inc., | ||||||||
7.250%, 03/31/19 (b) | 195,000 | 196,219 | ||||||
Retail: 3.9% | ||||||||
Charlotte Russe, Inc., Term B, | ||||||||
6.750%, 05/21/19 (b) | 9,850,277 | 9,431,640 | ||||||
Jill Acquisition LLC, | ||||||||
1.000%, 05/04/22 | 3,000,000 | 3,000,000 |
SEE NOTES TO FINANCIAL STATEMENTS
62
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World High Yield Bond Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
BONDS, continued | ||||||||
LOANS, continued | ||||||||
Retail, continued | ||||||||
TOMS Shoes LLC, | ||||||||
1.000%, 10/31/20 (b) | $ | 7,980,000 | $ | 7,398,976 | ||||
19,830,616 | ||||||||
Technology & Electronics: 0.6% | ||||||||
Internap Corp., | ||||||||
6.000%, 11/26/19 | 2,915,202 | 2,944,354 | ||||||
Telecommunications: 0.5% | ||||||||
PRWireless, Inc., | ||||||||
1.000%, 06/27/20 (b) | 2,970,000 | 2,836,350 | ||||||
TOTAL LOANS | ||||||||
(Cost $34,379,677) | 34,300,535 | |||||||
U.S TREASURY NOTES: 1.5% | ||||||||
United States Treasury Note, | ||||||||
2.000%, 02/15/25 (d) | 8,000,000 | 7,773,128 | ||||||
(Cost $8,048,839) | ||||||||
TOTAL BONDS | ||||||||
(Cost $488,759,960) | 480,107,184 | |||||||
CERTIFICATES OF DEPOSIT: 0.2% | ||||||||
Beneficial State Bank, | ||||||||
1.100%, 01/21/18 | 200,000 | 200,000 | ||||||
Beneficial State Bank, FSB CDARS, | ||||||||
0.080%, 07/08/15 | 200,000 | 200,000 | ||||||
Beneficial State Bank, FSB CDARS, | ||||||||
0.080%, 10/15/15 | 100,000 | 100,000 | ||||||
Beneficial State Bank, | ||||||||
1.250%, 05/10/17 | 100,000 | 100,000 | ||||||
Self Help Credit Union, | ||||||||
0.800%, 01/04/16 | 100,000 | 100,000 | ||||||
Urban Partnership Bank, | ||||||||
0.300%, 07/01/15 | 100,539 | 100,539 | ||||||
Urban Partnership Bank, | ||||||||
0.200%, 08/03/15 | 100,000 | 100,000 | ||||||
TOTAL CERTIFICATES OF DEPOSIT | ||||||||
(Cost $900,539) | 900,539 | |||||||
TIME DEPOSIT: 1.2% | ||||||||
State Street Euro Dollar Time Deposit, | ||||||||
0.010%, 07/01/2015 |
| 5,932,000 |
| 5,932,000 | ||||
(Cost $5,932,000) | ||||||||
SECURITIES PURCHASED WITH CASH COLLATERAL | ||||||||
FROM SECURITIES LENDING: 6.8% | ||||||||
State Street Navigator Securities Lending Prime Portfolio | 34,635,950 | 34,635,950 | ||||||
(Cost $34,635,950) | ||||||||
TOTAL INVESTMENTS: 106.3% | ||||||||
(Cost $551,083,415) | 541,972,462 | |||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— | ||||||||
(NET): -6.8% | (34,635,950 | ) | ||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): 0.5% | 2,753,572 | |||||||
NET ASSETS: 100.0% | $ | 510,090,084 |
(a) | Security purchased pursuant to Rule 144A of the Securities Act of 1933 and may be resold only to qualified institutional buyers. |
(b) | Illiquid security. |
(c) | Fair valued security. |
(d) | Security or partial position of this security was on loan as of June 30, 2015. The total market value of securities on loan as of June 30, 2015 was $37,698,375. |
(e) | Non-income producing security. |
SEE NOTES TO FINANCIAL STATEMENTS
63
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Global Environmental Markets Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 97.4% | ||||||||
RENEWABLE & ALTERNATIVE ENERGY: 6.9% | ||||||||
Solar Energy Generation Equipment: 1.8% | ||||||||
Trina Solar, Ltd., ADR (a) | 382,300 | $ | 4,449,972 | |||||
Renewable Energy Developer & Independent Power Producers (IPPS) : 5.1% | ||||||||
Enel Green Power SpA | 3,363,368 | 6,574,729 | ||||||
Huaneng Renewables Corp., Ltd. | 14,246,000 | 5,707,619 | ||||||
12,282,348 | ||||||||
ENERGY EFFICIENCY: 35.3% | ||||||||
Power Network Efficiency: 3.3% | ||||||||
Itron, Inc. (a) | 67,485 | 2,324,183 | ||||||
Quanta Services, Inc. (a) | 195,900 | 5,645,838 | ||||||
7,970,021 | ||||||||
Industrial Energy Efficiency: 11.1% | ||||||||
Delta Electronics, Inc. | 428,000 | 2,189,595 | ||||||
GEA Group AG | 141,636 | 6,318,797 | ||||||
IMI PLC | 154,307 | 2,727,759 | ||||||
Regal Beloit Corp. | 80,400 | 5,836,235 | ||||||
Rockwell Automation, Inc. | 18,768 | 2,339,243 | ||||||
SMC Corp./Japan | 10,900 | 3,280,018 | ||||||
Spirax-Sarco Engineering PLC | 79,340 | 4,231,624 | ||||||
26,923,271 | ||||||||
Buildings Energy Efficiency: 10.4% | ||||||||
Acuity Brands, Inc. | 16,200 | 2,915,676 | ||||||
Ingersoll-Rand PLC | 87,500 | 5,899,250 | ||||||
Kingspan Group PLC | 223,335 | 5,392,782 | ||||||
Legrand SA | 104,580 | 5,885,959 | ||||||
Sekisui Chemical Co., Ltd. | 417,200 | 5,121,559 | ||||||
25,215,226 | ||||||||
Transport Energy Efficiency: 5.7% | ||||||||
BorgWarner, Inc. | 121,300 | 6,894,692 | ||||||
Delphi Automotive PLC | 80,600 | 6,858,254 | ||||||
13,752,946 | ||||||||
Consumer Energy Efficiency: 4.0% | ||||||||
Epistar Corp. | 2,200,000 | 2,940,336 | ||||||
Murata Manufacturing Co., Ltd. | 38,900 | 6,788,645 | ||||||
9,728,981 | ||||||||
Diversified Energy Efficiency: 0.8% | ||||||||
Siemens AG | 20,678 |
| 2,092,022 | |||||
WATER INFRASTRUCTURE & TECHNOLOGIES: 25.7% | ||||||||
Water Infrastructure: 13.7% | ||||||||
Beijing Enterprises Water Group, Ltd. (a) | 5,156,000 | 4,229,751 | ||||||
IDEX Corp. | 74,250 | 5,834,565 | ||||||
Pentair PLC | 103,050 | 7,084,688 | ||||||
Roper Technologies, Inc. | 26,800 | 4,621,928 | ||||||
Watts Water Technologies, Inc., Class A | 92,046 | 4,772,585 | ||||||
Xylem, Inc. | 188,100 | 6,972,867 | ||||||
33,516,384 | ||||||||
Water Treatment Equipment: 3.4% | ||||||||
Kemira Oyj | 419,476 | 4,767,358 | ||||||
Pall Corp. | 27,821 | 3,462,323 | ||||||
8,229,681 | ||||||||
Water Utilities: 8.6% | ||||||||
American Water Works Co., Inc. | 139,100 | 6,764,432 | ||||||
Cia de Saneamento Basico do Estado, ADR | 429,300 | 2,223,774 | ||||||
Pennon Group PLC | 460,077 | 5,860,841 | ||||||
Severn Trent PLC | 182,771 | 5,972,291 | ||||||
20,821,338 | ||||||||
POLLUTION CONTROL: 12.5% | ||||||||
Pollution Control Solutions: 3.7% | ||||||||
Donaldson Co., Inc. | 51,500 | 1,843,700 | ||||||
ENN Energy Holdings, Ltd. | 781,500 | 4,699,424 | ||||||
Umicore SA | 50,192 | 2,383,444 | ||||||
8,926,568 | ||||||||
Environmental Testing & Gas Sensing: 8.8% | ||||||||
Agilent Technologies, Inc. | 164,600 | 6,350,268 | ||||||
Applus Services SA (a) | 330,317 | 3,901,234 | ||||||
Horiba, Ltd. | 127,199 | 5,166,887 | ||||||
Thermo Fisher Scientific, Inc. | 46,300 | 6,007,888 | ||||||
21,426,277 |
SEE NOTES TO FINANCIAL STATEMENTS
64
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax World Global Environmental Markets Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
WASTE MANAGEMENT & TECHNOLOGIES: 8.5% | ||||||||
Hazardous Waste Management: 5.2% | ||||||||
Daiseki Co., Ltd. | 300,786 | $ | 5,818,375 | |||||
Stericycle, Inc. (a) | 50,250 | 6,728,977 | ||||||
12,547,352 | ||||||||
General Waste Management: 3.3% | ||||||||
Shanks Group PLC | 1,347,942 | 2,155,018 | ||||||
Suez Environnement Co. | 319,942 | 5,972,995 | ||||||
8,128,013 | ||||||||
FOOD, AGRICULTURE & FORESTRY: 4.2% | ||||||||
Logistics, Food Safety and Packaging: 1.5% | ||||||||
Sealed Air Corp. | 70,400 | 3,617,152 | ||||||
Sustainable and Efficient Agriculture: 2.7% | ||||||||
Marine Harvest ASA | 400,000 | 4,581,032 | ||||||
Trimble Navigation, Ltd. (a) | 81,700 | 1,916,682 | ||||||
6,497,714 | ||||||||
DIVERSIFIED ENVIRONMENTAL: 4.3% | ||||||||
Diversified Environmental: 4.3% | ||||||||
3M Co. | 29,800 | 4,598,140 | ||||||
Linde AG | 30,536 | 5,786,979 | ||||||
10,385,119 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $205,222,295) | 236,510,385 | |||||||
TOTAL INVESTMENTS: 97.4% | ||||||||
(Cost $205,222,295) | 236,510,385 | |||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): 2.6% | 6,331,457 | |||||||
NET ASSETS: 100.0% | $ | 242,841,842 |
(a) | Non-income producing security. |
ADR | American Depositary Receipt |
SUMMARY OF INVESTMENTS BY COUNTRY
Percent of Net Assets | Value | Percent | ||||||
Belgium | $ | 2,383,444 | 1.0 | % | ||||
Brazil | 2,223,774 | 0.9 | % | |||||
China | 14,857,014 | 6.1 | % | |||||
Finland | 4,767,358 | 2.0 | % | |||||
France | 11,858,954 | 4.9 | % | |||||
Germany | 14,197,798 | 5.8 | % | |||||
Hong Kong | 4,229,751 | 1.7 | % | |||||
Ireland | 18,376,720 | 7.6 | % | |||||
Italy | 6,574,729 | 2.7 | % | |||||
Japan | 26,175,485 | 10.8 | % | |||||
Norway | 4,581,032 | 1.9 | % | |||||
Spain | 3,901,234 | 1.6 | % | |||||
Taiwan | 5,129,927 | 2.1 | % | |||||
United Kingdom | 27,805,787 | 11.5 | % | |||||
United States | 89,447,378 | 36.8 | % | |||||
Other Assets and Liabilities - (Net) | 6,331,457 | 2.6 | % | |||||
Total | $ | 242,841,842 | 100.0 | % |
SEE NOTES TO FINANCIAL STATEMENTS
65
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax MSCI International ESG Index Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 98.9% | ||||||||
Australia: 8.3% | ||||||||
Amcor, Ltd. | 74,913 | $ | 791,643 | |||||
AMP, Ltd. | 142,817 | 662,715 | ||||||
APA Group | 74,010 | 470,078 | ||||||
Australia & New Zealand Banking Group, Ltd | 142,336 | 3,532,375 | ||||||
Brambles, Ltd. | 75,232 | 613,721 | ||||||
Caltex Australia, Ltd. | 19,621 | 481,659 | ||||||
Commonwealth Bank of Australia | 80,964 | 5,309,369 | ||||||
Goodman Group, REIT | 123,484 | 596,388 | ||||||
GPT Group, The, REIT | 93,704 | 308,910 | ||||||
Insurance Australia Group, Ltd. | 96,847 | 416,381 | ||||||
Lend Lease Group | 39,065 | 451,679 | ||||||
Mirvac Group, REIT | 418,144 | 595,721 | ||||||
National Australia Bank, Ltd. | 136,436 | 3,504,231 | ||||||
Newcrest Mining, Ltd. (a) | 46,852 | 471,759 | ||||||
QBE Insurance Group, Ltd. | 72,662 | 765,138 | ||||||
Ramsay Health Care, Ltd. | 7,921 | 375,201 | ||||||
Stockland, REIT | 167,158 | 527,838 | ||||||
Transurban Group | 114,793 | 823,020 | ||||||
Wesfarmers, Ltd. | 62,148 | 1,868,985 | ||||||
Westpac Banking Corp. | 161,307 | 3,991,059 | ||||||
Woodside Petroleum, Ltd. | 40,405 | 1,066,153 | ||||||
27,624,023 | ||||||||
Austria: 0.1% | ||||||||
OMV AG | 10,694 | 294,403 | ||||||
Belgium: 0.5% | ||||||||
Colruyt SA | 8,228 | 369,091 | ||||||
Delhaize Group | 4,277 | 347,879 | ||||||
KBC Groep NV | 15,084 | 1,011,203 | ||||||
1,728,173 | ||||||||
Denmark: 2.3% | ||||||||
Coloplast A/S, Class B | 2,764 | 181,272 | ||||||
Novo Nordisk A/S, Class B | 99,008 | 5,433,050 | ||||||
Novozymes A/S, Class B | 14,629 | 695,033 | ||||||
Pandora A/S | 7,400 | 794,051 | ||||||
Vestas Wind Systems A/S | 13,831 | 689,386 | ||||||
7,792,792 | ||||||||
Finland: 0.4% | ||||||||
Stora Enso OYJ, Class R | 33,784 | 348,152 | ||||||
UPM-Kymmene OYJ | 26,288 | 465,190 | ||||||
Wartsila OYJ Abp | 11,548 | 541,104 | ||||||
1,354,446 | ||||||||
France: 8.3% | ||||||||
Accor SA | 14,254 |
| 721,396 | |||||
Air Liquide SA | 17,631 | 2,237,208 | ||||||
Atos SE | 5,373 | 401,488 | ||||||
AXA SA | 104,294 | 2,644,044 | ||||||
Bouygues SA | 13,145 | 491,445 | ||||||
Bureau Veritas SA | 25,635 | 590,937 | ||||||
Cap Gemini SA | 6,669 | 591,650 | ||||||
Carrefour SA (a) | 25,259 | 811,660 | ||||||
Christian Dior SE | 2,479 | 485,311 | ||||||
Cie de Saint-Gobain | 23,710 | 1,070,302 | ||||||
Danone SA | 32,788 | 2,123,822 | ||||||
Essilor International SA | 10,849 | 1,299,715 | ||||||
Gecina SA, REIT | 3,226 | 397,594 | ||||||
Kering | 3,882 | 694,051 | ||||||
Lafarge SA | 10,577 | 699,320 | ||||||
Legrand SA | 13,999 | 787,890 | ||||||
L'Oreal SA | 13,453 | 2,407,022 | ||||||
Natixis SA | 45,242 | 326,527 | ||||||
Renault SA | 8,477 | 888,791 | ||||||
Rexel SA | 16,958 | 273,645 | ||||||
Schneider Electric SE | 26,081 | 1,805,822 | ||||||
Societe BIC SA | 3,046 | 485,604 | ||||||
Suez Environnement Co. | 23,972 | 447,533 | ||||||
Technip SA | 4,442 | 275,289 | ||||||
Unibail-Rodamco SE, REIT | 5,399 | 1,371,371 | ||||||
Vallourec SA | 3,028 | 61,861 | ||||||
Vinci SA | 25,046 | 1,453,612 | ||||||
Vivendi SA | 62,671 | 1,589,122 | ||||||
Wendel SA | 1,039 | 127,672 | ||||||
27,561,704 | ||||||||
Germany: 7.5% | ||||||||
adidas AG | 8,993 | 688,093 | ||||||
Allianz SE | 22,220 | 3,465,231 | ||||||
BASF SE | 44,141 | 3,884,095 | ||||||
Bayerische Motoren Werke AG | 19,109 | 2,010,783 | ||||||
Beiersdorf AG | 7,057 | 591,308 | ||||||
Deutsche Boerse AG | 9,730 | 805,912 | ||||||
Deutsche Lufthansa AG (a) | 5,874 | 75,787 | ||||||
Deutsche Post AG | 46,737 | 1,365,621 | ||||||
Fraport AG Frankfurt Airport Svc Worldwide | 5,268 | 330,895 | ||||||
GEA Group AG | 9,492 | 423,466 | ||||||
HeidelbergCement AG | 6,296 | 499,001 | ||||||
Henkel AG & Co. KGaA | 16,526 | 1,720,595 | ||||||
K+S AG | 15,357 | 647,571 |
SEE NOTES TO FINANCIAL STATEMENTS
66
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Germany, continued | ||||||||
Linde AG | 9,272 | $ | 1,757,168 | |||||
Merck KGaA | 5,454 | 543,710 | ||||||
METRO AG | 15,290 | 482,921 | ||||||
Muenchener Rueckversicherungs AG | 8,331 | 1,477,038 | ||||||
ProSiebenSat.1 Media AG | 10,564 | 521,799 | ||||||
SAP SE | 46,867 | 3,284,265 | ||||||
TUI AG | 23,871 | 386,239 | ||||||
24,961,498 | ||||||||
Hong Kong: 1.7% | ||||||||
CLP Holdings, Ltd. | 72,000 | 611,003 | ||||||
Hang Seng Bank, Ltd. | 48,200 | 941,392 | ||||||
Hong Kong & China Gas Co., Ltd. | 400,400 | 840,012 | ||||||
Hong Kong Exchanges and Clearing, Ltd. | 59,985 | 2,113,544 | ||||||
Li & Fung, Ltd. | 410,000 | 325,036 | ||||||
MTR Corp. Ltd. | 25,500 | 118,476 | ||||||
Swire Pacific, Ltd., Class A | 42,500 | 534,219 | ||||||
Swire Properties Ltd. | 61,400 | 195,439 | ||||||
5,679,121 | ||||||||
Ireland: 0.5% | ||||||||
CRH PLC | 45,623 | 1,286,246 | ||||||
Kerry Group PLC, Class A | 7,003 | 519,488 | ||||||
1,805,734 | ||||||||
Israel: 0.0% (b) | ||||||||
Delek Group, Ltd. | 221 | 65,159 | ||||||
Italy: 1.6% | ||||||||
Assicurazioni Generali SpA | 78,631 | 1,417,227 | ||||||
Atlantia SpA | 20,047 | 495,318 | ||||||
Intesa Sanpaolo SpA | 640,390 | 2,325,565 | ||||||
Pirelli & C. SpA | 6,171 | 104,149 | ||||||
Snam SpA | 122,311 | 582,080 | ||||||
Terna Rete Elettrica Nazionale | 98,450 | 435,321 | ||||||
5,359,660 | ||||||||
Japan: 22.9% | ||||||||
Aeon Co., Ltd. | 27,500 | 390,227 | ||||||
Aisin Seiki Co., Ltd. | 16,200 | 688,812 | ||||||
Ajinomoto Co., Inc. | 32,000 | 692,008 | ||||||
Asahi Glass Co., Ltd. | 54,000 | 324,191 | ||||||
Asahi Kasei Corp. | 85,000 | 697,220 | ||||||
Asics Corp. | 13,700 | 353,915 | ||||||
Astellas Pharma, Inc. | 121,900 | 1,736,568 | ||||||
Benesse Corp. | 3,800 |
| 95,264 | |||||
Casio Computer Co., Ltd. | 18,300 | 360,962 | ||||||
Central Japan Railway Co. | 8,700 | 1,569,954 | ||||||
Chugai Pharmaceutical Co., Ltd. | 12,600 | 434,616 | ||||||
Citizen Holdings Co., Ltd. | 17,500 | 122,093 | ||||||
Dai Nippon Printing Co., Ltd. | 31,000 | 319,884 | ||||||
Daikin Industries, Ltd. | 9,500 | 682,940 | ||||||
Daiwa House Industry Co., Ltd. | 38,000 | 885,322 | ||||||
Denso Corp. | 25,500 | 1,268,704 | ||||||
Dentsu, Inc. | 12,400 | 641,484 | ||||||
East Japan Railway Co. | 17,200 | 1,546,266 | ||||||
Eisai Co., Ltd. | 13,700 | 918,511 | ||||||
Fast Retailing Co., Ltd. | 2,500 | 1,133,678 | ||||||
Fuji Heavy Industries, Ltd. | 34,800 | 1,279,623 | ||||||
Fujitsu, Ltd. | 78,000 | 435,813 | ||||||
Hitachi Chemical Co., Ltd. | 6,000 | 108,066 | ||||||
Hitachi Construction Machinery Co., Ltd. | 16,200 | 283,589 | ||||||
Honda Motor Co., Ltd. | 87,500 | 2,827,985 | ||||||
Ibiden Co., Ltd. | 7,100 | 120,071 | ||||||
Inpex Corp. | 46,100 | 523,279 | ||||||
JFE Holdings, Inc. | 22,000 | 487,429 | ||||||
Kajima Corp. | 36,000 | 169,084 | ||||||
Kao Corp. | 31,900 | 1,483,572 | ||||||
Kawasaki Heavy Industries, Ltd. | 69,000 | 321,622 | ||||||
KDDI Corp. | 89,900 | 2,169,462 | ||||||
Keyence Corp. | 2,500 | 1,347,441 | ||||||
Kobe Steel, Ltd. | 177,000 | 297,787 | ||||||
Komatsu, Ltd. | 44,700 | 896,830 | ||||||
Konica Minolta, Inc. | 29,000 | 338,000 | ||||||
Kubota Corp. | 71,000 | 1,125,802 | ||||||
Kyocera Corp. | 17,700 | 920,266 | ||||||
Mazda Motor Corp. | 38,800 | 759,269 | ||||||
Mitsubishi Corp. | 67,200 | 1,477,325 | ||||||
Mitsubishi Electric Corp. | 110,000 | 1,420,396 | ||||||
Mitsubishi Materials Corp. | 95,000 | 364,773 | ||||||
Mitsubishi Motors Corp. | 31,700 | 269,578 | ||||||
Mitsubishi UFJ Lease & Finance Co., Ltd. | 40,200 | 219,832 | ||||||
Mitsui Fudosan Co., Ltd. | 49,000 | 1,371,162 | ||||||
Mitsui OSK Lines, Ltd. | 92,000 | 294,491 | ||||||
Mizuho Financial Group, Inc. | 1,242,500 | 2,688,438 |
SEE NOTES TO FINANCIAL STATEMENTS
67
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Japan, continued | ||||||||
Murata Manufacturing Co., Ltd. | 10,600 | $ | 1,849,862 | |||||
NEC Corp. | 146,000 | 441,818 | ||||||
NGK Insulators, Ltd. | 14,000 | 360,235 | ||||||
NGK Spark Plug Co., Ltd. | 7,000 | 193,859 | ||||||
Nikon Corp. | 22,200 | 256,559 | ||||||
Nippon Paint Holdings Co., Ltd. | 12,000 | 338,167 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 390,000 | 1,011,213 | ||||||
Nippon Telegraph & Telephone Corp. | 42,400 | 1,535,547 | ||||||
Nissan Motor Co., Ltd. | 125,600 | 1,312,137 | ||||||
Nitto Denko Corp. | 8,100 | 665,191 | ||||||
NSK, Ltd. | 22,000 | 339,223 | ||||||
NTT Data Corp. | 7,700 | 336,264 | ||||||
NTT DOCOMO, Inc. | 58,900 | 1,130,794 | ||||||
Obayashi Corp. | 48,000 | 350,023 | ||||||
Omron Corp. | 11,200 | 486,508 | ||||||
Oriental Land Co., Ltd./Japan | 10,600 | 676,165 | ||||||
Osaka Gas Co., Ltd. | 60,000 | 236,808 | ||||||
Panasonic Corp. | 104,600 | 1,432,623 | ||||||
Resona Holdings, Inc. | 151,700 | 827,391 | ||||||
Ricoh Co., Ltd. | 45,000 | 466,153 | ||||||
Santen Pharmaceutical Co., Ltd. | 29,000 | 410,313 | ||||||
Secom Co., Ltd. | 11,500 | 747,104 | ||||||
Sekisui Chemical Co., Ltd. | 16,000 | 196,416 | ||||||
Sekisui House, Ltd. | 34,800 | 552,657 | ||||||
Seven & i Holdings Co., Ltd. | 45,000 | 1,931,653 | ||||||
Sharp Corp./Japan (a) | 28,000 | 34,023 | ||||||
Shimizu Corp. | 63,000 | 530,179 | ||||||
Shin-Etsu Chemical Co., Ltd. | 23,400 | 1,451,055 | ||||||
Sompo Japan Nipponkoa Holdings, Inc. | 20,000 | 732,325 | ||||||
Sony Corp. (a) | 57,500 | 1,632,819 | ||||||
Sumitomo Chemical Co., Ltd. | 86,000 | 516,723 | ||||||
Sumitomo Corp. | 59,700 | 694,873 | ||||||
Sumitomo Electric Industries, Ltd. | 46,000 | 711,958 | ||||||
Sumitomo Metal Mining Co., Ltd. | 36,000 | 547,523 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 66,200 | 2,947,170 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 188,000 |
| 860,025 | |||||
Suzuken Co., Ltd. | 14,400 | 460,699 | ||||||
Sysmex Corp. | 6,400 | 381,168 | ||||||
T&D Holdings, Inc. | 36,500 | 544,124 | ||||||
Takeda Pharmaceutical Co., Ltd. | 48,400 | 2,336,203 | ||||||
TDK Corp. | 9,000 | 689,152 | ||||||
Toho Gas Co., Ltd. | 57,000 | 337,447 | ||||||
Tokyo Electron, Ltd. | 11,700 | 743,617 | ||||||
Tokyo Gas Co., Ltd. | 174,000 | 923,710 | ||||||
Tokyu Corp. | 58,000 | 388,174 | ||||||
Toray Industries, Inc. | 94,000 | 794,553 | ||||||
TOTO, Ltd. | 17,000 | 306,406 | ||||||
Toyota Industries Corp. | 8,200 | 466,960 | ||||||
Yakult Honsha Co., Ltd. | 6,000 | 355,377 | ||||||
Yamaha Motor Co., Ltd. | 22,300 | 487,248 | ||||||
76,821,798 | ||||||||
Luxembourg: 0.3% | ||||||||
SES SA | 14,836 | 498,756 | ||||||
Subsea 7 SA | 9,756 | 95,426 | ||||||
Tenaris SA | 26,307 | 354,836 | ||||||
949,018 | ||||||||
Netherlands: 4.7% | ||||||||
Aegon NV | 70,604 | 520,930 | ||||||
Akzo Nobel NV | 12,349 | 901,589 | ||||||
ASML Holding NV | 17,317 | 1,801,269 | ||||||
CNH Industrial NV | 68,843 | 628,188 | ||||||
Gemalto NV | 3,074 | 274,778 | ||||||
ING Groep NV | 184,476 | 3,063,291 | ||||||
Koninklijke Ahold NV | 42,518 | 798,175 | ||||||
Koninklijke DSM NV | 7,913 | 459,430 | ||||||
Koninklijke KPN NV | 124,716 | 478,141 | ||||||
Koninklijke Philips NV | 49,176 | 1,255,092 | ||||||
NN Group NV | 14,112 | 397,426 | ||||||
Reed Elsevier NV | 38,998 | 927,594 | ||||||
Unilever NV | 81,163 | 3,393,354 | ||||||
Wolters Kluwer NV | 22,391 | 666,440 | ||||||
15,565,697 | ||||||||
New Zealand: 0.1% | ||||||||
Auckland International Airport, Ltd. | 59,347 | 198,628 |
SEE NOTES TO FINANCIAL STATEMENTS
68
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Norway: 0.9% | ||||||||
DNB ASA | 40,688 | $ | 677,602 | |||||
Norsk Hydro ASA | 44,550 | 186,973 | ||||||
Statoil ASA | 65,018 | 1,162,717 | ||||||
Telenor ASA | 42,870 | 939,918 | ||||||
2,967,210 | ||||||||
Portugal: 0.2% | ||||||||
EDP - Energias de Portugal SA | 124,440 | 474,116 | ||||||
Galp Energia SGPS SA | 19,067 | 224,443 | ||||||
698,559 | ||||||||
Singapore: 1.5% | ||||||||
CapitaLand, Ltd. | 133,000 | 345,370 | ||||||
City Developments, Ltd. | 51,000 | 370,083 | ||||||
DBS Group Holdings, Ltd. | 94,400 | 1,448,440 | ||||||
Keppel Corp., Ltd. | 69,000 | 420,563 | ||||||
Singapore Press Holdings, Ltd. | 234,000 | 708,482 | ||||||
Singapore Telecommunications, Ltd. | 526,000 | 1,641,497 | ||||||
4,934,435 | ||||||||
Spain: 3.5% | ||||||||
Abertis Infraestructuras SA | 14,187 | 232,981 | ||||||
Amadeus IT Holding SA, Class A | 25,970 | 1,036,728 | ||||||
Banco Bilbao Vizcaya Argentaria SA | 309,011 | 3,044,979 | ||||||
CaixaBank SA | 118,297 | 550,471 | ||||||
Distribuidora Internacional de Alimentacion SA | 61,020 | 467,631 | ||||||
Enagas | 15,341 | 417,619 | ||||||
Ferrovial SA | 21,447 | 465,966 | ||||||
Iberdrola SA | 275,204 | 1,858,051 | ||||||
Inditex SA | 59,542 | 1,942,099 | ||||||
Red Electrica Corp. SA | 9,666 | 776,177 | ||||||
Repsol SA | 44,922 | 791,778 | ||||||
11,584,480 | ||||||||
Sweden: 4.2% | ||||||||
Alfa Laval AB | 16,495 | 290,328 | ||||||
Assa Abloy AB (a) | 44,229 | 832,646 | ||||||
Atlas Copco AB, Class A | 30,878 | 863,914 | ||||||
Atlas Copco AB, Class B | 16,772 | 417,801 | ||||||
Boliden AB | 17,421 | 317,597 | ||||||
Electrolux AB, Class B | 12,403 | 388,625 | ||||||
Hennes & Mauritz AB, Class B | 46,267 | 1,780,757 | ||||||
Investment AB Kinnevik, Class B | 16,196 |
| 512,277 | |||||
Nordea Bank AB | 158,738 | 1,979,741 | ||||||
Sandvik AB | 69,200 | 765,026 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 56,192 | 718,771 | ||||||
Skanska AB, Class B | 21,383 | 433,306 | ||||||
SKF AB, Class B | 25,971 | 592,606 | ||||||
Svenska Cellulosa AB SCA, Class B | 45,368 | 1,153,626 | ||||||
Swedbank AB, Class A | 48,970 | 1,141,707 | ||||||
TeliaSonera AB | 141,684 | 835,048 | ||||||
Volvo AB, Class B | 75,622 | 939,038 | ||||||
13,962,814 | ||||||||
Switzerland: 9.3% | ||||||||
Actelion, Ltd. (a) | 5,023 | 735,626 | ||||||
Aryzta AG (a) | 4,950 | 243,556 | ||||||
Chocoladefabriken Lindt & Spruengli AG | 86 | 454,886 | ||||||
Geberit AG | 2,120 | 706,796 | ||||||
Givaudan SA (a) | 465 | 805,057 | ||||||
Holcim, Ltd. (a) | 10,202 | 752,760 | ||||||
Kuehne & Nagel International AG | 2,240 | 297,434 | ||||||
Lonza Group AG (a) | 2,933 | 392,040 | ||||||
Novartis AG | 117,241 | 11,531,878 | ||||||
Roche Holding AG | 35,692 | 10,007,731 | ||||||
SGS SA | 256 | 466,840 | ||||||
Swiss Re AG | 18,480 | 1,635,900 | ||||||
Swisscom AG | 1,671 | 936,506 | ||||||
Zurich Insurance Group AG (a) | 7,294 | 2,220,510 | ||||||
31,187,520 | ||||||||
United Kingdom: 20.1% | ||||||||
3i Group PLC | 43,891 | 356,140 | ||||||
Aberdeen Asset Management PLC | 37,141 | 235,587 | ||||||
Aggreko PLC | 19,499 | 440,430 | ||||||
Associated British Foods PLC | 18,900 | 851,675 | ||||||
Aviva PLC | 205,363 | 1,590,614 | ||||||
Barratt Developments PLC | 55,591 | 536,193 | ||||||
BG Group PLC | 171,832 | 2,861,830 | ||||||
British Land Co. PLC, The, REIT | 49,793 | 620,226 | ||||||
BT Group PLC | 400,072 | 2,833,047 |
SEE NOTES TO FINANCIAL STATEMENTS
69
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax MSCI International ESG Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
United Kingdom, continued | ||||||||
Bunzl PLC | 25,614 | $ | 698,735 | |||||
Burberry Group PLC | 27,688 | 683,073 | ||||||
Capita PLC | 44,528 | 865,207 | ||||||
Centrica PLC | 7,752 | 32,167 | ||||||
Croda International PLC | 7,471 | 323,039 | ||||||
GKN PLC | 119,834 | 629,587 | ||||||
GlaxoSmithKline PLC | 231,023 | 4,803,417 | ||||||
Hammerson PLC, REIT | 56,324 | 544,332 | ||||||
HSBC Holdings PLC | 939,548 | 8,413,095 | ||||||
InterContinental Hotels Group PLC | 12,193 | 491,582 | ||||||
Intertek Group PLC | 12,284 | 472,319 | ||||||
ITV PLC | 178,826 | 739,881 | ||||||
Johnson Matthey PLC | 15,379 | 733,396 | ||||||
Kingfisher PLC | 148,647 | 810,793 | ||||||
Land Securities Group PLC, REIT | 42,017 | 794,502 | ||||||
Legal & General Group PLC | 294,331 | 1,150,852 | ||||||
London Stock Exchange Group PLC | 14,497 | 539,298 | ||||||
Marks & Spencer Group PLC | 93,027 | 784,769 | ||||||
Meggitt PLC | 59,384 | 434,853 | ||||||
Mondi PLC | 22,231 | 478,617 | ||||||
National Grid PLC | 188,653 | 2,428,120 | ||||||
Next PLC | 8,456 | 989,706 | ||||||
Old Mutual PLC | 303,793 | 961,612 | ||||||
Pearson PLC | 48,682 | 921,767 | ||||||
Petrofac, Ltd. | 20,368 | 296,369 | ||||||
Prudential PLC | 122,606 | 2,954,749 | ||||||
Reckitt Benckiser Group PLC | 31,844 | 2,746,043 | ||||||
Reed Elsevier PLC | 65,276 | 1,060,779 | ||||||
Rexam PLC | 63,482 | 550,582 | ||||||
RSA Insurance Group PLC | 76,745 | 478,566 | ||||||
Schroders PLC | 9,084 | 453,262 | ||||||
Smiths Group PLC | 30,499 | 540,614 | ||||||
SSE PLC | 53,998 | 1,303,209 | ||||||
Standard Chartered PLC | 122,593 | 1,963,253 | ||||||
Standard Life PLC | 102,742 | 716,422 | ||||||
Taylor Wimpey PLC | 171,537 | 500,249 | ||||||
Tesco PLC | 492,519 | 1,640,964 | ||||||
Tullow Oil PLC | 68,703 | 367,168 | ||||||
Unilever PLC | 63,141 | 2,711,220 | ||||||
United Utilities Group PLC | 44,606 | 624,768 | ||||||
Vodafone Group PLC | 1,282,250 | 4,677,510 | ||||||
Whitbread PLC | 8,862 | 688,482 | ||||||
William Hill PLC | 21,748 | 137,761 | ||||||
Wolseley PLC | 16,713 |
| 1,065,860 | |||||
WPP PLC | 71,507 | 1,605,059 | ||||||
67,133,350 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $327,057,853) | 330,230,222 | |||||||
EXCHANGE TRADED FUNDS: 0.5% | ||||||||
iShares MSCI EAFE ETF | 24,080 | 1,528,839 | ||||||
(Cost $1,567,521) | ||||||||
RIGHTS: 0.0% (b) | ||||||||
Spain: 0.0% (b) | ||||||||
Abertis Infraestructuras SA, Expires 07/03/15 (a) | 14,187 | 11,704 | ||||||
Repsol SA, Expires 07/09/15 (a) | 44,922 | 23,288 | ||||||
(Cost $38,858) | 34,992 | |||||||
TIME DEPOSIT: 0.1% | ||||||||
State Street Euro Dollar Time Deposit, | ||||||||
0.010%, 07/01/15 | $ | 417,000 | 417,000 | |||||
(Cost $417,000) | ||||||||
TOTAL INVESTMENTS: 99.5% | ||||||||
(Cost $329,081,232) | 332,211,053 | |||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): 0.5% | 1,681,717 | |||||||
NET ASSETS: 100.0% | $ | 333,892,770 |
(a) | Non-income producing security. |
(b) | Rounds to less than 0.05%. |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
70
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax MSCI International ESG Index Fund, continued
SUMMARY OF INVESTMENTS BY COUNTRY
Percent of Net Assets | Value | Percent | ||||||
Consumer Discretionary | $ | 44,333,953 | 13.3 | % | ||||
Consumer Staples | 30,556,738 | 9.2 | % | |||||
Energy | 8,860,507 | 2.7 | % | |||||
Financials | 91,291,582 | 27.2 | % | |||||
Health Care | 41,981,716 | 12.6 | % | |||||
Industrials | 40,971,674 | 12.3 | % | |||||
Information Technology | 15,687,236 | 4.7 | % | |||||
Materials | 26,571,127 | 8.0 | % | |||||
Telecommunication Services | 17,177,470 | 5.1 | % | |||||
Utilities | 12,798,219 | 3.8 | % | |||||
Exchange Traded Funds | 1,528,839 | 0.5 | % | |||||
Rights | 34,992 | 0.0 | %* | |||||
Time Deposit | 417,000 | 0.1 | % | |||||
Other Assets and Liabilities - (Net) | 1,681,717 | 0.5 | % | |||||
Total | $ | 333,892,770 | 100.0 | % |
* | Rounds to less than 0.05%. |
SEE NOTES TO FINANCIAL STATEMENTS
71
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS: 99.7% | ||||||||
Consumer Discretionary: 12.8% | ||||||||
Accor SA | 1,010 | $ | 51,116 | |||||
Astro Malaysia Holdings Bhd | 7,200 | 5,876 | ||||||
BEC World Public Co., Ltd. | 4,800 | 5,329 | ||||||
Best Buy Co., Inc. | 1,517 | 49,469 | ||||||
Burberry Group PLC | 2,088 | 51,512 | ||||||
Daimler AG | 4,543 | 413,847 | ||||||
Darden Restaurants, Inc. | 666 | 47,339 | ||||||
Electrolux AB, Class B | 9,042 | 283,314 | ||||||
Eutelsat Communications SA | 717 | 23,161 | ||||||
FF Group (a) | 115 | 2,945 | ||||||
Foschini Group, Ltd./The | 849 | 11,098 | ||||||
Gap Inc., The | 1,238 | 47,254 | ||||||
GKN PLC | 7,975 | 41,899 | ||||||
Great Wall Motor Co., Ltd. (c) | 4,000 | 19,600 | ||||||
Hennes & Mauritz AB, Class B | 18,489 | 711,618 | ||||||
Home Depot, Inc., The | 6,413 | 712,677 | ||||||
Husqvarna AB, Class B | 1,872 | 14,101 | ||||||
InterContinental Hotels Group PLC | 1,118 | 45,074 | ||||||
JCDecaux SA (a) | 313 | 13,089 | ||||||
JUMBO SA | 503 | 3,729 | ||||||
Kering | 3,346 | 598,221 | ||||||
Kingfisher PLC | 11,972 | 65,301 | ||||||
Kohl's Corp. | 1,049 | 65,678 | ||||||
Lagardere SCA | 564 | 16,503 | ||||||
lululemon athletica, inc. (a) | 6,808 | 444,562 | ||||||
Marks & Spencer Group PLC | 7,790 | 65,716 | ||||||
Marriott International, Inc., Class A | 1,104 | 82,127 | ||||||
MGM China Holdings, Ltd. | 5,200 | 8,491 | ||||||
Michael Kors Holdings, Ltd. (a) | 11,550 | 486,140 | ||||||
Michelin | 852 | 89,651 | ||||||
Netflix, Inc. (a) | 286 | 187,885 | ||||||
Next PLC | 729 | 85,324 | ||||||
NIKE, Inc., Class B | 3,773 | 407,559 | ||||||
Nordstrom, Inc. | 709 | 52,821 | ||||||
PT Surya Citra Media Tbk | 27,500 | 5,918 | ||||||
Publicis Groupe SA | 14,480 | 1,073,300 | ||||||
Renault SA | 915 | 95,935 | ||||||
SACI Falabella | 4,385 | 30,627 | ||||||
Scripps Networks Interactive, Inc, Class A | 13,432 | 878,050 | ||||||
Sodexo SA | 464 | 44,172 | ||||||
Staples, Inc. | 3,109 |
| 47,599 | |||||
Swatch Group AG/The | 374 | 73,390 | ||||||
Tabcorp Holdings, Ltd. | 13,509 | 47,352 | ||||||
Tiffany & Co. | 632 | 58,018 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. (a) | 3,520 | 543,664 | ||||||
VF Corp. | 2,335 | 162,843 | ||||||
Vivendi SA | 5,716 | 144,938 | ||||||
Walt Disney Co., The | 7,386 | 843,038 | ||||||
Whitbread PLC | 824 | 64,016 | ||||||
Wolters Kluwer NV | 1,459 | 43,425 | ||||||
Woolworths Holdings, Ltd./South | 94,061 | 762,184 | ||||||
Wyndham Worldwide Corp. | 591 | 48,409 | ||||||
10,176,904 | ||||||||
Consumer Staples: 17.6% | ||||||||
British American Tobacco Malyasia Bhd | 600 | 9,850 | ||||||
Campbell Soup Co. | 9,600 | 457,440 | ||||||
Carlsberg A/S, Class B | 499 | 45,212 | ||||||
Carrefour SA (a) | 2,736 | 87,917 | ||||||
Clorox Co., The | 630 | 65,533 | ||||||
Coca-Cola Amatil, Ltd. | 2,903 | 20,478 | ||||||
Coca-Cola Co., The | 19,181 | 752,471 | ||||||
Coca-Cola Enterprises, Inc. | 30,878 | 1,341,340 | ||||||
Colgate-Palmolive Co. | 4,372 | 285,973 | ||||||
ConAgra Foods, Inc. | 1,983 | 86,697 | ||||||
Danone SA | 2,786 | 180,461 | ||||||
Delhaize Group | 490 | 39,855 | ||||||
Diageo PLC | 20,095 | 581,947 | ||||||
Dr. Pepper Snapple Group, Inc. | 943 | 68,745 | ||||||
Estee Lauder Cos, Inc., Class A | 16,867 | 1,461,694 | ||||||
General Mills, Inc. | 2,909 | 162,089 | ||||||
Henkel AG & Co. KGaA | 1,449 | 152,822 | ||||||
Imperial Tobacco Group PLC | 4,628 | 222,895 | ||||||
J Sainsbury PLC | 5,774 | 24,036 | ||||||
JM Smucker Co., The | 518 | 56,156 | ||||||
Kellogg Co. | 20,681 | 1,296,699 | ||||||
Keurig Green Mountain, Inc. | 637 | 48,813 | ||||||
Kimberly-Clark Corp. | 1,800 | 190,746 | ||||||
Koninklijke Ahold NV | 4,364 | 81,924 | ||||||
Kraft Foods Group, Inc. | 4,711 | 401,095 | ||||||
L'Oreal SA | 1,202 | 215,063 |
SEE NOTES TO FINANCIAL STATEMENTS
72
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Consumer Staples, continued | ||||||||
Mead Johnson Nutrition Co. | 1,027 | $ | 92,656 | |||||
Mondelez International, Inc., Class A | 8,086 | 332,658 | ||||||
Nestle SA | 15,934 | 1,149,648 | ||||||
Orkla ASA | 3,643 | 28,583 | ||||||
PepsiCo, Inc. | 13,897 | 1,297,146 | ||||||
Procter & Gamble Co., The | 18,372 | 1,437,425 | ||||||
Remy Cointreau SA | 99 | 7,152 | ||||||
SABMiller PLC | 4,533 | 235,038 | ||||||
Svenska Cellulosa AB SCA, Class B | 2,757 | 70,105 | ||||||
Swedish Match AB | 954 | 27,123 | ||||||
Tate & Lyle PLC | 2,339 | 19,092 | ||||||
Tesco PLC | 41,433 | 138,046 | ||||||
Tiger Brands, Ltd. | 3,627 | 84,611 | ||||||
Unilever NV | 7,588 | 317,248 | ||||||
Unilever PLC | 6,013 | 258,193 | �� | |||||
Whole Foods Market, Inc. | 1,827 | 72,057 | ||||||
Woolworths, Ltd. | 6,292 | 130,743 | ||||||
14,035,475 | ||||||||
Energy: 1.2% | ||||||||
ConocoPhillips | 5,989 | 367,784 | ||||||
Core Laboratories NV | 209 | 23,834 | ||||||
Delek Group, Ltd. | 19 | 5,602 | ||||||
Encana Corp. | 4,354 | 48,002 | ||||||
Energen Corp. | 352 | 24,042 | ||||||
Grupa Lotos SA (a) | 392 | 3,128 | ||||||
Lundin Petroleum AB (a) | 1,068 | 18,323 | ||||||
Neste OYJ | 608 | 15,510 | ||||||
Petronas Dagangan Bhd | 1,200 | 6,542 | ||||||
Phillips 66 | 2,639 | 212,598 | ||||||
Statoil ASA | 5,395 | 96,479 | ||||||
Technip SA | 494 | 30,615 | ||||||
TransCanada Corp. | 3,393 | 137,893 | ||||||
990,352 | ||||||||
Financials: 22.2% | ||||||||
3i Group PLC | 4,663 | 37,836 | ||||||
Aberdeen Asset Management PLC | 4,563 | 28,943 | ||||||
Alior Bank SA (a) | 181 | 4,294 | ||||||
Allianz SE | 2,203 | 343,560 | ||||||
Allstate Corp., The | 2,065 | 133,957 | ||||||
American Tower Corp., REIT | 1,983 | 184,994 | ||||||
AMP, Ltd. | 15,057 | 69,869 | ||||||
Aon PLC | 1,276 | 127,192 | ||||||
Assicurazioni Generali SpA | 5,710 | 102,916 | ||||||
Australia & New Zealand Banking Group, Ltd. | 13,155 |
| 326,470 | |||||
AXA SA | 8,603 | 218,102 | ||||||
Banca Monte dei Paschi di Siena SpA (a) | 1,121 | 2,184 | ||||||
Bank Hapoalim BM | 4,829 | 25,989 | ||||||
Bank Leumi Le-Israel BM (a) | 5,647 | 23,861 | ||||||
Bank of Montreal | 3,101 | 183,751 | ||||||
Bank of Nova Scotia, The | 5,794 | 299,071 | ||||||
Bank of Queensland, Ltd. | 1,801 | 17,721 | ||||||
Bank of the Philippine Islands | 3,460 | 7,249 | ||||||
Bank Pekao SA | 584 | 27,946 | ||||||
Barclays Africa Group, Ltd. | 8,739 | 131,375 | ||||||
Barclays PLC | 77,986 | 319,637 | ||||||
BDO Unibank, Inc. | 7,310 | 17,558 | ||||||
Bendigo & Adelaide Bank, Ltd. | 5,783 | 54,682 | ||||||
Berkshire Hathaway, Inc., Class B (a) | 7,276 | 990,336 | ||||||
BNP Paribas SA | 4,769 | 289,396 | ||||||
Canadian Imperial Bank of Commerce | 1,964 | 144,776 | ||||||
China CITIC Bank Corp., Ltd. | 36,000 | 28,663 | ||||||
Chubb Corp., The | 1,147 | 109,126 | ||||||
CIT Group, Inc. | 860 | 39,981 | ||||||
CNP Assurances | 41,472 | 694,106 | ||||||
Comerica, Inc. | 818 | 41,980 | ||||||
Commonwealth Bank of Australia | 10,641 | 697,804 | ||||||
DBS Group Holdings, Ltd. | 8,209 | 125,956 | ||||||
Delta Lloyd NV | 1,073 | 17,615 | ||||||
Deutsche Bank AG | 6,976 | 209,745 | ||||||
Deutsche Boerse AG | 920 | 76,201 | ||||||
Dexus Property Group, REIT | 4,764 | 26,807 | ||||||
Digital Realty Trust, Inc., REIT (b) | 1,080 | 72,014 | ||||||
Direct Line Insurance Group PLC | 6,471 | 34,141 | ||||||
DNB ASA | 47,584 | 792,445 | ||||||
Duke Realty Corp., REIT | 1,745 | 32,405 | ||||||
Eaton Vance Corp. | 564 | 22,069 | ||||||
Eurazeo SA | 175 | 11,624 | ||||||
Federal Realty Investment Trust, REIT | 341 | 43,679 |
SEE NOTES TO FINANCIAL STATEMENTS
73
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Financials, continued | ||||||||
First Capital Realty, Inc. | 500 | $ | 7,158 | |||||
First Republic Bank | 586 | 36,936 | ||||||
Gjensidige Forsikring ASA | 30,989 | 498,978 | ||||||
GPT Group, The, REIT | 8,263 | 27,240 | ||||||
Hang Seng Bank, Ltd. | 3,700 | 72,265 | ||||||
Hartford Financial Services Group | 2,081 | 86,507 | ||||||
HCP, Inc., REIT | 2,327 | 84,866 | ||||||
Hong Leong Bank Bhd | 2,500 | 8,870 | ||||||
Host Hotels & Resorts, Inc., REIT | 3,535 | 70,099 | ||||||
Hysan Development Co, Ltd. | 4,000 | 17,296 | ||||||
ICADE, REIT | 183 | 13,090 | ||||||
ING Groep NV | 17,698 | 293,882 | ||||||
Insurance Australia Group, Ltd. | 13,593 | 58,441 | ||||||
Intact Financial Corp. | 16,920 | 1,175,730 | ||||||
Investment AB Kinnevik, Class B | 1,096 | 34,666 | ||||||
Investor AB, Class B | 2,207 | 82,290 | ||||||
KeyCorp | 100,384 | 1,507,766 | ||||||
Klepierre, REIT | 837 | 36,903 | ||||||
Land Securities Group PLC, REIT | 3,849 | 72,781 | ||||||
Lend Lease Group | 2,802 | 32,397 | ||||||
Liberty Property Trust, REIT (a) | 742 | 23,907 | ||||||
Link REIT, The | 11,500 | 67,371 | ||||||
Macquarie Group, Ltd. | 1,339 | 83,896 | ||||||
Manulife Financial Corp. | 8,962 | 166,540 | ||||||
MetLife, Inc. | 4,635 | 259,514 | ||||||
Mirvac Group, REIT | 65,865 | 93,837 | ||||||
Mizrahi Tefahot Bank, Ltd. | 565 | 7,002 | ||||||
National Bank of Canada | 1,635 | 61,420 | ||||||
Nordea Bank AB | 14,352 | 178,995 | ||||||
Old Mutual PLC | 23,887 | 75,611 | ||||||
Principal Financial Group, Inc. | 1,399 | 71,755 | ||||||
Prudential Financial, Inc. | 2,179 | 190,706 | ||||||
Public Bank Bhd | 11,600 | 57,554 | ||||||
QBE Insurance Group, Ltd. | 6,615 | 69,657 | ||||||
Realogy Holdings Corp. (a) | 703 | 32,844 | ||||||
Royal Bank of Canada | 6,913 | 422,750 | ||||||
Sampo OYJ, Class A | 2,234 | 105,282 | ||||||
Sanlam, Ltd. | 7,715 | 41,997 | ||||||
Siam Commercial Bank PCL, The | 7,200 |
| 37,731 | |||||
Societe Generale SA | 3,512 | 164,796 | ||||||
Sun Life Financial, Inc. | 2,839 | 94,785 | ||||||
Svenska Handelsbanken AB, Class A | 6,978 | 101,867 | ||||||
Swedbank AB, Class A | 25,645 | 597,898 | ||||||
Toronto-Dominion Bank, The | 8,709 | 369,836 | ||||||
Travelers Companies, Inc., The | 1,655 | 159,972 | ||||||
Tryg A/S | 525 | 10,946 | ||||||
UDR, Inc., REIT | 1,232 | 39,461 | ||||||
Unibail-Rodamco SE, REIT | 451 | 114,556 | ||||||
UniCredit SpA | 21,024 | 141,300 | ||||||
Unione di Banche Italiane SCpA | 3,934 | 31,567 | ||||||
Voya Financial, Inc. | 1,110 | 51,582 | ||||||
Wendel SA | 145 | 17,817 | ||||||
Westpac Banking Corp. | 34,336 | 849,542 | ||||||
Weyerhaeuser Co., REIT | 38,239 | 1,204,529 | ||||||
Willis Group Holdings PLC | 769 | 36,066 | ||||||
Zurich Insurance Group AG (a) | 786 | 239,282 | ||||||
17,682,358 | ||||||||
Health Care: 10.3% | ||||||||
Abbott Laboratories | 7,053 | 346,161 | ||||||
Aetna, Inc. | 14,071 | 1,793,488 | ||||||
AmerisourceBergen Corp. | 1,088 | 115,698 | ||||||
AstraZeneca PLC | 6,090 | 385,438 | ||||||
Becton Dickinson & Co. | 1,010 | 143,067 | ||||||
Biogen, Inc. (a) | 1,224 | 494,423 | ||||||
Bristol-Myers Squibb Co. | 7,835 | 521,341 | ||||||
Bumrungrad Hospital PCL | 1,500 | 8,303 | ||||||
Cardinal Health, Inc. | 1,593 | 133,254 | ||||||
Catamaran Corp (a) | 1,000 | 61,113 | ||||||
Cigna Corp. | 1,241 | 201,042 | ||||||
CSL, Ltd. | 2,349 | 156,599 | ||||||
Elekta AB, Class B | 1,839 | 11,536 | ||||||
Eli Lilly & Co. | 6,692 | 558,715 | ||||||
Essilor International SA | 945 | 113,211 | ||||||
Gilead Sciences, Inc. | 7,152 | 837,356 | ||||||
GlaxoSmithKline PLC | 23,771 | 494,245 | ||||||
Hologic, Inc. (a) | 1,061 | 40,382 | ||||||
Mallinckrodt PLC (a) | 610 | 71,809 | ||||||
Netcare, Ltd. | 4,091 | 12,871 |
SEE NOTES TO FINANCIAL STATEMENTS
74
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Health Care, continued | ||||||||
Novo Nordisk A/S, Class B | 9,403 | $ | 515,988 | |||||
Patterson Cos., Inc. | 410 | 19,947 | ||||||
Perrigo Co. PLC | 673 | 124,391 | ||||||
Quest Diagnostics, Inc. | 712 | 51,634 | ||||||
Sanofi, SA | 5,369 | 531,154 | ||||||
Shandong Weigao Group Medical Polymer Co., Ltd., Class H | 12,000 | 8,861 | ||||||
Shire PLC | 2,854 | 229,318 | ||||||
Smith & Nephew PLC | 4,318 | 73,049 | ||||||
UCB SA | 572 | 41,130 | ||||||
Varian Medical Systems, Inc. (a) | 483 | 40,731 | ||||||
Waters Corp. (a) | 405 | 51,994 | ||||||
8,188,249 | ||||||||
Industrials: 9.4% | ||||||||
ADT Corp., The (b) | 890 | 29,877 | ||||||
Aeroports de Paris | 146 | 16,492 | ||||||
Alfa Laval AB | 1,534 | 27,000 | ||||||
Atlantia SpA | 1,948 | 48,131 | ||||||
Atlas Copco AB, Class A | 3,333 | 93,252 | ||||||
Atlas Copco AB, Class B | 1,939 | 48,302 | ||||||
Auckland International Airport, Ltd. | 25,826 | 86,437 | ||||||
Bidvest Group, Ltd., The | 1,277 | 32,312 | ||||||
Bouygues SA | 798 | 29,834 | ||||||
Brambles, Ltd. | 7,976 | 65,066 | ||||||
Canadian Pacific Railway, Ltd. | 900 | 144,130 | ||||||
Capita PLC | 20,452 | 397,395 | ||||||
CH Robinson Worldwide, Inc. | 742 | 46,293 | ||||||
Cie de Saint-Gobain | 2,077 | 93,759 | ||||||
CNH Industrial NV | 4,179 | 38,133 | ||||||
Cummins, Inc. | 835 | 109,544 | ||||||
Deutsche Lufthansa AG (a) | 20,293 | 261,821 | ||||||
Deutsche Post AG | 4,535 | 132,509 | ||||||
Dialog Group Bhd | 13,400 | 5,641 | ||||||
DSV A/S | 868 | 28,107 | ||||||
Dun & Bradstreet Corp., The | 170 | 20,740 | ||||||
easyJet PLC | 755 | 18,353 | ||||||
Edenred | 990 | 24,462 | ||||||
Experian PLC | 4,764 | 86,649 | ||||||
FedEx Corp. | 1,283 | 218,623 | ||||||
Fraport AG | 176 | 11,055 | ||||||
General Electric Co. | 48,146 | 1,279,239 | ||||||
Groupe Eurotunnel SE | 2,167 |
| 31,420 | |||||
Hertz Global Holdings, Inc. (a) | 2,224 | 40,299 | ||||||
Honeywell International, Inc. | 4,811 | 490,578 | ||||||
Intertek Group PLC | 769 | 29,568 | ||||||
Kone OYJ, Class B | 1,488 | 60,398 | ||||||
Koninklijke Philips NV | 4,537 | 115,795 | ||||||
Legrand SA | 1,199 | 67,482 | ||||||
Lockheed Martin Corp. | 7,124 | 1,324,352 | ||||||
Malaysia Airports Holdings Bhd | 3,530 | 5,804 | ||||||
ManpowerGroup, Inc. | 381 | 34,054 | ||||||
Masco Corp. | 1,727 | 46,059 | ||||||
Metso OYJ | 553 | 15,199 | ||||||
MISC Bhd | 5,100 | 10,433 | ||||||
MTR Corp. Ltd. | 19,539 | 90,781 | ||||||
Pall Corp. | 521 | 64,838 | ||||||
Qantas Airways, Ltd. (a) | 4,337 | �� | 10,539 | |||||
Randstad Holding NV | 617 | 40,147 | ||||||
Rexel SA | 1,361 | 21,962 | ||||||
Royal Mail PLC | 2,891 | 23,372 | ||||||
Seek, Ltd. | 1,834 | 19,875 | ||||||
Siemens AG | 3,709 | 375,245 | ||||||
SKF AB, Class B | 1,926 | 43,947 | ||||||
Societe BIC SA | 132 | 21,044 | ||||||
Southwest Airlines Co. | 849 | 28,093 | ||||||
Sydney Airport | 5,554 | 21,312 | ||||||
Thales SA | 435 | 26,283 | ||||||
TNT Express NV | 2,051 | 17,419 | ||||||
Towers Watson & Co., Class A | 344 | 43,275 | ||||||
Transurban Group | 18,147 | 130,107 | ||||||
United Parcel Service, Inc., Class B | 3,349 | 324,552 | ||||||
United Technologies Corp. | 4,258 | 472,340 | ||||||
Vallourec SA | 611 | 12,482 | ||||||
Vestas Wind Systems A/S | 1,100 | 54,828 | ||||||
7,507,038 | ||||||||
Information Technology: 14.9% | ||||||||
Accenture PLC, Class A | 2,992 | 289,566 | ||||||
ARM Holdings PLC | 6,617 | 108,280 | ||||||
ASML Holding NV | 1,674 | 174,125 | ||||||
Atos SE | 382 | 28,544 | ||||||
Autodesk, Inc. (a) | 1,086 | 54,381 | ||||||
Cap Gemini SA | 628 | 55,714 |
SEE NOTES TO FINANCIAL STATEMENTS
75
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Information Technology, continued | ||||||||
Cisco Systems, Inc. | 34,803 | $ | 955,690 | |||||
Computershare, Ltd. | 2,351 | 21,174 | ||||||
Dassault Systemes SA | 618 | 44,863 | ||||||
Ericsson, Class B | 69,445 | 723,279 | ||||||
F5 Networks, Inc. (a) | 344 | 41,400 | ||||||
Facebook, Inc., Class A (a) | 9,586 | 822,143 | ||||||
Gemalto NV | 350 | 31,286 | ||||||
Google, Inc., Class A (a) | 1,332 | 719,333 | ||||||
Google, Inc., Class C | 1,463 | 761,507 | ||||||
Hewlett-Packard Co. | 10,254 | 307,723 | ||||||
Hexagon AB, Class B | 1,173 | 42,487 | ||||||
International Business Machines Corp. | 5,093 | 828,427 | ||||||
Intuit, Inc. | 1,297 | 130,699 | ||||||
MasterCard, Inc., Class A | 4,651 | 434,775 | ||||||
Microsoft Corp. | 36,595 | 1,615,669 | ||||||
NetSuite, Inc. (a) | 162 | 14,864 | ||||||
Open Text Corp. | 600 | 24,370 | ||||||
Oracle Corp. | 22,889 | 922,427 | ||||||
Symantec Corp. | 3,345 | 77,771 | ||||||
Texas Instruments, Inc. | 5,220 | 268,882 | ||||||
Visa, Inc., Class A | 10,879 | 730,525 | ||||||
Western Union Co., The | 2,614 | 53,143 | ||||||
Xerox Corp. | 133,723 | 1,422,813 | ||||||
Yahoo!, Inc. (a) | 4,474 | 175,783 | ||||||
11,881,643 | ||||||||
Materials: 2.1% | ||||||||
Air Liquide SA | 1,603 | 203,405 | ||||||
Albemarle Corp. | 551 | 30,454 | ||||||
Avery Dennison Corp. | 424 | 25,839 | ||||||
Boliden AB | 1,436 | 26,179 | ||||||
Boral, Ltd. | 3,814 | 17,182 | ||||||
Ecolab, Inc. | 1,270 | 143,599 | �� | |||||
EI du Pont de Nemours & Co. | 4,624 | 295,705 | ||||||
EMS-Chemie Holding AG | 40 | 16,900 | ||||||
Gold Fields, Ltd. | 3,670 | 11,740 | ||||||
International Flavors & Fragrances, Inc. | 407 | 44,481 | ||||||
Kumba Iron Ore, Ltd. | 361 | 4,478 | ||||||
Lafarge SA | 916 | 60,563 | ||||||
Newmont Mining Corp. | 2,699 | 63,049 | ||||||
Norsk Hydro ASA | 6,657 | 27,939 | ||||||
Novozymes A/S, Class B | 1,094 | 51,977 | ||||||
Potash Corp. of Saskatchewan, Inc. | 4,140 | 128,211 | ||||||
Praxair, Inc. | 1,393 |
| 166,533 | |||||
Rexam PLC | 3,141 | 27,242 | ||||||
Stora Enso OYJ, Class R | 2,541 | 26,186 | ||||||
Syngenta AG | 477 | 194,626 | ||||||
Umicore SA | 471 | 22,366 | ||||||
UPM-Kymmene OYJ | 2,454 | 43,426 | ||||||
Yara International ASA | 830 | 43,250 | ||||||
1,675,330 | ||||||||
Telecommunication Services: 5.6% | ||||||||
Advanced Info Service PCL | 4,500 | 33,209 | ||||||
AT&T, Inc. | 24,286 | 862,639 | ||||||
Chunghwa Telecom Co., Ltd. | 17,000 | 54,252 | ||||||
Deutsche Telekom AG | 15,186 | 261,811 | ||||||
Elisa OYJ | 5,731 | 181,575 | ||||||
Frontier Communications Corp. (b) | 35,752 | 176,972 | ||||||
Orange SA | 8,987 | 138,888 | ||||||
Proximus | 708 | 25,054 | ||||||
Singapore Telecommunications, Ltd. | 37,000 | 115,467 | ||||||
Spark New Zealand, Ltd. | 21,728 | 41,126 | ||||||
Tele2 AB, Class B | 1,376 | 16,024 | ||||||
Telefonica Deutschland Holding AG | 127,285 | 733,258 | ||||||
Telekom Malaysia Bhd | 5,440 | 9,412 | ||||||
Telenor ASA | 3,534 | 77,482 | ||||||
TeliaSonera AB | 91,202 | 537,520 | ||||||
Telstra Corp., Ltd. | 19,891 | 94,135 | ||||||
Verizon Communications, Inc. | 22,421 | 1,045,043 | ||||||
Vodacom Group, Ltd. | 1,483 | 16,912 | ||||||
4,420,779 | ||||||||
Utilities: 3.6% | ||||||||
AGL Energy, Ltd. | 3,150 | 37,734 | ||||||
Alliant Energy Corp. | 564 | 32,554 | ||||||
American Electric Power Co., Inc. | 2,488 | 131,789 | ||||||
American Water Works Co., Inc. | 913 | 44,399 | ||||||
Atco., Ltd., Class I | 400 | 12,647 | ||||||
AusNet Services | 7,756 | 8,343 | ||||||
Canadian Utilities, Ltd., Class A | 640 | 18,431 | ||||||
CenterPoint Energy, Inc. | 2,064 | 39,278 | ||||||
Centrica PLC | 23,728 | 98,459 |
SEE NOTES TO FINANCIAL STATEMENTS
76
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund, continued
Percent of Net Assets | Shares/ | Value | ||||||
COMMON STOCKS, continued | ||||||||
Utilities, continued | ||||||||
Cheung Kong Infrastructure Holdings, Ltd. | 4,000 | $ | 31,024 | |||||
Cia de Saneamento Basico do Estado de Sao | 1,700 | 9,022 | ||||||
Consolidated Edison Inc. | 1,498 | 86,704 | ||||||
Contact Energy, Ltd. | 2,231 | 7,574 | ||||||
Dominion Resources, Inc. | 2,920 | 195,260 | ||||||
Duke Energy Corp. | 3,603 | 254,444 | ||||||
Edison International | 1,598 | 88,817 | ||||||
Electricite de France SA | 1,179 | 26,373 | ||||||
Enea SA | 798 | 3,385 | ||||||
Enel Green Power SpA | 8,579 | 16,770 | ||||||
Fortum OYJ | 2,237 | 39,740 | ||||||
GDF Suez | 7,037 | 131,017 | ||||||
National Grid PLC | 19,105 | 245,897 | ||||||
NiSource, Inc. | 1,522 | 69,388 | ||||||
Pepco Holdings, Inc. | 1,238 | 33,352 | ||||||
Pinnacle West Capital Corp. | 569 | 32,370 | ||||||
Public Service Enterprise Group, Inc. | 2,621 | 102,953 | ||||||
Red Electrica Corp. SA | 517 | 41,515 | ||||||
Sempra Energy | 1,203 | 119,025 | ||||||
Snam SpA | 9,842 | 46,838 | ||||||
Suez Environnement Co. | 1,367 | 25,521 | ||||||
Tenaga Nasional Bhd | 15,800 | 52,928 | ||||||
TransAlta Corp. | 77,104 | 597,571 | ||||||
United Utilities Group PLC | 3,281 | 45,955 | ||||||
WEC Energy Group Inc | 440 | 19,783 | ||||||
Xcel Energy, Inc. | 2,565 | 82,542 | ||||||
2,829,402 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $77,251,417) | 79,387,530 | |||||||
SECURITIES PURCHASED WITH CASH COLLATERAL | ||||||||
FROM SECURITIES LENDING: 0.4% | ||||||||
State Street Navigator Securities Lending Prime Portfolio | 287,068 |
| 287,068 | |||||
(Cost $287,068) | ||||||||
TOTAL INVESTMENTS: 100.1% | ||||||||
(Cost $77,538,485) | 79,674,598 | |||||||
PAYABLE UPON RETURN OF SECURITIES LOANED— | ||||||||
(NET): -0.4% | (287,068 | ) | ||||||
OTHER ASSETS AND LIABILITIES— | ||||||||
(NET): 0.3% | 252,854 | |||||||
NET ASSETS: 100.0% | $ | 79,640,384 |
(a) | Non-income producing security. |
(b) | Security or partial position of this security was on loan as of June 30, 2015. The total market value of securities on loan as of June 30, 2015 was $275,049. |
(c) | Fair valued security. |
REIT | Real Estate Investment Trust |
SEE NOTES TO FINANCIAL STATEMENTS
77
June 30, 2015 |
Schedule of Investments (Unaudited), continued |
Pax Ellevate Global Women’s Index Fund, continued
SUMMARY OF INVESTMENTS BY COUNTRY
Percent of Net Assets | Value | Percent | ||||||
Australia | $ | 3,189,002 | 4.1 | % | ||||
Belgium | 128,405 | 0.2 | % | |||||
Brazil | 9,022 | 0.0 | %* | |||||
Canada | 4,098,185 | 5.4 | % | |||||
Chile | 30,627 | 0.0 | %* | |||||
China | 57,124 | 0.1 | % | |||||
Denmark | 707,058 | 0.9 | % | |||||
Finland | 487,316 | 0.6 | % | |||||
France | 5,936,157 | 7.8 | % | |||||
Germany | 2,971,874 | 3.7 | % | |||||
Greece | 6,674 | 0.0 | %* | |||||
Hong Kong | 287,228 | 0.4 | % | |||||
Indonesia | 5,918 | 0.0 | %* | |||||
Ireland | 413,957 | 0.5 | % | |||||
Israel | 62,454 | 0.1 | % | |||||
Italy | 427,839 | 0.5 | % | |||||
Malaysia | 172,910 | 0.2 | % | |||||
Netherlands | 1,156,700 | 1.5 | % | |||||
New Zealand | 135,137 | 0.2 | % | |||||
Norway | 1,565,156 | 2.0 | % | |||||
Philippines | 24,807 | 0.0 | %* | |||||
Poland | 38,753 | 0.0 | %* | |||||
Singapore | 241,423 | 0.3 | % | |||||
South Africa | 1,109,578 | 1.4 | % | |||||
Spain | 41,515 | 0.1 | % | |||||
Sweden | 3,689,826 | 4.6 | % | |||||
Switzerland | 1,673,846 | 2.1 | % | |||||
Taiwan | 54,252 | 0.1 | % | |||||
Thailand | 84,572 | 0.1 | % | |||||
United Kingdom | 4,893,516 | 6.2 | % | |||||
United States | 45,686,699 | 56.6 | % | |||||
Other assets and liabilities - (Net) | 252,854 | 0.3 | % | |||||
Total | $ | 79,640,384 | 100.0 | % |
* | Rounds to less than 0.05%. |
SEE NOTES TO FINANCIAL STATEMENTS
78
THIS PAGE INTENTIONALLY LEFT BLANK
June 30, 2015 |
Statements of Assets and Liabilities (Unaudited) |
Balanced Fund | Growth Fund | Small Cap Fund | High Yield | Global | Int’l ESG | Global Women’s Index Fund | ||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Investments, at cost - Note A | $ | 1,747,524,306 | $ | 147,704,869 | $ | 439,885,006 | $ | 551,083,415 | $ | 205,222,295 | $ | 329,081,232 | $ | 77,538,485 | ||||||||||||||
Investments in unaffiliated issuers, at value | $ | 1,822,975,414 | $ | 213,195,602 | $ | 450,560,515 | $ | 541,972,462 | $ | 236,510,385 | $ | 332,211,053 | $ | 79,674,598 | ||||||||||||||
Investments in affiliated issuers, at value - Note C | 130,325,483 | — | — | — | — | — | — | |||||||||||||||||||||
Total investments, at value - Note A1 | 1,953,300,897 | 213,195,602 | 450,560,515 | 541,972,462 | 236,510,385 | 332,211,053 | 79,674,598 | |||||||||||||||||||||
Cash | — | 417,680 | 485,193 | 249 | 5,438,515 | 739 | 125,499 | |||||||||||||||||||||
Foreign currency at value (cost $2,393,394; $2,115,732; $24; $36,075 and $9,447, respectively) | 2,401,922 | — | 2,114,801 | — | 24 | 35,802 | 9,416 | |||||||||||||||||||||
Prepaid expenses | 60,010 | 7,052 | 18,733 | 16,968 | 9,857 | — | — | |||||||||||||||||||||
Receivables: | ||||||||||||||||||||||||||||
Capital stock sold | 431,622 | 110,750 | 2,984,379 | 469,577 | 620,928 | 1,383,787 | 152,155 | |||||||||||||||||||||
Dividends and interest - Note A | 5,567,797 | 141,927 | 370,040 | 8,096,189 | 627,248 | 888,039 | 172,955 | |||||||||||||||||||||
Investment securities sold | 2,915,193 | — | 1,549,098 | 5,697,218 | — | — | 2,924,173 | |||||||||||||||||||||
Other | 3,283 | 29,743 | 20,539 | 9,461 | 32,225 | 256,709 | 21,702 | |||||||||||||||||||||
Total Assets | 1,964,680,724 | 213,902,754 | 458,103,298 | 556,262,124 | 243,239,182 | 334,776,129 | 83,080,498 | |||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||
Collateral on securities loaned, at value | 9,577,940 | 6,067,904 | 8,954,253 | 34,635,950 | — | — | 287,068 | |||||||||||||||||||||
Payables: | ||||||||||||||||||||||||||||
Capital stock reacquired | 1,001,309 | 45,650 | 247,947 | 8,671,500 | 110,010 | 18,046 | 20,121 | |||||||||||||||||||||
Investment securities purchased | 3,581,643 | 637,192 | 13,575,885 | 1,995,000 | — | 699,118 | 3,065,838 | |||||||||||||||||||||
Dividend payable - Note A | — | — | — | 376,410 | — | — | — | |||||||||||||||||||||
Payable to bank | 60,645 | — | — | — | — | — | — | |||||||||||||||||||||
Accrued expenses: | ||||||||||||||||||||||||||||
Investment advisory fees - Note B | 762,094 | 129,605 | 245,517 | 217,402 | 181,339 | 153,090 | 49,043 | |||||||||||||||||||||
Distribution expense | 363,361 | 36,095 | 50,204 | 65,281 | 26,458 | 13,105 | 18,044 | |||||||||||||||||||||
Compliance expense | 3,250 | 3,325 | 3,370 | 3,561 | 3,370 | — | — | |||||||||||||||||||||
Transfer agent fees | 311,225 | 40,818 | 35,438 | 107,974 | 19,832 | — | — | |||||||||||||||||||||
Printing and other shareholder communication fees | 28,681 | 1,317 | — | 6,386 | — | — | — | |||||||||||||||||||||
Custodian fees | 76,858 | 11,534 | 9,322 | 30,019 | 18,987 | — | — | |||||||||||||||||||||
Legal and audit fees | 78,093 | 33,857 | 14,219 | 47,991 | 19,576 | — | — | |||||||||||||||||||||
Other accrued expenses | 15,286 | 13,893 | 5,950 | 14,566 | 17,768 | — | — | |||||||||||||||||||||
Total Liabilities | 15,860,385 | 7,021,190 | 23,142,105 | 46,172,040 | 397,340 | 883,359 | 3,440,114 | |||||||||||||||||||||
Net Assets | $ | 1,948,820,339 | $ | 206,881,564 | $ | 434,961,193 | $ | 510,090,084 | $ | 242,841,842 | $ | 333,892,770 | $ | 79,640,384 |
1 | Investments at market value include securities loaned. At June 30, 2015, the Balanced Fund, Growth Fund, Small Cap Fund, High Yield Bond Fund and Global Women’s Index Fund had a total market value of securities on loan of $9,373,663; $5,956,597; $8,698,233; $37,698,375 and $275,049, respectively. |
SEE NOTES TO FINANCIAL STATEMENTS
80
June 30, 2015 |
|
SEE NOTES TO FINANCIAL STATEMENTS
81
June 30, 2015 |
Statements of Assets and Liabilities (Unaudited), continued |
| Balanced Fund | Growth Fund | ||||||
Net Assets Represented By: | ||||||||
Paid in Capital | $ | 1,677,319,811 | $ | 132,755,324 | ||||
Undistributed (distributions in excess of) net investment income | 2,640,905 | 39,494 | ||||||
Accumulated net realized gain (loss) | 63,080,862 | 8,596,671 | ||||||
Net unrealized appreciation (depreciation) of: | ||||||||
Investments | 205,776,591 | 65,490,733 | ||||||
Foreign currency translations | 2,170 | (658 | ) | |||||
Net Assets | $ | 1,948,820,339 | $ | 206,881,564 | ||||
Individual Investor Class | ||||||||
Net assets | $ | 1,665,204,328 | $ | 164,825,497 | ||||
Capital Shares Outstanding | 70,985,455 | 8,903,653 | ||||||
Net asset value per share | $ | 23.46 | $ | 18.51 | ||||
Class A | ||||||||
Net assets | $ | 2,919,224 | ||||||
Capital Shares Outstanding | 157,986 | |||||||
Net asset value per share | $ | 18.48 | ||||||
Institutional Class | ||||||||
Net assets | $ | 277,514,035 | $ | 37,582,457 | ||||
Capital Shares Outstanding | 11,692,610 | 1,985,141 | ||||||
Net asset value per share | $ | 23.73 | $ | 18.93 | ||||
Class R | ||||||||
Net assets | $ | 6,101,976 | $ | 1,554,386 | ||||
Capital Shares Outstanding | 258,574 | 84,360 | ||||||
Net asset value per share | $ | 23.60 | $ | 18.43 |
SEE NOTES TO FINANCIAL STATEMENTS
82
June 30, 2015 |
|
| Small Cap Fund | High Yield | Global | Int’l ESG | Global Women’s Index Fund | |||||||||||||||
Net Assets Represented By: | ||||||||||||||||||||
Paid in Capital | $ | 416,632,167 | $ | 550,296,033 | $ | 210,043,982 | $ | 333,452,822 | $ | 77,484,739 | ||||||||||
Undistributed (distributions in excess of) net investment income | 257,964 | (166,914 | ) | 151,988 | 153,883 | 56,358 | ||||||||||||||
Accumulated net realized gain (loss) | 7,367,999 | (30,928,082 | ) | 1,359,616 | (2,831,596 | ) | (30,467 | ) | ||||||||||||
Net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments | 10,675,509 | (9,110,953 | ) | 31,288,090 | 3,129,821 | 2,136,113 | ||||||||||||||
Foreign currency translations | 27,554 | — | (1,834 | ) | (12,160 | ) | (6,359 | ) | ||||||||||||
Net Assets | $ | 434,961,193 | $ | 510,090,084 | $ | 242,841,842 | $ | 333,892,770 | $ | 79,640,384 | ||||||||||
Individual Investor Class | ||||||||||||||||||||
Net assets | $ | 212,285,952 | $ | 316,020,872 | $ | 106,259,446 | $ | 61,046,417 | $ | 62,808,988 | ||||||||||
Capital Shares Outstanding | 14,683,691 | 45,661,780 | 8,237,169 | 7,063,001 | 3,105,493 | |||||||||||||||
Net asset value per share | $ | 14.46 | $ | 6.92 | $ | 12.90 | $ | 8.64 | $ | 20.23 | ||||||||||
Class A | ||||||||||||||||||||
Net assets | $ | 29,746,746 | $ | 4,470,882 | $ | 12,951,182 | ||||||||||||||
Capital Shares Outstanding | 2,061,643 | 645,278 | 1,005,718 | |||||||||||||||||
Net asset value per share | $ | 14.43 | $ | 6.93 | $ | 12.88 | ||||||||||||||
Institutional Class | ||||||||||||||||||||
Net assets | $ | 191,436,584 | $ | 188,761,039 | $ | 121,088,431 | $ | 271,971,455 | $ | 16,831,396 | ||||||||||
Capital Shares Outstanding | 13,160,510 | 27,376,195 | 9,339,433 | 32,020,076 | 828,347 | |||||||||||||||
Net asset value per share | $ | 14.55 | $ | 6.90 | $ | 12.97 | $ | 8.49 | $ | 20.32 | ||||||||||
Class R | ||||||||||||||||||||
Net assets | $ | 1,491,911 | $ | 837,291 | $ | 2,542,783 | $ | 874,898 | ||||||||||||
Capital Shares Outstanding | 104,082 | 120,966 | 198,487 | 101,969 | ||||||||||||||||
Net asset value per share | $ | 14.33 | $ | 6.92 | $ | 12.81 | $ | 8.58 |
SEE NOTES TO FINANCIAL STATEMENTS
83
For the Period Ended June 30, 2015 |
Statements of Operations (Unaudited) |
| Balanced Fund | Growth Fund | ||||||
Investment Income | ||||||||
Income | ||||||||
Dividends (net of foreign withholding tax of $7,702; $0; $2,327; $0; $171,448; $453,607; and $92,836; respectively) | $ | 10,674,894 | $ | 1,389,052 | ||||
Dividends from affiliate - Note C | 1,743,584 | — | ||||||
Interest | 7,707,911 | 328 | ||||||
Income from securities lending - Note A | 18,713 | 20,959 | ||||||
Total Income | 20,145,102 | 1,410,339 | ||||||
Expenses | ||||||||
Investment advisory fees - Note B | 4,969,635 | 763,548 | ||||||
Distribution expenses - Individual Investor (Note B) | 2,140,419 | 202,970 | ||||||
Distribution expenses - Class A (Note B) | — | 2,773 | ||||||
Distribution expenses - Class R (Note B) | 14,400 | 3,355 | ||||||
Transfer agent fees - Note A | 891,642 | 125,010 | ||||||
Printing and other shareholder communication fees | 84,338 | 21,897 | ||||||
Custodian fees | 173,748 | 21,798 | ||||||
Legal fees and related expenses | 96,652 | 20,823 | ||||||
Trustees' fees and expenses - Note B | 72,950 | 18,138 | ||||||
Compliance expense | 14,472 | 7,492 | ||||||
Audit fees | 45,102 | 29,192 | ||||||
Registration fees | 31,444 | 34,388 | ||||||
Other expenses | 65,729 | 8,325 | ||||||
Total Expenses | 8,600,531 | 1,259,709 | ||||||
Less: Advisory fee waiver - Note B | (165,267 | ) | — | |||||
Expenses assumed by Adviser - Note B | — | (42,861 | ) | |||||
Net expenses | 8,435,264 | 1,216,848 | ||||||
Net investment income | 11,709,838 | 193,491 | ||||||
Realized and Unrealized Gain (Loss) - Notes A and C | ||||||||
Net realized gain (loss) on: | ||||||||
Investments in unaffiliated issuers (including premium on | 63,171,445 | 8,705,853 | ||||||
Investment in affiliated issuers | 10,909 | — | ||||||
Foreign currency transactions | (2,871 | ) | (5,116 | ) | ||||
Change in unrealized appreciation (depreciation) on: | ||||||||
Investments in unaffiliated issuers | (65,205,227 | ) | (3,347,212 | ) | ||||
Investment in affiliated issuers | (2,182,167 | ) | — | |||||
Foreign currency translation | 23,052 | 1,595 | ||||||
Net realized and unrealized gain (loss) on | (4,184,859 | ) | 5,355,120 | |||||
Net increase (decrease) in net assets resulting from operations | $ | 7,524,979 | $ | 5,548,611 |
SEE NOTES TO FINANCIAL STATEMENTS
84
For the Period Ended June 30, 2015 |
|
| Small Cap Fund | High Yield | Global | Int’l ESG | Global Women’s Index Fund | |||||||||||||||
Investment Income | ||||||||||||||||||||
Income | ||||||||||||||||||||
Dividends (net of foreign withholding tax of $7,702; $0; $2,327; $0; $171,448; $453,607; and $92,836; respectively) | $ | 2,245,307 | $ | 977,409 | $ | 2,419,227 | $ | 4,796,910 | $ | 1,201,108 | ||||||||||
Dividends from affiliate - Note C | — | — | — | — | — | |||||||||||||||
Interest | 862 | 17,197,919 | — | 199 | 9 | |||||||||||||||
Income from securities lending - Note A | 260,248 | 71,822 | — | — | 285 | |||||||||||||||
Total Income | 2,506,417 | 18,247,150 | 2,419,227 | 4,797,109 | 1,201,402 | |||||||||||||||
Expenses | ||||||||||||||||||||
Investment advisory fees - Note B | 1,199,082 | 1,370,100 | 1,002,823 | 641,256 | 278,086 | |||||||||||||||
Distribution expenses - Individual Investor (Note B) | 203,135 | 424,512 | 127,723 | 65,715 | 74,922 | |||||||||||||||
Distribution expenses - Class A (Note B) | 30,639 | 4,462 | 14,029 | — | — | |||||||||||||||
Distribution expenses - Class R (Note B) | 4,164 | 2,518 | 6,144 | 2,159 | — | |||||||||||||||
Transfer agent fees - Note A | 193,777 | 316,747 | 115,208 | — | — | |||||||||||||||
Printing and other shareholder communication fees | 15,010 | 38,509 | 16,105 | — | — | |||||||||||||||
Custodian fees | 29,562 | 63,761 | 50,328 | — | — | |||||||||||||||
Legal fees and related expenses | 20,011 | 39,719 | 21,342 | — | — | |||||||||||||||
Trustees' fees and expenses - Note B | 21,911 | 24,642 | 18,821 | — | — | |||||||||||||||
Compliance expense | 6,833 | 8,496 | 6,864 | — | — | |||||||||||||||
Audit fees | 13,787 | 33,430 | 15,350 | — | — | |||||||||||||||
Registration fees | 47,724 | 38,475 | 36,091 | — | — | |||||||||||||||
Other expenses | 17,757 | 16,747 | 13,305 | — | — | |||||||||||||||
Total Expenses | 1,803,392 | 2,382,118 | 1,444,133 | 709,130 | 353,008 | |||||||||||||||
Less: Advisory fee waiver - Note B | — | — | — | — | — | |||||||||||||||
Expenses assumed by Adviser - Note B | (13,015 | ) | — | (17,560 | ) | — | — | |||||||||||||
Net expenses | 1,790,377 | 2,382,118 | 1,426,573 | 709,130 | 353,008 | |||||||||||||||
Net investment income | 716,040 | 15,865,032 | 992,654 | 4,087,979 | 848,394 | |||||||||||||||
Realized and Unrealized Gain (Loss) - Notes A and C | ||||||||||||||||||||
Net realized gain (loss) on: | ||||||||||||||||||||
Investments in unaffiliated issuers (including premium on | 7,632,654 | (16,179,958 | ) | 1,824,568 | (1,595,176 | ) | 24,407 | |||||||||||||
Investment in affiliated issuers | — | — | — | — | — | |||||||||||||||
Foreign currency transactions | (38,749 | ) | (55,602 | ) | (57,874 | ) | (92,071 | ) | 18,596 | |||||||||||
Change in unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investments in unaffiliated issuers | 2,580,967 | 7,944,455 | 9,504,872 | 5,517,051 | (576,156 | ) | ||||||||||||||
Investment in affiliated issuers | — | — | — | — | — | |||||||||||||||
Foreign currency translation | 27,554 | 18,982 | 2,777 | 159 | (6,417 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on | 10,202,426 | (8,272,123 | ) | 11,274,343 | 3,829,963 | (539,570 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 10,918,466 | $ | 7,592,909 | $ | 12,266,997 | $ | 7,917,942 | $ | 308,824 |
SEE NOTES TO FINANCIAL STATEMENTS
85
Statements of Changes in Net Assets |
Balanced Fund | ||||||||
| (Unaudited) | Year Ended 12/31/14 | ||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Investment income, net | $ | 11,709,838 | $ | 18,556,263 | ||||
Net realized gain (loss) on investments and foreign currency transactions 1 | 63,179,483 | 173,695,030 | ||||||
Net increase from reimbursement from Investment Adviser 2 | — | — | ||||||
Change in unrealized appreciation (depreciation) on investments | (67,364,342 | ) | (39,866,945 | ) | ||||
Net increase (decrease) in net assets resulting from operations | 7,524,979 | 152,384,348 | ||||||
Distributions to shareholders from: | ||||||||
Net investment income | ||||||||
Individual Investor Class | (10,462,257 | ) | (15,369,550 | ) | ||||
Class A | ||||||||
Institutional Class | (2,025,873 | ) | (2,586,783 | ) | ||||
Class R | (31,246 | ) | (33,030 | ) | ||||
Realized gains | ||||||||
Individual Investor Class | (12,287,182 | ) | (169,539,378 | ) | ||||
Class A | — | — | ||||||
Institutional Class | (1,991,567 | ) | (23,569,142 | ) | ||||
Class R | (44,129 | ) | (508,406 | ) | ||||
Total distributions to shareholders | (26,842,254 | ) | (211,606,289 | ) | ||||
From capital share transactions: | ||||||||
Individual Investor Class | ||||||||
Proceeds from shares sold | 45,132,146 | 97,815,388 | ||||||
Proceeds from reinvestment of distributions | 21,885,505 | 178,401,155 | ||||||
Cost of shares redeemed | (126,006,835 | ) | (255,946,424 | ) | ||||
Net increase (decrease) from Individual Investor Class transactions | (58,989,184 | ) | 20,270,119 | |||||
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 | 46,656,344 | 49,468,412 | ||||||
Proceeds from reinvestment of distributions | 3,777,930 | 25,125,472 | ||||||
Cost of shares redeemed | (18,868,789 | ) | (43,264,279 | ) | ||||
Net increase (decrease) from Institutional Class transactions | 31,565,485 | 31,329,605 | ||||||
Class R | ||||||||
Proceeds from shares sold | 1,073,227 | 1,224,343 | ||||||
Proceeds from reinvestment of distributions | 75,376 | 541,436 | ||||||
Cost of shares redeemed | (308,364 | ) | (814,140 | ) | ||||
Net increase (decrease) from Class R transactions | 840,239 | 951,639 | ||||||
Net increase (decrease) from capital share transactions | (26,583,460 | ) | 52,551,363 | |||||
Net increase (decrease) in net assets | (45,900,735 | ) | (6,670,578 | ) | ||||
Net assets | ||||||||
Beginning of period | 1,994,721,074 | 2,001,391,652 | ||||||
End of period (3) | $ | 1,948,820,339 | $ | 1,994,721,074 | ||||
(3) Includes undistributed net investment income (loss) | $ | 2,640,905 | $ | 3,450,443 |
1 | Includes loss of $90,278 in 2014 due to trading error caused by Investment Adviser. See Note B. |
SEE NOTES TO FINANCIAL STATEMENTS
86
2 | See Note B in the Notes to Financial Statements. |
Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||||||||||||||||||||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | ||||||||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||
Investment income, net | $ | 193,491 | $ | 1,323,910 | $ | 716,040 | $ | 1,124,366 | $ | 15,865,032 | $ | 39,744,252 | ||||||||||||
Net realized gain (loss) on investments and foreign currency transactions 1 | 8,700,737 | 8,826,406 | 7,593,905 | 5,296,430 | (16,235,560 | ) | (11,320,102 | ) | ||||||||||||||||
Net increase from reimbursement from Investment Adviser 2 | — | — | — | — | — | 90,278 | ||||||||||||||||||
Change in unrealized appreciation (depreciation) on investments | (3,345,617 | ) | 10,470,655 | 2,608,521 | 3,684,784 | 7,963,437 | (33,259,031 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 5,548,611 | 20,620,971 | 10,918,466 | 10,105,580 | 7,592,909 | (4,744,603 | ) | |||||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||
Individual Investor Class | (187,458 | ) | (877,973 | ) | (143,151 | ) | (610,225 | ) | (9,676,135 | ) | (26,543,325 | ) | ||||||||||||
Class A | (4,140 | ) | (7,146 | ) | (18,573 | ) | (117,854 | ) | (101,771 | ) | (121,457 | ) | ||||||||||||
Institutional Class | (84,656 | ) | (261,122 | ) | (296,352 | ) | (437,187 | ) | (6,059,174 | ) | (13,259,599 | ) | ||||||||||||
Class R | (448 | ) | (3,767 | ) | — | (4,742 | ) | (27,418 | ) | (53,437 | ) | |||||||||||||
Realized gains | ||||||||||||||||||||||||
Individual Investor Class | (1,997,466 | ) | (5,917,984 | ) | (60,367 | ) | (3,394,692 | ) | — | (421,758 | ) | |||||||||||||
Class A | (35,380 | ) | (60,954 | ) | (8,580 | ) | (643,820 | ) | — | (3,496 | ) | |||||||||||||
Institutional Class | (445,015 | ) | (1,348,664 | ) | (53,702 | ) | (2,180,509 | ) | — | (241,004 | ) | |||||||||||||
Class R | (18,964 | ) | (36,797 | ) | (413 | ) | (43,391 | ) | — | (1,316 | ) | |||||||||||||
Total distributions to shareholders | (2,773,527 | ) | (8,514,407 | ) | (581,138 | ) | (7,432,420 | ) | (15,864,498 | ) | (40,645,392 | ) | ||||||||||||
From capital share transactions: | ||||||||||||||||||||||||
Individual Investor Class | ||||||||||||||||||||||||
Proceeds from shares sold | 11,892,860 | 21,233,415 | 119,190,414 | 83,067,101 | 47,685,334 | 157,676,050 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 2,134,264 | 6,613,253 | 198,945 | 3,872,651 | 8,926,907 | 24,469,389 | ||||||||||||||||||
Cost of shares redeemed | (11,189,944 | ) | (19,496,618 | ) | (15,890,473 | ) | (30,837,570 | ) | (86,722,598 | ) | (274,913,365 | ) | ||||||||||||
Net increase (decrease) from Individual Investor Class transactions | 2,837,180 | 8,350,050 | 103,498,886 | 56,102,182 | (30,110,357 | ) | (92,767,926 | ) | ||||||||||||||||
Class A | ||||||||||||||||||||||||
Proceeds from shares sold | 1,185,351 | 1,486,670 | 12,095,422 | 17,749,038 | 1,722,670 | 2,884,246 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 36,817 | 65,592 | 24,919 | 693,814 | 86,147 | 103,837 | ||||||||||||||||||
Cost of shares redeemed | (29,289 | ) | (177,460 | ) | (2,901,493 | ) | (2,170,364 | ) | (330,094 | ) | (481,257 | ) | ||||||||||||
Net increase from Class A transactions | 1,192,879 | 1,374,802 | 9,218,848 | 16,272,488 | 1,478,723 | 2,506,826 | ||||||||||||||||||
Institutional Class | ||||||||||||||||||||||||
Proceeds from shares sold | 4,789,060 | 10,197,209 | 119,990,796 | 69,513,691 | 31,926,384 | 103,212,166 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 448,270 | 1,364,791 | 276,706 | 2,360,991 | 4,530,636 | 9,311,428 | ||||||||||||||||||
Cost of shares redeemed | (5,860,783 | ) | (4,765,064 | ) | (10,462,562 | ) | (3,766,406 | ) | (45,991,799 | ) | (82,075,273 | ) | ||||||||||||
Net increase (decrease) from Institutional Class transactions | (623,453 | ) | 6,796,936 | 109,804,940 | 68,108,276 | (9,534,779 | ) | 30,448,321 | ||||||||||||||||
Class R | ||||||||||||||||||||||||
Proceeds from shares sold | 696,112 | 408,458 | 632,864 | 951,642 | 169,512 | 540,682 | ||||||||||||||||||
Proceeds from reinvestment of distributions | 19,277 | 40,111 | 383 | 45,962 | 27,411 | 54,689 | ||||||||||||||||||
Cost of shares redeemed | (183,267 | ) | (304,665 | ) | (590,533 | ) | (263,770 | ) | (460,055 | ) | (87,987 | ) | ||||||||||||
Net increase (decrease) from Class R transactions | 532,122 | 143,904 | 42,714 | 733,834 | (263,132 | ) | 507,384 | |||||||||||||||||
Net increase (decrease) from capital share transactions | 3,938,728 | 16,665,692 | 222,565,388 | 141,216,780 | (38,429,545 | ) | (59,305,395 | ) | ||||||||||||||||
Net increase (decrease) in net assets | 6,713,812 | 28,772,256 | 232,902,716 | 143,889,940 | (46,701,134 | ) | (104,695,390 | ) | ||||||||||||||||
Net assets | ||||||||||||||||||||||||
Beginning of period | 200,167,752 | 171,395,496 | 202,058,477 | 58,168,537 | 556,791,218 | 661,486,608 | ||||||||||||||||||
End of period (3) | $ | 206,881,564 | $ | 200,167,752 | $ | 434,961,193 | $ | 202,058,477 | $ | 510,090,084 | $ | 556,791,218 | ||||||||||||
(3) Includes undistributed net investment income (loss) | $ | 39,494 | $ | 122,705 | $ | 257,964 | $ | — | $ | (166,914 | ) | $ | (167,448 | ) |
SEE NOTES TO FINANCIAL STATEMENTS
87
Statements of Changes in Net Assets, continued |
Global Environmental Markets Fund | ||||||||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | ||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Investment income, net | $ | 992,654 | $ | 1,034,355 | ||||
Net realized gain (loss) on investments and foreign currency transactions 1 | 1,766,694 | 2,353,531 | ||||||
Change in unrealized appreciation (depreciation) on investments | 9,507,649 | (9,023,681 | ) | |||||
Net increase (decrease) in net assets resulting from operations | 12,266,997 | (5,635,795 | ) | |||||
Distributions to shareholders from: | ||||||||
Net investment income | ||||||||
Individual Investor Class | (311,071 | ) | (977,158 | ) | ||||
Class A | (38,201 | ) | (71,282 | ) | ||||
Institutional Class | (486,848 | ) | (901,357 | ) | ||||
Class R | (4,546 | ) | (18,584 | ) | ||||
Realized gains | ||||||||
Individual Investor Class | (55,500 | ) | (648,914 | ) | ||||
Class A | (6,607 | ) | (50,078 | ) | ||||
Institutional Class | (62,542 | ) | (501,477 | ) | ||||
Class R | (1,344 | ) | (16,679 | ) | ||||
Total distributions to shareholders | (966,659 | ) | (3,185,529 | ) | ||||
From capital share transactions: | ||||||||
Individual Investor Class | ||||||||
Proceeds from shares sold | 13,898,492 | 35,653,183 | ||||||
Shares issued in connection with fund acquisition | ||||||||
Proceeds from reinvestment of distributions | 344,338 | 1,538,727 | ||||||
Cost of shares redeemed | (9,477,873 | ) | (30,763,403 | ) | ||||
Net increase (decrease) from Individual Investor Class transactions | 4,764,957 | 6,428,507 | ||||||
Class A | ||||||||
Proceeds from shares sold | 3,740,808 | 8,225,735 | ||||||
Proceeds from reinvestment of distributions | 39,114 | 108,605 | ||||||
Cost of shares redeemed | (1,130,905 | ) | (391,489 | ) | ||||
Net increase from Class A transactions | 2,649,017 | 7,942,851 | ||||||
Institutional Class | ||||||||
Proceeds from shares sold | 33,826,827 | 63,033,677 | ||||||
Shares issued in connection with fund acquisition | ||||||||
Proceeds from reinvestment of distributions | 499,473 | 1,206,108 | ||||||
Cost of shares redeemed | (6,243,835 | ) | (15,560,826 | ) | ||||
Net increase (decrease) from Institutional Class transactions | 28,082,465 | 48,678,959 | ||||||
Class R | ||||||||
Proceeds from shares sold | 410,268 | 701,263 | ||||||
Shares issued in connection with fund acquisition | ||||||||
Proceeds from reinvestment of distributions | 5,890 | 35,264 | ||||||
Cost of shares redeemed | (495,071 | ) | (598,187 | ) | ||||
Net increase (decrease) from Class R transactions | (78,913 | ) | 138,340 | |||||
Net increase (decrease) from capital share transactions | 35,417,526 | 63,188,657 | ||||||
Net increase (decrease) in net assets | 46,717,864 | 54,367,333 | ||||||
Net assets | ||||||||
Beginning of period | 196,123,978 | 141,756,645 | ||||||
End of period (3) | $ | 242,841,842 | $ | 196,123,978 | ||||
(3) Includes undistributed net investment income (loss) | $ | 151,988 | $ | — |
SEE NOTES TO FINANCIAL STATEMENTS
88
International ESG Index Fund | Global Women’s Index Fund | |||||||||||||||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | ||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Investment income, net | $ | 4,087,979 | $ | 3,685,029 | $ | 848,394 | $ | 1,138,420 | ||||||||
Net realized gain (loss) on investments and foreign currency transactions 1 | (1,687,247 | ) | (308,782 | ) | 43,003 | 9,306,526 | ||||||||||
Change in unrealized appreciation (depreciation) on investments | 5,517,210 | (10,716,298 | ) | (582,573 | ) | (7,423,212 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 7,917,942 | (7,340,051 | ) | 308,824 | 3,021,734 | |||||||||||
Distributions to shareholders from: | ||||||||||||||||
Net investment income | ||||||||||||||||
Individual Investor Class | (738,024 | ) | (445,526 | ) | (651,148 | ) | (978,471 | ) | ||||||||
Class A | ||||||||||||||||
Institutional Class | (3,622,078 | ) | (2,743,493 | ) | (192,958 | ) | (128,157 | ) | ||||||||
Class R | (9,559 | ) | (6,075 | ) | ||||||||||||
Realized gains | ||||||||||||||||
Individual Investor Class | (5,006 | ) | (164,345 | ) | (395,169 | ) | (5,519,992 | ) | ||||||||
Class A | ||||||||||||||||
Institutional Class | (22,668 | ) | (400,513 | ) | (105,593 | ) | (1,265,637 | ) | ||||||||
Class R | (73 | ) | (3,606 | ) | ||||||||||||
Total distributions to shareholders | (4,397,408 | ) | (3,763,558 | ) | (1,344,868 | ) | (7,892,257 | ) | ||||||||
From capital share transactions: | ||||||||||||||||
Individual Investor Class | ||||||||||||||||
Proceeds from shares sold | 25,062,473 | 19,978,468 | 11,105,987 | 18,550,009 | ||||||||||||
Shares issued in connection with fund acquisition | — | 30,289,296 | ||||||||||||||
Proceeds from reinvestment of distributions | 701,459 | 567,202 | 971,269 | 5,968,333 | ||||||||||||
Cost of shares redeemed | (4,318,140 | ) | (10,446,898 | ) | (4,016,473 | ) | (9,726,963 | ) | ||||||||
Net increase (decrease) from Individual Investor Class transactions | 21,445,792 | 40,388,068 | 8,060,783 | 14,791,379 | ||||||||||||
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 | 190,275,879 | 40,254,577 | 5,515,112 | 11,927,266 | ||||||||||||
Shares issued in connection with fund acquisition | — | 10,611,480 | ||||||||||||||
Proceeds from reinvestment of distributions | 3,053,232 | 2,803,930 | 215,453 | 848,197 | ||||||||||||
Cost of shares redeemed | (11,934,965 | ) | (14,838,177 | ) | (1,808,282 | ) | (378,300 | ) | ||||||||
Net increase (decrease) from Institutional Class transactions | 181,394,146 | 38,831,8101 | 3,922,283 | 12,397,163 | ||||||||||||
Class R | ||||||||||||||||
Proceeds from shares sold | 73,342 | 514,704 | ||||||||||||||
Shares issued in connection with fund acquisition | — | 431,610 | ||||||||||||||
Proceeds from reinvestment of distributions | 9,632 | 9,681 | ||||||||||||||
Cost of shares redeemed | (54,517 | ) | (117,353 | ) | ||||||||||||
Net increase (decrease) from Class R transactions | 28,457 | 838,642 | ||||||||||||||
Net increase (decrease) from capital share transactions | 202,868,395 | 80,058,520 | 11,983,066 | 27,188,542 | ||||||||||||
Net increase (decrease) in net assets | 206,388,929 | 68,954,911 | 10,947,022 | 22,318,019 | ||||||||||||
Net assets | ||||||||||||||||
Beginning of period | 127,503,841 | 58,548,930 | 68,693,362 | 46,375,343 | ||||||||||||
End of period (3) | $ | 333,892,770 | $ | 127,503,841 | $ | 79,640,384 | $ | 68,693,362 | ||||||||
(3) Includes undistributed net investment income (loss) | $ | 153,883 | $ | 435,565 | $ | 56,358 | $ | 52,070 |
SEE NOTES TO FINANCIAL STATEMENTS
89
Statements of Changes in Net Assets—Shares of Beneficial Interest |
Balanced Fund | ||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 |
Individual Investor Class | ||
Shares sold | 1,891,054 | 3,936,353 |
Shares issued in reinvestment of distributions | 918,016 | 7,404,458 |
Shares redeemed | (5,271,299) | (10,278,057) |
Net increase (decrease) in shares outstanding | (2,462,229) | 1,062,754 |
Class A | ||
Shares sold | ||
Shares issued in reinvestment of distributions | ||
Shares redeemed | ||
Net increase in shares outstanding | ||
Institutional Class | ||
Shares sold | 1,929,285 | 1,957,783 |
Shares issued in reinvestment of distributions | 156,631 | 1,031,326 |
Shares redeemed | (780,641) | (1,714,948) |
Net increase (decrease) in shares outstanding | 1,305,275 | 1,274,161 |
Class R | ||
Shares sold | 44,759 | 48,857 |
Shares issued in reinvestment of distributions | 3,143 | 22,350 |
Shares redeemed | (12,828) | (32,462) |
Net increase (decrease) in shares outstanding | 35,074 | 38,745 |
Global Environmental Markets Fund | ||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 |
Individual Investor Class | ||
Shares sold | 1,091,050 | 2,817,753 |
Shares issued in connection with fund acquisition | ||
Shares issued in reinvestment of distributions | 25,969 | 118,951 |
Shares redeemed | (739,760) | (2,439,445) |
Net increase in shares outstanding | 377,259 | 497,259 |
Class A | ||
Shares sold | 292,605 | 650,072 |
Shares issued in reinvestment of distributions | 2,954 | 8,459 |
Shares redeemed | (88,382) | (31,230) |
Net increase in shares outstanding | 207,177 | 627,301 |
Institutional Class | ||
Shares sold | 2,672,275 | 4,949,085 |
Shares issued in connection with fund acquisition | ||
Shares issued in reinvestment of distributions | 37,470 | 93,430 |
Shares redeemed | (488,788) | (1,258,949) |
Net increase in shares outstanding | 2,220,957 | 3,783,566 |
Class R | ||
Shares sold | 32,366 | 55,688 |
Shares issued in connection with fund acquisition | ||
Shares issued in reinvestment of distributions | 447 | 2,735 |
Shares redeemed | (39,992) | (47,609) |
Net increase (decrease) in shares outstanding | (7,179) | 10,814 |
SEE NOTES TO FINANCIAL STATEMENTS
90
Growth Fund | Small Cap Fund | High Yield Bond Fund | ||||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 |
Individual Investor Class | ||||||
Shares sold | 636,358 | 1,199,593 | 8,347,948 | 6,022,811 | 6,781,013 | 20,856,979 |
Shares issued in reinvestment of distributions | 112,035 | 362,179 | 13,470 | 278,142 | 1,268,687 | 3,252,312 |
Shares redeemed | (597,394) | (1,105,975) | (1,112,075) | (2,246,093) | (12,329,093) | (36,612,977) |
Net increase (decrease) in shares outstanding | 150,999 | 455,797 | 7,249,343 | 4,054,860 | (4,279,393) | (12,503,686) |
Class A | ||||||
Shares sold | 62,733 | 84,003 | 845,309 | 1,291,929 | 244,819 | 383,168 |
Shares issued in reinvestment of distributions | 1,937 | 3,590 | 1,691 | 49,920 | 12,237 | 13,926 |
Shares redeemed | (1,545) | (9,682) | (202,945) | (156,612) | (46,672) | (66,049) |
Net increase in shares outstanding | 63,125 | 77,911 | 644,055 | 1,185,237 | 210,384 | 331,045 |
Institutional Class | ||||||
Shares sold | 250,658 | 563,395 | 8,338,857 | 5,011,350 | 4,557,598 | 13,758,878 |
Shares issued in reinvestment of distributions | 23,012 | 73,094 | 18,621 | 168,942 | 646,155 | 1,245,965 |
Shares redeemed | (304,787) | (259,543) | (728,850) | (271,702) | (6,579,650) | (11,126,347) |
Net increase (decrease) in shares outstanding | (31,117) | 376,946 | 7,628,628 | 4,908,590 | (1,375,897) | 3,878,496 |
Class R | ||||||
Shares sold | 37,292 | 23,020 | 45,204 | 69,965 | 24,036 | 71,387 |
Shares issued in reinvestment of distributions | 1,017 | 2,202 | 26 | 3,331 | 3,894 | 7,308 |
Shares redeemed | (9,860) | (17,401) | (41,321) | (19,213) | (65,539) | (11,835) |
Net increase (decrease) in shares outstanding | 28,449 | 7,821 | 3,909 | 54,083 | (37,609) | 66,860 |
International ESG Index Fund | Global Women’s Index Fund | |||
| (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 | (Unaudited) Period Ended 6/30/15 | Year Ended 12/31/14 |
Individual Investor Class | ||||
Shares sold | 2,887,365 | 2,285,239 | 532,647 | 830,918 |
Shares issued in connection with fund acquisition | — | 3,426,217 | ||
Shares issued in reinvestment of distributions | 78,200 | 64,492 | 46,494 | 285,956 |
Shares redeemed | (491,816) | (1,186,696) | (192,944) | (439,062) |
Net increase in shares outstanding | 2,473,749 | 4,589,252 | 386,197 | 677,812 |
Class A | ||||
Shares sold | ||||
Shares issued in reinvestment of distributions | ||||
Shares redeemed | ||||
Net increase in shares outstanding | ||||
Institutional Class | ||||
Shares sold | 21,979,658 | 4,074,823 | 263,347 | 529,747 |
Shares issued in connection with fund acquisition | — | 1,200,069 | ||
Shares issued in reinvestment of distributions | 346,564 | 318,300 | 10,269 | 40,689 |
Shares redeemed | (1,373,136) | (1,724,376) | (85,956) | (17,318) |
Net increase in shares outstanding | 20,953,086 | 3,868,816 | 187,660 | 553,118 |
Class R | ||||
Shares sold | 8,321 | 61,974 | ||
Shares issued in connection with fund acquisition | — | 49,065 | ||
Shares issued in reinvestment of distributions | 1,082 | 1,118 | ||
Shares redeemed | (6,191) | (13,400) | ||
Net increase (decrease) in shares outstanding | 3,212 | 98,757 |
SEE NOTES TO FINANCIAL STATEMENTS
91
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
Balanced Fund | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $23.70 | $0.14 | $(0.06) | $0.08 | $0.15 | $0.17 | $— |
Year Ended December 31, 2014 | 24.47 | 0.23 | 1.72 | 1.95 | 0.22 | 2.50 | — |
Year Ended December 31, 2013 | 23.73 | 0.28 | 3.54 | 3.82 | 0.21 | 2.87 | — |
Year Ended December 31, 2012 | 21.67 | 0.34 | 2.09 | 2.43 | 0.37 | — | — |
Year Ended December 31, 2011 | 22.36 | 0.34 | (0.74) | (0.40) | 0.29 | — | — |
Year Ended December 31, 2010 | 20.30 | 0.32 | 2.06 | 2.38 | 0.32 | — | 0.005 |
Institutional Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $23.97 | $ 0.17 | $(0.06) | $ 0.11 | $0.18 | $0.17 | $— |
Year Ended December 31, 2014 | 24.73 | 0.29 | 1.74 | 2.03 | 0.29 | 2.50 | — |
Year Ended December 31, 2013 | 23.94 | 0.35 | 3.58 | 3.93 | 0.27 | 2.87 | — |
Year Ended December 31, 2012 | 21.86 | 0.41 | 2.10 | 2.51 | 0.43 | — | — |
Year Ended December 31, 2011 | 22.56 | 0.40 | (0.75) | (0.35) | 0.35 | — | — |
Year Ended December 31, 2010 | 20.47 | 0.37 | 2.09 | 2.46 | 0.37 | — | 0.005 |
Class R |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $23.84 | $0.11 | $(0.06) | $0.05 | $0.12 | $0.17 | $— |
Year Ended December 31, 2014 | 24.62 | 0.17 | 1.72 | 1.89 | 0.17 | 2.50 | — |
Year Ended December 31, 2013 | 23.86 | 0.22 | 3.56 | 3.78 | 0.15 | 2.87 | — |
Year Ended December 31, 2012 | 21.79 | 0.29 | 2.10 | 2.39 | 0.32 | — | — |
Year Ended December 31, 2011 | 22.49 | 0.29 | (0.76) | (0.47) | 0.23 | — | — |
Year Ended December 31, 2010 | 20.42 | 0.28 | 2.07 | 2.35 | 0.28 | — | 0.005 |
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. |
SEE NOTES TO FINANCIAL STATEMENTS
92
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total return2 | Net assets | Net | Net | Total | Portfolio Turnover4 |
Balanced Fund | ||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.32 | $23.46 | 0.33% | $1,665,204 | 0.89% | 1.15% | 0.90% | 34% |
Year Ended December 31, 2014 | 2.72 | 23.70 | 8.00% | 1,740,414 | 0.91% | 0.91% | 0.92% | 52% |
Year Ended December 31, 2013 | 3.08 | 24.47 | 16.34% | 1,771,519 | 0.91% | 1.12% | 0.92% | 62% |
Year Ended December 31, 2012 | 0.37 | 23.73 | 11.28% | 1,685,217 | 0.94% | 1.50% | 0.94% | 31% |
Year Ended December 31, 2011 | 0.29 | 21.67 | (1.83%) | 1,669,361 | 0.95% | 1.51% | 0.95% | 38% |
Year Ended December 31, 2010 | 0.32 | 22.36 | 11.83% | 1,872,287 | 0.96% | 1.55% | 0.96% | 36% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.35 | $23.73 | 0.44% | $277,514 | 0.64% | 1.43% | 0.65% | 34% |
Year Ended December 31, 2014 | 2.79 | 23.97 | 8.21% | 248,979 | 0.66% | 1.16% | 0.67% | 52% |
Year Ended December 31, 2013 | 3.14 | 24.73 | 16.70% | 225,325 | 0.66% | 1.37% | 0.67% | 62% |
Year Ended December 31, 2012 | 0.43 | 23.94 | 11.56% | 142,848 | 0.69% | 1.75% | 0.69% | 31% |
Year Ended December 31, 2011 | 0.35 | 21.86 | (1.61%) | 116,204 | 0.70% | 1.77% | 0.70% | 38% |
Year Ended December 31, 2010 | 0.37 | 22.56 | 12.16% | 110,437 | 0.71% | 1.81% | 0.71% | 36% |
Class R |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $ 0.29 | $23.60 | 0.22% | $6,102 | 1.14% | 0.92% | 1.15% | 34% |
Year Ended December 31, 2014 | 2.67 | 23.84 | 7.68% | 5,328 | 1.16% | 0.66% | 1.17% | 52% |
Year Ended December 31, 2013 | 3.02 | 24.62 | 16.09% | 4,548 | 1.16% | 0.86% | 1.17% | 62% |
Year Ended December 31, 2012 | 0.32 | 23.86 | 11.02% | 3,341 | 1.19% | 1.25% | 1.19% | 31% |
Year Ended December 31, 2011 | 0.23 | 21.79 | (2.09%) | 2,791 | 1.20% | 1.27% | 1.20% | 38% |
Year Ended December 31, 2010 | 0.28 | 22.49 | 11.58% | 2,629 | 1.21% | 1.36% | 1.21% | 36% |
4 | Not annualized |
5 | Rounds to less than $0.01. |
SEE NOTES TO FINANCIAL STATEMENTS
93
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
Growth Fund | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $18.26 | $0.01 | $0.49 | $0.50 | $0.02 | $0.23 | $— |
Year Ended December 31, 2014 | 17.08 | 0.12 | 1.87 | 1.99 | 0.11 | 0.70 | — |
Year Ended December 31, 2013 | 13.50 | 0.03 | 3.96 | 3.99 | 0.04 | 0.37 | — |
Year Ended December 31, 2012 | 11.96 | 0.05 | 1.51 | 1.56 | 0.02 | — | — |
Year Ended December 31, 2011 | 12.21 | — | (0.25) | (0.25) | — | — | — |
Year Ended December 31, 2010 | 9.99 | (0.03) | 2.25 | 2.22 | — | — | — |
Class A |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $18.23 | $0.01 | $0.50 | $0.51 | $0.03 | $0.23 | $— |
Year Ended December 31, 2014 | 17.06 | 0.08 | 1.91 | 1.99 | 0.12 | 0.70 | — |
Period Ended December 31, 20136 | 14.39 | — | 3.09 | 3.09 | 0.05 | 0.37 | — |
Institutional Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $18.66 | $0.04 | $0.50 | $0.54 | $0.04 | $0.23 | $— |
Year Ended December 31, 2014 | 17.44 | 0.16 | 1.91 | 2.07 | 0.15 | 0.70 | — |
Year Ended December 31, 2013 | 13.76 | 0.07 | 4.03 | 4.10 | 0.05 | 0.37 | — |
Year Ended December 31, 2012 | 12.19 | 0.08 | 1.56 | 1.64 | 0.07 | — | — |
Year Ended December 31, 2011 | 12.41 | 0.04 | (0.26) | (0.22) | — | — | — |
Year Ended December 31, 2010 | 10.13 | — | 2.28 | 2.28 | — | — | — |
Class R |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $18.18 | $(0.01) | $0.50 | $0.49 | $0.01 | $0.23 | $— |
Year Ended December 31, 2014 | 17.03 | 0.08 | 1.85 | 1.93 | 0.08 | 0.70 | — |
Year Ended December 31, 2013 | 13.48 | (0.01)5 | 3.95 | 3.94 | 0.02 | 0.37 | — |
Year Ended December 31, 2012 | 11.95 | 0.01 | 1.52 | 1.53 | — | — | — |
Year Ended December 31, 2011 | 12.24 | (0.02)5 | (0.27) | (0.29) | — | — | — |
Year Ended December 31, 2010 | 10.04 | (0.05) | 2.25 | 2.20 | — | — | — |
1 | Based on average shares outstanding during the period. |
2 | Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized. |
3 | Ratios representing periods of less than one year have been annualized. |
SEE NOTES TO FINANCIAL STATEMENTS
94
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total return2 | Net assets end of period (in $000’s) | Net | Net | Total | Portfolio Turnover4 |
Growth Fund | ||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.25 | $18.51 | 2.69% | $164,825 | 1.24% | 0.15% | 1.28% | 16% |
Year Ended December 31, 2014 | 0.81 | 18.26 | 11.66% | 159,794 | 1.26% | 0.69% | 1.32% | 29% |
Year Ended December 31, 2013 | 0.41 | 17.08 | 29,61% | 141,698 | 1.29% | 0.18% | 1.35% | 27% |
Year Ended December 31, 2012 | 0.02 | 13.50 | 13.08% | 123,870 | 1.29% | 0.36% | 1.44% | 21% |
Year Ended December 31, 2011 | — | 11.96 | (2.05%) | 112,042 | 1.32% | 0.04% | 1.47% | 20% |
Year Ended December 31, 2010 | — | 12.21 | 22.22% | 111,403 | 1.41% | (0.28%) | 1.57% | 25% |
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.26 | $18.48 | 2.73% | $2,919 | 1.24% | 0.15% | 1.28% | 16% |
Year Ended December 31, 2014 | 0.82 | 18.23 | 11.68% | 1,729 | 1.26% | 0.47% | 1.33% | 29% |
Period Ended December 31, 20136 | 0.42 | 17.06 | 21.58% | 289 | 1.29% | 0.02% | 1.35% | 27% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.27 | $18.93 | 2.86% | $37,582 | 0.99% | 0.40% | 1.03% | 16% |
Year Ended December 31, 2014 | 0.85 | 18.66 | 11.91% | 37,629 | 1.01% | 0.91% | 1.07% | 29% |
Year Ended December 31, 2013 | 0.42 | 17.44 | 29.93% | 28,590 | 1.04% | 0.48% | 1.10% | 27% |
Year Ended December 31, 2012 | 0.07 | 13.76 | 13.35% | 6,147 | 1.04% | 0.63% | 1.19% | 21% |
Year Ended December 31, 2011 | — | 12.19 | (1.77%) | 4,883 | 1.07% | 0.31% | 1.22% | 20% |
Year Ended December 31, 2010 | — | 12.41 | 22.51% | 3,231 | 1.16% | (0.04%) | 1.32% | 25% |
Class R |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.24 | $18.43 | 2.62% | $1,554 | 1.49% | (0.09%) | 1.53% | 16% |
Year Ended December 31, 2014 | 0.78 | 18.18 | 11.37% | 1,016 | 1.51% | 0.47% | 1.57% | 29% |
Year Ended December 31, 2013 | 0.39 | 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% |
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
95
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
Small Cap Fund | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $13.92 | $0.02 | $0.53 | $0.55 | $0.01 | $0.005 | $— |
Year Ended December 31, 2014 | 13.58 | 0.12 | 0.83 | 0.95 | 0.10 | 0.51 | — |
Year Ended December 31, 2013 | 10.58 | 0.10 | 4.43 | 4.53 | 0.11 | 1.42 | — |
Year Ended December 31, 2012 | 9.65 | 0.19 | 1.09 | 1.28 | 0.10 | 0.25 | — |
Year Ended December 31, 2011 | 11.05 | 0.04 | (0.39) | (0.35) | 0.09 | 0.96 | — |
Year Ended December 31, 2010 | 9.29 | 0.08 | 2.68 | 2.76 | 0.07 | 0.93 | — |
Class A |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $13.90 | $0.02 | $0.52 | $0.54 | $0.01 | $0.005 | $— |
Year Ended December 31, 2014 | 13.56 | 0.13 | 0.83 | 0.96 | 0.11 | 0.51 | — |
Period Ended December 31, 20136 | 11.83 | 0.13 | 3.15 | 3.28 | 0.13 | 1.42 | — |
Institutional Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $14.00 | $0.04 | $0.53 | $0.57 | $0.02 | $0.005 | $— |
Year Ended December 31, 2014 | 13.65 | 0.16 | 0.83 | 0.99 | 0.13 | 0.51 | — |
Year Ended December 31, 2013 | 10.62 | 0.15 | 4.44 | 4.59 | 0.14 | 1.42 | — |
Year Ended December 31, 2012 | 9.69 | 0.17 | 1.13 | 1.30 | 0.12 | 0.25 | — |
Year Ended December 31, 2011 | 11.08 | 0.07 | (0.38) | (0.31) | 0.12 | 0.96 | — |
Year Ended December 31, 2010 | 9.31 | 0.15 | 2.64 | 2.79 | 0.09 | 0.93 | — |
Class R |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $13.81 | $0.00 | $0.52 | $0.52 | $— | $0.005 | $— |
Year Ended December 31, 2014 | 13.48 | 0.09 | 0.82 | 0.91 | 0.07 | 0.51 | — |
Year Ended December 31, 2013 | 10.52 | 0.08 | 4.39 | 4.47 | 0.09 | 1.42 | — |
Year Ended December 31, 2012 | 9.61 | 0.21 | 1.03 | 1.24 | 0.08 | 0.25 | — |
Year Ended December 31, 2011 | 10.99 | 0.02 | (0.39) | (0.37) | 0.05 | 0.96 | — |
Year Ended December 31, 2010 | 9.26 | 0.16 | 2.57 | 2.73 | 0.07 | 0.93 | — |
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. |
SEE NOTES TO FINANCIAL STATEMENTS
96
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total return2 | Net assets end of period (in $000’s) | Net | Net | Total | Portfolio Turnover4 |
Small Cap Fund | ||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.01 | $14.46 | 3.98% | $212,286 | 1.22% | 0.35% | 1.23% | 25% |
Year Ended December 31, 2014 | 0.61 | 13.92 | 7.06% | 103,508 | 1.24% | 0.88% | 1.37% | 167% |
Year Ended December 31, 2013 | 1.53 | 13.58 | 43.24% | 45,890 | 1.24% | 0.75% | 1.66% | 162% |
Year Ended December 31, 2012 | 0.35 | 10.58 | 13.55% | 15,447 | 1.24% | 1.89% | 2.20% | 166% |
Year Ended December 31, 2011 | 1.05 | 9.65 | (3.50%) | 13,290 | 1.24% | 0.40% | 2.71% | 161% |
Year Ended December 31, 2010 | 1.00 | 11.05 | 30.17% | 9,192 | 1.24% | 0.80% | 4.47% | 179% |
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.01 | $14.43 | 3.91% | $29,747 | 1.22% | 0.32% | 1.23% | 25% |
Year Ended December 31, 2014 | 0.62 | 13.90 | 7.10% | 19,698 | 1.24% | 0.91% | 1.37% | 167% |
Period Ended December 31, 20136 | 1.55 | 13.56 | 28.10% | 3,151 | 1.24% | 1.36% | 1.66% | 162% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.02 | $14.55 | 4.12% | $191,437 | 0.97% | 0.60% | 0.98% | 25% |
Year Ended December 31, 2014 | 0.64 | 14.00 | 7.31% | 77,469 | 0.99% | 1.14% | 1.11% | 167% |
Year Ended December 31, 2013 | 1.56 | 13.65 | 43.64% | 8,507 | 0.99% | 1.10% | 1.41% | 162% |
Year Ended December 31, 2012 | 0.37 | 10.62 | 13.75% | 442 | 0.99% | 1.69% | 1.95% | 166% |
Year Ended December 31, 2011 | 1.08 | 9.69 | (3.17%) | 627 | 0.99% | 0.67% | 2.46% | 161% |
Year Ended December 31, 2010 | 1.02 | 11.08 | 30.44% | 283 | 0.99% | 1.41% | 4.22% | 179% |
Class R |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.005 | $14.33 | 3.79% | $1,492 | 1.47% | 0.01% | 1.48% | 25% |
Year Ended December 31, 2014 | 0.58 | 13.81 | 6.79% | 1,384 | 1.49% | 0.63% | 1.62% | 167% |
Year Ended December 31, 2013 | 1.51 | 13.48 | 42.90% | 621 | 1.49% | 0.58% | 1.91% | 162% |
Year Ended December 31, 2012 | 0.33 | 10.52 | 13.24% | 111 | 1.49% | 2.12% | 2.45% | 166% |
Year Ended December 31, 2011 | 1.01 | 9.61 | (3.74%) | 46 | 1.49% | 0.15% | 2.96% | 161% |
Year Ended December 31, 2010 | 1.00 | 10.99 | 29.94% | 15 | 1.49% | 1.62% | 4.72% | 179% |
3 | Ratios representing periods of less than one year have been annualized. |
4 | Not annualized |
5 | Rounds to less than $0.01 |
6 | Per share data is reflected from class inception date of May 1, 2013. |
SEE NOTES TO FINANCIAL STATEMENTS
97
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
High Yield Bond Fund | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $7.03 | $0.20 | $(0.11) | $0.09 | $0.20 | $— | $— |
Year Ended December 31, 2014 | 7.57 | 0.44 | (0.53) | (0.09) | 0.44 | 0.01 | — |
Year Ended December 31, 2013 | 7.53 | 0.46 | 0.07 | 0.53 | 0.48 | 0.01 | — |
Year Ended December 31, 2012 | 7.20 | 0.53 | 0.40 | 0.93 | 0.53 | 0.07 | — |
Year Ended December 31, 2011 | 7.74 | 0.57 | (0.41) | 0.16 | 0.58 | 0.12 | — |
Year Ended December 31, 2010 | 7.74 | 0.66 | 0.10 | 0.76 | 0.65 | 0.11 | — |
Class A |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $7.04 | $0.20 | $(0.11) | $0.09 | $0.20 | $— | $— |
Year Ended December 31, 2014 | 7.57 | 0.43 | (0.51) | (0.08) | 0.44 | 0.01 | — |
Period Ended December 31, 20135 | 7.67 | 0.29 | (0.08) | 0.21 | 0.30 | 0.01 | — |
Institutional Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $7.01 | $0.21 | $(0.11) | $0.10 | $0.21 | $— | $— |
Year Ended December 31, 2014 | 7.54 | 0.46 | (0.52) | (0.06) | 0.46 | 0.01 | — |
Year Ended December 31, 2013 | 7.50 | 0.47 | 0.05 | 0.52 | 0.47 | 0.01 | — |
Year Ended December 31, 2012 | 7.17 | 0.55 | 0.40 | 0.95 | 0.55 | 0.07 | — |
Year Ended December 31, 2011 | 7.72 | 0.59 | (0.43) | 0.16 | 0.59 | 0.12 | — |
Year Ended December 31, 2010 | 7.70 | 0.67 | 0.13 | 0.80 | 0.67 | 0.11 | — |
Class R |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $7.03 | $0.19 | $(0.11) | $0.08 | $0.19 | $— | $— |
Year Ended December 31, 2014 | 7.57 | 0.42 | (0.53) | (0.11) | 0.42 | 0.01 | — |
Year Ended December 31, 2013 | 7.53 | 0.44 | 0.05 | 0.49 | 0.44 | 0.01 | — |
Year Ended December 31, 2012 | 7.19 | 0.52 | 0.41 | 0.93 | 0.52 | 0.07 | — |
Year Ended December 31, 2011 | 7.72 | 0.55 | (0.40) | 0.15 | 0.56 | 0.12 | — |
Year Ended December 31, 2010 | 7.71 | 0.63 | 0.12 | 0.75 | 0.63 | 0.11 | — |
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. |
SEE NOTES TO FINANCIAL STATEMENTS
98
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total return2 | Net assets end of period (in $000’s) | Net | Net | Total | Portfolio Turnover4 |
High Yield Bond Fund | ||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.20 | $6.92 | 1.26% | $316,021 | 0.96% | 5.70% | 0.96% | 51% |
Year Ended December 31, 2014 | 0.45 | 7.03 | (1.41%)6 | 351,180 | 0.98% | 5.81% | 0.98% | 74% |
Year Ended December 31, 2013 | 0.49 | 7.57 | 6.91% | 472,484 | 0.96% | 6.05% | 0.96% | 58% |
Year Ended December 31, 2012 | 0.60 | 7.53 | 13.41% | 346,071 | 0.98% | 7.20% | 0.98% | 73% |
Year Ended December 31, 2011 | 0.70 | 7.20 | 2.00% | 295,597 | 0.97% | 7.54% | 0.97% | 49% |
Year Ended December 31, 2010 | 0.76 | 7.74 | 10.35% | 296,349 | 0.99% | 8.45% | 0.99% | 70% |
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.20 | $6.93 | 1.25% | $4,471 | 0.96% | 5.70% | 0.96% | 51% |
Year Ended December 31, 2014 | 0.45 | 7.04 | (1.27%)6 | 3,061 | 0.98% | 5.80% | 0.98% | 74% |
Period Ended December 31, 20135 | 0.31 | 7.57 | 2.78% | 786 | 0.96% | 5.87% | 0.96% | 58% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.21 | $6.90 | 1.37% | $188,761 | 0.71% | 5.94% | 0.71% | 51% |
Year Ended December 31, 2014 | 0.47 | 7.01 | (1.05%)6 | 201,435 | 0.73% | 6.07% | 0.73% | 74% |
Year Ended December 31, 2013 | 0.48 | 7.54 | 7.18% | 187,522 | 0.71% | 6.32% | 0.71% | 58% |
Year Ended December 31, 2012 | 0.62 | 7.50 | 13.72% | 135,382 | 0.73% | 7.46% | 0.73% | 73% |
Year Ended December 31, 2011 | 0.71 | 7.17 | 2.10% | 146,810 | 0.72% | 7.78% | 0.72% | 49% |
Year Ended December 31, 2010 | 0.78 | 7.72 | 10.92% | 119,258 | 0.74% | 8.70% | 0.74% | 70% |
Class R |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.19 | $6.92 | 1.13% | $ 837 | 1.21% | 5.44% | 1.21% | 51% |
Year Ended December 31, 2014 | 0.43 | 7.03 | (1.64%)6 | 1,115 | 1.23% | 5.56% | 1.23% | 74% |
Year Ended December 31, 2013 | 0.45 | 7.57 | 6.63% | 694 | 1.21% | 5.82% | 1.21% | 58% |
Year Ended December 31, 2012 | 0.59 | 7.53 | 13.29% | 882 | 1.23% | 6.96% | 1.23% | 73% |
Year Ended December 31, 2011 | 0.68 | 7.19 | 1.87% | 452 | 1.22% | 7.30% | 1.22% | 49% |
Year Ended December 31, 2010 | 0.74 | 7.72 | 10.23% | 214 | 1.24% | 8.21% | 1.24% | 70% |
4 | Not annualized |
5 | Per share data is reflected from class inception date of May 1, 2013. |
6 | In 2014, the Adviser reimbursed the Fund $90,278 for a loss incurred due to a trading error. Before the reimbursement, the difference in the total return for the year would have been less than 0.005% for each class of shares. |
SEE NOTES TO FINANCIAL STATEMENTS
99
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
Global Environmental Markets Fund | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $12.25 | $0.05 | $0.65 | $0.70 | 0.04 | $0.01 | $— |
Year Ended December 31, 2014 | 12.80 | 0.07 | (0.42) | (0.35) | 0.12 | 0.08 | — |
Year Ended December 31, 2013 | 9.88 | 0.07 | 3.07 | 3.14 | 0.20 | 0.02 | — |
Year Ended December 31, 2012 | 8.42 | 0.06 | 1.55 | 1.61 | 0.15 | — | — |
Year Ended December 31, 2011 | 9.63 | 0.04 | (1.04) | (1.00) | — | 0.21 | — |
Year Ended December 31, 2010 | 8.69 | 0.01 | 0.96 | 0.97 | 0.03 | — | — |
Class A |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $12.23 | $0.05 | $0.65 | $0.70 | $0.04 | $0.01 | $— |
Year Ended December 31, 2014 | 12.78 | 0.04 | (0.38) | (0.34) | 0.13 | 0.08 | — |
Period Ended December 31, 20135 | 10.75 | (0.02) | 2.29 | 2.27 | 0.22 | 0.02 | — |
Institutional Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $12.31 | $0.07 | $0.65 | $0.72 | $0.05 | $0.01 | $— |
Year Ended December 31, 2014 | 12.86 | 0.08 | (0.40) | (0.32) | 0.15 | 0.08 | — |
Year Ended December 31, 2013 | 9.92 | 0.09 | 3.10 | 3.19 | 0.23 | 0.02 | — |
Year Ended December 31, 2012 | 8.46 | 0.08 | 1.56 | 1.64 | 0.18 | — | — |
Year Ended December 31, 2011 | 9.64 | 0.07 | (1.04) | (0.97) | — | 0.21 | — |
Year Ended December 31, 2010 | 8.69 | 0.03 | 0.97 | 1.00 | 0.05 | — | — |
Class R |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $12.16 | $0.03 | $0.65 | $0.68 | $0.02 | $0.01 | $— |
Year Ended December 31, 2014 | 12.71 | 0.04 | (0.42) | (0.38) | 0.09 | 0.08 | — |
Year Ended December 31, 2013 | 9.81 | 0.05 | 3.05 | 3.10 | 0.18 | 0.02 | — |
Year Ended December 31, 2012 | 8.37 | 0.04 | 1.54 | 1.58 | 0.14 | — | — |
Year Ended December 31, 2011 | 9.60 | 0.02 | (1.04) | (1.02) | — | 0.21 | — |
Year Ended December 31, 2010 | 8.66 | (0.02)6 | 0.97 | 0.95 | 0.01 | — | — |
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. |
SEE NOTES TO FINANCIAL STATEMENTS
100
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total return2 | Net assets end of period (in $000’s) | Net | Net | Total | Portfolio Turnover4 |
Global Environmental Markets Fund | ||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.05 | $12.90 | 5.66% | $106,259 | 1.40% | 0.75% | 1.41% | 10% |
Year Ended December 31, 2014 | 0.20 | 12.25 | (2.78%) | 96,255 | 1.40% | 0.56% | 1.46% | 27% |
Year Ended December 31, 2013 | 0.22 | 12.80 | 32.01% | 94,214 | 1.40% | 0.65% | 1.54% | 20% |
Year Ended December 31, 2012 | 0.15 | 9.88 | 19.27% | 46,392 | 1.40% | 0.64% | 1.81% | 46% |
Year Ended December 31, 2011 | 0.21 | 8.42 | (10.39%) | 33,444 | 1.40% | 0.44% | 1.99% | 79% |
Year Ended December 31, 2010 | 0.03 | 9.63 | 11.20% | 28,210 | 1.40% | 0.09% | 2.38% | 62% |
Class A |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.05 | $12.88 | 5.68% | $12,951 | 1.40% | 0.80% | 1.41% | 10% |
Year Ended December 31, 2014 | 0.21 | 12.23 | (2.73%) | 9,763 | 1.40% | 0.31% | 1.46% | 27% |
Period Ended December 31, 20135 | 0.24 | 12.78 | 21.32% | 2,188 | 1.40% | (0.23%) | 1.54% | 20% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.06 | $12.97 | 5.83% | $121,088 | 1.15% | 1.05% | 1.16% | 10% |
Year Ended December 31, 2014 | 0.23 | 12.31 | (2.53%) | 87,605 | 1.15% | 0.63% | 1.21% | 27% |
Year Ended December 31, 2013 | 0.25 | 12.86 | 32.37% | 42,898 | 1.15% | 0.78% | 1.29% | 20% |
Year Ended December 31, 2012 | 0.18 | 9.92 | 19.47% | 10,644 | 1.15% | 0.90% | 1.56% | 46% |
Year Ended December 31, 2011 | 0.21 | 8.46 | (10.07%) | 2,511 | 1.15% | 0.73% | 1.74% | 79% |
Year Ended December 31, 2010 | 0.05 | 9.64 | 11.56% | 1,767 | 1.15% | 0.32% | 2.13% | 62% |
Class R |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.03 | $12.81 | 5.59% | $2,543 | 1.65% | 0.48% | 1.66% | 10% |
Year Ended December 31, 2014 | 0.17 | 12.16 | (3.04%) | 2,501 | 1.65% | 0.30% | 1.71% | 27% |
Year Ended December 31, 2013 | 0.20 | 12.71 | 31.72% | 2,476 | 1.65% | 0.42% | 1.79% | 20% |
Year Ended December 31, 2012 | 0.14 | 9.81 | 18.95% | 1,545 | 1.65% | 0.42% | 2.06% | 46% |
Year Ended December 31, 2011 | 0.21 | 8.37 | (10.63%) | 658 | 1.65% | 0.18% | 2.24% | 79% |
Year Ended December 31, 2010 | 0.01 | 9.60 | 11.01% | 653 | 1.65% | (0.18%) | 2.63% | 62% |
4 | Not annualized |
5 | Per share data is reflected from class inception date of May 1, 2013. |
6 | The amount shown for a share outstanding does not correspond with the aggregate net investment income for the period due to the timing of sales and repurchases of the shares in relation to fluctuating market value of the investments of the Fund. |
SEE NOTES TO FINANCIAL STATEMENTS
101
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
International ESG Index Fund | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $8.19 | $0.14 | $0.42 | $0.56 | $0.11 | $0.008 | $— |
Period Ended December 31, 20145 | 8.84 | 0.20 | (0.70) | (0.50) | 0.11 | 0.04 | — |
Institutional Class6 |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $8.05 | $0.15 | $0.41 | $0.56 | $0.12 | $0.008 | $— |
Year Ended December 31, 2014 | 8.84 | 0.34 | (0.80) | (0.46) | 0.29 | 0.04 | — |
Year Ended December 31, 2013 | 7.23 | 0.19 | 1.51 | 1.70 | 0.17 | — | — |
Year Ended December 31, 2012 | 6.36 | 0.22 | 0.76 | 0.98 | 0.19 | — | — |
Period Ended December 31, 20117 | 7.57 | 0.19 | (1.30) | (1.11) | 0.17 | — | — |
Class R |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $8.13 | $0.12 | $0.43 | $0.55 | $0.10 | $0.008 | $— |
Period Ended December 31, 20145 | 8.80 | 0.16 | (0.67) | (0.51) | 0.12 | 0.04 | — |
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 March 31, 2014. |
6 | Pax MSCI International ESG Index Fund acquired the assets of Pax World International Fund, a series of Pax World Funds Series Trust I, and the assets of Pax MSCI EAFE ESG Index ETF, a series of Pax World Funds Trust II, on March 31, 2014 (the “Reorganizations”). Pax MSCI EAFE ESG Index ETF (the “Predecessor Fund”) is treated as the survivor of the Reorganizations for accounting and performance reporting purposes. Accordingly, performance information shown for periods prior to the Reorganization is that of the Predecessor Fund. Per share data shown for periods prior to the Reorganization has been restated to reflect the share conversion that occurred upon completion of the Reorganizations. |
SEE NOTES TO FINANCIAL STATEMENTS
102
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | ||||||||
| Total distributions | Equalization Credits and Charges | Net asset value, | Total return2 | Net assets end of period (in $000’s) | Net | Net | Total | Portfolio Turnover4 |
International ESG Index Fund | |||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.11 | $— | $8.64 | 6.75% | $61,046 | 0.80% | 3.16% | 0.80% | 70%9 |
Period Ended December 31, 20145 | 0.15 | — | 8.19 | (5.75%) | 37,603 | 0.80% | 2.27% | 0.80% | 36%10 |
Institutional Class6 |
|
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.12 | $— | $8.49 | 6.85% | $271,971 | 0.55% | 3.61% | 0.55% | 70%9 |
Year Ended December 31, 2014 | 0.33 | — | 8.05 | (5.49%) | 89,098 | 0.55% | 3.91% | 0.55% | 36%10 |
Year Ended December 31, 2013 | 0.17 | 0.08 | 8.84 | 24.96% | 58,549 | 0.55% | 2.34% | 0.55% | 12% |
Year Ended December 31, 2012 | 0.19 | 0.08 | 7.23 | 16.98% | 13,162 | 0.55% | 3.21% | 0.55% | 8% |
Period Ended December 31, 20117 | 0.17 | 0.07 | 6.36 | (14.04%) | 4,207 | 0.55% | 2.91% | 0.55% | 11% |
Class R |
|
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.10 | $— | $8.58 | 6.67% | $875 | 1.05% | 2.75% | 1.05% | 70%9 |
Period Ended December 31, 20145 | 0.16 | — | 8.13 | (5.96%) | 803 | 1.05% | 1.86% | 1.05% | 36%10 |
7 | Per share data is reflected from class inception date of January 27, 2011. |
8 | Rounds to less than $0.01. |
9 | To manage cash flows, minimize trading costs and equitize cash balances in between trading blocks of securities, the International ESG Index Fund utilizes one or more exchange-traded funds (ETFs) that have an investment objective that tracks the Fund’s broad- based benchmark. These investments are frequent and short-term, however, the Fund is required to include such ETF investment activity in the calculation of its portfolio turnover. Had such transactions been excluded, the portfolio turnover would have been 6% for the period from January 1, 2015 to June 30, 2015. |
10 | For purposes of calculating turnover ratio for the International ESG Index Fund, transactions related to the Reorganization have been excluded. |
SEE NOTES TO FINANCIAL STATEMENTS
103
June 30, 2015 |
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 | Net | Total from investment operations | From net investment income | From net realized | Tax |
Global Women’s Index Fund5 | |||||||
Individual Investor Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $20.43 | $0.23 | $(0.09) | $0.14 | $0.21 | $0.13 | $— |
Year Ended December 31, 2014 | 21.78 | 0.47 | 0.84 | 1.31 | 0.45 | 2.21 | — |
Year Ended December 31, 2013 | 17.67 | 0.23 | 4.07 | 4.30 | 0.19 | — | — |
Year Ended December 31, 2012 | 15.90 | 0.23 | 1.76 | 1.99 | 0.22 | — | — |
Year Ended December 31, 2011 | 17.58 | 0.21 | (1.71) | (1.50) | 0.18 | — | — |
Year Ended December 31, 2010 | 15.99 | 0.10 | 1.58 | 1.68 | 0.09 | — | — |
Institutional Class |
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $20.52 | $0.26 | $(0.09) | $0.17 | $0.24 | $0.13 | $— |
Year Ended December 31, 2014 | 21.86 | 0.39 | 0.99 | 1.38 | 0.51 | 2.21 | — |
Year Ended December 31, 2013 | 17.71 | 0.29 | 4.08 | 4.37 | 0.22 | — | — |
Year Ended December 31, 2012 | 15.94 | 0.27 | 1.77 | 2.04 | 0.27 | — | — |
Year Ended December 31, 2011 | 17.62 | 0.25 | (1.71) | (1.46) | 0.22 | — | — |
Year Ended December 31, 2010 | 16.03 | 0.14 | 1.58 | 1.72 | 0.13 | — | — |
1 | Based on average shares outstanding during the period. |
2 | Total return represents aggregate total return for the period indicated, includes reinvestment of all dividends and distributions, and does not reflect the deduction of any applicable sales charges. Total returns for periods of less than one year have not been annualized. |
3 | Ratios representing periods of less than one year have been annualized. |
4 | Not annualized |
SEE NOTES TO FINANCIAL STATEMENTS
104
June 30, 2015 |
|
Distributions to shareholders | Ratios to average net assets3 | |||||||
| Total distributions | Net asset value, | Total return2 | Net assets | Net | Net | Total | Portfolio Turnover4 |
Global Women’s Index Fund5 | ||||||||
Individual Investor Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.34 | $20.23 | 0.65% | $62,809 | 0.99% | 2.20% | 0.99% | 19%6 |
Year Ended December 31, 2014 | 2.66 | 20.43 | 5.95% | 55,548 | 1.09% | 2.13% | 1.22% | 134% |
Year Ended December 31, 2013 | 0.19 | 21.78 | 24.56% | 44,461 | 1.24% | 1.17% | 1.59% | 28% |
Year Ended December 31, 2012 | 0.22 | 17.67 | 12.67% | 33,988 | 1.24% | 1.37% | 1.69% | 35% |
Year Ended December 31, 2011 | 0.18 | 15.90 | (8.60%) | 33,034 | 1.24% | 1.20% | 1.68% | 114% |
Year Ended December 31, 2010 | 0.09 | 17.58 | 10.54% | 35,147 | 1.24% | 0.63% | 1.90% | 116% |
Institutional Class |
|
|
|
|
|
|
|
|
Period Ended June 30, 2015 | $0.37 | $20.32 | 0.76% | $16,831 | 0.74% | 2.48% | 0.74% | 19%6 |
Year Ended December 31, 2014 | 2.72 | 20.52 | 6.21% | 13,146 | 0.78% | 1.73% | 0.84% | 134% |
Year Ended December 31, 2013 | 0.22 | 21.86 | 24.88% | 1,914 | 0.99% | 1.51% | 1.34% | 28% |
Year Ended December 31, 2012 | 0.27 | 17.71 | 12.92% | 1,295 | 0.99% | 1.56% | 1.44% | 35% |
Year Ended December 31, 2011 | 0.22 | 15.94 | (8.35%) | 2,719 | 0.99% | 1.47% | 1.43% | 114% |
Year Ended December 31, 2010 | 0.13 | 17.62 | 10.78% | 2,495 | 0.99% | 0.86% | 1.65% | 116% |
5 | Effective June 4, 2014, the Global Women’s Index Fund acquired the assets of the Pax World Global Women’s Equality Fund, Pax World Global Women’s Equality Fund (the “Predecessor Fund”) is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for periods prior to June 4, 2014 is that of the Predecessor Fund. |
6 | To manage cash flows, minimize trading costs and equitize cash balances in between trading blocks of securities, the Global Women’s Index Fund utilizes one or more exchange-traded funds (ETFs), the combination of which is intended to track the Fund’s broad- based benchmark. These investments are frequent and short-term, however, the Fund is required to include such ETF investment activity in the calculation of its portfolio turnover. Had such transactions been excluded, the portfolio turnover would have been 2% for the period from January 1, 2015 to June 30, 2015. |
SEE NOTES TO FINANCIAL STATEMENTS
105
June 30, 2015 |
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, 2015, 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.
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”), PAX MSCI International ESG Index Fund (the “International Index Fund”), and the Global Women’s Index Fund, (each a “Fund”, collectively, the “Funds”).
The Global Women’s Index Fund offers two classes of shares—Individual Investor Class shares and Institutional Class shares. The Balanced Fund and International Index Fund each offer three classes of shares—Individual Investor Class shares, Institutional Class shares and Class R shares. The Growth Fund, Small Cap Fund, High Yield Bond Fund and Global Environmental Markets Fund each offer four classes of shares—Individual Investor Class shares, Class A shares, Institutional Class shares and Class R shares. Although all share classes generally have identical voting, dividend and liquidation rights, each class votes separately when required by law. Different share classes pay different distribution amounts to the extent the expenses of 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.
Pax World Funds pursue a sustainable investing approach—investing in forward-thinking companies with more sustainable business models. We identify those companies by combining rigorous financial analysis with equally rigorous sustainability or environmental, social and governance (ESG) analysis. The result, we believe, is an increased level of scrutiny that helps us identify better-managed companies that are
106
June 30, 2015 |
|
leaders in their industries; that meet positive standards of corporate responsibility; and that focus on the long term. By investing in those companies, we intend for our shareholders to benefit from their vision and their success.
Each of the actively managed Funds—that is, those Funds other than the International Index Fund and the Global Women’s Index Fund—avoids investing in issuers that we determine are significantly involved in the manufacture of weapons or weapons-related products, manufacture tobacco products or engage in unethical business practices. With respect to the International Index Fund and the Global Women’s Index Fund, any investments in securities not included in a Fund’s respective index will be evaluated by the Adviser for satisfaction of Pax World’s ESG criteria. See “MSCI Index Sustainability/ESG Criteria” in the prospectus for MSCI ESG Research criteria applicable to the International Index Fund’s and Global Women’s Index Fund’s investments in securities included in such Funds’ respective indexes.
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 &
107
June 30, 2015 |
Notes to Financial Statements (Unaudited), continued |
Poor’s Ratings Group or below Baa3 by Moody’s 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 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
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and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Funds apply Investment Company accounting and reporting guidance.
Valuation of Investments For purposes of calculating the net asset value (“NAV”), determined ordinarily as of the close of regular trading (normally 4:00 p.m. Eastern time) (the “NYSE Close”) on the New York Stock Exchange (“NYSE”) on each day (a “Business Day”) that the NYSE is open for trading, the Funds normally use pricing data for domestic equity securities received shortly after the NYSE Close and do not normally take into account trading, clearances or settlements that take place after the NYSE Close. U.S. 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 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
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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, 2015, 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 $755,917 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 Global Women’s Index Fund held one security fair valued at $19,600, representing 0.02% of the Fund’s net asset value.
For those Funds that invest in non-U.S. securities, investors should be aware that many securities markets and exchanges outside the U.S. close prior to the close of the NYSE, and the closing prices for securities in such markets or on such exchanges may not fully reflect events that occur after such close but before the close of the NYSE. As a result, the Funds’ fair value pricing procedures require the Funds to consider changes in the fair value of non-U.S. securities between the time of the closing of the local market’s exchange and 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.
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Fair Value Measurements Fair value is defined as the price that the Fund would receive upon selling an investment in orderly transaction between market participants. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.
● Level 1 – | quoted prices in active markets for identical investments |
● Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) |
● Level 3 – | significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments) |
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a general summary of valuation inputs and classifications for different categories of securities.
Equity Securities Equity securities, including common stocks , preferred stocks and exchange-traded funds, for which market quotations are readily available, valued at the last reported sale price or official closing price as reported by an independent pricing service, are generally categorized as Level 1 in the hierarchy. Non-U.S. equity securities may also be valued at official close, or may be valued based on the fair value pricing procedures noted above. When third-party fair value pricing of foreign securities methods are applied, they are generally categorized as Level 2. To the extent that inputs for equity securities are unobservable, values are categorized as Level 3 in the hierarchy.
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.
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Affiliated and Unaffiliated Investment Companies 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.
The following is a summary of the inputs used to value the Funds’ net assets as of June 30, 2015:
| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||
Balanced | ||||||||||||||||
Common Stocks | $ | 1,178,774,213 | $ | — | $ | — | $ | 1,178,774,213 | ||||||||
Affiliated Investment Companies | 130,325,483 | — | — | 130,325,483 | ||||||||||||
Community Investment Notes | — | 3,000,000 | 755,917 | 3,755,917 | ||||||||||||
Corporate Bonds | — | 206,735,763 | — | 206,735,763 | ||||||||||||
U.S. Govt Agency Bonds | — | 83,302,144 | — | 83,302,144 | ||||||||||||
Government Bonds | — | 5,525,895 | — | 5,525,895 | ||||||||||||
Municipal Bonds | — | 40,706,781 | — | 40,706,781 | ||||||||||||
U.S. Treasury Notes | — | 138,071,317 | — | 138,071,317 | ||||||||||||
Mortgage-Backed Securities | — | 147,215,937 | — | 147,215,937 | ||||||||||||
Cash Equivalents | 9,996,447 | 8,891,000 | — | 18,887,447 | ||||||||||||
Total | $ | 1,319,096,143 | $ | 633,448,837 | $ | 755,917 | $ | 1,953,300,897 | ||||||||
Growth | ||||||||||||||||
Common Stocks | $ | 199,784,698 | $ | — | $ | — | 199,784,698 | |||||||||
Cash Equivalents | 6,067,904 | 7,343,000 | — | 13,410,904 | ||||||||||||
Total | $ | 205,852,602 | $ | 7,343,000 | $ | — | $ | 213,195,602 | ||||||||
Small Cap | ||||||||||||||||
Common Stocks | $ | 415,585,262 | $ | — | $ | — | 415,585,262 | |||||||||
Cash Equivalents | 8,954,253 | 26,021,000 | — | 34,975,253 | ||||||||||||
Total | $ | 424,539,515 | $ | 26,021,000 | $ | — | $ | 450,560,515 | ||||||||
High Yield Bond | ||||||||||||||||
Common Stocks | $ | 8,119,041 | $ | — | $ | 0 | $ | 8,119,041 | ||||||||
Preferred Stocks | 12,277,748 | — | 0 | 12,277,748 | ||||||||||||
Corporate Bonds | — | 438,033,521 | — | 438,033,521 | ||||||||||||
U.S. Govt Agency Bonds | — | 7,773,128 | — | 7,773,128 | ||||||||||||
Loans | — | 34,300,535 | — | 34,300,535 | ||||||||||||
Cash Equivalents | 34,635,950 | 6,832,539 | — | 41,468,489 | ||||||||||||
Total | $ | 55,032,739 | $ | 486,939,723 | $ | 0 | $ | 541,972,462 |
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| Level 1 | Level 2 | Level 3 | Totals | ||||||||||||
Global Environmental Markets | ||||||||||||||||
Common Stocks | $ | 118,118,333 | $ | 118,392,052 | $ | — | $ | 236,510,385 | ||||||||
Total | $ | 118,118,333 | $ | 118,392,052 | $ | — | $ | 236,510,385 | ||||||||
International Index | ||||||||||||||||
Common Stocks | $ | 2,677,852 | $ | 327,552,370 | $ | — | $ | 330,230,222 | ||||||||
Rights | 34,992 | — | — | 34,992 | ||||||||||||
Exchange Traded Funds | 1,528,839 | — | — | 1,528,839 | ||||||||||||
Cash Equivalents | — | 417,000 | — | 417,000 | ||||||||||||
Total | $ | 4,241,683 | $ | 327,969,370 | $ | — | $ | 332,211,053 | ||||||||
Global Women’s Index | ||||||||||||||||
Common Stocks | $ | 50,710,410 | $ | 28,657,520 | $ | 19,600 | $ | 79,387,530 | ||||||||
Preferred Stocks | — | — | — | — | ||||||||||||
Exchange Traded Funds | — | — | — | — | ||||||||||||
Cash Equivalents | 287,068 | — | — | 287,068 | ||||||||||||
Total | $ | 50,997,478 | $ | 28,657,520 | $ | 19,600 | $ | 79,674,598 |
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
| High Yield Bond | International Index | Global Women’s Index | |||||||||
Stocks | ||||||||||||
Balance as of December 31, 2014 | $ | 0 | $ | 19,877 | $ | — | ||||||
Realized gain (loss) | — | (343,087 | ) | — | ||||||||
Change in unrealized appreciation | — | 357,935 | — | |||||||||
Purchases/Received in Exchange | — | — | — | |||||||||
Sales | — | — | — | |||||||||
Transfers into Level 3 | — | — | 19,600 | |||||||||
Transfers out of Level 3 | — | (34,725 | ) | — | ||||||||
Balance as of June 30, 2015 | $ | 0 | $ | — | $ | 19,600 |
| Balanced | |||
Bonds and Notes | ||||
Balance as of December 31, 2014 | $ | 756,253 | ||
Realized gain (loss) | — | |||
Amortization of premium | — | |||
Change in unrealized appreciation (depreciation) | (336 | ) | ||
Purchases | — | |||
Sales/Delivered in Exchange | — | |||
Transfers in to and/or out of Level 3 | — | |||
Balance as of June 30, 2015 | $ | 755,917 |
Transfers from Level 2 to Level 3 resulted from an insufficient level of observable market data available for a security as of the period ended June 30, 2015. Transfers from Level 3 to Level 1 resulted from the availability of current market data provided by the Fund’s primary pricing service, which utilizes observable inputs, as of the period ended June 30, 2015.
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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: $823,792 for the International Index Fund and $161,427 for the Global Women’s Index Fund; and Level 2 to Level 1 transfers were: 2,155,018 for the Global Environmental Markets Fund, $1,794,654 for the International Index Fund, and $240,877 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.
Significant unobservable inputs were used by three Funds for Level 3 fair value measurements. The Balanced Fund held positions in Community Investment notes which were valued based on quarterly financial statements adjusted for any changes in credit quality indicated in such financial statements. The High Yield Bond Fund held equity positions of a private company which were valued based on company financial statements. The Global Women’s Index Fund held a position in an equity security that was halted from trading and was valued at the equivalent value of an affiliated security which continued to trade in a secondary market.
Investment Transactions Investment transactions are recorded as of the date of purchase, sale or maturity. Net realized gains and losses from the sale or disposition of securities are determined on the identified cost basis, which is also used for federal income tax purposes. Corporate actions (including cash dividends) are recorded net of foreign tax withholdings.
Investment Income Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis and includes accretion of discount and amortization of premiums, if any. The value of additional securities received as dividend payments is recorded as income and as an increase to the cost basis of such securities. The Funds amortize purchase price premium and accrete discount on bonds, if any, over the remaining life of the bonds using the effective interest method of amortization; for callable bonds, the amortization period is to the most likely call date.
Distributions to Shareholders Distributions to shareholders are recorded by each of the Funds on the ex-dividend dates. The Balanced Fund, Growth Fund, Small Cap Fund, Global Environmental Markets Fund, International Index Fund and Global Women’s Index Fund expect to pay dividends of net investment income, if any, semiannually and to make distributions of capital gains, if any, at least annually. The High Yield Bond Fund expects to pay dividends of net investment income, if any, monthly and to make distributions of capital gains, if any, at least annually. A shareholder begins earning dividends on High Yield Bond Fund shares the day after the Fund receives his or her purchase payment. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.
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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.
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
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particular country or geographic region, it will be subject to the risks associated with such country or geographic region to a greater extent than a fund that is more diversified across countries or geographic regions.
Securities Lending Each of the Funds may lend their securities pursuant to a securities lending agreement (Lending Agreement) with State Street Bank and Trust Company. Initial security loans made pursuant to the Lending Agreement are required to be secured by collateral not less than the percentage specified in the agreement, ranging from 102% to 105%, depending on the types of securities. Cash collateral received is invested in the State Street Navigator Securities Lending Prime Portfolio, a registered Rule 2a-7 money market fund. 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, 2015, non-cash collateral consisted of U.S. Treasuries and short-term U.S. Government Agency obligations.
The Funds have the right under the Lending Agreement to recover the securities from the borrower on demand. The primary risk associated with securities lending is if the Borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons. The Funds could experience delays and costs in recovering securities loaned or in gaining access to the collateral. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Funds, or at the discretion of the lending agent, replace the loaned securities.
A portion of the income generated upon investment of the collateral is remitted to the borrower and the remainder is allocated between the Funds and the lending agent. The Funds record security lending income net of such allocation. The Funds continue to receive dividends on the securities loaned, which are accounted for in the same manner as other dividend and interest income.
As of June 30, 2015, 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 | Over | ||||||||||||
Balanced | $ | 9,373,663 | $ | 9,577,940 | $ | — | $ | 204,277 | ||||||||
Growth | 5,956,597 | 6,067,904 | — | 111,307 | ||||||||||||
Small Cap | 8,698,233 | 8,954,253 | — | 256,020 | ||||||||||||
High Yield Bond | 37,698,375 | 34,635,950 | 3,944,850 | 882,425 | ||||||||||||
Global Women's Index | 275,049 | 287,068 | — | 12,019 |
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NOTE B—Investment Advisory Fee and Transactions with Affiliated and Other Parties
Trust I and Trust III have entered into Investment Advisory Contracts (the “Management Contracts”) with Pax World Management LLC and Pax Ellevate Management LLC, respectively (each, the “Adviser”, and collectively, the “Advisers”). Pursuant to the terms of the Management Contracts, 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 Management Contracts, the Advisers have contracted to furnish the Funds continuously with an investment program, determining what investments to purchase, sell and exchange for the Funds and what assets to hold uninvested. The Advisers also have contracted to provide office space and certain management and administrative facilities for the Funds. In return for such services, the Funds pay an advisory fee to the Advisers at the following annual rates (expressed as a percentage of the average daily net assets of such Fund):
Average Net Asset Value of Fund | ||
Fund | Up to $25M | Over $25M |
Balanced | 0.75% | 0.50% |
Fund | Annual Rate |
Growth | 0.75% |
Small Cap | 0.75% |
High Yield Bond | 0.50% |
Global Environmental Markets | 0.90% |
International Index | 0.55%1 |
Global Women's Index | 0.74%1 |
1 | The 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.) |
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Notes to Financial Statements (Unaudited), continued |
For the period ended June 30, 2015, the Funds incurred the following advisory fees:
Fund | Amount | |||
Balanced | $ | 4,969,635 | ||
Growth | 763,548 | |||
Small Cap | 1,199,082 | |||
High Yield Bond | 1,370,100 | |||
Global Environmental Markets | 1,002,823 | |||
International Index | 641,256 | |||
Global Women's Index | 278,086 |
The Adviser has contractually agreed to reimburse the Funds to the extent that each Fund’s respective expenses exceed, on an annual basis, the following percentages of average daily net assets:
Fund | Individual Investor | Class A | Institutional | Class R |
Growth 1 | 1.24% | 1.24% | 0.99% | 1.49% |
Small Cap 1 | 1.24% | 1.24% | 0.99% | 1.49% |
Global Environmental Markets 1 | 1.40% | 1.40% | 1.15% | 1.65% |
International Index 2 | 0.80% | 0.55% | 1.05% | |
Global Women's Index 2 | 0.99% | 0.74% |
1 | The Adviser has contractually agreed to reimburse expenses to the extent they exceed the expense caps indicated until at least December 31, 2016. |
2 | Expense 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. |
In addition, the Adviser voluntarily waived $165,267 of its management fee from the Balanced Fund related to the Fund’s investment in an affiliate.
Such expenses include (i) management and distribution fees; (ii) the fees of affiliated and unaffiliated Trustees; (iii) the fees of the Funds’ custodian and transfer agent; (iv) the fees of the Funds’ legal counsel and independent registered public accounting firm; (v) the reimbursement of organizational expenses; and (vi) expenses related to shareholder communications including all expenses of shareholders’ and Boards of Trustees’ meetings and of preparing, printing and mailing reports, proxy statements and prospectuses to shareholders.
During the fiscal year ended December 31, 2014, the Adviser incorrectly oversold its position in a fixed income security in the High Yield Bond Fund. To correct the error, a subsequent purchase was executed, although at a higher price than the original sale price, resulting in a loss of $90,278 to the Fund. The Adviser has reimbursed the Fund for the total amount of the loss.
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For the period ended June 30, 2015, 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 | $ | 34,181 | $ | 467 | $ | 7,931 | $ | 282 | ||||||||
Small Cap | 6,614 | 998 | 5,335 | 68 | ||||||||||||
Global Environmental Markets | 8,051 | 884 | 8,431 | 194 |
The Trusts have adopted a plan (“Plan”) pursuant to Rule 12b-1 under the Act that allows the Funds to pay distribution fees for the sale and distribution of certain shares as described below and for personal services rendered to the Fund shareholders in connection with the maintenance of shareholder accounts. Under the Plan, each Fund will pay its Distributor a Distribution Fee equal to 0.25% of the annual average daily net assets attributable to the Individual Investor Class shares and 0.50% of the annual average daily net assets attributable to the 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, 2015 were as follows:
Purchases | Sales | |||||||||||||||
Fund | Investments* | U.S. Gov’t Bonds | Investments* | U.S. Gov’t Bonds | ||||||||||||
Balanced | $ | 671,680,617 | $ | 87,830,090 | $ | 688,364,375 | $ | 204,442,676 | ||||||||
Growth | 32,378,744 | — | 32,038,742 | — | ||||||||||||
Small Cap | 289,793,333 | — | 77,553,924 | — | ||||||||||||
High Yield Bond | 265,928,206 | — | 298,852,734 | — | ||||||||||||
Global Environmental Markets | 51,731,244 | — | 21,041,858 | — | ||||||||||||
International Index | 362,170,764 | — | 162,272,140 | — | ||||||||||||
Global Women's Index | 24,550,418 | — | 14,397,933 | — |
* | Excluding short-term investments and U.S. Government bonds. |
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For federal income tax purposes, the identified cost of investments owned at June 30, 2015 as well as the gross unrealized appreciation (depreciation) of investments and resulting net unrealized appreciation (depreciation) as of June 30, 2015 were as follows for the Funds:
Fund | Identified cost of investments for Federal income tax basis | Gross | Gross | Net unrealized appreciation (depreciation) | ||||||||||||
Balanced | $ | 1,747,524,306 | $ | 235,934,580 | $ | 30,157,989 | $ | 205,776,581 | ||||||||
Growth | 147,704,869 | 66,953,871 | 1,463,138 | 65,490,733 | ||||||||||||
Small Cap | 439,885,006 | 26,762,644 | 16,087,135 | 10,675,509 | ||||||||||||
High Yield Bond | 551,083,415 | 5,948,855 | 15,059,808 | (9,110,953 | ) | |||||||||||
Global Environmental Markets | 205,222,295 | 40,765,973 | 9,477,883 | 31,288,090 | ||||||||||||
International Index | 329,081,232 | 16,219,594 | 13,089,773 | 3,129,821 | ||||||||||||
Global Women's Index | 77,538,485 | 6,406,201 | 4,270,088 | 2,136,113 |
At June 30, 2015, the Balanced Fund, Growth Fund, Small Cap Fund, Global Environmental Markets Fund, International Index Fund and Global Women’s Index Fund had unrealized foreign currency gains/losses of $2,170; ($658); $27,554; ($1,834); ($12,160) and ($6,359), respectively.
Affiliated Investments The term “affiliated company” includes other investment companies that are managed by a Fund’s Adviser. At June 30, 2015, the Balanced Fund held 15,350,469 shares of the International Index Fund, valued at $130,325,483. During the period, gross additions to the affiliated position were $114,754,493. The Fund received $1,754,493 in income distributions from this affiliated investment during the period. Income distributions from affiliates are included as dividend income on the Statement of Operations. Gross Additions include reinvestment of dividends.
Restricted and Illiquid Securities The Funds may purchase certain restricted securities and limited amounts of illiquid securities. The Funds may invest in securities exempt from registration under Rule 144A of the Securities Act of 1933 (“the Act”) which are restricted from sale to the public and may only be sold to a qualified institutional buyer. The Funds do not have the right to demand that such securities be registered. The value of such securities is determined by valuations supplied by a pricing service or, if not available, in good faith by or at the direction of the Boards of Trustees. At June 30, 2015, the Balanced Fund held $13,272,671 or 6.81% of net assets and the High Yield Bond Fund held $267,631,299 or 52.47% of net assets in securities exempt from registration under Rule 144A of the Act.
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At June 30, 2015, the Balanced Fund held $499,990 of illiquid securities representing 0.03% of net assets and the High Yield Bond Fund held $57,212,684 of illiquid securities, representing 11.22% 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.
Additional information on illiquid securities held at June 30, 2015, is as follows:
Security | Acquisition | Cost | Market Value | ||||||
Balanced Fund | |||||||||
Enterprise Community Impact Note, 1.500%, 12/11/15 | 12/11/13 - 12/11/13 | $ | 500,000 | $ | 499,990 | ||||
High Yield Bond Fund | |||||||||
Alvogen Pharma US, Inc., 1.000%, 04/22/22 | 04/02/15 - 04/02/15 | $ | 2,948,068 | $ | 2,977,313 | ||||
Bank of America Corp., 1.350%, 11/21/16 | 03/14/14 - 03/14/14 | 2,003,066 | 2,000,270 | ||||||
Charlotte Russe, Inc., Term B, 6.750%, 05/21/19 | 05/21/13 - 01/16/15 | 9,756,659 | 9,431,640 | ||||||
FPL Energy National Wind Portfolio LLC, 144A, 6.125%, 03/25/19 | 02/16/05 - 06/28/05 | 38,157 | 38,617 | ||||||
Green Plains Processing LLC, 6.500%, 6/30/20 | 06/03/14 - 06/09/15 | 5,445,930 | 5,515,683 | ||||||
Hercules Tech Growth Capital, Inc. 6.250% | 07/09/14 - 07/09/14 | 6,903,125 | 6,972,156 | ||||||
Interactive Health, Inc. | 03/19/04 - 10/01/13 | 178,981 | 0 | ||||||
Interactive Health, Inc., 0.000% | 03/19/04 - 10/01/13 | 357,962 | 0 | ||||||
Kissner Milling Co., Ltd., 144A, 7.250%, 06/01/19 | 05/15/14 - 05/16/14 | 6,067,738 | 6,135,000 | ||||||
Michael Baker Holdings LLC/Finance Corp., 144A, 8.875%, 04/15/19 | 04/03/14 - 05/02/14 | 8,011,265 | 7,360,000 | ||||||
Lee Enterprises, Inc., 7.250%, 3/31/19 | 03/21/14 - 11/18/14 | 191,913 | 196,219 | ||||||
Nexeo Solutions LLC/Finance Corp., 8.375%, 03/01/18 | 03/08/11 - 01/11/13 | 4,980,618 | 4,650,000 | ||||||
Ormat Funding Corp., 8.250%, 12/30/20 | 02/06/04 - 01/06/05 | 393,689 | 401,009 | ||||||
PRWireless, Inc., 1.000%, 6/29/2020 | 06/27/14 - 06/27/14 | 2,920,318 | 2,836,350 | ||||||
TOMS Shoes LLC, 1.000%, 10/31/2020 | 10/31/14 - 10/31/14 | 7,238,400 | 7,398,976 | ||||||
Vanguard Natural Resources LLC, 7.825% | 04/30/14 - 05/15/14 | 1,427,680 | 1,299,450 |
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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 2015 and 2014 was as follows:
Distributions paid in 2015 | Distributions paid in 2014 | |||||||||||||||
Fund | Ordinary | Long-term | Ordinary | Long-term | ||||||||||||
Balanced | $ | 12,519,376 | $ | 14,322,878 | $ | 35,750,109 | $ | 175,856,180 | ||||||||
Growth | 450,346 | 2,323,181 | 2,426,398 | 6,088,009 | ||||||||||||
Small Cap | 553,070 | 28,068 | 6,550,510 | 881,910 | ||||||||||||
High Yield Bond | 15,864,498 | — | 39,977,818 | 667,574 | ||||||||||||
Global Environmental Markets | 840,666 | 125,993 | 1,431,292 | 1,754,237 | ||||||||||||
International Index | 4,395,058 | 2,350 | 3,703,451 | 61,107 | ||||||||||||
Global Women's Index | 844,106 | 500,762 | 1,106,628 | 6,785,629 |
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.
During the period from November 1, 2014 through December 31, 2014, the High Yield Bond Fund incurred a late-year capital loss of $13,877,085. This loss is treated for federal income tax purposes as if it had occurred on January 1, 2015.
Uncertain Tax Position Management has analyzed the Funds’ tax positions taken for all open tax years which remain subject to examination by the Funds’ major tax jurisdictions (years 2010 through 2014). The Funds recognize interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of
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Operations. Management has concluded that, as of and during the period ended June 30, 2015, 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 1940 Act requires that the Trustees of Trust I and Trust III (each, a “Trust” and together, the “Trusts”) request and evaluate, and that the Advisers furnish, such information as may reasonably be necessary for the Trustees of the Trusts to evaluate the terms of the relevant Trust’s Management Contracts. Similarly, the 1940 Act requires that the Trustees of Trust I request and evaluate, and that Impax Asset Management Ltd. (“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 2015 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 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, 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
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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 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.
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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, 2015. 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 the High Yield Bond 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 each 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 Balanced Fund had outperformed its Lipper performance universe average for the 1-year period, but had underperformed its performance universe average for all other time periods. The Independent Trustees considered that the performance of the Global Women’s Index Fund was less favorable than that of its Lipper performance universe averages for the 3-, 5- and 10-year periods, but 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
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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 discussed with senior executives of PWM the underperformance of certain Funds, including such executives’ analysis of the causes of such underperformance and steps being taken to address performance issues. The Trustees considered the changes to PWM’s investment approach and portfolio management team for the Balanced Fund over the past year and the positive impact of these changes on 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.
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 the total expenses of each Fund other than the High Yield Bond and International Index Funds (after giving effect to the expense reimbursements described below, if applicable) were below the median total expenses of its Lipper peer group, and that 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:
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● | 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, 1.24% for Class A shares, and 1.49% for Class R shares through December 31, 2016. |
● | 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, 1.40% for Class A shares, and 1.65% for Class R shares through December 31, 2016, 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, 1.24% for Class A shares, and 1.49% for Class R shares through December 31, 2016. |
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
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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, 2014, of its advisory relationship with each Fund, and the estimated profitability to PEM of its relationship with the Global Women’s Index Fund for the year ended December 31, 2014. 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.
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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 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 and High Yield Bond Funds (and, by virtue of the unified management fees for the International Index and Global Women’s Index Funds, was bearing substantially all of such Funds’ expenses other than 12b-1 fees and the unified management fees). 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.
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NOTE F—Special Meeting of Shareholders
Pax World Global Environmental Markets Fund
A Special Meeting of Shareholders (the “Meeting”) of the Pax World Global Environmental Markets Fund was held at 10:00 a.m. EST on March 27, 2015 at 30 Penhallow Street, Portsmouth, NH 03801. At the Meeting shareholders were asked to consider the following proposal:
1. | To approve a new investment sub-advisory agreement between Pax World Management LLC, the investment adviser to the Fund, and Impax Asset Management Ltd., the investment sub-adviser to the Fund. The new agreement has the same sub-advisory fee as, and otherwise does not materially differ from, the prior sub-advisory agreement with respect to the Fund. |
The number of votes cast for or against, as well as the number of abstentions is as follows:
FOR | AGAINST | ABSTAIN | PASSED |
7,884,758 | 74,217 | 427,690 | 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.
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.
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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 5:30 p.m. Eastern time or by visiting our website at www.paxworld.com.
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Account Options and Services |
At Pax World, we are pleased to offer a variety of account options and shareholder services to help meet your investment needs.
Types of Accounts | Services | |
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. | 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 (8/15).
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Item 2. | Code of Ethics. |
Item 3. | Audit Committee Financial Expert. |
Item 4. | Principal Accountant Fees and Services. |
Item 5. | Audit Committee of Listed Registrants. |
Item 6. | Schedule of Investments. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Item 9. | Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Item 10. | Submission of Matters to a Vote of Security Holders. |
Item 11. | Controls and Procedures. |
Item 12. | Exhibits. |
(a) | (1) | The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR. |
(2) | Certifications of the principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached. | |
(3) | Written solicitation to repurchase securities issued by closed-end companies: not applicable. | |
(b) | Certification of the principal executive officer and principal financial officer of the Registrant required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended. |
(Registrant) | Pax World Funds Series Trust I | ||||||
By (Signature and Title) | /s/ Joseph F. Keefe | ||||||
Joseph F. Keefe, President | |||||||
Date | August 13, 2015 | ||||||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf by the Registrant and in the capacities and on the dates indicated. | |||||||
By (Signature and Title) | /s/ Joseph F. Keefe | ||||||
Joseph F. Keefe, President (Principal Executive Officer) | |||||||
Date | August 13, 2015 | ||||||
By (Signature and Title) | /s/ Alicia K. DuBois | ||||||
Alicia K. DuBois, Treasurer (Principal Financial Officer) | |||||||
Date | August 13, 2015 |