About the manager

Pax World is a recognized leader in the field of Sustainable Investing. By combining rigorous financial analysis with equally rigorous ESG analysis, Pax World's investment managers seek to identify companies that are more forward thinking, are better at managing risk, meet positive standards of corporate social responsibility and are focused on the long term. In Pax's view, Sustainable Investing has the potential to deliver higher returns with lower risk over the long term. Pax believes Sustainable Investing is a superior and potentially transformative investment approach that better serves investors, markets and society.

Investment philosophy

Pax World believes that, in the long run, an investment approach that identifies and invests in companies with sustainable business models serves shareholders best. Towards that end, the company combines thorough financial analysis with environmental, social and governance (ESG) criteria. This integration of rigorous financial analysis with equally rigorous ESG analysis provides an increased level of scrutiny that helps Pax World identify companies that are forward-thinking and acting, are leaders in their respective industries, meet positive standards of corporate and environmental responsibility and are focused on the long term.

Pax World believes these companies are better managed, more innovative and better positioned to deliver long-term performance than less enlightened competitors. By investing in them, Pax intends for its shareholders to benefit from their vision and success.

Investment approach

Pax World is responsible for five sleeves or strategies within the Funds. They include the Pax World Multi-Cap Equity Strategy¹; the Pax World High Yield Bond Fund^{2, 3}; the Pax World International Equity Strategy¹, the Pax World Real Return Strategy¹; and the Pax World Global Environmental Markets Fund³, subadvised by Impax Asset Management.

• Equity
  The Pax World Equity Strategy will invest in securities of companies with any market capitalization and intends to focus on economic sectors that Pax World believes will outpace the overall rate of growth of the United States Gross Domestic Product.

• High Yield Bond
  The Strategy will invest in the Pax World High Yield Bond Fund. Under normal market conditions, the Pax World High Yield Bond Fund will invest at least 80% of its assets in high-yield, fixed income securities (such as bonds, notes and debentures) that are rated below BBB-⁴ by Standard & Poor's Ratings Group or below Baa3⁵ by Moody's Investors Service, similarly rated by another major rating service, or unrated and determined by Pax World to be of comparable quality. These fixed income securities are commonly referred to as "junk bonds." Pax World anticipates that the dollar-weighted average maturity of these fixed income securities will be 10 years or less.
  
  
• International Equity Strategy
  The strategy will invest in an Underlying Pax ETF and/or an underlying Pax World Mutual Fund.
  
  The Underlying Pax ETF, the Pax MSCI EAFE ESG Index ETF seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index⁶, which is created and maintained by MSCI. The Index is a free float-adjusted market capitalization weighted index designed to measure the performance of equity securities of issuers organized or operating in Europe and the Asia Pacific region that have high environmental, social and governance (ESG) ratings from MSCI, selected initially and adjusted annually by MSCI. The Index targets sector weights that reflect the relative sector weights of the MSCI Europe + Middle East ESG Index⁷ and the MSCI Pacific ESG Index.⁸  
  
  The Underlying Pax Mutual Fund, the Pax World International Fund³, invests primarily in securities (such as common stocks, preferred stocks and equity securities convertible into common or preferred stocks) of non-U.S. issuers. Pax World International Fund is not constrained by any particular investment style or capitalization range. Pax World International Fund may invest in “growth” stocks, “value” stocks or a combination of both, and may hold securities of large, medium and/or small capitalization companies. Additionally, Pax World International Fund’s investments in securities of non-U.S. issuers may be diversified across multiple sectors and industries or focused on a limited number of sectors and industries, and may be diversified across multiple countries or geographic regions (including emerging market countries) or focused on a select geographic region.

• Global Environmental Markets Fund
  The Pax World Global Environmental Markets Fund's investment objective is to seek long-term growth of capitalby investing in companies whose businesses and technologies focus on mitigating he environmental impacts of commerce. Under normal market conditions, the Fund invests primarily in equity securities of companies located around the world, including at least 40% of its net assets in securities of non-U.S. issuers.⁹ The Fund invests in environmental markets-companies whose businesses and technologies focus on mitigating the environmental impacts of commerce, including such areas as alternative energy and energy efficiency; water treatment and pollution control; and waste technology and resource management.

• Real Return Strategy
  The Pax Real Return Strategy seeks to provide current income, safety of principal and protection against inflation by investing primarily in U.S. Treasury securities and securities of the U.S. Government, its agencies, instrumentalities and corporations, including Treasury Inflation Protected Securities (TIPS). At a minimum, all bonds are expected to be investment grade. Because this strategy emphasizes securities backed by the full faith and credit of the U.S. government, the average credit quality of the holdings is expected to be high and, consequently, we anticipate that credit risk should be low for the strategy's sleeve.

Portfolio managers 

Christopher H. Brown, Chief Investment Officer and Portfolio Manager, Pax World Balanced Fund

Chris has over 20 years of investment experience. He joined Pax World in April 1998 as co-manager of the Pax World Balanced Fund and has served as its sole manager since October 2001. Prior to joining Pax World, Chris was an Investment Consultant at Fahnestock & Co., Inc., a New York Stock Exchange brokerage firm, from 1987 to 1998, and a First Vice President from 1994 to 1998. He is a graduate of the Boston University School of Management with a concentration in finance.

Anthony Trzcinka, CFA®, Assistant Portfolio Manager, Pax World Balanced Fund

Anthony Trzcinka, CFA, is Portfolio Manager of the Pax World Growth Fund. He is also a member of the portfolio management teams of the Pax World Balanced Fund and the Pax World Global Women’s Equality Fund. Mr. Trzcinka joined Pax World in 2003. He began his career in financial services in 1999. Prior to joining Pax World, he spent over three years at AEW Capital Management as an Assistant Vice President. He holds a Master of Business Administration from Northeastern University and a Bachelor of Arts from the University of Massachusetts. Mr. Trzcinka is a CFA charterholder and member of the Boston Security Analysts Society.

Mary V. Austin, CFA®, Portfolio Manager, Pax World High Yield Bond Fund

Mary has been with the Pax World High Yield Bond Fund since its inception in 1999. She started as an analyst before becoming co-portfolio manager in November 2005 and then portfolio manager the following November. Prior to joining Pax World, Mary worked for Salomon Smith Barney as a sell-side equity analyst covering small- to mid-cap specialty pharmaceutical and medical technology companies. She worked in bringing many innovative health care companies public. Mary is a member of The Boston Security Analysts Society, the New York Society of Security Analyst and holds the CFA® designation. Mary has a Bachelor of Science in Public Accounting, Pace University. 

ESG commitment

Pax World seeks to invest in companies with sustainable business models. To identify those companies, the company combines rigorous financial analysis with equally rigorous environmental, social and governance (ESG) analysis. The inclusion of ESG criteria in Pax World's investment process results in an increased level of scrutiny that helps Pax identify what it believes are better-managed companies, and construct portfolios with potentially better long-term investment prospects.

• Environmental
  Pax World's environmental criteria include such issues as air and water emissions, recycling and waste reduction, use of clean and renewable energy, climate change initiatives and other policies and practices focused on attaining and promoting environmental sustainability.

• Social
  Its social criteria examine companies from three different perspectives— workplace and supply chain issues, product integrity and community involvement.

• Governance
  Its governance criteria include such issues as executive compensation, board structures, actions and charters and the protection they afford to the interests of both shareholders and stakeholders. 

Click here to access the Pax World web site

Pax World Management LLC is not affiliated with ALPS Distributors, Inc. 

Concentration may lead to greater price volatility.

CFA is a trademark owned by CFA Institute.

¹Separately managed accounts and related advisory services are provided by Pax World Management LLC, a federally registered investment adviser. ALPS Distributors, Inc. is not the distributor for Pax World's separately managed accounts.

²By investing in high yield bonds you may be subjected to greater price volatility based on fluctuations in issuer and credit quality. When investing in bonds, you are subject, but not limited to, the same interest rate, inflation and credit risks associated with the underlying bonds owned by the Fund.

³You should consider Pax World Funds' investment objectives, risks, and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 800.767.1729 or visiting www.paxworld.com. Please read it carefully before investing. Pax World Funds' are distributed by ALPS Distributors, Inc.

⁴BBB- rating is Standard & Poor’s rating of bonds of adequate credit quality. Protection of interest and principal is considered adequate, but the entity is more susceptible to adverse changes in financial and economic conditions, or there may be other adversities present which reduce he strength of the entity and its rated securities.

⁵Baa3 rating is a Moody’s rating of bonds. Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics.

⁶The MSCI EAFE (Net) Index (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. The index is calculated without dividends, with net or with gross dividends reinvested, in both US dollars and local currencies. Investors cannot invest directly in any index.

⁷The MSCI Europe + Middle East ESG Index is comprised of the companies in the MSCI Europe + Middle East Index with an environmental, social and governance (ESG) rating of B or higher, as rated by MSCI. The MSCI Europe & Middle East Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in Europe and the Middle East. As of May 27, 2010 the MSCI Europe & Middle East Index consisted of the following 17 developed market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Israel, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

⁸The MSCI Pacific ESG Index is comprised of the companies in the MSCI Pacific Index with an environmental, social and governance (ESG) rating of B or higher, as rated by MSCI. The MSCI Pacific Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of the developed markets in the Pacific region. As of June 2007, the MSCI Pacific Index consisted of the following 5 Developed Market countries: Australia, Hong Kong, Japan, New Zealand, and Singapore.

⁹Foreign investing involves special risks such as currency fluctuations and political uncertainty.