As of September 30, 2013
Equity investments continued their strong performance in 2013 through the quarter ended September 30, 2013. As a group, growth stocks outperformed value stocks during the quarter. The Russell 3000 Growth Index1 (the index) earned 8.48% for the quarter, outperforming the Russell 3000 Value Index.2 which had 4.23% return as well the broader Russell 3000 Index3 which returned 6.35%.
The Pax World Growth Fund return for the three-month period ended September 30, 2013, was 8.42%, roughly in line with the index. Top performing sectors in the portfolio relative to the index were information technology, telecommunication services and consumer staples. Stock selection was the strongest contributor to the portfolio’s information technology investments. Strong stock selection also drove the largest portion of the fund’s outperformance relative to the benchmark in the telecommunication services sector, while an underweight allocation to the sector compared to the benchmark also contributed. An underweight to consumer staples helped drive the portfolio’s outperformance relative to the benchmark in that sector. The top three sector detractors from relative performance were energy, financials and health care. Stock selection was the primary driver of underperformance of the energy and health care sectors relative to the benchmark while stock selection and, to a lesser extent, an overweight allocation to financials contributed to the portfolio’s underperformance in that sector.
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1The Russell 3000 Growth Index measures the performance of those companies in the Russell 3000 Index with higher price-to-book ratios and higher forecasted growth values. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies, as measured by market capitalization. One cannot invest directly in an index.
2The Russell 3000 Value Index Measures the performance of those Russell 3000 Index companies with lower price-to-book ratios and lower forecasted growth values. The stocks in this index are also members of either the Russell 1000 Value or the Russell 2000 Value indexes. One cannot invest directly in an index.
3The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies, as measured by market capitalization. One cannot invest directly in an index.