Pax World investment outlook:
Second quarter 2015

Volatility once again ruled equity markets, yet when the dust cleared at quarter end, we saw modest to solid gains across the major U.S. equity indices. U.S. Small and Midcap stocks delivered returns in excess of 4%, outperforming Large Caps which came in with very modest returns around 1%. International equities bounced back strongly led by Europe and Japan, posting solid gains even when adjusting for the strong dollar.

Despite the positive returns, volatility was the operative word for the quarter and remains so for the immediate future. This volatility is largely a result of shift s in near term sentiment as investors try to navigate risk and uncertainty around the future direction of interest rates, oil and the dollar. While investors clearly need to interpret and try to make sense of economic data as it is released, we believe it may also be helpful to look through near term consensus views to potential
longer term outcomes and the return opportunities they present.

Learn more in our Investment Outlook.