Growth Fund
Investment Objective
The Growth Fund’s investment objective is to seek long-term growth of capital.
Principal Investment Strategies
The Growth Fund follows a Sustainable Investing approach, combining rigorous financial analysis with equally rigorous environmental, social, and governance (ESG) analysis in order to identify investments. Under normal market conditions, the Growth Fund invests primarily in equity securities (such as common stocks, preferred stocks and securities convertible into common or preferred stocks) of companies that the Growth Fund’s investment adviser believes will have above-average growth prospects.
The Growth Fund’s investment adviser selects equity securities on a company-bycompany basis primarily through the use of fundamental analysis. The investment adviser attempts to identify companies that have demonstrated growth in earnings and sales, high returns on equity and assets or other strong financial characteristics, and that are, in the judgment of the investment adviser, attractively valued. These companies tend to have a unique market niche, a strong new product profile or superior management. The investment adviser also attempts to identify material growth drivers in companies, which may include turnaround situations, brand dominance or cyclical businesses that the investment adviser believes will positively affect earnings. The Growth Fund may invest in securities of companies with any market capitalization.
The Growth Fund may sell a security when an event, such as a disappointing earnings report or adverse changes in a company’s management or industry position, is perceived by the portfolio manager to lessen its attractiveness. The Growth Fund may also sell a security in response to adverse market conditions, to rebalance the Growth Fund’s portfolio, when a more attractive investment is identified, to meet redemption requests, or if a company no longer meets Pax World’s environmental, social or governance standards.
The Growth Fund may invest up to 45% of its assets in securities of non-U.S. issuers, including American Depositary Receipts (“ADRs”). The Growth Fund may invest no more than 25% of its assets in securities of non-U.S. issuers other than ADRs. The Growth Fund’s investments in securities of non-U.S. issuers may include investments in emerging markets.
The Growth Fund may utilize derivatives, including but not limited to repurchase agreements, foreign currency exchange contracts, options and futures contracts, for hedging and for investment purposes.
Although the Growth Fund intends to limit the turnover of its portfolio, it is possible that, as a result of its investment strategies, the portfolio turnover rate of the Growth Fund may be significant.
In response to unfavorable market and other conditions, the Growth Fund may deviate from its principal investment strategies by making temporary investments of some or all of its assets in high quality debt securities, cash and cash equivalents. The Growth Fund may not achieve its investment objective if it does so.
Except as otherwise noted in this Prospectus or the Statement of Additional Information, the Growth Fund’s investment policies are not fundamental and may
be changed without a vote of shareholders.
Sustainable Investing
The Growth Fund seeks to invest in forward-thinking companies with sustainable business models that meet positive environmental, social and governance standards. The Growth Fund avoids investing in companies that its investment adviser determines are significantly involved in the manufacture of weapons or weapons related products, manufacture tobacco products, or engage in unethical business practices.
1The Growth Fund’s investment adviser has contractually agreed to reimburse expenses (excluding Acquired Fund Fees and Expenses) allocable to Individual Investor Class, Institutional Class and R Class shares of the Growth Fund to the extent such expenses exceed 1.45%, 1.20% and 1.70%, respectively, of the average daily net assets of Individual Investor Class, Institutional Class and R Class shares of the Growth Fund, respectively. This reimbursement arrangement will remain in effect until at least December 31, 2012.
The Growth Fund’s annual operating expenses likely will vary from year to year. In general, a fund’s annual operating expenses as a percentage of the fund’s assets increase as the fund’s assets decrease.