Manager Commentary

As of December 31, 2013

Equities added to their strong 2013 gains during the quarter ended December 31, 2013. Pax World Growth Fund achieved results that were roughly in line with its benchmarks for the period, earning a 10.26% return compared to the 10.44% returns of the Russell 1000 Growth Index (the Index).1 The Fund’s return for the year ended December 31, 2013, was 29.61%, which trailed the 33.48% return for the Index during the one-year period.

Top performing sectors in the Fund relative to the Index for the quarter ended December 31, 2013 were consumer discretionary, energy and health care. Stock selection was the largest contributor to the Fund’s outperformance in all three sectors. The consumer discretionary sector was the top performer of the 10 Global Industrial Classifi cations System (GICS) industrial sectors for the year ended December 31, 2013.2 Particularly strong portfolio holdings in this sector during the quarter included auto parts manufacturer Valeo SA and clothing retailer VF Corp., which were overweight allocations in the portfolio. The top three sector detractors from relative performance were industrials, consumer staples and information technology. Stock selection in these sectors was the primary driver of underperformance relative to the benchmark.

To read more download the full commentary here PDF icon

 

1The Russell 1000 Growth Index 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. Effective December 12, 2013, the Russell 1000 Growth Index replaced the Russell 3000 Growth Index as the primary benchmark for Pax World Growth Fund (the “Fund”) because Pax World Management believes the Russell 1000 Growth Index is a more appropriate representation of the universe of securities in which the Fund may invest. One cannot invest directly in an index.

2The total returns for the 10 industrial sectors of the S&P 500 for the period ended December 31, 2013 were as follows: Consumer Discretionary 43.08%; Health Care 41.46%; Industrials 40.68%; Information Technology 28.43%; Financials 35.63%; Consumer Staples 26.14%; Materials 25.60%; Energy 25.07%; Utilities 13.21%; and Telecommunication Services 11.47%.

Market Outlook

Read Market Outlook by Chris Brown, Chief Financial Officer

Read Outlook »

Monthly Market Update

A look back at the past month's key market events from Pax World CIO Chris Brown.

READ UPDATE »