Pax High Yield Bond Fund: Company Examples

At Pax World, we fully integrate environmental, social and governance (ESG) factors into investment analysis and portfolio construction. Here are a few Pax High Yield Bond Fund fixed income securities that we believe are promoting positive community or environmental outcomes:

Atlantica Yield PLC
Atlantica Yield PLC owns and operates primarily renewable and conventional power assets as well as transmission lines in North and South America, Europe, the Middle East and Africa. The company sees renewable sources as the highest growth trend in the power generation sector and contracts with governments and utilities which are focused on solving energy scarcity concerns in addition to reducing carbon emissions. Approximately 70% of the company’s revenues are derived from renewable energy sources, with solar contributing the majority.

Petra Diamonds
Human rights and worker safety are important sustainability issues for Petra Diamonds. To address these issues, the company operates in countries that are members of the Kimberly Process and will only sell diamonds from known sources, thereby providing assurance that 100% of its production is certified “conflict free”. All of the company’s underground pipe mines maintain OHSAS Health and Safety 18001 certification and ISO 140011 environmental management certification. The company is compliant with the Broad Based Black Economic Empowerment Act, which requires 26% of the ownership in all mining companies must be held by historically disadvantaged South Africans.

Ormat Technologies
Ormat Technologies is a leading geothermal power producer and equipment maker. Ormat owns and operates geothermal plants located in Nevada, California, Hawaii, Kenya, and Guatemala. The company also sells geothermal generators and energy recovery systems to consumers and other geothermal operators. The company has innovative and proprietary technology that has reduced the amount of water used in geothermal power generation allowing geothermal energy to be harvested in more numerous regions.

1ISO 14001 is an internationally accepted standard that outlines how to put an effective environmental management system in place. It is designed to help businesses remain commercially successful without overlooking environmental responsibilities. An ISO 14001 system provides the framework to allow businesses to meet increasingly high customer expectations of corporate responsibility as well as legal or regulatory requirements.

Holdings are subject to change.

Pax High Yield Bond Fund Top Ten Holdings as of 02/28/2017:
HCA, Inc., 5.875%, 2/15/26 1.50; Charlotte Russe, Inc., 6.750%, 05/21/19 1.40; Sirius XM Radio, Inc., 5.375%, 4/15/25 1.00; Simmons Foods, Inc., 7.875%, 10/1/21 1.00; Ally Financial, Inc., 5.750%, 11/20/25 1.00; Kennedy-Wilson, Inc., 5.875%, 04/01/24 1.00; Michael Baker Holdings LLC, 8.875%, 04/15/19 0.90; Springleaf Finance Corp., 7.750%, 10/1/21 0.90; Ion Geophysical Corp., 9.125%, 21/15/21 0.80; Care Capital Properties LP, 5.125%, 8/15/26 0.80;