International Fund
Investment Objective
The International Fund’s investment objective is to seek long-term growth of capital.
Principal Investment Strategies
The International 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 International Fund will invest primarily in securities (such as common stock, preferred stocks and equity securities convertible into common or preferred stocks) of non-U.S. issuers. The International Fund is not constrained by any particular investment style or capitalization range. At any given time, the Fund may invest in “growth” stocks, “value” stocks, or a combination of both. Additionally, the International Fund’s investments in securities of non-U.S. issuers may be diversified across multiple sectors and industries, or may be focused on a limited number of sectors and industries.
The International Fund’s investments in securities of non-U.S. issuers may include investments in emerging markets and may be diversified across multiple countries or geographic regions, or may be focused on a select geographic region. The Fund is not limited to investing in securities of a specific market capitalization and may hold securities of large, medium and/or small capitalization companies.
The International Fund’s adviser selects equity securities on a company-by-company basis primarily through the use of fundamental analysis. The adviser attempts to identify companies for possible investment by analyzing their valuations and growth prospects based on their market and competitive position, financial condition and economic, political and regulatory environment. The following characteristics may also be considered in analyzing the attractiveness of such companies—valuation factors such as price-to-earnings ratio; price-to-book ratio and/or price-to-cash flow ratio; a healthy balance sheet; overall financial strength; and catalysts for changes that improve future earnings prospects.
The International Fund may sell a particular security if any of the original reasons for purchase change materially, in response to adverse market conditions, 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 International 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 International 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 International Fund may be significant.
In response to unfavorable market or other conditions, the International 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 International 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 International Fund’s investment objective and policies are not fundamental, and may be changed without a vote of shareholders.
Sustainable Investing
The International Fund seeks to invest in forward-thinking companies with sustainable business models that meet positive environmental, social and governance standards. The International 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 International Fund’s investment adviser has contractually agreed to reimburse expenses (excluding Acquired Fund Fees and Expenses) allocable to Individual Class shares of the International Fund to the extent such expenses exceed 1.40% of the average daily net assets of Individual Investor Class shares and 1.15% of the Institutional Class shares. This reimbursement arrangement will remain in effect through at least December 31, 2012.
The International 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.