N-CSRS 1 a14-16855_1ncsrs.htm N-CSRS

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-02064

 

PAX WORLD FUNDS SERIES TRUST I

(Exact name of registrant as specified in charter)

 

30 Penhallow Street, Suite 400, Portsmouth, NH

 

03801

(Address of principal executive offices)

 

(Zip code)

 

Pax World Management LLC

30 Penhallow Street, Suite 400, Portsmouth, NH 03801

Attn.:  Joseph Keefe

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

800-767-1729

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

06/30/14

 

 

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

 

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. §3507.

 



 

Item 1.                                 Semi-Annual Report to Shareholders

 



June 30, 2014

SEMI-ANNUAL
REPORT

The ESG Managers® Asset Allocation Portfolios

ESG Managers® Growth Portfolio

Class A (PAGAX)

Institutional Class (PAGIX)

Class C (PAGCX)

ESG Managers® Growth and Income Portfolio

Class A (PGPAX)

Institutional Class (PMIIX)

Class C (PWCCX)

ESG Managers® Balanced Portfolio

Class A (PMPAX)

Institutional Class (PWPIX)

Class C (PWPCX)

ESG Managers® Income Portfolio

Class A (PWMAX)

Institutional Class (PWMIX)

Class C (PWMCX)

Pax World Management LLC is the investment adviser to ESG Managers® Portfolios




Table of Contents

Letter to Shareholders

   

2

   

Portfolio Commentary

   

7

   

Portfolio Highlights

 

ESG Managers® Growth Portfolio

   

11

   

ESG Managers® Growth and Income Portfolio

   

13

   

ESG Managers® Balanced Portfolio

   

16

   

ESG Managers® Income Portfolio

   

19

   

Shareholder Expense Examples

   

22

   

Schedules of Investments

   

24

   

Statements of Assets and Liabilities

   

32

   

Statements of Operations

   

36

   

Statements of Changes in Net Assets

   

38

   

Statements of Changes in Net Assets—Shares of Beneficial Interest

   

40

   

Financial Highlights

   

42

   

Notes to Financial Statements

   

46

   

For More Information

General Fund Information

877.374.7678

Shareholder Account Information

888.374.8920

Account Inquiries

ESG Managers Portfolios

P.O. Box 55389

Boston, MA 02205-5389

Investment Adviser

Pax World Management LLC

30 Penhallow Street, Suite 400

Portsmouth, NH 03801

Transfer and
Dividend Disbursing Agent

Boston Financial Data Services

P.O. Box 55389

Boston, MA 02205-5389

Custodian

State Street Bank and Trust Company

1 Lincoln Street

Boston, MA 02111




Letter to Shareholders

By Joseph Keefe, President & CEO

Dear fellow shareholders,

The first six months of 2014 have surprised most market commentators, although I suppose to some extent that is always the case. We listen to experts only to learn that they are usually wrong, at least when it comes to predicting the future.

Equity prices continued their climb, but so did bond prices—something virtually no one predicted. Volatility was low. Those forecasting that inflation and higher rates are just around the corner have been wrong for years, but perhaps they will eventually be right. We shall have to see. Central bank policies continued to be accommodative to spur economic growth during the first half of 2014 but the Federal Reserve has now announced not only tapering but an end-date to its stimulus program.

The Fed policy change comes amidst evidence of an accelerating recovery in the underlying economy, with unemployment dipping to 6.1 percent in June, its lowest figure since September 2008. There is also growing evidence of widening economic inequality, however, and concern in some quarters that structural inequality and lower productivity are becoming significant drags on future economic growth. The economic environment remains uncertain.

Because being confronted with mixed signals and uncertainty about the future is a relative constant in the investment business, we try to refrain from grandiose prognosticating at Pax World. Instead, the ESG Managers® Portfolios employ broad diversification, institutional quality due diligence, manager selection, holdings-based analysis and ongoing oversight in seeking to anticipate and effectively manage risk in changing economic and investment market environments.

You will find detailed discussion of performance and financial information about the ESG Managers® Portfolios in this report. I will take note of a change in management of the Portfolios. At the end of May, Jon Hale, who worked with us at Pax World to develop the Portfolios and was a member of the portfolio management team since inception, accepted new responsibilities at


2



Morningstar and stepped down as co-manager of the Portfolios. We express our gratitude to Jon for all of his efforts and wish him the best of success in the future. Continuing in his portfolio management role is Peter Di Teresa, who worked with Jon in development of the Portfolios. Morningstar's Shannon Zimmerman joins Peter as co-manager. Shannon has extensive experience in the investment industry, including two tenures in manager research at Morningstar.

The first half of the year was eventful at Pax World. Of particular interest for investors in the ESG Managers® Portfolios was our execution of the first-ever merger of an ETF into an open-end mutual fund. At the end of March, we launched the Pax MSCI International ESG Index Fund (PXNIX), the product of a merger between the Pax World International Fund and the Pax MSCI EAFE ESG ETF. The new fund, which replaced the ETF (Predecessor Fund) in each of the ESG Managers® Portfolios, is a passively-managed index fund designed to track the performance of the MSCI EAFE ESG Index. The MSCI EAFE ESG Index consists of equity securities of companies in developed markets, excluding the U.S. and Canada, that have high environmental, social and governance (ESG) ratings relative to their sector and industry peers, as rated by MSCI ESG Research. The Fund is the only mutual fund in the United States that tracks the MSCI EAFE ESG Index.

On June 4, 2014, we also re-launched the Pax World Global Women's Equality Fund (PXWEX) which, following a shareholder vote, has adopted a new strategy and has been renamed the Pax Ellevate Global Women's Index Fund. The Fund was re-launched in partnership with Ellevate Asset Management, whose principal is Sallie Krawcheck. The Pax Ellevate Global Women's Index Fund seeks investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women's Leadership Index*, an index of companies around the world that are leaders in advancing women through gender diversity on their boards of directors and in management, and through other policies and programs. This Fund is the first equity mutual fund in the United States to focus on investing in the highest-rated companies in the world in advancing women's leadership.


3



In advance of launching the Pax Ellevate Global Women's Index Fund, we built the first-ever global Index consisting of companies that are leaders in advancing women, as rated by Pax World Gender Analytics. Research suggests that where women are better represented on boards and in management, companies actually perform better. We designed the index, where the universe of stocks is distinguished vis-à-vis the market as a whole by its gender leadership, in order to measure the contributions and capture the returns associated with women's leadership. We believe the Fund represents a market solution to a global business challenge: by helping direct investor capital towards those companies that are embracing gender diversity, we hope more companies will decide to do so.

We were particularly pleased to be able to partner with Sallie Krawcheck and her team at Ellevate Asset Management in launching the Pax Ellevate Global Women's Index Fund. Sallie Krawcheck is one of the most respected individuals in the financial services industry, and her interest in partnering with Pax World on the Fund speaks to the gathering momentum around investing in women, and in companies that invest in women.

ESG Managers® Portfolios are long-term investment strategies. They have been created and are managed for investors and advisors who seek to capture the potential investment returns associated with global sustainability trends as they gain force in the years ahead. We remain committed to serving sustainable investors and to offering a family of funds that is responsive to the growing interest among investors in companies that are making a positive difference in confronting global sustainability challenges while also seeking to deliver market returns to investors.

Please don't hesitate to contact me, or any member of our staff, should you have any questions or need additional information. In the meantime, I hope you are enjoying your summer and thank you again for your investments in ESG Managers® Portfolios.

Sincerely,

Joseph F. Keefe
President and CEO

*A customized index calculated by MSCI.

The Funds' distributor, ALPS Distributors, Inc., is not affiliated with Pax World Management LLC, Morningstar Associates, LLC or Ellevate Asset Management, LLC.


4



Performance Information

Commentary The portfolio manager commentaries in this report provide insight from the respective fund managers in an effort to help you examine your fund. The views expressed therein are those of the portfolio managers and are for the period covered by this report. Such commentary does not necessarily represent the views of the Board of Trustees of your fund. The views expressed herein are subject to change at any time based upon market and/or other conditions and Pax World Management LLC, Morningstar Associates, LLC and the funds disclaim any responsibility to update such views. The commentaries should not be relied upon as investment advice.

Historical performance Historical performance can be evaluated in several ways. Each fund's portfolio highlights provide total and average annual total returns. A comparison of this historical data to an appropriate benchmark is also provided. These performance figures include changes in a fund's share price, plus reinvestment of any dividends (generally income) and any capital gains (generally profits the fund earns when it sells securities that have grown in value).


5




The Funds use multiple advisers to seek to achieve their investment objectives and Morningstar Associates may allocate a portion of a Fund's assets to one or more investments, such as the underlying funds listed below ("Underlying Funds"), or to one or more subadvisers, who seek to invest the assets allocated to them consistent with the investment style specified by Morningstar (e.g., large cap blend, small/mid cap value, investment grade intermediate term bond). At present, the only subadviser engaged by the Adviser to manage a portion of the Funds is ClearBridge, with all other assets invested in the Underlying Funds. The potential risks and returns of each Fund vary with the degree to which each Fund's assets are invested in particular market segments and/or asset classes. Morningstar Associates will allocate each Fund's assets to Underlying Funds, the Adviser or one or more subadvisers in Morningstar Associates' sole discretion.

The Funds' "multi-manager" approach is designed to reduce the management risk inherent in individual security selection and to achieve lower volatility by combining complementary investment approaches. Allocation of assets among Underlying Funds and subadvisers is based on such factors as prudent diversification principles, general market outlooks (both domestic and global), historical performance, global markets' current valuations and other economic factors. Morningstar Associates may periodically adjust asset allocations to favor those Underlying Funds and subadvisers that Morningstar Associates believes will provide the most favorable outlook for achieving a Fund's investment objective. As a result, it is not possible to predict the extent to which any Fund's assets will be invested in a particular Underlying Fund or with any subadviser at any given time. The Adviser and/or Morningstar Associates may change the Funds' asset allocations at any time without notice to shareholders and without shareholder approval.

Fund Manager or Subadviser

 

Fund or Subadvised Strategy

 

Ariel Investments, LLC

 

Ariel Fund

 

ClearBridge Advisors, LLC

 

ClearBridge ESG Large Cap Value Strategy

 

Community Capital Management, Inc.

 

CRA Qualified Investment Fund

 

Miller/Howard Investments, Inc.

 

Touchstone Premium Yield Equity Fund

 

Everence Capital Management

 

Praxis Intermediate Income Fund

 

Neuberger Berman Management, LLC

 

Neuberger Berman Socially Responsive Fund

 

Parnassus Investments

 

Parnassus Core Equity Fund

 

Portfolio 21 Investments

 

Portfolio 21 Global Equity Fund

 

Pax World Management LLC

 

Pax World Global Environmental Markets Fund

 

Pax World Management LLC

 

Pax World High Yield Bond Fund

 

Pax World Management LLC

 

Pax World Small Cap Fund

 

Pax World Management LLC

 

Pax MSCI International ESG Index Fund

 

PIMCO

 

PIMCO Income Fund

 

RBC Global Asset Management (US) Inc.

 

Access Capital Community Investment Fund

 

Schroder Investment Management, Ltd

 

Schroder Emerging Market Equity Fund

 

TIAA-CREF

 

TIAA-CREF Social Choice Bond Fund

 

See Schedules of Investments


6



June 30, 2014

Portfolio Commentary

Portfolio Construction Advisors

Peter DiTeresa, Portfolio Manager,

Shannon Zimmerman, Senior Consultant and Portfolio Manager

The ESG Managers Portfolios earned solid returns in 2014's first half, with the Income and Growth and Income Portfolios outperforming their Blended Benchmarks1 and the other two trailing their benchmarks by modest amounts. While our underlying income-focused and value-oriented funds did particularly well, the Portfolios as a whole benefited from a market environment more favorable for broad diversification than has been the case in recent periods.

Total returns for the six-month period ended June 30, 2014:

Class A Shares

 

Portfolio

  Blended
Benchmark1
 

Growth Portfolio

   

5.51

%

   

6.33

%

 

Growth and Income Portfolio

   

6.00

%

   

5.94

%

 

Balanced Portfolio

   

5.16

%

   

5.48

%

 

Income Portfolio

   

5.18

%

   

4.84

%

 

Going into 2014, we held a more favorable view of stocks than bonds. As a result, we maintained overweight equity stakes in the three multi-asset class Portfolios and were fully invested in the all-equity Growth Portfolio. With stocks generally outperforming bonds in the first half, that positioning helped the Portfolios' performance relative to their benchmarks.

The Portfolios were also overweight U.S. stocks relative to international developed markets, which also benefitted performance. The U.S. stock market, as represented by the Standard & Poor's 500 Index2 (the S&P 500 Index), gained 7.14% in the period while developed international markets, as measured by the MSCI Europe, Australasia, Far East (EAFE) (Net) Index3 (the MSCI EAFE (Net) Index), rose 4.78%. After a first-quarter decline, emerging-markets stocks posted strong results. Outpacing U.S. and international developed markets, the MSCI Emerging Markets4 Index returned 6.14% in the year's first half. Our emerging markets exposure was close to neutral at the start of the year. While that hurt first quarter performance relative to the benchmarks, which do not include emerging markets, it helped second quarter performance.


7



June 30, 2014

Portfolio Commentary, continued

We limited our bond stakes' sensitivity to rising interest rates by overweighting credit-sensitive funds and favoring managers with flexibility in positioning their funds. While the U.S. Federal Reserve appears committed to keeping interest rates low into 2015, market expectations may still cause rates to rise, as we saw in 2013. Investors nonetheless embraced long-term bonds in the second quarter, but the impact on the Portfolios proved modest. Overweight positions in credit-sensitive strategies buoyed results, with PIMCO Income Fund, in particular, contributing significantly to the performance of the multi-asset class portfolios during the first half of the year.

Many of the underlying strategies we selected for the Portfolios had a good first half. Although many of our equity managers suffered in the markets' poor start to the year, most of them were able to earn competitive returns as markets recovered. U.S. stock managers Touchstone Premium Yield Equity Fund and Parnassus Core Equity Fund outperformed the S&P 500 Index for the six months as investors particularly favored dividend-paying and value-leaning stocks. While other strategies trailed the S&P 500 Index, their results were generally competitive with benchmarks and peers. After outperforming in the first quarter, Pax MSCI International ESG Index Fund modestly lagged the MSCI EAFE (Net) Index in the period. On the fixed-income side of the multi-asset portfolios, PIMCO Income Fund continued to deliver impressive relative performance; Pax World High Yield Bond Fund also contributed positively. Core holding TIAA-CREF Social Choice Bond Fund beat the Barclays U.S. Aggregate Bond Index5 (the Barclay's Index) thanks mainly to its corporate and mortgage-backed bond holdings. Muted interest-rate sensitivity versus the benchmark hindered Praxis Intermediate Income Fund but, as with TIAA-CREF Social Choice Bond Fund, the fund's exposure to corporate and mortgage-backed debt proved beneficial, contributing to its competitive returns for the quarter.

Portfolio Changes

The modest adjustments we made over the first half of 2014 generally increased the income-oriented Portfolios' emphasis on dividends. Overall, we moved the Portfolios' international developed markets exposures closer to neutral weights, albeit incrementally. Late in the first quarter saw a change of fund structure as Pax MSCI EAFE Index ETF and Pax World International Fund were merged into a single mutual fund named Pax MSCI International ESG Index Fund. Because the new fund tracks the same index, its record


8



June 30, 2014

Portfolio Commentary, continued

reflects the Pax MSCI EAFE Index ETF's history. The impact on ESG Managers Portfolios was negligible, though it did eliminate the difference between share price and portfolio returns that can arise with exchange-traded funds. Late in the quarter, Parnassus Equity Income Fund became Parnassus Core Equity Fund as the firm believed the new name better reflected the fund's characteristics. Its management and strategy, including a focus on high-quality companies and attention to valuation, remain intact.

Outlook

The surprising relative strength of long-term bonds persisted during the first two quarters of the year, but we remain cautious about interest-rate sensitivity. Indeed, the recent long-bond rally makes rate sensitivity seem even more perilous, with that portion of the yield curve now even more richly valued. Tight credit spreads, however, also argue for caution with regard to credit risk. Because rate risk in our view is the greater threat, the Portfolios have relatively greater exposure to higher-yielding credits than our targets but more muted interest-rate sensitivity. Because we see more downside in rate than in credit sensitivity, we have also increased exposure to managers who are either conservative about interest-rate sensitivity or who have made deft use of flexible mandates. We put Praxis Intermediate Income Fund, which has kept duration below the Barclays U.S. Aggregate Bond Index for some time, in the first camp. In the latter is our other core fixed-income holding, TIAA-CREF Social Choice Bond, which recently benefited from some exposure further along the yield curve, along with good sector positioning. The group also includes PIMCO Income Fund, whose managers use a wide-ranging approach and will shift exposures when they believe the risk-reward characteristics of a sector are deteriorating.

For now, we believe equities are relatively more attractive than bonds. At the end of June, the stocks Morningstar's equity analysts cover were overall fairly valued. With a strengthening U.S. economy and overseas central banks' commitment to fostering growth, we don't believe stocks are particularly expensive, though investor unease could spell more of the sort of sell-off we saw at the start of the year. We think this could be a favorable environment, relatively speaking, for many of our managers, who tend to focus on company fundamentals and run concentrated portfolios of what they believe to be the most attractive stocks consistent with their strategies.


9



June 30, 2014

Portfolio Commentary, continued

As we see slowly improving economic growth combined with near-term risks for both stocks and bonds, the ESG Managers Portfolios are attractive options for less-aggressive exposure to global markets using underlying managers who believe sustainable investing helps lead them to high-quality, lower-risk companies that will perform well over the long term while respecting the environment and the concerns of other stakeholders.

1Blended Benchmarks

The Blended Benchmark for the Growth Portfolio is comprised of 66% S&P 500 Index and 34% MSCI EAFE (Net) Index.

The Blended Benchmark for the Growth and Income Portfolio is comprised of 55% S&P 500 Index, 25% MSCI EAFE (Net) Index, and 20% Barclays U.S. Aggregate.

The Blended Benchmark for the Balanced Portfolio is comprised of 42% S&P 500 Index, 18% MSCI EAFE (Net) Index and 40% Barclays Aggregate U.S. Bond Index.

The Blended Benchmark for the Income Portfolio is comprised of 24% S&P 500 Index, 11% MSCI EAFE (Net) Index and 65% Barclays U.S. Aggregate Bond Index.

2Standard & Poor's 500 Composite Stock Index is an unmanaged index of large capitalization common stocks.

3MSCI EAFE (Europe, Australasia, Far East) (Net) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE (Net) Index consists of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCIEAFE Index is shown "net," which includes dividend reinvestments after deduction of foreign withholding tax.

4MSCI Emerging Markets Index is an unmanaged index of stocks considered to be representative of stocks of developing countries.

5Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.

One cannot invest directly in an index.

Securities of small and medium-sized companies may have less liquidity and more volatile prices than securities of larger companies, which can make it difficult for the Fund to sell such securities at desired times or prices.

Emerging market and international investments involve risk of capital loss from unfavorable fluctuations in currency values, differences in generally accepted accounting principles, economic or political instability in other nations or increased volatility and lower trading volume.

The portfolio commentary in this report provides insight in an effort to help you examine your fund. The views expressed therein are those of the portfolio construction advisers and are for the period covered by this report. Such commentary does not necessarily represent the views of the Board of Trustees of your fund. The views expressed herein are subject to change at any time based upon market and/or other conditions and Pax World Management LLC and the funds disclaim any responsibility to update such views. The commentaries should not be relied upon as investment advice.


10



June 30, 2014

Growth Portfolio

Portfolio Highlights (Unaudited)

Returns—Period ended June 30, 2014

       

Total Return

 

Annualized Return

 

Share class

  Ticker
Symbol
     

YTD

 

1 Year

 

3 Years

  Since
Inception1
 
Class A2, 3   

PAGAX

 

NAV4

   

5.51

%

   

21.86

%

   

11.12

%

   

10.79

%

 
       

POP

   

-0.31

%

   

15.19

%

   

9.05

%

   

9.41

%

 
Institutional Class2   

PAGIX

       

5.61

%

   

21.91

%

   

11.32

%

   

11.07

%

 
Class C2, 5   

PAGCX

 

NAV4

   

5.11

%

   

20.90

%

   

10.28

%

   

9.97

%

 
       

CDSC

   

4.06

%

   

19.69

%

                 

Blended Index6, 7, 8, 10

           

6.33

%

   

24.30

%

   

13.72

%

   

12.87

%

 

Lipper Multi-Cap Core Funds Index9, 10

           

6.25

%

   

24.42

%

   

14.45

%

   

14.36

%

 

S&P 500 Index7, 10

           

7.14

%

   

24.61

%

   

16.58

%

   

15.41

%

 

Total returns for periods of less than one year have not been annualized.

1The Fund's inception date is January 4, 2010.

2Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com.

3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

4NAV is Net Asset Value.

5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

6The Blended Index is composed of 66% S&P 500 Index and 34% MSCI EAFE (Net) Index.

7The S&P 500 Index is an index of large capitalization common stocks.

8The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.

9The Lipper Multi-Cap Core Funds Index tracks the results of the 30 largest mutual funds in the Lipper Multi-Cap Core Funds Average. The Lipper Multi-Cap Core Funds Average is a total return performance average of the mutual funds tracked by Lipper, Inc. that, by portfolio practice, invest at least 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap Core Funds typically have an average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared


11



June 30, 2014

Growth Portfolio, continued

Portfolio Highlights (Unaudited), continued

to the S&P SuperComposite 1500 Index. The Lipper Multi-Cap Core Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than the changes in the value of a group of securities, a securities index or some other traditional economic indicator.

10Unlike the Growth Portfolio, the Blended Index, the Lipper Multi-Cap Core Funds Index and the S&P 500 Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Multi-Cap Core Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.

Manager Allocations

Strategy/Fund

 

Percent of Net Assets

 

EQUITY

 

Large-Cap Multi-Cap

 

ClearBridge ESG Large Cap Value Strategy

   

18.7

%

 

Touchstone Premium Yield Equity Fund

   

3.3

%

 

Parnassus Core Equity Fund

   

22.5

%

 

Neuberger Berman Socially Responsive Fund

   

22.9

%

 

Small/Mid-Cap

 

Ariel Fund

   

6.9

%

 

Pax World Small Cap Fund

   

7.3

%

 

International/World

 

Pax MSCI International ESG Index Fund

   

10.9

%

 

Portfolio 21 Global Equity

   

0.3

%

 

Schroder Emerging Markets Equity Fund

   

5.1

%

 

Sector Specific

 

Pax World Global Environmental Markets Fund

   

2.4

%

 

Total Equities

    100.3

%

 

Other

   

-0.3

%

 

Total

   

100.0

%

 

Top Ten Holdings

Description

 

Percent of Net Assets

 

Neuberger Berman Socially Responsive Fund

   

22.9

%

 

Parnassus Core Equity Fund

   

22.5

%

 

Pax MSCI International ESG Index Fund

   

10.9

%

 

Pax World Small Cap Fund

   

7.3

%

 

Ariel Fund

   

6.9

%

 

Schroder Emerging Market Equity Fund

   

5.1

%

 

Touchstone Premium Yield Equity Fund

   

3.3

%

 

Pax World Global Environmental Markets Fund

   

2.4

%

 

Wells Fargo & Co.

   

0.7

%

 

DISH Network Corp., Class A

   

0.7

%

 

Total

   

82.7

%

 

Holdings are subject to change.


12



June 30, 2014

Growth and Income Portfolio

Portfolio Highlights (Unaudited)

Returns—Period ended June 30, 2014

       

Total Return

 

Annualized Return

 

Share class

  Ticker
Symbol
     

YTD

 

1 Year

 

3 Years

  Since
Inception1
 
Class A2, 3   

PGPAX

 

NAV4

   

6.00

%

   

19.75

%

   

10.68

%

   

10.39

%

 
       

POP

   

0.14

%

   

13.14

%

   

8.62

%

   

9.01

%

 
Institutional Class2   

PMIIX

       

6.18

%

   

20.25

%

   

11.02

%

   

10.67

%

 
Class C2, 5   

PWCCX

 

NAV4

   

5.58

%

   

18.75

%

   

9.82

%

   

9.53

%

 
       

CDSC

   

4.52

%

   

17.56

%

                 

Blended Index6, 7, 8, 9, 11

           

5.94

%

   

20.16

%

   

11.99

%

   

11.52

%

 
Lipper Mixed-Asset Target Allocation
Growth Funds Index10, 11
           

5.72

%

   

18.52

%

   

11.07

%

   

11.01

%

 

S&P 500 Index7, 11

           

7.14

%

   

24.61

%

   

16.58

%

   

15.41

%

 

Total returns for periods of less than one year have not been annualized.

1The Fund's inception date is January 4, 2010.

2Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com.

3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

4NAV is Net Asset Value.

5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

6The Blended Index is composed of 55% S&P 500 Index, 25% MSCI EAFE (Net) Index and 20% Barclays U.S. Aggregate Bond Index.

7The S&P 500 Index is an index of large capitalization common stocks.

8The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.

9The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.

10The Lipper Mixed-Asset Target Allocation Growth Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Growth Funds Average. The Lipper Mixed-Asset Target Allocation Growth Funds Average is a total return performance average of mutual funds tracked by Lipper, Inc. whose primary objective


13



June 30, 2014

Growth and Income Portfolio, continued

Portfolio Highlights (Unaudited), continued

is to conserve principal by maintaining, at all times a mix of between 60%-80% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Growth Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator.

11Unlike the Growth and Income Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Growth Funds Index and the S&P 500 Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Mixed-Asset Target Allocation Growth Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.

Manager Allocations

Manager/Strategy

 

Percent of Net Assets

 

Strategy/Fund

 

EQUITY

 

Large-Cap Multi-Cap

 

ClearBridge ESG Large Cap Value Strategy

   

14.3

%

 

Touchstone Premium Yield Equity Fund

   

12.3

%

 

Parnassus Core Equity Fund

   

18.8

%

 

Neuberger Berman Socially Responsive Fund

   

14.7

%

 

Small/Mid-Cap

 

Ariel Fund

   

3.5

%

 

Pax World Small Cap Fund

   

4.0

%

 

International/World

 

Pax MSCI International ESG Index Fund

   

9.2

%

 

Portfolio 21 Global Equity Fund

   

1.2

%

 

Schroder Emerging Markets Equity Fund

   

4.6

%

 

Sector Specific

 

Pax World Global Environmental Markets Fund

   

1.1

%

 

Total Equities

    83.7

%

 

FIXED INCOME

 

Investment Grade

 

Access Capital Community Investment Fund

   

0.2

%

 

CRA Qualified Investment Fund

   

0.1

%

 

Praxis Intermediate Income Fund

   

2.0

%

 

TIAA-CREF Social Choice Bond Fund

   

4.4

%

 

PIMCO Income Fund

   

6.9

%

 

High Yield

 

Pax World High Yield Bond Fund

   

2.9

%

 

Total Fixed Income

    16.5

%

 

Other

   

-0.2

%

 

Total

   

100.0

%

 


14



June 30, 2014

Top Ten Holdings

Description

 

Percent of Net Assets

 

Parnassus Core Equity Fund

   

18.8

%

 

Neuberger Berman Socially Responsive Fund

   

14.7

%

 

Touchstone Premium Yield Equity

   

12.3

%

 

Pax MSCI International ESG Index Fund

   

9.2

%

 

PIMCO Income Fund

   

6.9

%

 

Schroder Emerging Market Equity Fund

   

4.6

%

 

TIAA-CREF Social Choice Bond Fund

   

4.4

%

 

Pax World Small Cap Fund

   

4.0

%

 

Ariel Fund

   

3.5

%

 

Pax World High Yield Bond Fund

   

2.9

%

 

Total

   

81.3

%

 

Holdings are subject to change.


15



June 30, 2014

Balanced Portfolio

Portfolio Highlights (Unaudited)

Returns—Period ended June 30, 2014

       

Total Return

 

Annualized Return

 

Share class

  Ticker
Symbol
     

YTD

 

1 Year

 

3 Years

  Since
Inception1
 
Class A2, 3   

PMPAX

 

NAV4

   

5.16

%

   

15.61

%

   

9.15

%

   

8.83

%

 
       

POP

   

-0.61

%

   

9.27

%

   

7.11

%

   

7.47

%

 
Institutional Class2   

PWPIX

       

5.34

%

   

15.97

%

   

9.45

%

   

9.10

%

 
Class C2, 5   

PWPCX

 

NAV4

   

4.77

%

   

14.83

%

   

8.36

%

   

8.02

%

 
       

CDSC

   

3.73

%

   

13.68

%

                 

Blended Index6, 7, 8, 9, 11

           

5.48

%

   

16.09

%

   

10.04

%

   

9.92

%

 
Lipper Mixed-Asset Target Allocation
Moderate Funds Index10, 11
           

5.54

%

   

15.53

%

   

9.13

%

   

9.45

%

 

S&P 500 Index7, 11

           

7.14

%

   

24.61

%

   

16.58

%

   

15.41

%

 

Total returns for periods of less than one year have not been annualized.

1The Fund's inception date is January 4, 2010.

2Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com.

3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 5.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

4NAV is Net Asset Value.

5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

6The Blended Index is composed of 42% S&P 500 Index, 18% MSCI EAFE (Net) Index and 40% Barclays U.S. Aggregate Bond Index.

7The S&P 500 Index is an index of large capitalization common stocks.

8The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.

9The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.

10The Lipper Mixed-Asset Target Allocation Moderate Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Moderate Funds Average. The Lipper Mixed-Asset Target Allocation Moderate Funds Average is a total return performance average of mutual funds tracked by Lipper, Inc. whose


16



June 30, 2014

primary objective is to conserve principal by maintaining, at all times a mix of between 40%-60% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Moderate Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator.

11Unlike the Balanced Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Moderate Funds Index and the S&P 500 Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Mixed-Asset Target Allocation Moderate Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.

Manager Allocations

Strategy/Fund

 

Percent of Net Assets

 

EQUITY

 

Large-Cap Multi-Cap

 

ClearBridge ESG Large Cap Value Strategy

   

12.4

%

 

Touchstone Premium Yield Equity Fund

   

3.2

%

 

Parnassus Core Equity Fund

   

15.5

%

 

Neuberger Berman Socially Responsive Fund

   

13.8

%

 

Small/Mid-Cap

 

Ariel Fund

   

3.7

%

 

Pax World Small Cap Fund

   

3.8

%

 

International/World

 

Pax MSCI International ESG Index Fund

   

7.1

%

 

Portfolio 21 Global Equity Fund

   

1.2

%

 

Schroder Emerging Markets Equity Fund

   

3.6

%

 

Sector Specific

 

Pax World Global Environmental Markets Fund

   

1.9

%

 

Total Equities

   

66.2

%

 

FIXED INCOME

 

Investment Grade

 

Access Capital Community Investment Fund

   

4.9

%

 

CRA Qualified Investment Fund

   

4.8

%

 

Praxis Intermediate Income Fund

   

6.8

%

 

TIAA-CREF Social Choice Bond Fund

   

8.5

%

 

PIMCO Income Fund

   

6.0

%

 

High Yield

 

Pax World High Yield Bond Fund

   

3.0

%

 

Total Fixed Income

    34.0

%

 

Other

   

-0.2

%

 

Total

   

100.0

%

 


17



June 30, 2014

Balanced Portfolio, continued

Portfolio Highlights (Unaudited), continued

Top Ten Holdings

Description

 

Percent of Net Assets

 

Parnassus Core Equity Fund

   

15.5

%

 

Neuberger Berman Socially Responsive Fund

   

13.8

%

 

TIAA-CREF Social Choice Bond Fund

   

8.5

%

 

Pax MSCI International ESG Index Fund

   

7.1

%

 

Praxis Intermediate Income Fund

   

6.8

%

 

PIMCO Income Fund

   

6.0

%

 

Access Capital Community Investment Fund

   

4.9

%

 

CRA Qualified Investment Fund

   

4.8

%

 

Pax World Small Cap Fund

   

3.8

%

 

Ariel Fund

   

3.7

%

 

Total

   

74.9

%

 

Holdings are subject to change.


18



June 30, 2014

Income Portfolio

Portfolio Highlights (Unaudited)

Returns—Period ended June 30, 2014

       

Total Return

 

Annualized Return

 

Share class

  Ticker
Symbol
     

YTD

 

1 Year

 

3 Years

  Since
Inception1
 
Class A2, 3   

PWMAX

 

NAV4

   

5.18

%

   

11.38

%

   

6.65

%

   

7.05

%

 
       

POP

   

0.49

%

   

6.39

%

   

5.03

%

   

5.96

%

 
Institutional Class2   

PWMIX

       

5.18

%

   

11.60

%

   

6.89

%

   

7.29

%

 
Class C2, 5   

PWMCX

 

NAV4

   

4.72

%

   

10.51

%

   

5.84

%

   

6.23

%

 
       

CDSC

   

3.68

%

   

9.41

%

                 

Blended Index6, 7, 8, 9, 11

           

4.84

%

   

11.11

%

   

7.39

%

   

7.69

%

 
Lipper Mixed-Asset Target Allocation
Conservative Funds Index10, 11
           

5.09

%

   

10.65

%

   

6.61

%

   

7.29

%

 

Barclays U.S. Aggregate Bond Index9, 11

           

3.93

%

   

4.37

%

   

3.66

%

   

4.48

%

 

Total returns for periods of less than one year have not been annualized.

1The Fund's inception date is January 4, 2010.

2Total return figures include reinvested dividends and capital gains distributions, and changes in principal value, and do not reflect the taxes that a shareholder might pay on Fund distributions or on the redemption of Fund shares. These figures represent past performance, which is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance shown. For more recent month-end performance data, please visit www.esgmanagers.com.

3A 1.00% CDSC (contingent deferred sales charge) may be charged on any shares purchased without an initial sales charge as part of a purchase over $1 million that are sold within 18 months of purchase. POP (public offering price) reflects the maximum sales load for the Fund's Class A shares of 4.50%. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

4NAV is Net Asset Value.

5A 1.00% CDSC (contingent deferred sales charge) may be charged on shares redeemed within one year of purchase. NAV performance does not reflect the deduction of the sales load or the CDSC, which if reflected would reduce the performance shown.

6The Blended Index is composed of 24% S&P 500 Index, 11% MSCI EAFE (Net) Index and 65% Barclays U.S. Aggregate Bond Index.

7The S&P 500 Index is an index of large capitalization common stocks.

8The MSCI EAFE (Europe, Australasia, Far East) Index is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. and Canada. The MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.

9The Barclays U.S. Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities.

10The Lipper Mixed-Asset Target Allocation Conservative Funds Index tracks the results of the 30 largest mutual funds in the Lipper Mixed-Asset Target Allocation Conservative Funds Average. The Lipper Mixed-Asset Target Allocation Conservative Funds Average is a total return performance average of mutual funds tracked


19



June 30, 2014

Income Portfolio, continued

Portfolio Highlights (Unaudited), continued

by Lipper, Inc. whose primary objective is to conserve principal by maintaining, at all times a mix of between 20%-40% equity securities, with the remainder invested in bonds, cash, and cash equivalents. The Lipper Mixed-Asset Target Allocation Conservative Funds Index is not what is typically considered to be an "index" because it tracks the performance of other mutual funds rather than changes in the value of a group of securities, a securities index or some other traditional economic indicator.

11Unlike the Income Portfolio, the Blended Index, the Lipper Mixed-Asset Target Allocation Conservative Funds Index and the Barclays U.S. Aggregate Bond Index are not investments, are not professionally managed, have no policy of sustainable investing and (with the exception of the Lipper Mixed-Asset Target Allocation Conservative Funds Index) do not reflect deductions for fees, expenses or taxes. Investors cannot invest directly in any index.

Manager Allocations

Strategy/Fund

 

Percent of Net Assets

 

EQUITY

 

Large-Cap Multi-Cap

 

ClearBridge ESG Large Cap Value Strategy

   

6.5

%

 

Touchstone Premium Yield Equity Fund

   

7.0

%

 

Parnassus Core Equity Fund

   

9.7

%

 

Neuberger Berman Socially Responsive Fund

   

6.4

%

 

Small/Mid-Cap

 

Ariel Fund

   

1.2

%

 

Pax World Small Cap Fund

   

2.1

%

 

International/World

 

Pax MSCI International ESG Index Fund

   

3.4

%

 

Portfolio 21 Global Equity Fund

   

0.7

%

 

Schroder Emerging Markets Equity Fund

   

2.0

%

 

Sector Specific

 

Pax World Global Environmental Markets Fund

   

1.4

%

 

Total Equities

    40.4

%

 

FIXED INCOME

 

Investment Grade

 

Access Capital Community Investment Fund

   

9.0

%

 

CRA Qualified Investment Fund

   

2.9

%

 

Praxis Intermediate Income Fund

   

14.5

%

 

TIAA-CREF Social Choice Bond Fund

   

16.0

%

 

PIMCO Income Fund

   

16.1

%

 

High Yield

 

Pax World High Yield Bond Fund

   

1.7

%

 

Total Fixed Income

    60.2

%

 

Other

   

-0.6

%

 

Total

   

100.0

%

 


20



June 30, 2014

Top Ten Holdings

Description

 

Percent of Net Assets

 

PIMCO Income Fund

   

16.1

%

 

TIAA-CREF Social Choice Bond Fund

   

16.0

%

 

Praxis Intermediate Income Fund

   

14.5

%

 

Parnassus Core Equity Fund

   

9.7

%

 

Access Capital Community Investment Fund

   

9.0

%

 

Touchstone Premium Yield Equity Fund

   

7.0

%

 

Neuberger Berman Socially Responsive Fund

   

6.4

%

 

Pax MSCI International ESG Index Fund

   

3.4

%

 

CRA Qualified Investment Fund

   

2.9

%

 

Pax World Small Cap Fund

   

2.1

%

 

Total

   

87.1

%

 

Holdings are subject to change.


21



June 30, 2014

Shareholder Expense Examples (Unaudited)

Examples As a shareholder of the ESG Managers Growth, Growth and Income, Balanced or Income Portfolios, you incur ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. The examples on the next page are intended to help you understand your ongoing costs (in dollars) of investing in each of the Funds and compare these costs with the ongoing costs of investing in other mutual funds. For more information, see the relevant Fund's prospectus or talk to your financial adviser.

The examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period beginning on January 1, 2014 and ending on June 30, 2014.

Please note that Individual Retirement Account (IRA), Coverdell Education Savings, Roth IRA, SEP-IRA, SIMPLE IRA, and 403(b)(7) accounts are charged an annual custodial fee of twelve dollars. If you are invested in one of these account types, you should add an additional six dollars to the estimated expenses paid during the period.

Actual Expenses For each Fund, the first table on the next page provides information about actual account values and actual expenses. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. For the Fund, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

Hypothetical Examples for Comparison Purposes For each Fund, the second table on the following page provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.


22



June 30, 2014

Shareholder Expense Examples (Unaudited), continued

Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs or expenses of underlying fund investments. Therefore, the second table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs and underlying fund expenses were included, your costs would have been higher.

Based on Actual Fund Return

  Beginning
Account Value
(1/1/14)
  Ending
Account Value
(6/30/14)
  Annualized
Expense
Ratio
  Expense Paid
During Period1
 

Growth - Class A

 

$

1,000.00

   

$

1,055.10

     

1.11

%

 

$

5.66

   

Growth - Institutional

   

1,000.00

     

1,056.10

     

0.86

%

   

4.38

   

Growth - Class C

   

1,000.00

     

1,051.10

     

1.86

%

   

9.46

   

Growth and Income - Class A

   

1,000.00

     

1,060.00

     

1.05

%

   

5.36

   

Growth and Income - Institutional

   

1,000.00

     

1,061.80

     

0.80

%

   

4.09

   

Growth and Income - Class C

   

1,000.00

     

1,055.80

     

1.80

%

   

9.18

   

Balanced - Class A

   

1,000.00

     

1,051.60

     

0.99

%

   

5.04

   

Balanced - Institutional

   

1,000.00

     

1,053.40

     

0.74

%

   

3.77

   

Balanced - Class C

   

1,000.00

     

1,047.70

     

1.74

%

   

8.83

   

Income - Class A

   

1,000.00

     

1,051.80

     

0.93

%

   

4.73

   

Income - Institutional

   

1,000.00

     

1,051.80

     

0.68

%

   

3.46

   

Income - Class C

   

1,000.00

     

1,047.20

     

1.68

%

   

8.53

   
Based on Hypothetical 5% Return
(before expenses)
  Beginning
Account Value
(1/1/14)
  Ending
Account Value
(6/30/14)
  Annualized
Expense
Ratio
  Expense Paid
During Period1
 

Growth - Class A

 

$

1,000.00

   

$

1,019.29

     

1.11

%

 

$

5.56

   

Growth - Institutional

   

1,000.00

     

1,020.53

     

0.86

%

   

4.31

   

Growth - Class C

   

1,000.00

     

1,015.57

     

1.86

%

   

9.30

   

Growth and Income - Class A

   

1,000.00

     

1,019.59

     

1.05

%

   

5.26

   

Growth and Income - Institutional

   

1,000.00

     

1,020.83

     

0.80

%

   

4.01

   

Growth and Income - Class C

   

1,000.00

     

1,015.87

     

1.80

%

   

9.00

   

Balanced - Class A

   

1,000.00

     

1,019.89

     

0.99

%

   

4.96

   

Balanced - Institutional

   

1,000.00

     

1,021.12

     

0.74

%

   

3.71

   

Balanced - Class C

   

1,000.00

     

1,016.17

     

1.74

%

   

8.70

   

Income - Class A

   

1,000.00

     

1,020.18

     

0.93

%

   

4.66

   

Income - Institutional

   

1,000.00

     

1,021.42

     

0.68

%

   

3.41

   

Income - Class C

   

1,000.00

     

1,016.46

     

1.68

%

   

8.40

   

1Expenses are equal to each Funds' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period beginning on January 1, 2014 and ending on June 30, 2014).


23




June 30, 2014

Schedule of Investments (Unaudited)

Growth Portfolio

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS: 18.7%

 

Consumer Discretionary: 2.9%

 

DISH Network Corp., Class A (a)

   

1,743

   

$

113,435

   

Home Depot, Inc., The

   

627

     

50,762

   

SES SA

   

913

     

34,630

   

Target Corp.

   

936

     

54,241

   

Time Warner Cable, Inc.

   

496

     

73,061

   

Time Warner, Inc.

   

1,072

     

75,308

   

Time, Inc. (a)

   

134

     

3,245

   
Twenty-First Century Fox, Inc.,
Class B
   

2,118

     

72,499

   
     

477,181

   

Consumer Staples: 2.0%

 

CVS Caremark Corp.

   

1,248

     

94,062

   

Coca-Cola Co., The

   

973

     

41,216

   

Kellogg Co.

   

698

     

45,859

   

Kimberly-Clark Corp.

   

429

     

47,713

   

PepsiCo, Inc.

   

676

     

60,394

   

Sysco Corp.

   

711

     

26,627

   
     

315,871

   

Energy: 2.3%

 

Cameron International Corp. (a)

   

489

     

33,110

   

ConocoPhillips

   

882

     

75,614

   

National Oilwell Varco, Inc.

   

736

     

60,610

   

Noble Corp PLC

   

943

     

31,647

   

Royal Dutch Shell PLC, ADR

   

855

     

70,426

   

Schlumberger, Ltd.

   

517

     

60,980

   

Suncor Energy, Inc.

   

814

     

34,701

   
     

367,088

   

Financials: 4.7%

 

American Express Co.

   

747

     

70,868

   

American Tower Corp., REIT

   

468

     

42,111

   

Bank of New York Mellon Corp., The

   

885

     

33,170

   

Capital One Financial Corp.

   

459

     

37,913

   

Citigroup, Inc.

   

713

     

33,582

   

JPMorgan Chase & Co.

   

1,874

     

107,980

   

Loews Corp.

   

658

     

28,959

   

Marsh & McLennan Cos., Inc.

   

889

     

46,068

   

MetLife, Inc.

   

676

     

37,559

   

Progressive Corp., The

   

676

     

17,143

   

State Street Corp.

   

786

     

52,866

   

Travelers Cos., Inc., The

   

544

     

51,174

   

US Bancorp

   

1,966

     

85,167

   

Wells Fargo & Co.

   

2,205

     

115,895

   
     

760,455

   

Health Care: 1.9%

 

Amgen, Inc.

   

389

     

46,046

   

Johnson & Johnson

   

505

     

52,833

   

Merck & Co., Inc.

   

1,016

     

58,776

   
Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS, continued

 

Health Care, continued

 

Novartis AG, ADR

   

371

   

$

33,587

   

Pfizer, Inc.

   

1,042

     

30,927

   
Teva Pharmaceutical
Industries, Ltd., ADR
   

650

     

34,073

   

WellPoint, Inc.

   

486

     

52,298

   
     

308,540

   

Industrials: 2.0%

 

Danaher Corp.

   

838

     

65,976

   

Emerson Electric Co.

   

750

     

49,770

   

General Electric Co.

   

2,995

     

78,709

   

Honeywell International, Inc.

   

747

     

69,434

   

Illinois Tool Works, Inc.

   

668

     

58,490

   

NOW, Inc. (a)

   

114

     

4,128

   
     

326,507

   

Information Technology: 1.7%

 

EMC Corp.

   

1,403

     

36,955

   

IBM

   

189

     

34,260

   

Microsoft Corp.

   

955

     

39,824

   

Motorola Solutions, Inc.

   

534

     

35,548

   

Nuance Communications, Inc. (a)

   

1,937

     

36,357

   

TE Connectivity, Ltd.

   

871

     

53,863

   

Xerox Corp

   

3,125

     

38,875

   
     

275,682

   

Materials: 0.8%

 

Air Products & Chemicals, Inc.

   

291

     

37,428

   

Crown Holdings, Inc. (a)

   

1,099

     

54,686

   

Martin Marietta Materials, Inc.

   

243

     

32,088

   
     

124,202

   

Telecommunication Services: 0.1%

 

Vodafone Group PLC, ADR

   

689

     

23,006

   

Utilities: 0.3%

 

Sempra Energy

   

509

     

53,297

   

TOTAL COMMON STOCKS

 

(Cost $2,113,804)

       

3,031,829

   

AFFILIATED INVESTMENT COMPANIES: 20.6%

 
Pax MSCI International
ESG Index Fund (b)
   

196,234

     

1,756,292

   
Pax World Global Environmental
Markets Fund (b)
   

30,265

     

396,773

   

Pax World Small Cap Fund (b)

   

83,239

     

1,189,484

   

TOTAL AFFILIATED INVESTMENT COMPANIES

 

(Cost $2,867,769)

       

3,342,549

   

SEE NOTES TO FINANCIAL STATEMENTS
24



June 30, 2014

Schedule of Investments (Unaudited), continued

Growth Portfolio, continued

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

NON-AFFILIATED INVESTMENT COMPANIES: 61.0%

 

Ariel Fund (b)

   

14,314

   

$

1,112,640

   
Neuberger Berman Socially
Responsive Fund (b)
   

101,221

     

3,707,724

   

Parnassus Core Equity Fund (b)

   

91,936

     

3,638,839

   

Portfolio 21 Global Equity Fund (b)

   

971

     

40,567

   
Schroder Emerging Market
Equity Fund (c)
   

59,574

     

823,316

   
Touchstone Premium Yield
Equity Fund (d)
   

52,286

     

530,705

   

TOTAL NON-AFFILIATED INVESTMENT COMPANIES

 

(Cost $9,009,024)

       

9,853,791

   

TOTAL INVESTMENTS: 100.3%

 

(Cost $13,990,597)

       

16,228,169

   

OTHER ASSETS AND LIABILITIES—

 

(Net): -0.3%

       

(51,941

)

 

Net Assets: 100.0%

     

$

16,176,228

   

(a)  Non income producing security.

(b)  Institutional Class shares

(c)  Investor Class shares

(d)  Class Y shares

ADR  American Depository Receipt

REIT  Real Estate Investment Trust

SEE NOTES TO FINANCIAL STATEMENTS
25



June 30, 2014

Schedule of Investments (Unaudited)

Growth and Income Portfolio

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS: 14.3%

 

Consumer Discretionary: 2.2%

 

DISH Network Corp., Class A (a)

   

1,200

   

$

78,096

   

Home Depot, Inc., The

   

451

     

36,513

   

SES SA

   

586

     

22,227

   

Target Corp.

   

665

     

38,537

   

Time Warner Cable, Inc.

   

343

     

50,524

   

Time Warner, Inc.

   

741

     

52,055

   

Time, Inc. (a)

   

92

     

2,228

   
Twenty-First Century Fox, Inc.,
Class B
   

1,514

     

51,824

   
     

332,004

   

Consumer Staples: 1.5%

 

Coca-Cola Co., The

   

702

     

29,737

   

CVS Caremark Corp.

   

905

     

68,210

   

Kellogg Co.

   

492

     

32,324

   

Kimberly-Clark Corp.

   

303

     

33,700

   

PepsiCo, Inc.

   

495

     

44,223

   

Sysco Corp.

   

506

     

18,950

   
     

227,144

   

Energy: 1.8%

 

Cameron International Corp. (a)

   

346

     

23,428

   

ConocoPhillips

   

635

     

54,438

   

National Oilwell Varco, Inc.

   

516

     

42,493

   

Noble Corp PLC

   

679

     

22,787

   

Royal Dutch Shell PLC, ADR

   

610

     

50,246

   

Schlumberger, Ltd.

   

368

     

43,406

   

Suncor Energy, Inc.

   

560

     

23,873

   
     

260,671

   

Financials: 3.6%

 

American Express Co.

   

536

     

50,850

   

American Tower Corp., REIT

   

323

     

29,064

   

Bank of New York Mellon Corp., The

   

647

     

24,250

   

Capital One Financial Corp.

   

333

     

27,506

   

Citigroup, Inc.

   

494

     

23,267

   

JPMorgan Chase & Co.

   

1,310

     

75,482

   

Loews Corp.

   

477

     

20,993

   

Marsh & McLennan Cos., Inc.

   

629

     

32,595

   

MetLife, Inc.

   

480

     

26,669

   

Progressive Corp., The

   

488

     

12,376

   

State Street Corp.

   

539

     

36,253

   

Travelers Cos., Inc., The

   

400

     

37,628

   

US Bancorp

   

1,359

     

58,872

   

Wells Fargo & Co.

   

1,585

     

83,307

   
     

539,112

   

Health Care: 1.5%

 

Amgen, Inc.

   

268

     

31,723

   

Johnson & Johnson

   

366

     

38,291

   

Merck & Co., Inc.

   

723

     

41,826

   
Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS, continued

 

Health Care, continued

 

Novartis AG, ADR

   

263

   

$

23,809

   

Pfizer, Inc.

   

731

     

21,696

   
Teva Pharmaceutical
Industries, Ltd., ADR
   

475

     

24,900

   

WellPoint, Inc.

   

338

     

36,372

   
     

218,617

   

Industrials: 1.5%

 

Danaher Corp.

   

580

     

45,663

   

Emerson Electric Co.

   

537

     

35,635

   

General Electric Co.

   

2,135

     

56,108

   

Honeywell International, Inc.

   

540

     

50,193

   

Illinois Tool Works, Inc.

   

477

     

41,766

   

NOW, Inc. (a)

   

78

     

2,824

   
     

232,189

   

Information Technology: 1.3%

 

EMC Corp.

   

986

     

25,971

   

IBM

   

136

     

24,653

   

Microsoft Corp.

   

705

     

29,399

   

Motorola Solutions, Inc.

   

369

     

24,564

   

Nuance Communications, Inc. (a)

   

1,336

     

25,077

   

TE Connectivity, Ltd.

   

622

     

38,464

   

Xerox Corp

   

2,215

     

27,555

   
     

195,683

   

Materials: 0.6%

 

Air Products & Chemicals, Inc.

   

211

     

27,139

   

Crown Holdings, Inc. (a)

   

768

     

38,216

   

Martin Marietta Materials, Inc.

   

169

     

22,316

   
     

87,671

   

Telecommunication Services: 0.1%

 

Vodafone Group PLC, ADR

   

459

     

15,326

   

Utilities: 0.2%

 

Sempra Energy

   

352

     

36,858

   

TOTAL COMMON STOCKS

 

(Cost $1,489,293)

       

2,145,275

   

AFFILIATED INVESTMENT COMPANIES: 17.2%

 
Pax MSCI International
ESG Index Fund (b)
   

154,397

     

1,381,851

   
Pax World Global Environmental
Markets Fund (b)
   

12,551

     

164,548

   

Pax World High Yield Bond Fund (b)

   

56,993

     

437,133

   

Pax World Small Cap Fund (b)

   

42,314

     

604,666

   

TOTAL AFFILIATED INVESTMENT COMPANIES

 

(Cost $2,316,030)

       

2,588,198

   

SEE NOTES TO FINANCIAL STATEMENTS
26



June 30, 2014

Schedule of Investments (Unaudited), continued

Growth and Income Portfolio, continued

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

NON-AFFILIATED INVESTMENT COMPANIES: 68.7%

 
Access Capital Community
Investment Fund (b)
   

3,144

   

$

29,299

   

Ariel Fund (b)

   

6,690

     

520,012

   

CRA Qualified Investment Fund (b)

   

1,165

     

12,463

   
Neuberger Berman Socially
Responsive Fund (b)
   

60,311

     

2,209,205

   

Parnassus Core Equity Fund (b)

   

71,282

     

2,821,341

   

PIMCO Income Fund (b)

   

81,432

     

1,035,000

   
Praxis Intermediate
Income Fund (b)
   

28,913

     

302,723

   

Portfolio 21 Global Equity Fund (b)

   

4,243

     

177,224

   
Schroder Emerging Market
Equity Fund (c)
   

50,434

     

696,996

   
TIAA-CREF Social Choice
Bond Fund (b)
   

64,310

     

656,601

   
Touchstone Premium Yield
Equity Fund (d)
   

182,519

     

1,852,566

   

TOTAL NON-AFFILIATED INVESTMENT COMPANIES

 

(Cost $9,578,267)

       

10,313,430

   

TOTAL INVESTMENTS: 100.2%

 

(Cost $13,383,590)

       

15,046,903

   

OTHER ASSETS AND LIABILITIES—

 

(Net): -0.2%

       

(29,109

)

 

Net Assets: 100.0%

     

$

15,017,794

   

(a)  Non income producing security.

(b)  Institutional Class shares

(c)  Investor Class shares

(d)  Class Y shares

ADR  American Depository Receipt

REIT  Real Estate Investment Trust

SEE NOTES TO FINANCIAL STATEMENTS
27



June 30, 2014

Schedule of Investments (Unaudited)

Balanced Portfolio

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS: 12.4%

 

Consumer Discretionary: 1.9%

 

DISH Network Corp., Class A (a)

   

1,183

   

$

76,990

   

Home Depot, Inc., The

   

429

     

34,732

   

SES SA

   

668

     

25,337

   

Target Corp.

   

655

     

37,957

   

Time Warner Cable, Inc.

   

346

     

50,966

   

Time Warner, Inc.

   

753

     

52,898

   

Time, Inc. (a)

   

94

     

2,277

   
Twenty-First Century Fox, Inc.,
Class B
   

1,503

     

51,448

   
     

332,605

   

Consumer Staples: 1.3%

 

CVS Caremark Corp.

   

884

     

66,627

   

Coca-Cola Co., The

   

687

     

29,101

   

Kellogg Co.

   

482

     

31,667

   

Kimberly-Clark Corp.

   

295

     

32,810

   

PepsiCo, Inc.

   

491

     

43,866

   

Sysco Corp.

   

493

     

18,463

   
     

222,534

   

Energy: 1.5%

 

Cameron International Corp. (a)

   

348

     

23,563

   

ConocoPhillips

   

620

     

53,153

   

National Oilwell Varco, Inc.

   

510

     

41,999

   

Noble Corp PLC

   

664

     

22,284

   

Royal Dutch Shell PLC, ADR

   

606

     

49,916

   

Schlumberger, Ltd.

   

356

     

41,990

   

Suncor Energy, Inc.

   

576

     

24,555

   
     

257,460

   

Financials: 3.1%

 

American Express Co.

   

516

     

48,954

   

American Tower Corp., REIT

   

335

     

30,143

   

Bank of New York Mellon Corp., The

   

621

     

23,275

   

Capital One Financial Corp.

   

328

     

27,093

   

Citigroup, Inc.

   

500

     

23,550

   

JPMorgan Chase & Co.

   

1,298

     

74,791

   

Loews Corp.

   

460

     

20,245

   

Marsh & McLennan Cos., Inc.

   

588

     

30,470

   

MetLife, Inc.

   

470

     

26,113

   

Progressive Corp., The

   

451

     

11,437

   

State Street Corp.

   

536

     

36,051

   

Travelers Cos., Inc., The

   

380

     

35,747

   

US Bancorp

   

1,381

     

59,825

   

Wells Fargo & Co.

   

1,549

     

81,415

   
     

529,109

   

Health Care: 1.3%

 

Amgen, Inc.

   

272

     

32,197

   

Johnson & Johnson

   

351

     

36,722

   

Merck & Co., Inc.

   

712

     

41,189

   
Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS, continued

 

Health Care, continued

 

Novartis AG, ADR

   

236

   

$

21,365

   

Pfizer, Inc.

   

706

     

20,954

   
Teva Pharmaceutical
Industries, Ltd., ADR
   

460

     

24,113

   

WellPoint, Inc.

   

337

     

36,265

   
     

212,805

   

Industrials: 1.4%

 

Danaher Corp.

   

591

     

46,530

   

Emerson Electric Co.

   

543

     

36,033

   

General Electric Co.

   

2,108

     

55,398

   

Honeywell International, Inc.

   

555

     

51,587

   

Illinois Tool Works, Inc.

   

471

     

41,241

   

NOW, Inc. (a)

   

79

     

2,861

   
     

233,650

   

Information Technology: 1.1%

 

EMC Corp.

   

980

     

25,813

   

IBM

   

133

     

24,109

   

Microsoft Corp.

   

664

     

27,689

   

Motorola Solutions, Inc.

   

376

     

25,030

   

Nuance Communications, Inc. (a)

   

1,356

     

25,452

   

TE Connectivity, Ltd.

   

606

     

37,475

   

Xerox Corp

   

2,172

     

27,020

   
     

192,588

   

Materials: 0.5%

 

Air Products & Chemicals, Inc.

   

209

     

26,882

   

Crown Holdings, Inc. (a)

   

774

     

38,514

   

Martin Marietta Materials, Inc.

   

171

     

22,581

   
     

87,977

   

Telecommunication Services: 0.1%

 

Vodafone Group PLC, ADR

   

485

     

16,194

   

Utilities: 0.2%

 

Sempra Energy

   

359

     

37,591

   

TOTAL COMMON STOCKS

 

(Cost $1,445,403)

       

2,122,513

   

AFFILIATED INVESTMENT COMPANIES: 15.8%

 
Pax MSCI International
ESG Index Fund (b)
   

135,100

     

1,209,146

   
Pax World Global Environmental
Markets Fund (b)
   

24,659

     

323,283

   

Pax World High Yield Bond Fund (b)

   

66,642

     

511,142

   

Pax World Small Cap Fund (b)

   

45,921

     

656,210

   

TOTAL AFFILIATED INVESTMENT COMPANIES

 

(Cost $2,356,734)

       

2,699,781

   

SEE NOTES TO FINANCIAL STATEMENTS
28



June 30, 2014

Schedule of Investments (Unaudited), continued

Balanced Portfolio, continued

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

NON-AFFILIATED INVESTMENT COMPANIES: 72.0%

 
Access Capital Community
Investment Fund (b)
   

91,607

   

$

853,781

   

Ariel Fund (b)

   

8,059

     

626,418

   

CRA Qualified Investment Fund (b)

   

76,702

     

820,709

   
Neuberger Berman Socially
Responsive Fund (b)
   

64,469

     

2,361,511

   

Parnassus Core Equity Fund (b)

   

67,134

     

2,657,177

   

PIMCO Income Fund (b)

   

81,502

     

1,035,889

   
Praxis Intermediate
Income Fund (b)
   

111,608

     

1,168,535

   

Portfolio 21 Global Equity Fund (b)

   

4,813

     

201,029

   
Schroder Emerging Market
Equity Fund (c)
   

44,240

     

611,397

   
TIAA-CREF Social Choice
Bond Fund (b)
   

142,291

     

1,452,794

   
Touchstone Premium Yield
Equity Fund (d)
   

53,600

     

544,044

   

TOTAL NON-AFFILIATED INVESTMENT COMPANIES

 

(Cost $11,712,694)

       

12,333,284

   

TOTAL INVESTMENTS: 100.2%

 

(Cost $15,514,831)

       

17,155,578

   

OTHER ASSETS AND LIABILITIES—

 

(Net): -0.2%

       

(28,292

)

 

Net Assets: 100.0%

     

$

17,127,286

   

(a)  Non income producing security.

(b)  Institutional Class share

(c)  Investor Class shares

(d)  Class Y shares

ADR  American Depository Receipt

REIT  Real Estate Investment Trust

SEE NOTES TO FINANCIAL STATEMENTS
29



June 30, 2014

Schedule of Investments (Unaudited)

Income Portfolio

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS: 6.5%

 

Consumer Discretionary: 1.0%

 

DISH Network Corp., Class A (a)

   

287

   

$

18,678

   

Home Depot, Inc., The

   

108

     

8,744

   

SES SA

   

161

     

6,107

   

Target Corp.

   

161

     

9,330

   

Time Warner Cable, Inc.

   

83

     

12,226

   

Time Warner, Inc.

   

184

     

12,926

   

Time, Inc. (a)

   

23

     

557

   
Twenty-First Century Fox, Inc.,
Class B
   

365

     

12,494

   
     

81,062

   

Consumer Staples: 0.7%

 

CVS Caremark Corp.

   

216

     

16,280

   

Coca-Cola Co., The

   

169

     

7,159

   

Kellogg Co.

   

117

     

7,687

   

Kimberly-Clark Corp.

   

72

     

8,008

   

PepsiCo, Inc.

   

119

     

10,631

   

Sysco Corp.

   

121

     

4,531

   
     

54,296

   

Energy: 0.8%

 

Cameron International Corp. (a)

   

85

     

5,755

   

ConocoPhillips

   

152

     

13,032

   

National Oilwell Varco, Inc.

   

121

     

9,964

   

Noble Corp PLC

   

164

     

5,504

   

Royal Dutch Shell PLC, ADR

   

149

     

12,273

   

Schlumberger, Ltd.

   

89

     

10,498

   

Suncor Energy, Inc.

   

140

     

5,968

   
     

62,994

   

Financials: 1.6%

 

American Express Co.

   

129

     

12,238

   

American Tower Corp., REIT

   

86

     

7,738

   

Bank of New York Mellon Corp., The

   

154

     

5,772

   

Capital One Financial Corp.

   

78

     

6,443

   

Citigroup, Inc.

   

121

     

5,699

   

JPMorgan Chase & Co.

   

314

     

18,094

   

Loews Corp.

   

113

     

4,973

   

Marsh & McLennan Cos., Inc.

   

153

     

7,928

   

MetLife, Inc.

   

114

     

6,334

   

Progressive Corp., The

   

116

     

2,942

   

State Street Corp.

   

135

     

9,080

   

Travelers Cos., Inc., The

   

93

     

8,749

   

US Bancorp

   

340

     

14,729

   

Wells Fargo & Co.

   

374

     

19,657

   
     

130,376

   

Health Care: 0.6%

 

Amgen, Inc.

   

67

     

7,931

   

Johnson & Johnson

   

88

     

9,207

   

Merck & Co., Inc.

   

174

     

10,066

   
Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

COMMON STOCKS, continued

 

Health Care, continued

 

Novartis AG, ADR

   

63

   

$

5,703

   

Pfizer, Inc.

   

174

     

5,164

   
Teva Pharmaceutical
Industries, Ltd., ADR
   

113

     

5,923

   

WellPoint, Inc.

   

82

     

8,824

   
     

52,818

   

Industrials: 0.7%

 

Danaher Corp.

   

142

     

11,180

   

Emerson Electric Co.

   

131

     

8,693

   

General Electric Co.

   

516

     

13,561

   

Honeywell International, Inc.

   

134

     

12,455

   

Illinois Tool Works, Inc.

   

113

     

9,894

   

NOW, Inc. (a)

   

19

     

688

   
     

56,471

   

Information Technology: 0.6%

 

EMC Corp.

   

247

     

6,506

   

IBM

   

33

     

5,982

   

Microsoft Corp.

   

164

     

6,839

   

Motorola Solutions, Inc.

   

93

     

6,191

   

Nuance Communications, Inc. (a)

   

333

     

6,250

   

TE Connectivity, Ltd.

   

149

     

9,214

   

Xerox Corp

   

525

     

6,531

   
     

47,513

   

Materials: 0.3%

 

Air Products & Chemicals, Inc.

   

51

     

6,560

   

Crown Holdings, Inc. (a)

   

188

     

9,355

   

Martin Marietta Materials, Inc.

   

43

     

5,678

   
     

21,593

   

Telecommunication Services: 0.1%

 

Vodafone Group PLC, ADR

   

124

     

4,140

   

Utilities: 0.1%

 

Sempra Energy

   

88

     

9,214

   

TOTAL COMMON STOCKS

 

(Cost $364,013)

       

520,477

   

AFFILIATED INVESTMENT COMPANIES: 8.6%

 
Pax MSCI International
ESG Index Fund (b)
   

30,867

     

276,263

   
Pax World Global Environmental
Markets Fund (b)
   

8,877

     

116,384

   

Pax World High Yield Bond Fund (b)

   

18,273

     

140,156

   

Pax World Small Cap Fund (b)

   

11,794

     

168,533

   

TOTAL AFFILIATED INVESTMENT COMPANIES

 

(Cost $608,472)

       

701,336

   

SEE NOTES TO FINANCIAL STATEMENTS
30



June 30, 2014

Schedule of Investments (Unaudited), continued

Income Portfolio, continued

Percent of Net Assets
Name of Issuer and
Title of Issue
  Shares/
Principal/
Contracts
 

Value

 

NON-AFFILIATED INVESTMENT COMPANIES: 85.5%

 
Access Capital Community
Investment Fund (b)
   

77,642

   

$

723,625

   

Ariel Fund (b)

   

1,288

     

100,139

   

CRA Qualified Investment Fund (b)

   

22,189

     

237,417

   
Neuberger Berman Socially
Responsive Fund (b)
   

14,194

     

519,929

   

Parnassus Core Equity Fund (b)

   

19,833

     

784,974

   

PIMCO Income Fund (b)

   

102,266

     

1,299,801

   
Praxis Intermediate
Income Fund (b)
   

112,012

     

1,172,768

   

Portfolio 21 Global Equity Fund (b)

   

1,300

     

54,318

   
Schroder Emerging Market
Equity Fund (c)
   

11,752

     

162,418

   
TIAA-CREF Social Choice
Bond Fund (b)
   

126,387

     

1,290,413

   
Touchstone Premium Yield
Equity Fund (d)
   

55,324

     

561,539

   

TOTAL NON-AFFILIATED INVESTMENT COMPANIES

 

(Cost $6,650,171)

       

6,907,341

   

TOTAL INVESTMENTS: 100.6%

 

(Cost $7,622,656)

       

8,129,154

   

OTHER ASSETS AND LIABILITIES—

 

(Net): -0.6%

       

(50,517

)

 

Net Assets: 100.0%

     

$

8,078,637

   

(a)  Non income producing security.

(b)  Institutional Class shares

(c)  Investor Class shares

(d)  Class Y shares

ADR  American Depository Receipt

REIT  Real Estate Investment Trust

SEE NOTES TO FINANCIAL STATEMENTS
31




June 30, 2014

Statements of Assets and Liabilities (Unaudited)

ASSETS

 

Growth

 

Growth and Income

 

Investments, at cost—Note A

 

$

13,990,597

   

$

13,383,590

   

Investments in unaffiliated issuers, at value—Note A

 

$

12,885,620

   

$

12,458,705

   

Investments in affiliated issuers, at value

   

3,342,549

     

2,588,198

   

Total Investments

   

16,228,169

     

15,046,903

   

Cash

   

29,485

     

52,029

   

Prepaid Expenses

   

1,644

     

1,593

   

Receivables:

 

Capital stock sold

   

     

25,996

   

Dividends and interest—Note A

   

5,180

     

3,605

   

Investment securities sold

   

23,920

     

   

Other

   

273

     

232

   

Total Assets

   

16,288,671

     

15,130,358

   

LIABILITIES

 

Payables:

 

Capital stock reacquired

   

18,773

     

   

Investment securities purchased

   

12,289

     

28,438

   

Accrued expenses:

 

Investment advisory fees—Note B

   

8,976

     

7,526

   

Distribution expense

   

3,885

     

5,200

   

Trustees' fees

   

3,372

     

3,390

   

Compliance expense

   

11,907

     

11,906

   

Transfer agent fees

   

8,289

     

7,346

   

Custodian fees

   

18,098

     

19,191

   

Legal and audit fees

   

13,689

     

16,238

   

Other accrued expenses

   

13,165

     

13,329

   

Total Liabilities

   

112,443

     

112,564

   

NET ASSETS

 

$

16,176,228

   

$

15,017,794

   

SEE NOTES TO FINANCIAL STATEMENTS
32



June 30, 2014

ASSETS

 

Balanced

 

Income

 

Investments, at cost—Note A

 

$

15,514,831

   

$

7,622,656

   

Investments in unaffiliated issuers, at value—Note A

 

$

14,455,797

   

$

7,427,818

   

Investments in affiliated issuers, at value

   

2,699,781

     

701,336

   

Total Investments

   

17,155,578

     

8,129,154

   

Cash

   

42,184

     

26,055

   

Prepaid Expenses

   

1,550

     

221

   

Receivables:

 

Capital stock sold

   

16,540

     

   

Dividends and interest—Note A

   

3,634

     

900

   

Investment securities sold

   

221

     

37

   

Other

   

219

     

53

   

Total Assets

   

17,219,926

     

8,156,420

   

LIABILITIES

 

Payables:

 

Capital stock reacquired

   

500

     

   

Investment securities purchased

   

8,754

     

2,102

   

Accrued expenses:

 

Investment advisory fees—Note B

   

8,108

     

3,376

   

Distribution expense

   

4,737

     

2,191

   

Trustees' fees

   

3,012

     

3,316

   

Compliance expense

   

11,907

     

11,907

   

Transfer agent fees

   

7,516

     

3,720

   

Custodian fees

   

18,985

     

21,731

   

Legal and audit fees

   

16,266

     

16,171

   

Other accrued expenses

   

12,855

     

13,269

   

Total Liabilities

   

92,640

     

77,783

   

NET ASSETS

 

$

17,127,286

   

$

8,078,637

   

SEE NOTES TO FINANCIAL STATEMENTS
33



June 30, 2014

Statements of Assets and Liabilities (Unaudited), continued

   

Growth

 

Growth and Income

 

NET ASSETS REPRESENTED BY

 

Paid in Capital

 

$

13,833,248

   

$

13,321,581

   

Undistributed (distributions in excess of) net investment income

   

68,612

     

56,248

   

Accumulated net realized gain (loss)

   

36,779

     

(23,367

)

 

Net unrealized appreciation (depreciation) of:

 

Investments

   

2,237,572

     

1,663,313

   

Foreign currency translations

   

17

     

19

   

NET ASSETS

 

$

16,176,228

   

$

15,017,794

   

Class A

 

Net assets

 

$

10,323,368

   

$

8,479,090

   

Capital Shares Outstanding

   

798,771

     

677,781

   

Net asset value per share

 

$

12.92

   

$

12.51

   

Institutional Class

 

Net assets

 

$

3,733,666

   

$

2,162,987

   

Capital Shares Outstanding

   

288,230

     

172,507

   

Net asset value per share

 

$

12.95

   

$

12.54

   

Class C

 

Net assets

 

$

2,119,194

   

$

4,375,717

   

Capital Shares Outstanding

   

165,250

     

351,394

   

Net asset value per share

 

$

12.82

   

$

12.45

   

SEE NOTES TO FINANCIAL STATEMENTS
34



June 30, 2014

   

Balanced

 

Income

 

NET ASSETS REPRESENTED BY

 

Paid in Capital

 

$

15,472,979

   

$

7,562,795

   

Undistributed (distributions in excess of) net investment income

   

54,022

     

18,230

   

Accumulated net realized gain (loss)

   

(40,480

)

   

(8,895

)

 

Net unrealized appreciation (depreciation) of:

 

Investments

   

1,640,747

     

506,497

   

Foreign currency translations

   

18

     

10

   

NET ASSETS

 

$

17,127,286

   

$

8,078,637

   

Class A

 

Net assets

 

$

9,373,716

   

$

4,097,659

   

Capital Shares Outstanding

   

788,715

     

371,303

   

Net asset value per share

 

$

11.88

   

$

11.04

   

Institutional Class

 

Net assets

 

$

4,262,960

   

$

2,303,340

   

Capital Shares Outstanding

   

357,986

     

208,414

   

Net asset value per share

 

$

11.91

   

$

11.05

   

Class C

 

Net assets

 

$

3,490,610

   

$

1,677,638

   

Capital Shares Outstanding

   

296,303

     

153,916

   

Net asset value per share

 

$

11.78

   

$

10.90

   

SEE NOTES TO FINANCIAL STATEMENTS
35



Period Ended June 30, 2014

Statements of Operations (Unaudited)

   

Growth

 

Growth and Income

 

INVESTMENT INCOME

 

Income

 
Dividends (net of foreign withholding tax of $336; $214; $207;
and $48; respectively)
 

$

94,283

   

$

131,030

   

Dividends from affiliate—Note C

   

81,279

     

68,452

   

Total Income

   

175,562

     

199,482

   

Expenses

 

Investment advisory fees—Note B

   

40,843

     

32,338

   

Distribution expenses—Class A (Note B)

   

12,174

     

8,549

   

Distribution expenses—Class C (Note B)

   

2,590

     

5,100

   

Service plan expenses—Class C (Note B)

   

7,770

     

15,299

   

Transfer agent fees

   

14,821

     

19,644

   

Printing and other shareholder communication fees

   

5,152

     

6,155

   

Custodian fees

   

49,743

     

52,517

   

Legal fees and related expenses

   

9,870

     

9,716

   

Trustees' fees and expenses

   

9,039

     

9,241

   

Compliance expense

   

6,221

     

6,220

   

Audit fees

   

12,003

     

14,462

   

Registration fees

   

23,990

     

25,165

   

Other expenses

   

1,681

     

1,558

   

Total Expenses

   

195,897

     

205,964

   

Less:

 

Advisory fee waiver—Note B

   

(4,487

)

   

(3,163

)

 

Expenses assumed by Adviser—Note B

   

(102,610

)

   

(123,110

)

 

Net expenses

   

88,800

     

79,691

   

Net investment income (loss)

   

86,762

     

119,791

   

REALIZED AND UNREALIZED GAIN (LOSS)—Notes A and C

 

Net realized gain (loss) on:

 

Investments in unaffiliated issuers

   

64,446

     

13,932

   

Investments in affiliated issuers

   

11,081

     

6,506

   

Foreign currency transactions

   

(11

)

   

(6

)

 

Change in unrealized appreciation (depreciation) on:

 

Investments in unaffiliated issuers

   

660,224

     

639,771

   

Investments in affiliated issuers

   

27,428

     

17,051

   

Foreign currency translation

   

(1

)

   

   
Net realized and unrealized gain (loss) on investments and
foreign currency
   

763,167

     

677,254

   

Net increase (decrease) in net assets resulting from operations

 

$

849,929

   

$

797,045

   

SEE NOTES TO FINANCIAL STATEMENTS
36



Period Ended June 30, 2014

   

Balanced

 

Income

 

INVESTMENT INCOME

 

Income

 
Dividends (net of foreign withholding tax of $336; $214; $207;
and $48; respectively)
 

$

147,786

   

$

102,708

   

Dividends from affiliate—Note C

   

59,581

     

14,495

   

Total Income

   

207,367

     

117,203

   

Expenses

 

Investment advisory fees—Note B

   

38,034

     

17,116

   

Distribution expenses—Class A (Note B)

   

10,256

     

4,566

   

Distribution expenses—Class C (Note B)

   

4,005

     

1,851

   

Service plan expenses—Class C (Note B)

   

12,015

     

5,554

   

Transfer agent fees

   

20,162

     

16,268

   

Printing and other shareholder communication fees

   

5,924

     

3,197

   

Custodian fees

   

52,645

     

53,760

   

Legal fees and related expenses

   

9,846

     

9,549

   

Trustees' fees and expenses

   

8,935

     

9,064

   

Compliance expense

   

6,221

     

6,221

   

Audit fees

   

14,462

     

14,462

   

Registration fees

   

24,288

     

24,206

   

Other expenses

   

1,473

     

1,389

   

Total Expenses

   

208,266

     

167,203

   

Less:

 

Advisory fee waiver—Note B

   

(3,470

)

   

(907

)

 

Expenses assumed by Adviser—Note B

   

(121,614

)

   

(129,345

)

 

Net expenses

   

83,182

     

36,951

   

Net investment income (loss)

   

124,185

     

80,252

   

REALIZED AND UNREALIZED GAIN (LOSS)—Notes A and C

 

Net realized gain (loss) on:

 

Investments in unaffiliated issuers

   

17,167

     

4,520

   

Investments in affiliated issuers

   

3,758

     

2,308

   

Foreign currency transactions

   

(11

)

   

(1

)

 

Change in unrealized appreciation (depreciation) on:

 

Investments in unaffiliated issuers

   

405,189

     

283,963

   

Investments in affiliated issuers

   

258,782

     

8,599

   

Foreign currency translation

   

3

     

   
Net realized and unrealized gain (loss) on investments a