PORTSMOUTH, N.H. January 30, 2017 – Pax World Management LLC, investment adviser to Pax World Funds and a pioneer in the field of sustainable investing, recently launched the Pax ESG Beta® Dividend Fund (PAXDX), subadvised by Aperio Group, LLC (Aperio), a leading provider of customized factor investing strategies. The Fund follows a factor investing strategy, also known as smart beta, and is designed to consistently overweight a U.S. large cap portfolio toward stocks with stronger ESG profiles, higher dividend yield, and higher quality investment fundamentals that may support future dividend payments.
This is Pax World’s second smart beta strategy alongside the Pax ESG Beta® Quality Fund, which was launched in June 2016.
“ESG integration is now firmly recognized as a strategy for mitigating risk and adding value that can be systematically captured and emphasized in portfolio construction,” said Pax World CIO Steve Falci. “With Aperio’s factor investing expertise, we are pleased to offer investors two ways to capture ESG factors alongside financial factors that have demonstrated the potential to add value over the long-term.”
The Pax Sustainability Score, a proprietary ranking of companies’ ESG performance, including carbon intensity and gender diversity ratings, is a key component of the portfolio construction process.
Learn more about the Pax ESG Beta Dividend Fund at www.paxworld.com/dividend.
Pax World Management LLC, investment adviser to Pax World Funds, is a pioneer in the field of sustainable investing. Pax World integrates environmental, social and governance (ESG) research into its investment process to better manage risk and deliver competitive long-term investment performance. For over 45 years, Pax World has made it possible for investors to align their investments with their values and have a positive social and environmental impact. Today, its platform of sustainable investing solutions includes a family of mutual funds, as well as separately managed accounts.
Aperio Group LLC, subadviser to the Pax ESG Beta Quality Fund and the Pax ESG Beta Dividend Fund, design and manage customized portfolios that deliver pre-tax performance of indexing with client-specific customizations including active tax management and active risk reduction. Their three primary strategies for domestic, foreign and/or global equity portfolios are Active Tax Indexing, Socially Responsive Indexing and Factor Tilts. Aperio, located in Sausalito, CA, was founded in 1999 and manages separately managed accounts primarily for ultra-High Net Worth and institutional investors.
The Pax ESG Beta Dividend Fund’s investment objective is to seek income and capital appreciation, and secondarily, capital preservation.
The Pax ESG Beta Dividend Fund and the Pax ESG Beta Quality Fund are new and have a limited operating history.
Factor investing, also known as smart beta, is strategy wherein a portfolio of securities is over weighted, or tilted, toward certain factors – rather than market capitalization – in an effort to mitigate risk and/or deliver above market returns.
ALPS Distributors is not affiliated with Aperio Group, LLC.