PORTSMOUTH, N.H. November 10, 2015 – Pax Ellevate Management LLC, investment adviser to the Pax Ellevate Global Women’s Index Fund (PXWEX) (“the Fund”), announced today that the Fund outperformed its benchmark index, the MSCI World (Net) Index, for the one-year period ended September 30, 20151. Although global markets were down over the one-year time period, the Fund’s institutional class shares returned -3.77% and its individual class shares returned -4.01% while the MSCI World Index returned -5.09%.2 The Fund has also outperformed the MSCI World Index since it was reorganized as an index fund on June 4, 2014.3
“The Fund’s performance is consistent with research suggesting that companies with diverse leadership teams perform better than those with non-diverse leadership teams,” said Sallie Krawcheck, who serves as Chair of Pax Ellevate Management and on the board of trustees of the Fund. “We believe that it is simply smart business to invest in women and that this investment case will continue to be borne out over time by the performance of this Fund.”
Pax Ellevate Management was recently honored with Wealth Management’s 2015 Industry Award in the category of Asset Managers-Equities for its efforts to improve advisors’ understanding of the business case for gender diversity.
“Investors and advisors are hungry for innovative strategies that will drive durable, long-term value,” said Pax Ellevate CEO Joe Keefe. “We believe companies that empower and advance women are likely to perform better, and this Fund is therefore just such a strategy.”
The 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 (“the Global Women’s Leadership Index”).* The Global Women’s Leadership Index, the first index of its kind, consists of equity securities of companies around the world that demonstrate a commitment to advancing women through gender diversity on their board, in executive management and through other policies and programs, as rated by Pax World Gender Analytics.
Significantly, the Fund’s outperformance was accompanied by a lower risk profile than its benchmark index. As of September 30, 2015, the Fund (PXWEX) has 10% less beta4, 9% less standard deviation5 and 11% less downside capture6 than the MSCI World Index, since the Fund’s reorganization.†
The Pax Ellevate Global Women’s Index Fund, managed by Pax Ellevate Management LLC, is the result of a partnership between Pax World Management LLC and Ellevate Asset Management LLC, whose principal is Sallie Krawcheck. Pax and Ellevate came together because they share the same vision about the critical role that gender diversity plays in business success over time, as well as the investment opportunity associated with investing in women. Pax has long been a recognized leader in investing in women and advocating for greater representation of women on boards. Ms. Krawcheck, one of the most powerful advocates for women in the
financial services industry, is Chair of Pax Ellevate Management LLC and a trustee of the Fund.
Pax World Management LLC, investment adviser to Pax World Funds, is a recognized leader in sustainable investing, the full integration of environmental, social and governance (ESG) factors into investment analysis and decision making. In addition to the Pax Ellevate Global Women’s Index Fund, the first mutual fund in the U.S. focused on investing in companies that invest in women, Pax offers a family of six mutual funds, ESG Managers® Portfolios, multi-manager asset allocation portfolios powered by Morningstar Associates, LLC, and separately managed accounts. Across all of its funds, Pax World withholds support from all-male corporate board slates, and working with other institutional investors, actively engages with companies to embrace gender diversity on their boards and advance women in the workplace.
Ellevate Asset Management LLC was formed by Sallie Krawcheck to provide investors with a means of directing capital to companies that actively embrace gender diversity and female leadership as a lever for business success. Krawcheck also owns Ellevate Network (formerly 85 Broads), the global professional women’s network. Both of these organizations are dedicated to the economic engagement of women worldwide.
The Pax Global Women’s Leadership Index is a customized market-weighted index consisting of equity securities of issuers organized or operating in countries around the world that demonstrate a commitment to advancing and empowering women through gender diversity on their boards, in management and through other policies and programs, and an understanding of the potential business advantages associated with greater gender diversity, as rated by Pax World Gender Analytics. In addition, the companies comprising the Index meet certain environmental, social and governance (ESG) or sustainability thresholds, as rated by MSCI ESG Research.
The MSCI World (Net) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The MSCI World Index consists of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown “net,” which includes dividend reinvestments after deduction of foreign withholding taxes. One cannot invest directly in any index.
*A custom index calculated by MSCI. One cannot invest directly in an index.
†On 6/4/2014, the Pax World Global Women’s Equality Fund merged into the Pax Ellevate Global Women’s Index Fund (the Fund), pursuant to an Agreement and Plan of Reorganization dated March 4, 2014 (the “Reorganization”). Because the Fund had no investment operations prior to the closing of the Reorganization, Pax World Global Women’s Equality Fund (the “Predecessor Fund”) is treated as the survivor of the Reorganization for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to 6/4/2014 is that of the Predecessor Fund. Risk statistics are calculated using closest month-end.
1Past performance does not guarantee future results. Performance data quoted represents past performance. Past performance is no guarantee of future results and investment returns and principal value of the Fund will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted. For the most current month end performance please visit here or call 1-800-767-1729.
2The returns for the Pax Ellevate Global Women’s Index Fund (PXWIX) – Institutional Class as of 9/30/15 were: 1 year: -3.77%, 5 year: 7.29% and 10 year: 3.18%, and for the Pax Ellevate Global Women’s Index Fund (PXWEX) – Individual Investor Class as of 9/30/15 were: 1 year: -4.01%, 5 year: 7.02% and 10 year: 2.93%.
3As of 9/30/15, the since reorganization 6/4/14 returns for the Pax Ellevate Global Women’s Index Fund (PXWIX) – Institutional Class and Pax Ellevate Global Women’s Index Fund (PXWEX) – Individual Investor Class were: -4.21% and -4.51%, respectively, compared to -5.65% for the MSCI World Index. Total annual Pax Ellevate Global Women’s Index Fund operating expenses, gross of any fee waivers or reimbursements, for Individual Investor Class and Institutional Class shares are 0.99% and 0.74%, respectively, as of 5/1/2015 prospectus.
4Beta reflects the sensitivity of a Fund’s return to fluctuations in its benchmark: a beta for a benchmark is 1.00. A beta greater than 1.00 indicates above average volatility and risk. PXWEX’s beta since reorganization (6/4/14) is 0.90 compared to 1.00 for the MSCI World Index.
5Standard Deviation measures a Fund’s variation around its mean performance; a high standard deviation implies greater volatility. PXWEX’s standard deviation since reorganization (6/4/14) is 9.35 compared to 10.22 for the MSCI World Index.
6Downside capture – measures an investment manager’s overall performance in down-markets and is used to evaluate how well or poorly an investment manager performed relative to an index during periods when that index has dropped. A downside capture ratio less than 100 indicates that the investment manager has outperformed its index during down-markets, while downside capture ratio greater than 100 indicates that the investment manager has underperformed its index during down-markets. PXWEX’s downside capture since reorganization (6/4/14) is 89.21 compared to 100.00 for the MSCI World Index.
RISKS: Equity investments are subject to market fluctuations, the fund’s share price can fall because of weakness in the broad market, a particular industry, or specific holdings. The Fund does not take defensive positions in declining markets. The Fund’s performance would likely be adversely affected by a decline in the Index. Investments in emerging markets and non-U.S. securities are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation, intervention and political developments. There is no guarantee that the objective will be met and diversification does not eliminate risk.
Distributed by ALPS Distributors, Inc. ALPS is not affiliated with Wealth Management, Ellevate Asset Management, Ellevate Network, MSCI, or Morningstar Associates, LLC.
Separately managed accounts and related advisory services are provided by Pax World Management LLC, a registered investment adviser. ALPS Distributors, Inc. is not the distributor for Pax World’s separately managed accounts.