PORTSMOUTH, N.H. July 22, 2019 – Pax Ellevate Management LLC, a gender lens investing pioneer and investment adviser to the Pax Ellevate Global Women’s Leadership Fund (PXWEX) (the Fund), today announced that the Fund outperformed its benchmark, the MSCI World Index, for the one-year, three-year and five-year periods ending June 30, 2019. For the five-year period since June 30, 2014 (the Fund was reorganized to pursue a strategic beta strategy on June 4, 2014†), the Fund’s institutional class shares have returned 7.68% and its investor class shares have returned 7.41%, exceeding the MSCI World Index return of 6.60%.1
The Fund’s strong performance is consistent with research showing that companies perform better when they have more gender diversity in leadership positions.2
“These results are not surprising to us,” said Joseph Keefe, Pax Ellevate CEO. “We built this first-to-market gender Fund based on persuasive research showing that the status of women in an organization can play a critical role in business success and investment returns. This five-year track record of outperformance confirms this investment thesis. By putting the diversity in diversification, this Fund has delivered market-beating investment results.”
The Fund was the first broadly diversified global mutual fund to invest in the highest-rated companies in the world for advancing women’s leadership and is the largest, with more than $350 million in assets under management. Among the companies in the Fund, women hold 38% of board seats and 32% of senior management positions, as compared to 26% and 19%, respectively, for companies in the MSCI World Index.3
The Fund pursues a strategic beta strategy, investing in the companies that comprise the Impax Global Women’s Leadership Index (the Index), the first index of the highest-rated companies in the world for gender diverse leadership, as rated by Impax Gender Analytics.4 The Fund overweights its portfolio toward companies in the Index that have greater representation of women on boards and in senior management. Since the Fund’s reorganization on June 4, 2014, the Index has returned 8.06%, compared with the MSCI World Index return of 6.85% for the period ending June 30, 2019.1
The Fund’s outperformance was also achieved with lower risk, with a beta of .93 and standard deviation 6% below the MSCI World Index during the last 60 months. These superior risk attributes combined with solid returns yield a very strong risk-adjusted measure — a 0.54 information ratio — for the Fund.5
Learn more about the construction and evolution of the Pax Ellevate Global Women’s Leadership Fund in our latest whitepaper, “Gender Diversity Delivered: Results from Five Years of Investing in Women.”
Pax Ellevate Management LLC, investment adviser to the Pax Ellevate Global Women’s Leadership Fund, is a majority-owned subsidiary of Impax Asset Management, LLC, and was founded on the principle that gender diversity plays a critical role in business success over time and that investors can benefit from investing in companies that advance women. Pax Ellevate has long been a recognized leader in investing in women and advocating for greater representation of women in business leadership. In 2019, the Pax Ellevate Global Women’s Leadership Fund received the 2019 “Fund Innovation” award from Fund Intelligence.
1 The annualized returns for the Pax Ellevate Global Women’s Leadership Fund – Investor class as of 06/30/2019 were, 1 year: 8.59%, 3 year: 12.19%, 5 year: 7.41%, 10 year: 9.51%. The annualized returns for the Pax Ellevate Global Women’s Leadership Fund – Institutional class as of 06/30/2019 were, 1 year: 8.87%, 3 year: 12.49%, 5: year 7.68%, 10 year: 9.78%. The returns for the MSCI World Index as of 06/30/2019 were, 1 year: 6.33%, 3 year: 11.77%, 5 year: 6.60%, 10 year: 10.72%. The returns for the Impax Global Women’s Leadership Index as of 06/30/2019 were, 1 year: 9.28%, 3 year: 12.55% and 5 year: 7.96%.
3 MSCI World Index, Impax Gender Analytics, 2019
4 Impax Gender Analytics scores companies on gender diversity and leadership by examining the following factors: 1. Representation of women on boards of directors 2. Representation of women in executive management 3. Presence of women CEOs 4. Presence of women CFOs 5. Signatory to the Women’s Empowerment Principles, a joint initiative of the UN Global Compact and UN Women.
5 The MSCI World Index has a beta of 1.00 and standard deviation of 11.61 during the 60-month period beginning June 4, 2014.
Performance data quoted represent past performance, which does not guarantee 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 data quoted. For most recent month-end performance information, visit www.paxworld.com. Total annual Pax Ellevate Global Women’s Leadership Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Investor Class shares are 0.56% and 0.81%, respectively, as of 5/1/2019 prospectus.
On 6/4/2014, the Pax World Global Women’s Equality Fund merged into the Pax Ellevate Global Women’s Leadership 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.
The MSCI World 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 indexes: 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. One cannot invest directly in an index. Returns are shown net which includes dividend reinvestments after deduction of foreign withholding tax.
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 Ellevate Asset Management or MSCI.
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