PORTSMOUTH, N.H. January 14, 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 calendar year 2018. The Fund’s institutional class shares returned -7.51% and its individual class shares returned -7.74%, outpacing the MSCI World Index return of -8.71%.1
The Fund’s relative outperformance in 2018 was primarily driven by the highest-rated companies for advancing women’s leadership, those with more women on their boards and in senior management, according to Impax Gender Analytics.2
“The companies in this Fund understand that gender diversity helps them solve critical business challenges,” says Joe Keefe, CEO of Pax Ellevate. “Since the status of women in an organization tends to have a positive correlation to its performance in the marketplace, it’s no surprise to see this Fund again outperformed global developed markets.”
In 2018, Pax also filed six shareholder resolutions with companies on pay equity and board gender diversity. This effort has opened dialogues at several companies, four of which have enhanced their pay equity disclosures. In November 2018, a pay equity reporting resolution at Oracle went to shareholder vote and a majority of Oracle’s independent shareholders supported the proposal. A 2018 board diversity dialogue with Beacon Roofing Supply resulted in that company revising its corporate governance guidelines to commit to actively seek more diverse board candidates.
This engagement work is key, says Pax Ellevate Chair Sallie Krawcheck. “Having dialogues with companies is such a powerful way for businesses and their investors to collaborate on meaningful change,” Krawcheck says. “And the Fund’s financial performance proves to investors that gender should be part of portfolio diversification. If your holdings aren’t gender diverse, you aren’t truly diversified.”
The Fund invests in the Pax Global Women’s Leadership Index (the Index), the first index of the top-rated companies in the world for advancing women onto their boards and into executive management, as rated by the Impax Gender Analytics team.3 For calendar year 2018, the Index return of -6.20% outperformed its comparable broad market benchmark, the MSCI World Index, return of -8.71%.1
Pax Ellevate Management LLC, investment adviser to the Pax Ellevate Global Women’s Leadership Fund, is the result of a partnership between Impax Asset Management LLC, formerly Pax World Management LLC (“Pax”), and Ellevate Asset Management LLC, whose principal is Sallie Krawcheck. Pax Ellevate 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 has long been a recognized leader in investing in women and advocating for greater representation of women in business leadership. Ms. Krawcheck, who serves as Chair of Pax Ellevate and a trustee of the Fund, is one of the most powerful advocates for women in the financial services industry.
1The annualized returns for the Pax Ellevate Global Women’s Leadership Fund – Investor class as of 12/31/2018 were, 1 year: -7.74%, 3 year: 6.88%, 5 year: 5.06%, 10 year: 8.60%. The annualized returns for the Pax Ellevate Global Women’s Leadership Fund – Institutional class as of 12/31/2018 were, 1 year: -7.51%, 3 year: 7.15%, 5: year 5.31%, 10 year: 8.86%. The returns for the MSCI World Index as of 12/31/2018 were, 1 year: -8.71%, 3 year: 6.30%, 5 year: 4.56%, 10 year: 9.67%. The returns for the Pax Global Women’s Leadership Index as of 12/31/2018 were, 1 year: -6.20% and 3 year: 6.99%.
As of 12/31/18, Beacon Roofing Supply was 0.0% of holdings of the Pax Ellevate Global Women’s Leadership Fund, while Oracle Corporation was 0.8% of the Fund’s holdings.
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.wpengine.com. Total annual Pax Ellevate Global Women’s Leadership Fund operating expenses, gross of any fee waivers or reimbursements, for Institutional Class and Individual Investor Class shares are 0.55% and 0.80%, respectively, as of 5/1/2018 prospectus.
2To measure and analyze the Gender Leadership contribution to relative performance, Pax groups stocks into four quartiles based on their Gender Leadership rank calculated by the Impax Gender Analytics team. For the 2018 period, companies ranked in the top quartile, or the highest-rated gender leadership group, added the most to relative performance.
3The Pax Global Women’s Leadership Index is 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 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.