PORTSMOUTH, N.H.///May 1, 2014///Pax World Management LLC, investment adviser to Pax World Funds, announced today that the Pax World Growth Fund (PXWGX) has divested its fossil fuel holdings and will henceforth pursue a fossil fuel‐free investment strategy. In lieu of fossil fuel companies, the Fund will substitute investments in companies that are proactively developing solutions to global sustainability challenges, including climate change, water, food and health care.
The Pax World Growth Fund seeks to avoid investing in companies engaged in the exploration, development and production of fossil fuels including oil, coal, and natural gas. In addition, while the Fund has always integrated environmental, social and governance (ESG) factors into stock selection and portfolio construction, it will now increasingly focus on investing in high‐impact companies whose products, services or business strategies offer positive solutions to global sustainability challenges.
“Over the past few years, we have increasingly tilted this Fund toward solutions‐oriented companies as opposed to simply investing in companies that meet our ESG criteria,” says Portfolio Manager Tony Trzcinka. “We did so for investment reasons, because we believe such investments are more likely to deliver stronger performance over time. Given this approach, the decision to divest fossil fuel companies and the risks associated with them, and further increase our allocation to high‐impact, solutions‐oriented companies instead was a relatively easy one, and an obvious next step.”
Some examples of companies the Fund is invested in as substitutes for fossil fuel holdings are:
“We hope the Pax World Growth Fund will be an attractive option for investors who are not only interested in fossil fuel‐free portfolios, but who also want to invest in solutions‐oriented companies whose businesses and technologies have positive impacts rather than problematic ones from a sustainability perspective,” said Pax World President and Chief Executive Officer Joe Keefe.
The Pax World Growth Fund is the second Pax offering to pursue a fossil fuel‐free investment strategy, joining the Pax World Global Environmental Markets Fund (PGRNX), which has been fossil fuel‐free since its launch in 2008. The Growth Fund, which has been managed by Mr. Trzcinka since 2006, charges a total expense ratio of 0.99% for institutional class shares and 1.24% for individual investor class shares.
Pax World is a leader in sustainable investing, the full integration of environmental, social and governance (ESG) factors into investment analysis, security selection, portfolio construction and risk management. Pax World combines rigorous ESG analysis with equally rigorous financial analysis in seeking to identify better‐managed, industry leading companies that meet positive corporate responsibility standards, have a clear vision for managing risk, and are focused on delivering long‐term value to shareholders. Pax World launched the first socially responsible mutual fund in 1971 and today offers a family of seven mutual funds, ESG Managers® Portfolios, multimanager asset allocation portfolios powered by Morningstar Associates, LLC, and separately managed accounts. For more information, visit www.paxworld.wpengine.com.
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. 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. Investments involve risk, including potential loss of principal. Stocks will fluctuate in response to factors that may affect a single company, industry, sector, or the market as a whole and may perform worse than the market. Funds that emphasize investments in smaller companies generally will experience greater price volatility.
Fund Objectives: The Pax World Growth Fund’s investment objective is to seek long‐term growth of capital. The Pax World Global
Environmental Markets Fund’s investment objective is to seek long term growth of capital.
Distributor: ALPS Distributors, Inc., Member FINRA.
Neither Pax World Management LLC nor ALPS Distributors, Inc., are affiliated with Morningstar Associates, LLC.
Separately managed accounts and related advisory services are provided by Pax World Management LLC, a federally registered investment adviser. ALPS Distributors, Inc. is not the distributor for Pax World’s separately managed accounts.
As of 3/31/14, Cree Inc. was 0.5% of holdings for the Pax World Growth Fund. BorgWarner Inc. was 1.3% of holdings for the Pax World Growth Fund and 2.4% of holdings for the Pax World Global Environmental Markets Fund. Pall Corp. was 1.3% of holdings for the Pax World Growth Fund and 3.3% of holdings for the Pax World Global Environmental Markets Fund. Valeo SA was 0.9% of holdings for the Pax World Growth Fund. Trimble Navigation Ltd. was 1.3 % of holdings of the Pax World Growth Fund. Gilead Sciences Inc. was 1.2% of holdings of the Pax World Growth Fund. Holdings are subject to change.