PORTSMOUTH, N.H.///June 4, 2014/// Pax World Management LLC and Ellevate Asset Management LLC announced today that they have entered into a partnership agreement to manage and distribute the Pax Ellevate Global Women’s Index Fund (www.paxellevate.com), which is a successor fund to the Pax World Global Women’s Equality Fund, following a shareholder-approved merger. The Fund is the first and only mutual fund in the United States that focuses on investing in companies that are global leaders in advancing women.
Sallie Krawcheck is a principal of Ellevate Asset Management, which has acquired an ownership interest in Pax Ellevate Management LLC (“Pax Ellevate”), the investment adviser to the Fund, where Ms. Krawcheck will serve as Chair. Ms. Krawcheck has also been elected to the board of trustees of the Fund.
The Pax Ellevate Global Women’s Index Fund will seek 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. Companies in the Index also meet key environmental, social and governance (ESG) standards, as rated by MSCI ESG Research.
Women hold 31 % of board seats in companies held in the new Fund, and 24 % of senior management positions, as compared to global averages of only 11 % in each case.1 Fully 97 % of companies in the Fund have two or more women on their board and nearly 70 % have three or more women on their board.
“I am pleased to be partnering with Pax World to introduce the Pax Ellevate Global Women’s Index Fund,” said Ms. Krawcheck. “This is a major step forward in directing investor capital to the highest-rated companies in the world in advancing women’s leadership. We believe that it is simply smart business to invest in women and that this investment case will be borne out over time by the performance of this global index fund.”
The Pax partnership represents the first investment initiative undertaken by Ms. Krawcheck since she purchased the Ellevate women’s network (formerly named “85 Broads”) last year. She is the former president of the Global Wealth & Investment Management division of Bank of America, which includes Merrill Lynch and U.S. Trust; former CEO of Citigroup’s wealth management business, including Smith Barney and the Citi Private Bank; and former Director of Research and then chairman and CEO of sell-side research firm Sanford Bernstein.
“Sallie is one of the most respected individuals in financial services, and her interest in partnering on the Pax Ellevate Global Women’s Index Fund speaks to the gathering momentum around investing in women, and in companies that invest in women,” said Pax World President and CEO Joe Keefe. “This is the first fund of its kind investing in the first broad-market, global index where the universe of companies is distinguished, vis-a-vis the market as a whole, by its gender leadership. We hope to measure the contributions and capture the returns associated with women’s leadership and to deliver market or above-market returns over the long term. We therefore believe the Fund can be considered as a core holding in many investor portfolios.”
“I can think of no better way to invest in women than to invest in those companies around the world that have distinguished themselves by both their business performance and their leadership in advancing women,” said Krawcheck today of her decision to partner on the Pax Ellevate Global Women’s Index Fund. “This Fund represents a market solution to a global business challenge – the need to increase the number of women on boards and in management. The business edge that often comes from more diverse leadership teams is an investment idea whose time has come. These are not niche companies. Many are widely-recognized brands in their fields, and I look forward to shining a spotlight on – and helping putting capital behind –the kind of progressive thinking that can yield strong company performance.”
* A customized index calculated by MSCI. One cannot invest directly in an index.
1 Women on Boards Survey, Governance Metrics International, April 2013
Pax World Management LLC, investment adviser to Pax World Funds (www.paxworld.wpengine.com), is a recognized leader in Sustainable Investing, the full integration of environmental, social and governance (ESG) factors into investment analysis and decision making. Pax World Funds include the Pax Ellevate Global Women’s Index Fund (PXWEX), the only mutual fund in America focused on investing in companies that are global leaders in advancing women. 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.
Ellevate Asset Management LLC was formed by Sallie Krawcheck and business partner Allyson McDonald 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.
MSCI is a leading provider of investment decision support tools to clients ranging from large pension plans to boutique hedge funds. Located in 24 countries around the world, MSCI is dedicated to supporting the increasingly complex needs of the investment community with groundbreaking new products, high quality data, superior distribution and dedicated client support. Since the MSCI indices were launched over 40 years ago, the company has grown to become one of the world’s leading players in the provision of products and services to institutional investors.
ALPS Distributors, Inc. is not affiliated with Ellevate Asset Management LLC, or with MSCI.
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.
Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of stocks held by the Fund may fall; individual investments of the Fund may not perform as expected; the Fund’s portfolio management practices may not achieve the desired result. The Fund does not attempt to outperform the Index or take defensive positions in declining markets. Accordingly, the Fund’s performance would likely be adversely affected by a decline in the Index. Funds focusing on small/medium companies generally experience greater price volatility. Investments in emerging markets and non-US 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. As this Fund can have a high concentration in some issuers the Fund can be adversely impacted by changes affecting issuers. There is no guarantee that the objective will be met and diversification does not eliminate risk.
Past performance does not guarantee future results. Index returns do not represent fund returns.