PORTSMOUTH, N.H.///March 05, 2013/// Pax World Management LLC, investment adviser to Pax World Funds (www.paxworld.wpengine.com) and a leader in the field of sustainable investing, announced today that the TIAA-CREF Social Choice Bond Fund (TSBIX) has been selected by Morningstar Associates, LLC for inclusion in the ESG Managers® Portfolios, a unique series of asset allocation funds designed for investment advisors and their clients looking for sustainable investment options.
The ESG Managers® Portfolios series was launched in January 2010 by Pax World, in collaboration with Morningstar Associates, as the first non-proprietary, multi-manager asset allocation funds consisting of carefully selected investment managers who integrate environmental, social and governance (ESG) factors into their investment decisions.
“We are pleased to earn this mandate and appreciate the confidence it shows in our investment approach,” said Stephen M. Liberatore, CFA, portfolio manager of the TIAA-CREF Social Choice Bond Fund. “The fund’s strategy meets growing investor demand for mainstream products that align values with investments. We believe this fund can play an important role in a well-diversified portfolio by offering investors a core fixed-income investment with the potential for both a positive social impact and long-term outperformance.”
ESG Managers® Portfolios comprise four asset allocation funds:
-ESG Managers® Aggressive Growth Portfolio
-ESG Managers® Growth Portfolio
-ESG Managers® Moderate Portfolio
-ESG Managers® Conservative Portfolio
Pax World is the investment adviser to ESG Managers® Portfolios while Morningstar Associates is charged with asset allocation, manager selection, portfolio construction, and monitoring. Morningstar Associates selected the TIAA-CREF Social Choice Bond Fund as a fixed-income offering within the Moderate and Conservative portfolios.
“The TIAA-CREF Social Choice Bond Fund will fill a demand from investors looking for income through a Sustainable Investment lens,” said Joe Keefe, President and CEO of Pax World. “While this is a new fund, it draws upon TIAA-CREF’s long-term track record investing in socially responsible fixed-income investments. TIAA-CREF is a good fit for ESG Managers® Portfolios as they understand the value proposition underlying ESG issues and formally incorporate ESG criteria into their investment decisions regarding fixed income investments.”
The Social Choice Bond Fund is an actively managed, socially responsible, core fixed-income mutual fund. The fund gives consideration to environmental, social and governance guidelines. Investments primarily include U.S. Government securities, corporate bonds, taxable municipal securities, and securitized debt. In addition, the fund targets 10 percent of fund investments to fixed- income securities considered to be “proactive social investments.” These investments provide funding for issuers and projects with positive social and environmental benefits in addition to the potential for competitive risk-adjusted returns. The fund’s benchmark is the Barclays U.S. Aggregate Bond Index.
TIAA-CREF is a national financial services organization with $502 billion in assets under management (as of 12/31/12) and is the leading provider of retirement services in the academic, research, medical and cultural fields.
ESG Managers® Portfolios are available only through financial advisors. To learn more about them, visit www.esgmanagers.com.
Pax World Management LLC, the 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. Pax World launched the U.S. financial industry’s first socially responsible mutual fund in 1971. Today, Pax World offers a comprehensive platform of Sustainable Investing solutions including Pax World Funds, a family of no-load mutual funds; ESG Managers® Portfolios, multi-manager asset allocation funds powered by Morningstar Associates; ESG Shares®, the first ETF devoted exclusively to a Sustainable Investing approach; and separately managed accounts for institutional investors. For more information, visit www.paxworld.wpengine.com.
Morningstar Associates, LLC is a registered investment advisor, wholly owned subsidiary of Morningstar, Inc., and part of the Morningstar Investment Management division. This division of Morningstar includes Morningstar Associates, Ibbotson Associates, and Morningstar Investment Services, which are registered investment advisors and wholly owned subsidiaries of Morningstar, Inc. With approximately $149.4 billion in assets under advisement and management, the division provides comprehensive retirement, investment advisory, portfolio management, and index services for financial institutions, plan sponsors, and advisors around the world. For more information, please visit http://global.morningstar.com/mim.
Data as of December 31, 2012. Includes Morningstar Associates, Ibbotson Associates, Morningstar Investment Services, OBSR Advisory Services, and Ibbotson Australia.
As of December 31, 2012 TIAA CREF Social Choice Bond Fund was 0.2% of the ESG Managers Growth Portfolio, 4.4% of the ESG Managers Moderate Portfolio and 14.7% ESG Managers Conservative Portfolio. Holdings are subject to change.
An investment in the Pax World Funds involves risk, including loss of principal. You should consider Pax World Funds’ investment objectives, risks, and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 800.767.1729 or visiting www.paxworld.wpengine.com. Please read carefully before investing. The Pax World Funds, ESG Managers®
Portfolios and ESG Shares® are distributed by ALPS Distributors, Inc. ALPS Distributors, Inc. is not affiliated with Morningstar Associates or with TIAA-CREF.
Investments involve risk, including potential loss of principal.
Morningstar Associates, LLC serves as portfolio construction adviser to the ESG Managers® Portfolios, but does not serve in the capacity of investment advisor to individual investors. Neither Morningstar Associates nor Morningstar, Inc. is affiliated with Pax World Management LLC and its affiliates.
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.
TIAA-CREF Individual & Institutional Services, LLC and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
CFA® is a trademark owned by CFA Institute.