Pax MSCI International ESG Index Fund Invests in Sustainability Leaders

New fund provides a passively-managed investment option for international investors

 

Recently Pax World Management LLC, investment adviser to Pax World Funds, announced the launch of the Pax MSCI International ESG Index Fund (PXINX), a passively-managed fund which seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI Europe Australasia Far East (EAFE) ESG Index (the Index).[1]  The Index consists of equity securities of issuers organized or operating in developed market countries around the world excluding the U.S. and Canada that have high sustainability or ESG ratings relative to their sector and industry group peers, as rated by MSCI ESG Research. The Pax MSCI International ESG Index Fund is the only mutual fund distributed in the U.S. that tracks the performance of the Index.

The Pax World International Fund (PXINX) and the Pax MSCI EAFE ESG Index ETF (EAPS) were recently merged to create the Pax MSCI International ESG Index Fund. The new fund’s Institutional Class shares will charge a unified management fee and total expense ratio of 0.55%. (Individual Investor Class and Class R shares each will charge a distribution fee that will increase the total expense ratio for these share classes to 0.80% and 1.05%, respectively.)

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“The Pax MSCI International ESG Index Fund provides investors a passively-managed investment option that provides international exposure by investing in the same stock universe as the MSCI EAFE ESG Index, which has outperformed the MSCI EAFE Index since its launch on October 1, 2007,” said Pax World President and Chief Executive Officer Joe Keefe. Comparative performance for the Index and the MSCI EAFE Index is shown below.

Index Performance

Gross Returns (%) (February 28, 2014)(Annualized)
MSCI EAFE ESG

1 Year                                    19.84
3 Year                                     8.21
5 Year                                    19.18
Since  10/1/07                       1.12

MSCI EAFE

1 Year                                    19.78
3 Year                                     7.12
5 Year                                    18.14
Since  10/1/07                       0.66
Past performance is no guarantee of future results. Index performance is not necessarily representative of fund performance.

About Pax World Management LLC

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 mutual funds including ESG Managers® Portfolios, multi-manager asset allocation portfolios powered by Morningstar Associates. For more information, visit www.paxworld.com

About MSCI

MSCI is a leading provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools.

MSCI designs and calculates global equity indices, which, over the last 40 years, have become the most widely used global equity benchmarks by institutional investors. MSCI’s global equity benchmark indices contribute to the investment process by serving as relevant performance benchmarks and effective research tools, and as the basis for various investment vehicles. For more information, visit www.msci.com

Article Note

[1]  The fund described herein is indexed to an MSCI index. The fund referred to herein is not sponsored, endorsed, or promoted by MSCI or its affiliates, and MSCI and its affiliates bear no liability with respect to any such fund or any index on which such fund is based. The MSCI EAFE ESG Index is designed to include equity securities of issuers organized or operating in Europe, Australasia and the Far East that have high environmental, social and governance (ESG) ratings relative to their peers as rated by MSCI ESG Research annually. The MSCI EAFE ESG Index includes or utilizes data, ratings, analysis, reports, analytics or other information or materials from MSCI’s ESG Research Group within Institutional Shareholder Services Inc., an indirect wholly-owned subsidiaries of MSCI. One cannot invest directly in an index.

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.

You should consider a fund’s 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.com . Please read it carefully before investing. Past performance is no guarantee of future results.

On 3/31/2014 Pax World International Fund and Pax MSCI EAFE ESG Index ETF merged into the Pax MSCI International ESG Index Fund (the Fund), a passively managed index fund which seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the MSCI EAFE ESG Index. Based on the similarity of the Fund to Pax MSCI EAFE ESG Index ETF, Pax MSCI EAFE ESG Index ETF (the Predecessor Fund) is treated as the survivor of the mergers for accounting and performance reporting purposes. Accordingly, all performance and other information shown for the Fund for periods prior to 3/31/2014 is that of the Predecessor Fund.

Distributor: ALPS Distributors, Inc., Member FINRA.

Neither Pax World Management LLC or ALPS Distributors, Inc., are affiliated with MSCI Inc., MSCI ESG Research or 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.

Article Source: Pax World

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