PORTSMOUTH, N.H., April 1, 2021 – Impax Asset Management LLC, the North American division of Impax Asset Management Group and investment adviser to Pax World Funds, today announced new fund names and sustainability enhancements to three Pax funds, as well as expense reductions for two of the funds.
Effective March 31, the new fund names are the Pax US Sustainable Economy Fund (formerly Pax ESG Beta Quality Fund), Pax International Sustainable Economy Fund (formerly Pax MSCI EAFE ESG Leaders Index Fund) and Pax Global Sustainable Infrastructure Fund (formerly ESG Beta Dividend Fund). The fund names have been changed to reflect their core focus of investing in the transition to a more sustainable economy.
Two of the three funds — the US Sustainable Economy Fund and the International Sustainable Economy Fund — have begun integrating the Impax Sustainability Lens, a macro tool used in several Impax portfolios that facilitates a systematic, sectoral analysis of the economic opportunities and risks associated with the transition to a more sustainable economy. The Impax Lens highlights areas of the market with transition tailwinds and headwinds, enabling its investment team to construct portfolios weighted toward companies they believe present higher opportunities and lower risks for investors.
“By combining the systematic analysis of sectors and industries facilitated by our Sustainability Lens with bottom-up ESG analysis,” said Impax President Joe Keefe, “we believe the sustainability profile of each fund is enhanced, along with the potential for better risk-adjusted performance over the long term.”
The third renamed fund, the Global Sustainable Infrastructure Fund, will focus on investing in companies that enable or increase access to vital physical resources (clean energy, water, resource and waste management, food and agriculture) and societal resources (healthcare, education, finance, transportation, data and communications) that are essential to the transition to a more sustainable global economy.
Impax has lowered the total expense ratio of the US Sustainable Economy Fund from 0.65% to a cap at 0.45% of net assets, and has lowered the total expense ratio of the Global Sustainable Infrastructure Fund from 0.65% to a cap of 0.55%.1 The total expense ratio for the International Sustainable Economy Fund remains at 0.48%.
All three funds use systematic, quantitative portfolio construction techniques to derive their investment portfolios from underlying universes.
“These funds use a systematic process that optimizes portfolio exposure to higher opportunity subsectors and companies — and away from riskier subsectors and companies — in the transition to a more sustainable economy,” said Steven Falci, Executive Vice President. “We also focus on companies with stronger ESG profiles and seek to limit stock-specific risk through broad portfolio diversification.”
All Pax funds are fossil fuel free and integrate ESG analysis and ratings into portfolio construction. The US Sustainable Economy Fund and the International Sustainable Economy Fund also use an Impax investment tool called SmartCarbon™ that replaces energy company holdings with energy efficiency stocks.
Pax offers a fourth fund in its suite of systematic offerings, the Pax Ellevate Global Women’s Leadership Fund, which invests in companies that advance gender diversity and equality. This fund was not affected by the recent changes.
About Impax Asset Management
Impax Asset Management LLC, adviser to the Pax World Funds, is the North American division of Impax Asset Management Group, a specialist asset manager with approximately $34 billion in both listed and private market strategies that focuses on the risks and opportunities arising from the transition to a more sustainable global economy. Impax believes that capital markets will be shaped profoundly by global sustainability challenges and that these trends will drive growth for well-positioned companies and create risks for those unable or unwilling to adapt. The firm offers a suite of sustainable investment solutions across multiple asset classes, all of which seek to catalyze the transition to a more sustainable economy. Impax Asset Management LLC, formerly Pax World Management, helped create an industry when it launched the first sustainable mutual fund in the United States in 1971.
1 Expense caps will remain in place at least until March 31, 2024.
You should always consider Pax World Funds’ investment objectives, risks, and charges and expenses carefully before investing. For this and other important information, please download a fund prospectus. Please read it carefully before investing.
Investments involve risk, including potential loss of principal.
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.
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.
Emerging market and 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 in Asia/Pacific increase the impact of events and developments associated with the region can adversely affect performance.
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Pax World Funds are distributed by Foreside Financial Services LLC. Foreside Financial Services is not affiliated with Impax Asset Management LLC.
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