Pax World supports investing in communities and promoting sustainable development in the United States and around the globe. Our Funds may invest in debt instruments issued by a range of non-corporate entities, including government agencies, states and municipalities and may invest up to 5% of fund assets in community development financial institutions that target underserved areas and directly support affordable housing, small businesses, community development and revitalization, health care, education and the environment.

Such investments may include investments in micro-credit or micro-finance institutions that advance women’s equity and sustainable development around the globe. Some of these investments may offer a rate of return below the then-prevailing market rate or may subject the Funds to more credit risk than other types of debt instruments. In addition, some of these investments may be considered below investment grade, unrated or illiquid, or they may not be insured by the FDIC and therefore involve a greater risk of default. We nevertheless believe that such investments can often offer a greater social return through their direct impact on local communities, and that they are therefore appropriate investments for a mutual fund family like Pax World.