Pax World Global Green Fund
Investment Objective
The Global Green Fund’s investment objective is to seek long term growth of capital by investing in companies whose businesses and technologies focus on mitigating the environmental impacts of commerce.
Principal Investment Strategies
Under The Global Green Fund follows a Sustainable Investing approach, combining rigorous financial analysis with equally rigorous environmental, social, and governance (ESG) analysis in order to identify investments. Under normal market conditions, the Global Green Fund will invest primarily in equity securities (such as common stocks, preferred stocks, and securities convertible into common or preferred stocks) of companies located around the world, including at least 40% of its net assets in securities of non-U.S. issuers. The Global Green Fund invests in environmental markets—companies whose businesses and technologies focus on mitigating the environmental impacts of commerce, including such areas as alternative energy and energy efficiency; water treatment and pollution control; and waste technology and resource management.
The Global Green Fund’s sub-adviser selects equity securities on a company-bycompany basis primarily through the use of fundamental analysis. The sub-adviser attempts to identify companies for possible investment by analyzing their valuations and growth prospects based on their market and competitive position, financial condition and economic, political and regulatory environment. The following characteristics may also be considered in analyzing the attractiveness of such companies: valuation factors such as price-to earnings ratio; price-to-book ratio and/or price-to-cash flow ratio; a healthy balance sheet; overall financial strength; and catalysts for changes that improve future earnings prospects. The Global Green Fund is not constrained by any particular investment style, and may therefore invest in “growth” stocks, “value” stocks or a combination of both. Additionally, it may buy stocks in any sector or industry, and it is not limited to investing in securities of a specific market capitalization and may hold securities of large, medium and/or small capitalization companies.
The Global Green Fund may sell a particular security if any of the original reasons for purchase change materially, in response to adverse market conditions, when a more attractive investment is identified, to meet redemption requests, or if a company no longer meets Pax World’s environmental, social or governance standards.
The Global Green Fund may invest without limit in securities of non-U.S. issuers. The Global Green Fund’s investments in securities of non-U.S. issuers may include investments in emerging markets and may be diversified across multiple countries or geographic regions, or may be focused on a select geographic region, although the Global Green Fund will normally have investments in a minimum of three different countries.
The Global Green Fund may utilize derivatives, including but not limited to repurchase agreements, foreign currency exchange contracts, options and futures contracts, for hedging and for investment purposes.
Although the Global Green Fund intends to limit the turnover of its portfolio, it is possible that, as a result of its investment strategies, the portfolio turnover rate of the Global Green Fund may be significant.
In response to unfavorable market or other conditions, the Global Green Fund may deviate from its principal investment strategies by making temporary investments of some or all of its assets in high quality debt securities, cash and cash equivalents. The Global Green Fund may not achieve its investment objective if it does so.
Except as otherwise noted in this Prospectus or the Statement of Additional Information, the Global Green Fund’s investment objectives and policies are not fundamental, and may be changed without a vote of shareholders.
Sustainable Investing
The Global Green Fund seeks to invest in forward-thinking companies with sustainable business models that meet positive environmental, social and governance standards, with a particular emphasis on environmental markets. The Global Green Fund avoids investing in companies that its investment adviser determines are significantly involved in the manufacture of weapons or weaponsrelated products, manufacture tobacco products or engage in unethical business practices.
The Global Green Fund seeks to invest in companies with positive overall environmental performance and whose products or services help other companies and societies improve their environmental performance. In this regard, the Fund invests in companies whose businesses and technologies focus on goods and services that mitigate the environmental impacts of commerce, including such areas as alternative energy and energy efficiency; water treatment and pollution control; and waste technology and resource management. The Fund avoids investing in companies with significant environmental problems or worsening environmental profiles, and applies avoidance criteria on environmental issues identical to those of the other Pax World Funds.
Sub-Adviser
Impax Asset Management Ltd. is the Sub-Adviser of the Green Fund. The Sub-Adviser is a wholly-owned subsidiary of Impax Group plc, with principal offices in London (UK). Impax Asset Management Ltd. is the manager or subadviser of eight funds that invest globally in the stocks of companies that are active in “green markets,” particularly in the alternative energy, energy efficiency, water treatment, pollution control, waste technology and resource management sectors.