Pax World International, Global Green and Small Cap Funds Outperform Indexes in 2009
PORTSMOUTH, N.H.///February 1, 2010/// Pax World Management LLC, investment adviser to Pax World Mutual Funds (Pax World) and a leader in the field of Sustainable Investing, reported today on the 2009 year end performance of three of its newer funds, launched on March 27, 2008: the Pax World International Fund, the Pax World Global Green Fund and the Pax World Small Cap Fund.
Each of these three funds outperformed their respective indexes for the one year period ended December 31, 2009. The Pax World International Fund returned 39.14 percent, outperforming the MSCI EAFE (Net) 3 Index return of 31.78 percent. The Pax World Global Green Fund returned 37.52 percent, outperforming the FTSE Environmental Opportunities Index 5 return of 34.23 percent, as well as the MSCI World Index's4 return of 29.99%. The Pax World Small Cap Fund returned 36.87 percent, outperforming the Russell 2000 Index 6 return of 27.17 percent. See standardized performance below.
"We continue to be very pleased with the performance of these three relatively new funds, particularly as the market experienced some recovery over the last nine months of 2009" said Pax World President and CEO Joe Keefe.
Each of the three funds follow Pax World's Sustainable Investing approach, which focuses on the full integration of environmental, social and governance (ESG) factors into investment analysis and decision making. In Pax World's view, this process helps its fund managers identify companies that are more forward-thinking and acting, better at managing risk and more focused on the long term.
"We think our Sustainable Investing discipline has a lot to offer in today's investment environment," adds Keefe. "Investors who have suffered as a result of short-term thinking and excessive risk taking are looking for investment strategies that are more focused on the long term. Further, as America and the world transition from an industrial economy fueled by coal and oil to a sustainable economy fueled by clean energy and new technologies, investors are looking for ways to capture the potential investment returns associated with this global shift."
The Pax World International Fund's investment objective is to seek long-term growth of capital by investing primarily in companies outside of the United States.
"In 2009, the Pax World International Fund benefited from strong stock selection and disciplined risk management across international sectors and regions, including a sizeable allocation to emerging market equities," said Pax World International Fund Portfolio Manager Ivka Kalus-Bystricky. "The Fund was also well-served by focusing on investing in stocks, sectors and regions which we believed to have superior sustainability, growth and quality characteristics relative to market expectations."
The Pax World Global Green Fund invests in environmental markets around the globe, including companies focusing on alternative energy and energy efficiency, water treatment and pollution control, and waste technology and resource management. The Fund is subadvised by London-based Impax Asset Management, one of the world's leading specialist environmental asset managers.
"The Pax World Global Green Fund had a strong year due to recovery in early cycle and commodity related stocks, as well as the positive evolution of the secular growth trends in global environmental markets," said Impax Portfolio Manager and Investment Director, Bruce Jenkyn-Jones. "The sector is currently driven by significant changes across the economy in favor of cleaner and greener products and services, including government subsidies and stimulus, technology development and mandated spending, as well as by heightened global awareness of issues such as pollution and climate change."
The Pax World Small Cap Fund's investment objective is to seek long-term growth of capital. It seeks to achieve its objective by investing in small companies that Pax World believes to have attractive valuations and growth prospects and strong management teams that exhibit a high degree of innovation and motivation to grow their business.
"The Pax World Small Cap Fund's positioning in defensive growth companies and active management of our sector weightings were the primary drivers of our results this year," said Pax World Small Cap Fund Portfolio Manager Nathan Moser. "In addition, several of our portfolio holdings were acquired as the merger and acquisition environment improved."
For more information, visit http://www.paxworld.com/
Performance data quoted represent past performance, which does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. For most recent month-end performance information visit www.paxworld.com.
1Total annual International, Global Green and Small Cap Fund operating expenses for each of the Funds' Individual Investor Class, gross of any fee waivers or reimbursements, are 7.40%, 3.78% and 12.09%, respectively, as of 12/31/2009. Total Annual International, Global Green and Small Cap Fund operating expenses, net of fee waivers, reimbursements and acquired fund fees and expenses, are 1.40%, 1.40% and 1.24, respectively, as of 12/31/2009.
2The inception date for the Pax World International, Global Green and Small Cap Funds is March 28, 2008.
3The MSCI EAFE (Europe, Australasia, Far East) Index is an unmanaged index and is a free float-adjusted market capitalization index that is designed to measure the equity market performance of developed markets, excluding the U.S. & Canada. As of June 2007 the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. Performance for the MSCI EAFE Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
4The MSCI World Index is an unmanaged index and is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Performance for the MSCI World Index is shown "net", which includes dividend reinvestments after deduction of foreign withholding tax.
5The FTSE Environmental Opportunities Index measures the performance of global companies that have significant involvement in environmental business activities, including renewable and alternative energy, energy efficiency, water technology and waste & pollution control. The FTSE Environmental Opportunities Index Series requires companies to have at least 20% of their business derived from environmental markets and technologies. The FTSE Environmental Opportunities Index Series is published by a joint venture of Impax Asset Management, Ltd. ("Impax") with FTSE International. Impax is also the sub-adviser to the Pax World Global Green Fund.
6The Russell 2000 Index is an unmanaged index and measures the performance of the small-cap segment of the U.S. equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
Investors cannot invest directly in an index.
You should consider a fund's investment objectives, risks, and charges and expenses carefully before investing. For this and other information, call 800.767.1729 or visit www.paxworld.com for a fund prospectus and read it carefully before investing. Distributed by ALPS Distributors, Inc.
The Pax World Funds' sustainable investing policies may inhibit the Funds' ability to participate in certain attractive investment opportunities that otherwise would be consistent with its investment objectives and other principal investment strategies.
Funds that emphasize investments in smaller companies generally experience greater price volatility. Foreign investing involves special risks such as currency fluctuations and political uncertainty.
The recent growth rate in the stock market has helped to produce short-term returns for some asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, fund performance may be subject to substantial short-term changes.
ABOUT PAX WORLD MANAGEMENT LLC
Pax World Management LLC, the investment adviser to Pax World Funds, launched the nation's first socially responsible mutual fund in 1971 and is a recognized leader in Sustainable Investing – the integration of environmental, social and governance (ESG) factors into investment analysis and decision making. With approximately $2.5 billion in assets under management (as of 12/31/09), Pax World offers seven actively managed mutual funds as well as ESG Managers® Portfolios, a series of asset allocation funds featuring asset allocation, manager selection and portfolio construction by Morningstar Associates, LLC.