Pax World & KLD Construct First Gender Index Series for International Finance Corporation

PORTSMOUTH, N.H. – March 8, 2009 – Pax World Management Corp., investment adviser to Pax World Funds (Pax World) and a leader in the field of sustainable investing, and KLD Research & Analytics, Inc. (KLD), an independent investment research firm that launched the first socially responsible investment index in 1990, announced today that they have joined forces to construct the first Gender Investment Index series for International Finance Corporation (IFC), a member of the World Bank Group. IFC is sponsoring the creation of the index series as part of its Gender Entrepreneurship Markets (GEM) program, a global program aiming to mainstream gender issues into IFC's work, while helping to better leverage the untapped potential of women in emerging markets.

Pax World and KLD will develop five indices using the FTSE All-World Developed Index as the starting universe of companies. The IFC Gender Index series' objective is to increase interest among corporations and investors in gender empowerment, with the ultimate goal of demonstrating that gender equality is an important indicator of financial health, and that companies that empower women and encourage gender diversity outperform others over the long term.

IFC provides financial products and advisory services to increase access to finance for women entrepreneurs, reduce gender barriers in the business environment, and improve the sustainability of IFC investment projects.

"We are excited to partner with Pax World and KLD to create indicators and indices that will reveal the financial value of gender empowerment practices and ultimately influence how investors think about women," said Zouera Youssoufou, Program Manager - Gender Entrepreneurship Markets, IFC. "This project is a great opportunity for IFC to further its work in creating opportunities for women in the private sector in emerging markets."

Led by Senior Vice President for Sustainable Investing Julie Gorte, Pax World provided a research review that found that gender empowerment is usually positively related to financial performance, and can be a robust indicator of the quality of management. Pax World believes that gender empowerment is a key characteristic, along with other environmental, social, and governance (ESG) criteria, of well managed, forward-thinking companies that are capable of adding durable shareholder value over the long run.

"There are still too many in finance who doubt that gender empowerment has any effect on financial performance, and there is still a lot of skepticism about women as leaders," said Gorte. "Research shows that gender empowerment almost always has a positive impact on performance. Competitiveness can be achieved more readily by companies that recognize the talent of the entire workforce."

"KLD is pleased to collaborate with Pax World and IFC on this groundbreaking project to identify best practices for women in the workplace," said Karin Chamberlain, Index Manager, KLD. "We look forward to creating an index that will quantify the financial impact of these practices and provide opportunities to invest in the leading companies in this area."

The index series is constructed to provide exposure to large and mid cap companies that take affirmative steps to attract, retain, and promote women and to advance gender equality and women's empowerment in the workplace and beyond. The series includes a benchmark, three regional indexes and a global top 100 best performers in gender empowerment. The index series is industry and region neutral.

About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. It fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC's new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.

About KLD Indexes
KLD Indexes is a unit of KLD Research & Analytics, Inc., a leading provider of environmental, social and governance (ESG) research and indexes for institutional investors since 1988. KLD Indexes develops and licenses benchmark, strategy and custom indexes that investment managers use to integrate ESG criteria into their investment decisions.

KLD's indexes are transparent, representative and investable. Today, more than $10 billion is invested in vehicles based on KLD's indexes.

For information about licensing a KLD index, please email indexes@kld.com or visit www.kldindexes.com.

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.