Pax World Re-Introduces “Global Environmental Markets Fund”
Name Change Reflects Fund’s Focus on Resource Scarcity and Efficiency Solutions
PORTSMOUTH, N.H.///September 11, 2012/// Pax World Management LLC, investment adviser to Pax World Funds (Pax World) and a leader in the field of Sustainable Investing, announced today that its Global Green Fund has been renamed and will henceforth be called the Global Environmental Markets Fund (PGRNX).
“This Fund invests in environmental markets,” says Pax World CEO Joe Keefe. “At a time of rapid population growth, rising affluence in emerging markets, ever-increasing demand for scarce natural resources and, of course, climate change, the Pax World Global Environmental Markets Fund invests in companies around the world that are developing innovative solutions in such areas as energy efficiency, water infrastructure and technologies and waste management and technologies. We believe these companies will offer strong investment returns over the long-term.”
Among the reasons Pax World renamed the Fund was to make clear that the Fund is not an alternative energy fund but has a broader environmental mandate. While the Global Environmental Markets Fund has some exposure to renewable energy, this accounted for only about 4% of Fund holdings as of June 30, 2012. By contrast, energy efficiency accounted for approximately 33% of Fund holdings, water infrastructure 25% of Fund holdings and waste management and pollution control another 26% of Fund holdings.
“Environmental markets are a much broader, more diversified investment universe than alternative energy, and much less volatile” says Keefe. “This Fund is really about investing in efficiency solutions, which we believe are becoming a major driver of global economic growth and will continue to be so for the foreseeable future as the global economy transitions to lower-carbon, more resource-efficient businesses and technologies.”
The Pax World Global Environmental Markets Fund is sub-advised by Impax Asset Management (Impax) in London, UK, an investment manager specializing in the environmental and resource scarcity markets.
“In an age of resource scarcity, investors ignore efficiency at their peril,” says Ian Simm, Founder and Chief Executive of Impax. “While investors have traditionally focused on supply expansion, today efficiency solutions have become just as important, if not more so. Thus, we believe a portfolio that invests in a diverse range of companies providing those solutions can deliver outsized growth over the longer term.”
According to Impax, the global environmental markets universe comprises about 6% of the global stock market, includes approximately 1400 companies across eight of the ten “standard” economic sectors, with annual revenues of $500 billion and compound annual growth rates of 10-20%.
“This is a broadly diversified fund, and in our view, a compelling investment thesis,” says Simm.
The renamed Global Environmental Markets Fund’s investment objective is to seek long-term growth of capital by investing in innovative companies around the world whose businesses and technologies focus on environmental markets.
About Pax World Management LLC
Pax World Management LLC, the investment adviser to Pax World Funds, is a recognized leader in Sustainable Investing, the full integration of environmental, social and governance (ESG) factors into investment analysis and decision making. Pax World launched the financial industry’s first socially responsible mutual fund in 1971. Today, Pax World offers a comprehensive platform of Sustainable Investing solutions including Pax World Funds, a family of no-load mutual funds; ESG Managers® Portfolios, multi-manager asset allocation funds powered by Morningstar Associates; ESG Shares®, the first family of ETFs devoted exclusively to a Sustainable Investing approach; and separately managed accounts1 for institutional investors. For more information, visit www.paxworld.com.
About Impax Asset Management Ltd.
Impax Asset Management Ltd. is the Sub-Adviser of the Global Green Fund. The Sub-Adviser is a wholly-owned subsidiary of Impax Asset Management Group plc, with offices in London (UK), Hong Kong and Washington DC. Impax Asset Management Ltd. manages and sub-advises funds that invest globally in the stocks of companies that are active in environmental and resource scarcity markets, particularly in the energy efficiency, alternative energy, water infrastructure and technologies, pollution control, waste management and technologies and environmental support services sectors. For more information, visit www.impaxam.com.
Impax Asset Management Ltd. is not affiliated with ALPS Distributors, Inc.
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. Investing in non-diversified funds generally will be more volatile and loss of principal could be greater than investing in more diversified funds. 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.
1Separately managed accounts and related advisory services are provided by Pax World Management LLC, a federally registered investment adviser. ALPS Distributors, Inc. and Morningstar Associates, LLC is not the distributor for Pax World's separately managed accounts.
Past performance does not guarantee future results. Index returns do not represent fund returns. One cannot invest directly in an index.
Holdings are as of 6/30/2012; holdings are subject to change.