Pax Ellevate Global Women’s Index Fund Invest in Women

Why Invest in Women?

“The Fund will help direct investor capital to companies around the world that we believe are doing the best job promoting and advancing women. Our goal is that investors will be rewarded over the long term by investing in this broad universe of global leaders.”
- Sallie Krawcheck, Pax Ellevate Chair

The Pax Ellevate Global Women's Index Fund seeks to capture the investment returns associated with gender diversity and women’s leadership. It allows investors to invest in companies that:

  • Are committed to advancing women through gender diversity on their boards of directors and in executive management.
  • Embrace policies and programs, such as adoption and implementation of the Women's Empowerment Principles, a joint initiative of the United Nations Global Compact and UN Women, to elevate women in the workplace.
  • Recognize the potential business advantages associated with greater gender diversity.

Research shows that companies that embrace gender diversity on their boards and in management often experience improved performance and profitability as a result. Consider the following:

  • A 2016 Peterson Institute survey of 21,980 firms from 91 countries suggests that the presence of women in corporate leadership positions may improve firm performance. The study found that having greater diversity in the executive suite is positively and significantly correlated with measures of financial performance, such as gross and net margins.
  • A 2014 Credit Suisse study assessed the level of women in senior management at 3,000 companies and found that more diversity in management coincides with better corporate performance and higher stock market valuations.
  • A 2013 Harvard University study, “Does the Gender of Directors Matter,” concluded that the ROE1 and net profit margin of companies with at least three women directors was significantly stronger than companies with boards that did not have such diversity.
  • A 2012 Credit Suisse Research Institute report reviewing 2,360 global companies found that companies with women directors outperformed those without women directors in ROE, average growth, and price/book value multiples2. And companies with at least one woman director had better share price performance than those with no women directors.
  • A 2011 Catalyst study of companies over the 2004-2008 time period showed that companies with three or more women corporate directors (in at least four of the five years) outperformed those with no women on the board by 84% on return on sales (ROS), 60% on return on invested capital (ROIC)3 and 46% on return on equity (ROE).

Investors now have a choice: 

If you believe, as we do, that women’s leadership is vital to long-term business success, you can invest in the highest-rated companies in the world in advancing women. 

The choice is yours: If you want to invest in women, if you want to direct capital to companies that invest in women, if you want to share in their success, then perhaps the Pax Ellevate Global Women's Index Fund is the right mutual fund for you.

 

1 Return on equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.

2 The price-book value ratio is the ratio of the market value of equity to the book value of equity. Price stands for the current market price of a stock. Book value is the total assets minus liabilities, or net worth, which is the accounting measure of shareholders' equity in the balance sheet.

3 Return on invested capital (ROIC) is a profitability ratio. It measures the return that an investment generates for those who have provided capital, i.e. bondholders and stockholders. ROIC gauges how well a company does turning capital into profits.

RISKS: Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of stocks held by the Fund may fall; individual investments of the Fund may not perform as expected; the Fund’s portfolio management practices may not achieve the desired result. The Fund does not take defensive positions in declining markets. Accordingly, the Fund’s performance would likely be adversely affected by a decline in the Index. Investments in emerging markets and non-US Securities are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation, intervention and political developments. As this Fund can have a high concentration in some issuers the Fund can be adversely impacted by changes affecting issuers. There is no guarantee that the objective will be met and diversification does not eliminate risk.