Pax Ellevate Global Women’s Index Fund Invest in Women

Why Invest in Women?

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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 MSCI study found that companies around the globe with at least three women on the board had higher median Return on Equity (ROE1) compared with companies that did not.
  • A 2016 Credit Suisse study found that companies with higher percentages of women in senior management outperformed companies with lower percentages over a five-year period in terms of share price and ROE. 
  • A 2016 Sodexo study examined the performance of 100 global companies and 50,000 managers in 80 countries and found that companies with 40-60 percent women in management performed better than those with lower percentages of women on key indicators, including brand awareness, client retention, and financial performance.
  • 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 ROE 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.
“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

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.

Pax Ellevate Global Women's Index Fund: Invest Like a Feminist

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.