Pax World Global Green Fund
Investment Objective
The Pax World Global Green Fund’s investment objective is to seek long term growth of capital by investing in companies whose businesses and technologies focus on mitigating the environmental impact of commerce.
Principal Investment Strategies
Under normal market conditions, the Green Fund will invest primarily in equity securities (such as common stocks, preferred stocks, and securities convertible into common or preferred stocks) of companies located around the world, including at least 40% of its net assets in securities of non-U.S. issuers.
The Green Fund invests in environmental markets - companies whose businesses and technologies focus on mitigating the environmental impacts of commerce, including such areas as alternative energy and energy efficiency; pollution prevention and control; and waste technology and resource management.
The Green Fund’s sub-adviser selects equity securities on a company-by-company basis primarily through the use of fundamental analysis. The sub-adviser attempts to identify companies for possible investment by analyzing their valuations and growth prospects based on their market and competitive position, financial condition and economic, political and regulatory environment. The following characteristics may also be considered in analyzing the attractiveness of such companies: valuation factors such as price-to-earnings ratio; price-to-book ratio and/or price-to-cash flow ratio; a healthy balance sheet; overall financial strength; and catalysts for changes that improve future earnings prospects.
The Green Fund is not constrained by any particular investment style, and may therefore invest in “growth” stocks, “value” stocks or a combination of both. Additionally, it may buy stocks in any sector or industry, and it is not limited to investing in securities of a specific market capitalization and may hold securities of large, medium and/or small capitalization companies.
The Green Fund may invest without limit in securities of non-U.S. issuers. The Green Fund’s investments in securities of non-U.S. issuers may include investments in emerging markets and may be diversified across multiple countries or geographic regions, or may be focused on a select geographic region, although the Green Fund will normally invest in issuers located in at least three countries.
The Green Fund seeks to invest in companies with positive overall environmental performance and whose products or services help other companies and societies improve their environmental performance. In this regard, the Green Fund invests in companies whose businesses and technologies focus on goods and services that mitigate the environmental impacts of commerce, including such areas as alternative energy and energy efficiency; water treatment and pollution control; and waste technology and resource management. The Green Fund avoids investing in companies with significant environmental problems or worsening environmental profiles, and applies avoidance criteria on environmental issues identical to those of the other Pax World Funds.
Sub-Adviser
Impax Asset Management Ltd. is the Sub-Adviser of the Green Fund. The Sub-Adviser is a wholly-owned subsidiary of Impax Group plc, which is publicly traded on the London Stock Exchange. It has principal offices at Broughton House, 6-8 Sackville Street, London (UK) W1S 3DG. Impax Asset Management Ltd. is the manager or subadviser of eight funds that invest globally in the stocks of companies that are active in “green markets,” particularly in the alternative energy, energy efficiency, water treatment, pollution control, waste technology and resource management sectors.