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Women Asked, Sallie Krawcheck Answers: Pax Ellevate Global Women's Index Fund Brings Investing in Women into the Mainstream
NEW YORK--(BUSINESS WIRE)--Ellevate (1) owner and financial-services-executive-turned-entrepreneur, Sallie Krawcheck, today announced the launch of the Pax Ellevate Global Women’s Index Fund (“the Fund”). It is the first and only mutual fund to invest in the top-rated companies in the world for advancing women. (For more on the fund: (www.paxellevate.com). The fund has been launched both because of the growing evidence of the power of diversity in driving strong business results and because of the growing demand among investors, particularly female and younger investors, for investments that not only seek to provide them with a fair return but that also direct capital toward companies that are aligned to what matters to them.
Krawcheck has formed Ellevate Asset Management LLC with impact investing and asset management executive Allyson McDonald to partner with Pax World Management, LLC, to manage and market the fund.
Gender Diversity Makes Good Business Sense
Krawcheck has long noted that the diverse skills and ideas women bring to corporate boards and executive ranks can play a key role in business success. This belief is supported by growing pools of empirical and quantitative research suggesting that diversity, and in particular gender diversity, may lead to improved innovation, problem solving and company performance over time.
Krawcheck said, “The investments in this fund are many of the global, brand-name companies that appeal to a broad audience of investors. Where these differentiate themselves, however, is with their success in advancing women in their ranks; for example, women hold 31% of board seats and 24% of senior management roles in companies in the fund, as compared to a global average of 11%. As women’s economic engagement and purchasing power continues to grow, we believe this type of senior-level diversity will matter even more.”(2)
She added, “Many CEOs I speak to, of both genders, recognize this is no longer a woman’s issue, but a business performance issue. And this type of investing represents a markets-based solution to the very real business opportunity, and business challenge, of diversity. It’s capitalism at work and capitalism at its best.”
Responding to Demand
A recent Center for Talent Innovation research report, “Harnessing The Power of the Purse: Female Investors and the Global Opportunities for Growth,” noted that 90% of women globally said “making a positive impact on society is important,” and 77% of women globally - and more than half in the US - said they “want to invest in organizations with diversity in senior leadership.”
Krawcheck added, “These findings show that this type of investing is moving rapidly beyond being a niche play. And they are resoundingly similar to what our Ellevate community members have told us in our surveys. More than half of them have said that they want to invest behind other women. As a result, we will be investing a portion of Ellevate’s revenues in the fund, as well as enabling our members to invest directly through an institutional share class.”
“For modern investors, it’s no longer about looking to earn a fair return OR have an impact; it’s about earning a fair return AND having an impact,” she said.
85 Broads Becomes Ellevate
In a separate but related announcement, Krawcheck and McDonald have unveiled a re-branding of the professional women’s network, 85 Broads, as well as the launch of a new on-line platform for the network.
McDonald, who is president of the network, said, “Sallie and I spent a lot of time meeting with members and soliciting their input as we worked to refine the organization’s mission around three key themes – connect, learn, and invest. From a new name and look, to a full overhaul of our web presence and capabilities, we’re pleased to deliver an enhanced experience that directly reflects what the Ellevate members want.”
Krawcheck added, “Our choice of the nameEllevatenot only gives a nod to the gender of our community, it reflects our action orientation and underscores our broader commitment to the economic engagement of women.”
For more on the re-branding, click here: http://bit.ly/1m8RTZT
The Pax Ellevate Global Women’s Index Fund will seek investment returns that closely correspond to or exceed the price and yield performance, before fees and expenses, of the Pax Global Women’s Leadership Index (“the Global Women’s Leadership Index”).*
Investment return and principal value will fluctuate so that you may have a gain or a loss when you sell your shares. You should consider a fund's investment objectives, risks and charges and expenses carefully before investing. For this and other important information, please obtain a fund prospectus by calling 800.767.1729 or visiting www.paxworld.com. Please read it carefully before investing. Past performance is no guarantee of future results. Distributor: ALPS Distributors, Inc., Member: FINRA.
RISK: 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 attempt to outperform the Index or take defensive positions in declining markets. Accordingly, the Fund’s performance would likely be adversely affected by a decline in the Index. Funds focusing on small/medium companies generally experience greater price volatility. 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.
Past performance does not guarantee future results. Index returns do not represent fund returns. One cannot invest directly in an index.
Effective June 4, 2014, the Pax World Global Women’s Equality Fund has reorganized into the Pax Ellevate Global Women’s Index Fund.
Distributed by ALPS Distributors, Inc. ALPS is not affiliated with Ellevate Asset Management or MSCI.
1 Formerly 85 Broads
2 “2013 Women on Boards Survey,” Governance Metrics International, April 2013
* A custom index calculated by MSCI.
Higher Ground Communications
Susan Thomson, 917-414-4957