• 107328  Infos

Pax World Funds

    Pax World Funds is the first socially responsible mutual fund. Founded in 1971, it was the first diversified public mutual fund to make sure its investments were both socially and financially responsible. It was founded by a group of Methodists who did not want to financially support the Vietnam War. The fund family has four different mutual funds: a balanced fund, a growth fund, a high yield fund, and a money market fund.
    Founders Luther Tyson and Jack Corbett were motivated by two things:
    • Providing an investment in line with certain values.
    • Challenging corporations to keep in line with standards of social and environmental responsiblitiy.

    The fund provided an example to others, and money managers around the globe started to invest their clients portfolios in socially responsible companies. This accelerated a trend known as socially responsible investing.
    As well as being socially responsible, the fund was one of the first to support the SEC's open proxy voting agenda. Since its inception, it has made proxy voting results available on request. On October 22nd, 2002, Pax World Balanced Fund launched an investor activism website called MutualFundProxyVotes.com. The fund's president, Thomas W. Grant said: "Pax World Funds believes that all mutual fund investors have a right to know how their mutual funds are voting on key corporate proxy resolutions, including such issues as the environment, worker rights, gender discrimination, sweatshops and excessive CEO compensation.
    In addition to screening, it conducts shareholder advocacy with companies whose stocks it holds. For example, it withheld its votes for all candadates for Chesapeake Energy's board of directors due to a lack of racial and gender diversity on their board [1]. Pax World Funds also engages in community investment by placing cash on deposit with credit unions that make non-predatory loans to underprivileged communities.
    Today, the Pax World Balanced Fund continues to uphold its social agenda while still remaining a high-performing mutual fund. It was the 13th best-performing balanced fund (top 8%) among the 169 funds tracked by Lipper Analytical Services for the 10-year period ended September 30, 2005. It has, in fact, outperformed the S&P 500 index over a period of 10 years at the time of this writing.
    All funds are managed by Pax World Management Corp. based in Portsmouth, New Hampshire.

    Balanced Fund

    The Balanced Fund is a no-load fund, meaning that no sales charge or redemption fee is paid by the investor. Operating costs are charged against the earnings of the fund. Dividends are paid on a semi-annual basis in July and December. [2]
    • Inception: August 10, 1971
    • Sales Charge: 0.24%
    • Minimum Investment: $250
    • Symbol: PAXWLD

    As of January 2006, the balanced fund's top holdings include:
    • América Móvil
    • Wellpoint
    • Cemex
    • Amgen
    • Caremark
    • EMC Corporation
    • Apache Corporation
    • Staples Inc.
    • Qualcomm
    • Baker Hughes

    Growth Fund

    The Growth Fund does not currently charge any fees to purchase shares, although prior to November 1, 1999 the fund imposed a 2.5% up-front sales charge. All costs are charged against the fund's earnings. [3]
    • Inception: June 11, 1997
    • Sales Charge: 0.26%
    • Minimum Investment: $250
    • Symbol: PXWGX

    As of January 2006, the growth fund's top holdings include:
    • América Móvil
    • Cerner
    • United Health Group
    • Apple Computer
    • Sierra Health
    • RCG Marvel
    • Questar
    • Cognizant
    • Proctor and Gamble
    • American Healthways

    High-yield Fund

    The high-yield fund does not currently charge any fees for the purchase of shares. The fund's operating costs are charged against the fund's earnings. However, a 2.0% share redemption fee is charged on any shares reedemed within 45 days of purchase. The fund expects to pay dividends monthly and distribute capital gains annually. [4]
    • Inception: October 8, 1999
    • Sales Charge: 0.35%
    • Minimum Investment: $250
    • Symbol: PAXHX

    As of January 2006, the high-yield fund's top holdings include:
    • Jafra Cosmetics
    • Herbalife
    • WII Components
    • Universal Health Services
    • Thornburg
    • Cellu Tissue
    • Axtel
    • US Oncology
    • Vicorp
    • Aleris

    Money Market Fund

    The money market fund is a no-load fund, meaning that it charges no fees. Operating charges (estimated to be around .6%) are charged against the earnings of the fund. Dividend income is declared at the end of each business day. Capital gains are distributed annually in December. [5]
    • Inception: April 9, 1998
    • Sales Charge: None

    The Fund invests the majority of its assets in short-term money market obligations with maturities of 397 days or less. These include high-quality commercial paper, bank certificates of deposit, and the debt obligations of certain U.S. government agencies. [6]

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