Pax World, Morningstar Create New ESG Funds

Pax World Management LLC has joined with Morningstar Associates to  create and manage a series of asset allocation funds specifically designed for investment advisors and their clients looking for socially responsible, green or sustainable investments.

The new series of funds, called ESG Managers® Portfolios, are said to be the first non-proprietary, multi-manager asset allocation portfolios consisting of investment managers who integrate environmental, social and governance (ESG) factors into investment analysis and decision making.

ESG Managers® Portfolios consist of four asset allocation portfolios:

  • ESG Managers® Aggressive Growth Portfolio
  • ESG Managers® Growth Portfolio
  • ESG Managers® Moderate Portfolio
  • ESG Managers® Conservative Portfolio

Pax World is the investment adviser to ESG Managers® Portfolios while Morningstar Associates is charged with manager selection, asset allocation and portfolio construction and monitoring.

The investment managers selected by Morningstar Associates who will provide sub-advisory services to the funds include some of the best-known managers in the Sustainable Investing industry, such as:

  • Access Capital Strategies
  • Ariel Investments
  • ClearBridge Advisers
  • Community Capital Management
  • Impax Asset Management
  • Miller-Howard Investments
  • MMA Capital Management
  • Neuberger Berman
  • Pax World Investments
  • Portfolio 21 Investments

“By bringing all these managers under one roof in collaboration with Morningstar Associates, Pax World now offers the first series of multi-manager asset allocation funds following a Sustainable Investing approach,” said Joe Keefe, President and CEO of Pax World. “We believe these funds will provide turnkey, one-stop solutions for financial advisors whose clients seek to capture the investment returns associated with superior ESG or sustainability performance.” 

Patrick Reinkemeyer, President of Morningstar Associates, added, “Until today, mutual fund investors have never had a comprehensively constructed asset-allocation portfolio composed of many of the industry’s leading investment firms that incorporate ESG factors alongside fundamental financial factors in their security selection. This is a first.”

ESG Managers® Portfolios are available only through financial advisors. 

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