Pax World, Morningstar Offer ESG Asset Allocation Funds

Pax World Management LLC, investment adviser to Pax World Funds, has joined with Morningstar Associates to create and manage a series of asset allocation funds that integrate environmental, social, and governance (ESG) factors.

ESG Managers Portfolios, available only through financial advisers, include:

  • 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:

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  • Access Capital Strategies
  • Ariel Investments
  • ClearBridge Advisers
  • Community Capital Management
  • Impax Asset Management
  • Miller-Howard Investments
  • MMA Capital Management
  • Neuberger Berman
  • Parnassus Investments
  • 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, in an announcement. “We believe these funds will provide turnkey, one-stop solutions for financial advisers whose clients seek to capture the investment returns associated with superior ESG or sustainability performance.”

More information is available at www.esgmanagers.com.

Dow Jones Adds 2050 Funds to Target-Date Offerings

Dow Jones Indexes has added three funds to its target-date fund offerings, timed for those retiring around 2050.

A Dow Jones news release said the company launched the Dow Jones U.S. Target Date 2050, Dow Jones Global Target Date 2050, and Dow Jones Real Return 2050 indexes. The offerings include funds set at five-year intervals out to 40 years.

The global and U.S. versions of the Dow Jones Target Date Indexes allocate among stocks, bonds, and cash on a monthly basis to hit predefined relative risk levels. Over the life of each index, its relative risk ranges from 90% of the risk of the global equity market at its most aggressive point, to 20% of the global equity markets risk at its most conservative point—when the index reaches its target.

The Dow Jones Real Return Target Date Indexes allocate among stocks, bonds, TIPs, commodities, and real estate securities, the company said. These asset classes are weighted within each index to measure a targeted level of risk.

Over time the weights are adjusted based on predetermined formulas as the index’s target date approaches.

For example, the release said, the Dow Jones Real Return 2050 Index includes approximately 90% component allocation to the high-risk assets (equities, real estate, and commodities). When the index reaches its target date, the composition will have changed to about 70% in the low-risk component assets (bonds, U.S. TIPs).

The company also announced the Dow Jones Target 2005, Dow Jones U.S. Target 2005, and Dow Jones Real Return 2005 indexes will be decommissioned as each has reached five years past its target maturity date.


More information is available here

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