PAX World To Launch Three ETFs

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October 12, 2009 9:32am NYSE:EAPS NYSE:ETFY

comingsooonPax World Management is planning to launch three new ETFs, The three funds are the ESG Shares FTSE KLD North America Sustainability Index Fund, ESG Shares FTSE KLD Europe Asia Pacific Sustainability Index Fund and


ESG Shares FTSE Environmental Technologies Index Fund. They will be listed on the NYSE.

ESG Shares FTSE KLD North America Sustainability Index Fund (NASI)

Investment Objective: The Fund seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the FTSE KLD North America SustainabilitySM Index, which is created and maintained by KLD Research & Analytics, Inc. (“KLD”). The Index consists of securities of issuers in North America that meet specific ESG criteria developed by KLD. The Fund’s investment objective may be changed by the board of trustees without a vote of shareholders.

Principal Investment Strategies: The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the FTSE KLD North America SustainabilitySM Index. Under normal circumstances, the Fund invests more than 80% of its total assets in the component securities of the Index and in Depositary Receipts representing the component securities of the Index. The Fund uses a replication strategy to seek to achieve its investment objective, which means that it generally will hold all of the component securities of the Index in approximately the same proportions as they are represented in the Index. The Fund may use a representative sampling strategy with respect to the Index when a replication strategy might be detrimental, such as when a security becomes temporarily illiquid, unavailable or less liquid. To the extent consistent with the foregoing 80% policy, the Fund may invest in securities that are not included in its Index, but that have been evaluated by Pax for satisfaction of Pax’s ESG criteria. See “Pax ESG Criteria” below.

Index Description: The Index measures the performance of securities of issuers organized or operating in North America, selected initially and adjusted annually using a KLD proprietary method. The selection process takes into account ESG performance, as well as sector and size. The eligible universe for the Index is the set of issuers that comprise the top 75% of the market capitalization of each sector in each country of the S&P North America BMI. KLD evaluates the ESG performance of each issuer in the eligible universe and ranks issuers against sector peers. To generate comparative sector rankings, KLD identifies key ESG performance indicators for each sector and weights them. The Index consists of the highest-ranked issuers that make up approximately 50% of the eligible universe, meaning that approximately 37.5% (50% of 75%) of the market capitalization of each sector of the S&P North America BMI is represented after application of KLD’s ESG criteria at reconstitution. Due to various constraints, including issuer market capitalization, not all sectors will hold exactly 37.5% of the available market capitalization. The eligible universe for the Index consists of companies from the United States and Canada. As of June 30, 2009, the Index included companies with market capitalizations that ranged from $161.2 million to $157.6 billion.

ESG Shares FTSE KLD Europe Asia Pacific Sustainability Index Fund (EAPS)

Investment Objective:  The Fund seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the FTSE KLD Europe Asia Pacific SustainabilitySM Index, which is created and maintained by KLD. The Index consists of securities of issuers in Europe and the Asia Pacific region that meet specific ESG criteria developed by KLD. The Fund’s investment objective may be changed by the board of trustees without a vote of shareholders.

Principal Investment Strategies:  The Fund employs a “passive management” — or indexing — investment approach designed to track the performance of the FTSE KLD Europe Asia Pacific SustainabilitySM Index. Under normal circumstances, the Fund invests more than 80% of its total assets in component securities of the Index and in Depositary Receipts representing the component securities of the Index. The Fund uses a representative sampling strategy to achieve its investment objective, which means that it will not always hold the same securities in the same proportions as the Index. To the extent consistent with the foregoing 80% policy, the Fund may invest in securities that are not included in its Index, but that have been evaluated by Pax for satisfaction of Pax’s ESG criteria. See “Pax ESG Criteria” below.

Index Description: The Index measures the performance of securities of issuers organized or operating in Europe and the Asia Pacific region, selected initially and adjusted annually using a KLD proprietary method. The selection process takes into account ESG performance, as well as region, sector and size. The eligible universe for the Index is the set of issuers that comprise the top 75% of the market capitalization of each sector in each country of the S&P EPAC BMI. KLD evaluates the ESG performance of each issuer in the eligible universe and ranks issuers against sector peers in each region. To generate comparative sector rankings, KLD identifies key ESG performance indicators for each sector and weights them. The Index consists of the highest-ranked issuers that make up approximately 50% of the eligible universe, meaning that approximately 37.5% (50% of 75%) of the market capitalization of each sector in each region of the S&P EPAC BMI is represented after application of KLD’s ESG criteria at reconstitution. Due to various constraints, including issuer market capitalization, not all regional sectors will hold exactly 37.5% of the available market capitalization. The Index includes companies from the following twenty-three developed market countries in Europe and the Asia Pacific region: Australia, Hong Kong, Japan, New Zealand, Singapore, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. As of June 30, 2009, the Index included companies with market capitalizations that ranged from $269.2 million to $142.4 billion.

ESG Shares FTSE Environmental Technologies (ET50) Index Fund (ETFY)

Investment Objective: The Fund seeks investment returns that closely correspond to the price and yield performance, before fees and expenses, of the FTSE ET50 Index, which is created and maintained by the FTSE Group (“FTSE”). The Index is composed of the fifty largest companies globally with a core business in environmental technology, measured by full market capitalization. The Fund’s investment objective may be changed by the board of trustees without a vote of shareholders.

Principal Investment Strategies: The Fund employs a “passive management” – or indexing – investment approach designed to track the performance of the FTSE ET50 Index. Under normal circumstances, the Fund invests more than 80% of its total assets in the component securities of the Index and in Depositary Receipts representing the component securities of the Index. The Fund uses a replication strategy to seek to achieve its investment objective, which means that it generally will hold all of the component securities of the Index in approximately the same proportions as they are represented in the Index. The Fund may use a representative sampling strategy with respect to the Index when a replication strategy might be detrimental, such as when a security becomes temporarily illiquid, unavailable or less liquid. To the extent consistent with the foregoing 80% policy, the Fund may invest in securities that are not included in its Index, but that are issued by companies whose core business Pax believes is in the development and deployment of environmental technologies.

Index Description: The Index is composed of the fifty largest companies globally with a core business in environmental technology (as determined by Impax and approved by the FTSE/Impax Environmental Technology Advisory Committee), measured by full market capitalization. A company has a core business in the development and deployment of environmental technologies if (i) revenues derived from environmental technologies exceed 50% of total revenues, (ii) capital invested in environmental technologies exceeds 50% of total invested capital (based on book value) or (iii) EBITDA derived from environmental technologies exceed 50% of total EBITDA. This includes alternative energy, water treatment, pollution control and waste management companies. The Index is constructed using a free-float weighting methodology to ensure that only the investable opportunity set is included within the Index, and the securities of issuers are liquidity screened to ensure that the securities in the Index are tradable. As of June 30, 2009, the Index included companies with market capitalizations that ranged from $932 million to $19.3 billion.

For the full SEC Filing click: HERE





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