March 12, 2013
Pax World Adds TIAA-CREF to ESG Managers Portfolio
by Robert Kropp
TIAA-CREF's fixed-income Social Choice Bond Fund, launched in September, will be included in the
Moderate and Conservative portfolios of the series of asset allocation funds.
Pax World Management and Morningstar
Associates have added the Social Choice Bond Fund of Teachers Insurance and Annuity Association - College Retirement
Equities Fund (TIAA-CREF), the financial services organization and one of the nation's largest
pension funds, to their ESG Managers
Portfolios, a series of asset allocation funds launched in 2010.
The ESG Managers Portfolios consists
of four asset allocation funds, ranging from conservative to aggressive growth. Pax World serves as
the investment adviser to the funds, while Morningstar provides asset allocation, manager
selection, portfolio construction, and monitoring services. TIAA-CREF's Social Choice Bond Fund, a
sustainable fixed-income mutual fund, will be included in the Moderate and Conservative portfolios.
TIAA-CREF launched the Social Choice Bond Fund in September, stating at the time that "the
fund targets 10 percent of fund investments to fixed-income securities considered to be 'proactive
social investments'." The four thematic areas on which the proactive social investments focus
include affordable housing, community and economic development, renewable energy and climate
change, and natural resources.
"While this is a new fund, it draws upon TIAA-CREF's
long-term track record investing in socially responsible fixed-income investments," Joe Keefe,
President and CEO of Pax World, said. "TIAA-CREF is a good fit for ESG Managers Portfolios as they
understand the value proposition underlying ESG issues and formally incorporate ESG criteria into
their investment decisions regarding fixed income investments."
The group of subadvisers
that TIAA-CREF has joined employs different investment strategies, but all of them account for
environmental, social, and corporate governance (ESG) factors in their investment analyses. When
the ESG Managers Portfolios was launched in 2010, Keefe said that over time such an approach should
lead to "significant investment returns associated with the shift to a sustainable economy."
"The growth of sustainable investing will depend on our industry's ability to roll out
innovative solutions for investment advisors and their clients," Keefe said at the launch.
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