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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.
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
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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