Krawcheck Women’s Fund Has Performance Issue: Chart of the Day

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Sallie Krawcheck’s biggest challenge in selling a mutual fund that focuses on women may be making an investment case for owning shares.

Krawcheck, a former executive at Bank of America Corp. and Citigroup Inc., joined forces with Pax World Management LLC to roll out the Pax Ellevate Global Women’s Index Fund yesterday. It’s the latest version of a fund that was introduced in 1993 and acquired by Pax World in October 2007.

As the CHART OF THE DAY shows, the fund failed to keep up with benchmark indexes under Pax World’s management. The chart compares the total return, based on dividends and price changes, with those of the MSCI World and Standard & Poor’s 500 indexes.

Pax Ellevate tracks its performance relative to the MSCI index, representing stocks in 23 developed markets. The fund succeeded the Pax World Global Women’s Equality Fund, whose assets totaled $49 million.

“This is a major step forward in directing investor capital to the highest-rated companies in the world in advancing women’s leadership,” Krawcheck, based in New York, said in a statement.

The fund’s name change reflects the new role of Ellevate Asset Management LLC, which she began with a partner, Allyson McDonald. Krawcheck also owns the Ellevate Network, a women’s professional group formerly known as 85 Broads.

Photographer: Daniel Acker/Bloomberg

Sallie Krawcheck, former executive at Bank of America Corp. and Citigroup Inc. Close

Sallie Krawcheck, former executive at Bank of America Corp. and Citigroup Inc.

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Photographer: Daniel Acker/Bloomberg

Sallie Krawcheck, former executive at Bank of America Corp. and Citigroup Inc.

Pax Ellevate will be based on an index compiled by Pax World and MSCI Inc., rather than being actively managed as it was before. Companies in the index will have to meet criteria linked to leadership roles for women as well as environmental, social and governance standards.

To contact the reporter on this story: David Wilson in New York at dwilson@bloomberg.net

To contact the editors responsible for this story: Chris Nagi at chrisnagi@bloomberg.net Jeff Sutherland, Michael P. Regan

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