June 4 (Bloomberg) -- Sallie Krawcheck, the former executive at Bank of America Corp. and Citigroup Inc. who has worked to promote women as business leaders, is teaming up with a money manager for an index fund focused on women.
The Pax Ellevate Global Women’s Index Fund will seek investment returns that match or exceed the performance of the Pax Global Women’s Leadership Index, according to a statement today by Pax World Management LLC and Ellevate Asset Management LLC, whose principal is Krawcheck.
The fund is the successor to the Pax World Global Women’s Equality Fund, following a shareholder-approved merger, and is the only mutual fund in the U.S. focused on investing in companies that are global leaders in advancing women, according to the statement.
The $49 million Pax World Global Women’s Equality Fund trailed 72 percent of rival funds over the past three years and 82 percent over the past five years. In the past year, the fund has gained 20 percent, beating 59 percent of its peers. The fund’s largest holding was Royal Bank of Canada as of March 31, according to data compiled by Bloomberg.
Women hold 31 percent of board seats in companies held by the new fund compared with an 11 percent global average, according to the statement.
“We believe that it is simply smart business to invest in women and that this investment case will be borne out over time by the performance of this global index fund,” Krawcheck said in the statement.
The partnership with Pax is the first investing initiative by Krawcheck since she last year bought Ellevate Network, formerly 85 Broads, a network that promotes women as business leaders. She formed Ellevate Asset Management with business partner Allyson McDonald, according to the statement.
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