On July 30, 2008, the SEC issued a public administrative order and cease and desist
proceedings against the Pax World Management Corp. ("Pax"). In this order, the SEC
charged Pax with violating investment mandates of its funds (SEC Administrative
Proceeding IA-2731). Pax utilized a socially responsible investing ("SRI") model, which
excludes companies from the Pax funds based upon certain business practices (revenue
derived from weapons, nuclear energy, alcohol, tobacco, etc.). The SEC found that from
2001 through early 2006 Pax held at least one company in one of its funds that should
have failed Pax's SRI screens and restrictions.
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