The Praxis Impact Bond Fund, a pioneer in faith-based and socially responsible investing, has reached two notable achievements in 2024: its 30th anniversary and surpassing $1 billion in assets under management. Managed by Praxis Mutual Funds, a division of Everence Financial, this milestone reflects the increasing demand for investment options that allow individuals to match their financial objectives with their ethical values.
Chad Horning, CFA, President of Praxis Mutual Funds, remarked on the dual achievements, emphasizing the fund's role in facilitating positive global and personal financial stewardship. The fund offers a diversified, values-screened 'core bond' portfolio, including impact-oriented bonds, aiming to deliver both financial returns and societal benefits.
Benjamin Bailey, CFA, Vice President of Investments at Praxis, shared insights into the fund's evolution from its inception in 1994, focusing initially on excluding investments that didn't meet specific values criteria, to actively pursuing positive impact investments. A significant shift occurred in 2006 with the investment in vaccine bonds, marking a new direction for impact investing within the fund.
The expansion of the green bond market in the U.S. since 2009 has further enriched the fund's impact investing opportunities. By 2024, approximately 36% of the fund's portfolio is allocated to positive impact bonds, a notable increase from 25% in 2016, when the fund was rebranded to highlight its impact-focused approach.
Praxis identifies positive impact bonds as those contributing to climate and community betterment, including green, social, and sustainability bonds, adhering to International Capital Market Association (ICMA) guidelines. The fund's growth mirrors a wider shift towards socially responsible and impact-driven investment products, catering to investors eager to align their portfolios with their values.
For transparency, Praxis provides an annual Real Impact Report and quarterly updates, offering investors insights into how their investments foster positive change. As the Praxis Impact Bond Fund steps into its fourth decade with over $1 billion in assets, it exemplifies the expanding role of impact investing in the fixed income sector, showcasing the potential for ethical investing to grow and influence the financial landscape significantly.
