Praxis Impact Bond Fund Reaches Dual Milestones: 30 Years and $1 Billion in Assets

Praxis Mutual Funds, a leader in faith-based, socially responsible investing, has announced that its Impact Bond Fund has reached two significant milestones: 30 years of operation and $1 billion in assets. This achievement underscores the growing appeal of socially responsible investment options in the fixed income market.

The Praxis Impact Bond Fund, launched in 1994, aims to provide investors with a diversified way to align their investment dollars with their values. The fund's growth reflects a broader trend in the financial industry towards sustainable and impact-oriented investing. Chad Horning, CFA, President of Praxis Mutual Funds, emphasized the fund's dual focus on financial stewardship and making a difference in the wider world.

Over its three-decade history, the fund has evolved from primarily screening out investments that didn't meet specific values criteria to actively seeking out positive impact bonds. Benjamin Bailey, CFA, Vice President of Investments, noted that the availability of impact-oriented bonds has significantly increased since the fund's inception, allowing for greater representation in the portfolio while maintaining diversification.

The fund's portfolio includes a range of U.S. corporate debt securities, government agency notes and bonds, and mortgage-backed securities. Notably, about 36% of the portfolio is now dedicated to positive impact bonds, which are defined as bonds making specific positive impacts on climate and communities. This includes green bonds, social bonds, and sustainability bonds that adhere to guidelines set by the International Capital Market Association.

The success of the Praxis Impact Bond Fund is indicative of a broader shift in investor preferences towards financial products that align with personal values and contribute to positive societal change. As the market for impact bonds continues to grow, it presents opportunities for both investors seeking to make a difference and companies looking to fund sustainable initiatives.

This milestone also highlights the potential for faith-based and socially responsible investing to achieve scale and longevity in the financial markets. As more investors seek ways to integrate their values with their investment strategies, funds like the Praxis Impact Bond Fund are likely to play an increasingly important role in shaping the future of responsible investing.