Innovative year for positive impact bonds

Impact bonds |

Praxis invests in new initiatives to support sustainability in Brazil, Finland and more

The market for positive impact bonds continues to pick up steam and, throughout 2016, Praxis Mutual Funds® has continued its commitment to invest in impact bonds, as a tangible way to help transform the world and make a difference.

“It’s been an innovative year for positive impact bonds,” said Benjamin J. Bailey, CFA, Praxis Mutual Funds Senior Fixed Income Manager. “Take, for example, the new Starbucks Corporate Sustainability Bond. It’s the first of its kind in the U.S., and is focused on improving sustainability programs in the Starbucks coffee supply chain. We’re excited to see growth like this in the positive impact bond space.”

And the momentum isn’t stopping. During the third quarter of 2016, the Praxis Impact Bond Fund has purchased additional positive impact bonds, including:

  • Suzano Bahia Sul Green Bond – This green bond from Brazilian paper manufacturer Suzano will be used to further the company’s sustainable forestry efforts, restoration of native forests, conservation of native plant and animal species, water management, energy efficiency and renewable energy. Suzano is already a leader in sustainable paper production, with all of its forests certified by the Forest Stewardship Council.
  • Finland’s Municipality Finance Green Bond – Finland’s first green bond will finance environmentally friendly projects in the country’s public sector. The projects fit within the categories of renewable energy, energy efficiency, sustainable public transportation, waste management, water and waste water management, sustainable buildings and environmental management.
    The Praxis Impact Bond Fund also purchased positive impact bonds from Mitsubishi UFJ Financial, the European Bank for Reconstruction and Development, the Asian Development Bank and the U.S. Agency for International Development.

Since 2006, the Praxis Impact Bond Fund has purchased bonds to invest in climate and community. That strategy, paired with the Praxis fund family’s unique values-based screening process, has enabled the Fund to make a significant difference while also developing a well-diversified portfolio.

“We want investments that make both social and financial sense,” said Bailey. “Green and sustainable bonds support projects that have a measurable impact. It’s one way we can invest in innovative projects that are changing communities around the world.”

To date, positive impact bonds make up almost 25 percent of the Praxis Impact Bond Fund portfolio. The Fund’s high social impact investments also include a 1 percent commitment to community development investments that benefit underprivileged communities nationally and around the world. Learn more about how the Praxis Impact Bond Fund is investing to impact climate and community at praxismutualfunds.com.

About Praxis Mutual Fund

Praxis Mutual Funds is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with their values. Praxis is the mutual fund family of Everence Financial, a comprehensive faith-based financial services organization helping individuals, organizations and congregations. To learn more, visit praxismutualfunds.com and everence.com, or call (800) 348-7468.

Disclosure

As of Sept. 30, 2016, the Praxis Impact Bond Fund has invested 0.22 percent of its assets in Starbucks, 0.17 percent in Suzano Bahia Sul, 0.22 percent in Finland’s Municipality Finance Corporation, 0.44 percent in USAID Ukraine, 0.27 percent in Mitsubishi UFJ Financial, 0.33 percent in the Asian Development Bank, and 0.44 percent in the European Bank for Reconstruction Development. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.

Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.