First-time bonds among new Praxis investments

Impact bonds |

New impact bonds include firsts for sustainable coffee, Costa Rica and India

With new positive impact bond purchases, Praxis Mutual Funds® continues its commitment to investing in climate and community.

The positive impact bonds added to the Praxis Impact Bond Fund* portfolio will support projects to develop sustainable and renewable energy infrastructure, as well as fund innovative, sustainable corporate initiatives.

“We’re happy to announce the latest positive impact bonds added to the portfolio, which show the unique snapshot of green projects developed by governments, corporations and more,” said Chad Horning, CFA, President of Praxis Mutual Funds and Everence® Chief Investment Officer. “These bonds are an investment in a clean and sustainable future for our world – and a welcome addition to our impact bond holdings.”

Some interesting examples of positive impact bonds purchased in the second quarter 2016:

  • Axis Bank Green Bond – This Indian bank is the first company in India to issue a certified green bond. The bond will finance climate solutions around the world.
  • Banco Nacional Costa Rica Green Bond – This Central American nation’s first green bond will finance wind, solar, small hydro and wastewater projects across the country, based on Costa Rican environmental protection standards.
  • Starbucks Corporate Sustainability Bond – The first of its kind in the U.S., this bond’s proceeds will help Starbucks enhance its sustainability programs in its coffee supply chain management, including fair pay for workers and protection for the environment.
  • European Investment Bank Green Bond – A leading issuer of green bonds, the EIB is known for its detailed financial and impact reporting. The bank funds projects around the world that work toward energy efficiency and expand renewable energy.
  • Spruce ABS Trust Green Bonds – Funds from this bond will finance loans for residential solar and home efficiency improvements, helping bring the benefits of low-carbon energy to the average consumer.

Other positive impact bond purchases included bonds from the State of Massachusetts, Westar Energy in Kansas and Toyota Motor Corp.

“When selecting positive impact bonds for the portfolio, we look for those with clear plans to make a significant difference and also add to a well-diversified portfolio,” said Benjamin Bailey, CFA, Praxis Mutual Funds Senior Fixed Income Investment Manager. “We benefit from ever-improving positive impact bond options, as that market continues to expand.”

Positive impact investments now make up almost 23 percent of the Praxis Impact Bond Fund. 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.

About Praxis Mutual Funds and Everence

Praxis Mutual Funds, advised by Everence Capital Management, is a leading faith-based, socially responsible family of mutual funds designed to help people and groups integrate their finances with values. To learn more, visit praxismutualfunds.com.

Everence helps individuals, organizations and congregations integrate finances with faith through a national team of advisors and representatives. Everence offers banking, insurance and financials services with community benefits and stewardship education. To learn more, visit everence.com or call (800) 348-7468.

Disclosure

*Formerly named Praxis Intermediate Income Bond. 

As of June 30, 2016, the Praxis Impact Bond Fund has invested 0.34 percent of its assets in the State of Massachusetts, 0.17 percent of its assets in Spruce ABS Trust, 0.28 percent of its assets in Westar Energy, 0.11 percent of its assets in the Axis Bank, 0.23 percent of its assets in Starbucks, 0.68 percent of its assets in Toyota Auto Receivables, 0.17 percent of its assets in Banco Nacional Costa Rica, and 0.47 percent of its assets in European Investment Bank. 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.