Praxis increases investments in green bonds

Impact bonds |

Purchases support climate-related investments across the globe

The Praxis Intermediate Income Fund purchased a total of $9.5 million in green bonds during the fourth quarter of 2015, continuing the commitment by Praxis Mutual Funds® to make investments that have a positive, lasting impact on climate and community.

 Notably, Praxis invested $1 million in African Development Bank’s newest U.S. dollar-denominated green bond. This bond, which supports African countries in their adaptation and transition toward sustainable development goals, is the second green bond Praxis has purchased from the African Development Bank. The Bank is known for financing economic development and social progress in African countries, and is committed to creating growth that is more inclusive and environmentally sustainable.

Additionally, Praxis purchased $1 million in the first green bond issued by Mexico’s state-owned development bank, Nacional Financiera S.N.C. The bond is the first issued in Latin America to receive Climate Bonds Certification, and will finance nine wind-energy projects in Mexico.

Praxis also invested $1 million each in green bonds from Export Development Canada, ING Bank, International Finance Corporation, KfW and Southern Power; and $1.25 million each in green bonds from Sumitomo Mitsui Banking and Electricite de France.

“We are pleased with the increasing number of green bond opportunities,” said Benjamin Bailey, CFA, Co-Manager of the Praxis Intermediate Income Fund. “Globally, $42 billion of green bonds were issued in 2015, up from $37 billion in 2014, and I expect that number will grow in 2016. Our goal is to purchase investments that benefit the climate and the community – and meet our return expectations. These bonds contribute significantly to the goal.”

Praxis Mutual Funds, advised by Everence Capital Management, is among the nation’s leaders in green bond investments. The Praxis Intermediate Income Fund, in particular, has a history of purchasing bonds that make a social and environmental impact. In 2009, the Praxis Intermediate Income Fund became one of the first socially responsible investors to purchase a U.S. dollar-denominated World Bank green bond.

“At Praxis, we want to be part of forward-looking investments that strengthen our local and global communities,” said Chad Horning, CFA, President of Praxis Mutual Funds. “That’s why we are committed to seeking out opportunities to promote a sustainable future and actively integrate environmental, social and governance data in our management process.”

Positive impact investments now make up 22 percent of the Praxis Intermediate Income Fund. Examples of other similar market rate investments include bonds in education; youth and employment bonds; auto industry green asset-backed securities; real estate investment trust green bonds; solar and wind installations; poverty reduction; affordable housing; vaccines; medical research; and community infrastructure. The Fund’s high social impact investments also include a 1 percent commitment to community development investments that benefit underprivileged communities nationally and abroad. Learn more about how the Praxis Intermediate Income 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 faith 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

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.

The Fund’s stewardship investing strategy could cause the Fund to sell or avoid securities that may subsequently perform well, and the application of social screens may cause the Fund to lag the performance of its index.

As of Dec. 31, 2015, the Praxis Intermediate Income Fund has invested 0.46 percent of its assets in the African Development Bank, 0.28 percent of its assets in Electricite de France, 0.58 percent of its assets in Export Development Canada, 1.44 percent of its assets in the IFC Green Bond Program, 0.23 percent of its assets in ING Bank, 0.81 percent of its assets in KfW, 0.23 percent of its assets in Nacional Financiera S.N.C., 0.23 percent of its assets in Southern Power and 0.29 percent of its assets in Sumitomo Mitsui Banking. Fund holdings are subject to change. To obtain holdings as of the most previous quarter, visit praxismutualfunds.com.