Praxis reaffirms Morningstar's recent changes to intermediate bond category
Morningstar splits its intermediate-term bond category into two categories
Praxis Mutual Funds®, a leading faith-based, socially responsible family of mutual funds from Everence® Financial, affirms and supports a recent decision by Morningstar to split its intermediate-term bond category into two categories: Intermediate Core and Intermediate Core Plus. The change went into effect on April 30. Prior to the change, Morningstar’s intermediate-term bond category was its largest fixed income category.
Investment managers of the Praxis Impact Bond Fund, which is categorized in the Intermediate Core category, have long sought this change to help investors better understand the wide range of funds within Morningstar’s vast intermediate-term bond category.
“We welcome this change and view it as a positive move for investors and intermediate bond fund managers alike,” said Benjamin Bailey, CFA®, vice president of investments and senior fixed income investment manager for Praxis Mutual Funds. “We view the new Intermediate Core category as a more representative group of peers, given our focus on quality - typically investment grade - securities. We will no longer be compared with core-plus funds which can invest in a wider range of securities including much lower quality bonds.”
A hallmark of the Praxis Impact Bond Fund is its current 30% weight in carefully selected, market-rate fixed-income investments that support climate and community investment projects around the world within a core, well-diversified bond portfolio.
On May 3, Morningstar upgraded the Praxis Impact Bond Fund institutional share class to a four-star rating overall with 386 funds in the class. The Fund celebrates its 25-year anniversary this year.