Praxis International Index Fund adopts new benchmark index

FPO
Praxis update |

The fund has transitioned to Morningstar Global ex-US Target Market Exposure NR USD Index

Praxis Mutual Funds®, advised by Everence® Capital Management, announces a transition for its Praxis International Index Fund. Effective May 25, 2023, the Fund’s benchmark index changed from the MSCI ACWI ex USA Index (Net) to the Morningstar® Global ex-US Target Market Exposure NR USD IndexSM. The new index provides a comparable representation of the foreign-developed and emerging markets in which the Fund invests to that of the prior benchmark index.

Morningstar entered the index business in 2001 but emphasized broad index offerings in the last five years. It hired Ron Bundy, who was the CEO of Russell Indexes, to lead this work. Since then, Morningstar has increased its index offerings to include broad style indexes like the Morningstar® Global ex-US Target Market Exposure NR USD IndexSM.

The objective of Morningstar® Global ex-US Target Market Exposure NR USD IndexSM is to target large-and mid-cap stocks listed in developed and emerging markets outside the U.S. representing the largest 85% of the market by float-adjusted market capitalization. The MSCI ACWI ex USA Index also covers approximately 85% of the global equity opportunity set outside the U.S. Both indices have a similar number of holdings and a similar factor composition.

As of April 30, 2023, MSCI has 2,258 holdings while Morningstar has 2,351 holdings. The dividend yield1 for the Morningstar index is 3.13% while the MSCI index is 3.17%. The price to book2 is also similar, with 1.67x for Morningstar and 1.71x for MSCI. The five-year performance standard deviation3 is 17.25% for Morningstar and 17.37% for MSCI.

Chad Horning, CFA®, President of Praxis Mutual Funds says, “We are pleased to partner with the team at Morningstar. The fund will continue to use its optimized index investing approach to offer investors a competitively performing product while providing a strong platform for Praxis impact strategies.”


Benjamin Bailey, CFA, Vice President of Investments, Co-portfolio Manager of Praxis Impact Bond Fund | Praxis Mutual Funds
Author Benjamin Bailey
Vice President of Investments

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Disclosure

Sources: Morningstar Index Fact Sheet Morningstar Global ex-US TME NR USD April 30, 2023. MSCI Index Fact Sheet-MSCI ACWI ex USA Index USD, April 30, 2023.

Praxis International Index Fund is not sponsored, endorsed, sold or promoted by Morningstar, Inc. Morningstar makes no representation or warranty, express or implied, to the owners of the Praxis International Index Fund or any member of the public regarding the advisability of investing in securities generally or in the Praxis International Index Fund in particular or the ability of the Morningstar® Global ex-US Target Market Exposure NR USD Index℠ to track general stock market performance. Morningstar’s only relationship to Everence Capital Management, Inc. is the licensing of certain trademarks, service marks, and service names of Morningstar and of the Morningstar® Global ex-US Target Market Exposure NR USD Index℠ which is determined, composed and calculated by Morningstar without regard to Everence Capital Management, Inc. or the Praxis International Index Fund. Morningstar has no obligation to take the needs of Everence Capital Management, Inc. or the owners of Praxis International Index Fund into consideration in determining, composing or calculating the Morningstar® Global ex-US Target Market Exposure NR USD Index℠. Morningstar is not responsible for and has not participated in the determination of the prices and amount of the Praxis International Index Fund or the timing of the issuance or sale of the Praxis International Index Fund or in the determination or calculation of the equation by which the Praxis International Index Fund is converted into cash. Morningstar has no obligation or liability in connection with the administration, marketing or trading of the Praxis International Index Fund.

Morningstar, Inc., expressly disclaims any warranty around the accuracy, completeness and/or timeliness of the Morningstar® Global EX-US Target Market Exposure NR USD Index℠ or any data included therein and Morningstar shall have no liability for any errors, omissions, or interruptions therein. Morningstar makes no warranty, express or implied, as to results to be obtained by Everence Capital Management, Inc., owners or users of the Praxis International Index Fund, or any other person or entity from the use of the Morningstar® Global EX-US Target Market Exposure NR USD Index℠ or any data included therein. Morningstar makes no expressor implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Morningstar® Global EX-US Target Market Exposure NR USD Index℠ or any data included therein. Without limiting any of the foregoing, in no event shall Morningstar have any liability for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

Indexes are unmanaged and it is not possible to invest directly in an index.

1Dividend yield: A financial ratio showing the return an investor would earn from an investment based solely on its dividend payments. 

2Price to book ratio: A comparison of a firm's market capitalization to its book value. 

3Standard deviation: A quantity calculated to indicate the extent of deviation for a group as a whole.