Note: The following is Mark Regier’s Stewardship Investing letter from the Praxis Mutual Funds 2023 Annual Report.
Since 1994, Praxis Mutual Funds® has sought to provide investors with:
- Broadly diversified, core portfolio holdings.
- Consistent performance through benchmark-level returns.
- Investments reflecting faith-driven core values.
- Opportunities to promote real-world change.
Each of these relates to our philosophy of Stewardship Investing, which brings a principled approach to balancing investors’ financial needs and their desire to impact our world positively.
In Chad Horning’s introduction to our recently issued annual Praxis Real Impact Report 2023, he writes, “We know that our shareholders invest with Praxis Mutual Funds for something different – something deeper that connects them with others who want to make an impact beyond contributing to their own well-being.”
One way to view the “something different, something deeper” that unites Praxis shareholders is through the lens of the Praxis ImpactX framework. Following are brief highlights from 2023, drawn from each of the seven distinct impact strategies that make up ImpactX:
Values + ESG Screening
- Praxis screens exclude between 8-20% of companies in our stock indices.
Proxy Voting
- 17,976 total proposals voted on by Praxis on behalf of our shareholders.
- Votes with management recommendations: 82%.
ESG Integration
- Praxis doesn’t just screen out; we also invest in – or invest a higher weight into – companies that better represent our core values.
Positive Impact Bonds
- 36% of Praxis Impact Bond Fund holdings invested in impact bonds (balance in other ESG/SRI holdings).
- $81 million in impact bonds purchased in this year.
- 174 total impact bonds held in the Fund.
Company Engagement
- ICCR members, including Praxis, filed over 450 proposals last year, ranging in subjects from human rights and child labor to environmental stewardship and political lobbying.
- Advocacy and Education
- Praxis joined or wrote three investor initiatives addressing the SEC, U.S. Government and U.S. House of Representatives.
Community Investing
- About 1% of Praxis Mutual Fund assets dedicated to community development investments.
- $17 million in community development investments through our partner Calvert Impact and $5.6 million community development investments through our partner Capital Impact Partners.
What unites all seven impact strategies is the underpinning desire to move from what should we do, to what could we do. This movement has been a part of Praxis since our founding 30 years ago, even before we had the words to describe it. We’ve always known that our investments need to be about more than what we avoid. Our investments should represent what God is calling us to do in this world, in as many forms as possible!
Our many achievements – including a record 10 years of positive inflows – have not happened in a vacuum. From our Board of Trustees and Everence® management; from industry colleagues, advisor partners and service providers to our passionate and dedicated staff, we have been blessed in more ways than we can count.
Of course, none of this work – this mission – would be possible without the tens of thousands of faith-based and values-driven investors who have trusted us to be their partners in stewarding the resources entrusted to them. We are grateful and look forward to serving you in even more ways during the anniversary year to come!