Benjamin Bailey, CFA®, Vice President of Investments for Praxis Mutual Funds® and Everence Financial®, was recently interviewed on the MoneyWise with Rob West syndicated radio show and podcast. Bailey and West discuss the important role that bonds can play in securing our financial futures, how bonds can offer downside protection, and the way that stewardship investing can be transformative.
During the interview, Bailey talks with West about how the team at Praxis Mutual Funds screens out certain companies that conflict with Christian values and intentionally selects some companies because of the positive impact they make on the world.
“These bonds need to meet the same criteria for return versus risk that we would have with any of our other investments,” says Bailey. “They have to be able to do that over the long term, and we have seen that.”
Bailey looks to the parable of the talents, Matthew 25:14–30, where God calls us to be productive stewards of God’s gifts, and how investing in bonds provides an opportunity to do just that. Bailey notes that “When an investor sees that a portion of the money they need to save can go directly to make a positive impact in the world, then this portion of their portfolio becomes a way to transform the world.”
The interview explores how the bonds that make up part of a well-diversified portfolio can offer a hedge while the market is volatile and also can be used to make a positive impact on the world.
Learn more about Praxis’ work with impact bonds here.
Check out the full conversation from July 16, 2021 on the MoneyWise podcast here.