“A green bond is something that has a direct influence on the environment.” – 01:35
Benjamin Bailey, Praxis Investment Management, joins Remy Blaire at the New York Stock Exchange to discuss the concept of faith-based investing, a growing interest among investors who wish to align their financial portfolios with their personal values. Despite nearly half of investors expressing a desire for this alignment, only 9% of financial advisors are initiating conversations about faith-based investing.
Benjamin begins by discussing the Praxis Impact Bond Fund, emphasizing its commitment to outperforming the market while incorporating green, social, and sustainability bonds. He reveals that approximately one-third of the fund is currently invested in these impactful bonds, which aim to create significant benefits for both the environment and communities.
The conversation then shifts to the terminology surrounding impact investing. Benjamin explains that green bonds are specifically tied to projects with direct environmental benefits, such as solar and wind farms, and highlights the importance of annual impact reports that detail how funds are utilized and the outcomes achieved.
Remy and Benjamin delve into recent research on faith-based investing, which indicates that about 50% of investors are interested in this approach. However, many advisors are hesitant to discuss it, fearing potential divisiveness or disruption of existing client relationships. Benjamin reassures listeners that addressing values-based investing can actually enhance advisor-client relationships, as clients appreciate the opportunity to invest in ways that reflect their beliefs while still achieving satisfactory returns.