Research Reveals the Biases and Barriers That Stifle Conversations About Faith and Investing Between Financial Advisors and Clients

3 out of 4 investors want advisors to understand their faith-based investing preferences.

Skepticism and lack of awareness cause 9 out of 10 advisors to avoid the topic.

GOSHEN, Ind.--(BUSINESS WIRE)-- Praxis Investment Management^TM, Inc., a company of Everence^® and a leading faith-based investment manager, today released the results of research highlighting a largely untapped opportunity for financial advisors to strengthen their understanding of and service to their clients. The findings are based on a survey of 1,001 individual investors controlled for age, region and gender and 403 financial advisors across multiple distribution channels.

Whether and how faith may be considered in investment portfolios is a conversation that 75% of investors want to have with their financial advisor, according to the research report “Faith-based Investing: The conversation clients seek, The value advisors can add.” However, just 9% of advisors are willing to initiate such a conversation.

“This disconnect suggests that advisors run the risk of underestimating or ignoring what’s important to clients,” said Chad Horning, President of Praxis Funds^TM. “But the research also explains why: Advisors are uncomfortable with the topic, have relatively low levels of awareness of solutions available, and lack confidence in the efficacy of those solutions. In short, they’re reluctant to engage clients on a topic they fear will not produce good results.”

Highlights from the research:

• 65% of advisors perceive a lack of client demand, interest and/or awareness.
• Just 59% of advisors are aware of faith-based investments.
• Advisors report a lack of product availability, doubt that investment performance results can be competitive, and believe that screening processes can be counterproductive to strong returns.
• Despite the biases and barriers identified, advisors and investors who are aware of faith-based investing share positive views on its benefits. There’s consensus in the data that faith-based investing empowers investors to feel a sense of purpose and fulfillment.
• Many expect faith-based investing to gain popularity over the next decade.

“Clients want to align their faith with their investments in order to create real impact,” said Mark Regier, Vice President of Stewardship Investing. “The broader availability of lower cost, liquid, tax-efficient faith-based ETFs can help raise awareness and prompt advisors to explore their options for serving these values-driven investors.”

Praxis is publishing this research in conjunction with its launch today of Praxis Impact Large Cap Growth ETF (NYSE: PRXG) and Praxis Impact Large Cap Value ETF (NYSE: PRXV). The two active equity ETFs track the CRSP US Large Cap Growth and CRSP US Large Cap Value indexes, respectively. The expense ratios for both ETFs are 0.36%.

“Now is the time to ask your clients about their thoughts on faith-based investing,” Regier encourages financial advisors. “Engaging clients about their values has the potential to build stronger connections, create a deeper understanding of the client, and demonstrate value by introducing them to an investing approach they may never have considered.”

The research was conducted by Bellomy Research in the fall of 2024. To download the full report, visit praxisinvests.com/research.

About Praxis Investment Management

Since 1994, Praxis has offered investment products designed to meet practical needs for everyday investors seeking to steward their assets consistent with their desire to promote positive social and environmental impacts. Praxis brings a faith-based approach to ETFs, mutual funds, multi-fund portfolio solutions and money market accounts. Based in Goshen, Indiana, Praxis is a company of Everence Financial. Learn more at praxisinvests.com.

CRSP US Large Cap Growth Index: Represents the Growth Style for companies covering top 85% of cumulative capitalization of CRSP US Total Market. It is not possible to invest in an index.

CRSP US Large Cap Value Index: Represents the Value Style for companies covering top 85% of cumulative capitalization of CRSP US Total Market. It is not possible to invest in an index.

An investor should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus and a summary prospectus which contains this and other information about the fund may be obtained by visiting praxisinvests.com/prospectus. The prospectus and the summary prospectus should be read carefully before investing.

Investing involves risk. Principal loss is possible.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.

Praxis Mutual Funds^® and Praxis ETFs^TM are distributed by Foreside Financial Services, LLC.

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Media Contact

Talia Dunyak

Lowe Group

talia.dunyak@lowecom.com

+1 414 376 7934

Source: Praxis Investment Management, Inc.