About the manager

Everence Capital Management, Inc., is the advisor for MMA Praxis Mutual Funds and is part of Everence (formerly MMA), which offers a broad spectrum of financial services to people and groups who desire to integrate faith and values into their financial decisions. Founded in 1945 by the Mennonite Church, Everence grew out of a long tradition of church communities putting faith into action by sharing resources with each other. The company recognizes that its clients' financial decisions reflect their faith, values and whole life. The various financial products from Everence help clients use their money in a way that aligns it with who they are and where they wish to go in the future.

Investment philosophy

In making investment decisions, Everence strives to invest in companies that:

• Respect the dignity and value of all people
• Build a world at peace and free from violence
• Demonstrate a concern for justice in a global society
• Exhibit responsible management practices
• Support and involve communities
• Practice environmental stewardship

Consistent with the foregoing investment criteria for socially responsible investing, Everence also makes certain types of community development investments. These consist of investments in local community-oriented investment programs which are intended to provide economic growth and opportunity in areas deemed suitable for investments of this type. The objective of such community development investments is to foster sustainable social and economic well-being through the use of targeted investments.

Investment approach

The Everence fixed income strategy invests primarily in fixed income securities of all types, consistent with the company's socially responsible investing criteria. These fixed income securities include corporate bonds and notes, U.S. Government agency obligations, mortgage- backed securities and asset-backed securities. Certain securities issued by U.S. Government agencies or government-sponsored enterprises may not be guaranteed by the U.S. Treasury. The Strategy will consider purchasing fixed income securities that Everence Capital Management believes provide a competitive rate of return relative to the Barclays Capital Aggregate Bond Index¹, which will be used as a guide in determining sector allocations. The Strategy will seek to underweight and overweight certain sectors, depending on the relative value, while maintaining overall interest rate exposure substantially similar to the Barclays Capital Aggregate Bond Index. Everence Capital Management will consider using interest rate futures contracts and credit default swap agreements to manage interest rate and credit risks.

Portfolio managers

Benjamin J. Bailey and Delmar King, co-managers, Everence fixed income strategy

Benjamin joined Everence in 2000 and was named co-portfolio manager of the MMA Praxis Intermediate Income Fund in March 2005. Before then, he served as assistant portfolio manager for the fund and as an investment services support assistant and a fixed income research analyst. Benjamin is a 2000 graduate of Huntington (Ind.) College in business-economics. He earned the Chartered Financial Analyst® designation in 2003.

Del has managed the MMA Praxis Intermediate Income Fund since its 1994 inception. He has more than 30 years of investment experience with Everence, where he has investment responsibilities for other Everence entities and individual clients. Del is a graduate in economics from Goshen (Ind.) College and earned his master's degree in business administration from Indiana University. Del also serves on the Investment Committee of the Elkhart County (Ind.) Community Foundation.

ESG commitment

When considering an investment, Everence Capital Management analyzes the performance of the issuing company not only for its financial strengths and outlook, but also for the company's performance on social issues. By utilizing social investing screens, it believes it can encourage corporations to be good stewards of their resources, to care for the environment and to create work environments that benefit both the employees and the shareholders.

Everence practices what it calls stewardship investing—a philosophy of financial decision-making motivated and informed by social convictions drawn from a 500 year-old faith tradition. This approach holds in tension a responsibility for the productive use of financial resources and a deep-seated concern for the individuals, communities and environments that are impacted by its investment choices.

Pax World Management makes no assurance that the manner in which Everence Capital Management manages its assets in the ESG Managers® Portfolios is the same as or entirely consistent with the manner in which it manages any of its other Funds or accounts. 

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¹The Barclays Capital Aggregate Bond Index represents securities that are U.S. domestic, taxable and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities and asset-backed securities. One cannot invest directly in an index.

When investing in bonds, you are subject, but not limited to, the same interest rate, inflation and credit risks associated with the underlying bonds owned by the Fund.

CFA is a trademark owned by CFA Institute

Everence Capital Management is not affiliated with ALPS Distributors, Inc.