Faith-based investing: The conversation clients seek, the value advisors can add

Whether and how faith needs to be considered in investment portfolios is a conversation that 75% of investors want to have with their financial advisor. 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, according to new research by Praxis Investment Management™, an Everence®  company.

But the research also explains why: Advisors are uncomfortable with the topic, have relative 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 about which they fear they cannot produce good results.

Cover of the Faith-based investing research paper

Key findings

  • Mismatch in awareness and usage: Nearly half of investors (48%) are interested in faith-based investing, but only 21% of investors are familiar with the concept.
  • Barriers and biases: Advisors are cautious about faith-based investing due to concerns about product availability, competitive performance, transparency of holdings, and balancing faith priorities with financial goals.
  • Shared expectations for the future: Faith-based investing offers significant benefits, such as a greater sense of purpose for clients and stronger advisor-client relationships.

The study was administered during the fourth quarter of 2024 sponsored by Praxis and Everence in partnership with Bellomy Market Research.

Read the full report for additional insights, including advisors and investors’ shared expectations of faith-based investing in the future.

faith-based investing

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Investing together, impacting the world

Since 1994, we have shaped our approach to faith-based investing by asking the question "What more can we do?" - and integrating new strategies as they emerge over time.

We are guided by our core values, seeking to hold in tension a responsibility for the productive use of financial resources and a deep-seated concern for the individuals, communities and environments impacted by our investment choices.

 

Disclosure

You should consider the fund’s investment objectives, risks, sales charges and expenses carefully before you invest. The fund’s prospectus and summary prospectus contain this and other information. Please read them carefully before you invest.

Investment products are not FDIC insured, may lose value, and have no bank guarantee. Praxis Mutual Funds® and Praxis ETFs™ are advised by Praxis Investment Management, Inc. and distributed through Foreside Financial Services, LLC.