Investing for Impact—Without Sacrificing Returns with Stella Tai

Many investors feel a real tension today. They want their portfolios to reflect biblical convictions. They care about justice, stewardship, and human dignity. Yet they’re also navigating volatility, inflation, and economic uncertainty. When markets feel unstable, the question quietly surfaces: Do I have to choose between faithfulness and financial performance? The answer may surprise you. Today, we sat down with Stella Tai, Stewardship Investing Impact and Analysis Manager at Praxis Investment Management, one of the country’s oldest faith-based mutual fund families and a valued underwriter of this program. Our conversation centered on whether values-aligned investing can truly pursue both impact and competitive returns—even in uncertain times. The Tension Investors Feel In strong markets, impact investing can sound inspiring and straightforward. But when markets grow choppy, many investors feel drawn into survival mode. “I need to focus on returns.”“I can’t afford to think about impact right now.” Stella noted that this tension isn’t just financial—it’s spiritual. People of faith don’t want to pull back from caring about stewardship or community flourishing. But they also worry: Will my returns suffer if I invest with conviction? That’s an honest question. Scripture reminds us in Proverbs 21:5 that “the plans of the diligent lead surely to abundance.” There’s a difference between being responsive and being reactionary. When anxiety drives decisions, fear often replaces conviction—and that’s when costly mistakes happen. Discipline Over Panic At Praxis, stewardship in uncertain markets begins with discipline. Stella described three anchors: Financial rigor in every market cycle. Serious analysis, ongoing evaluation of risk and opportunity, and team-based decision-making help ensure emotions don’t drive the ship.Integration of impact with fundamentals. Impact and performance are not competing priorities. They are designed to work together.A long-term orientation. Rooted in stewardship, not speculation. Hebrews 12:11 reminds us that discipline may feel painful in the moment, but it yields a peaceful fruit of righteousness. That’s true in spiritual formation—and in investing. What Values-Aligned Performance Actually Looks Like One common misconception is that screening companies based on faith convictions automatically sacrifices performance. Stella explained that Praxis uses what’s called benchmark tracking. In simple terms, that means aiming to closely track the broader market while thoughtfully excluding companies that don’t align with biblical values. The goal isn’t to “beat the market.” It’s to minimize what’s known as “tracking error”—the gap between a fund’s returns and its benchmark. In other words, you can seek market-level returns while owning companies that better reflect your convictions. Over full market cycles—not just in a single quarter—faith-based investors should expect competitive returns. That commitment to consistency is central. Impact Beyond Screening Screening is often the most familiar strategy in values-aligned investing. But real impact doesn’t stop there. Praxis recently released its Real Impact Report, highlighting a framework that includes multiple strategies—from screening and shareholder advocacy to direct community investing. One powerful example involved long-term engagement with a large utility company in the Southeast. Instead of divesting, Praxis used its ownership stake to advocate for: A just transition for workers and communities as coal plants retireScience-based emissions reduction targetsResponsible planning tied to renewable energy growth The company published just transition metrics and began tracking progress. That’s what patient, long-term engagement looks like. Rather than stepping away, they stayed invested—believing transformation often happens through steady, faithful presence. Where to Begin If you’re intrigued by impact investing but feel overwhelmed, start with clarity. Ask yourself: What values matter most to me?What kind of world do I want my capital to help build?What are my long-term financial goals? Then consider working with an advisor familiar with faith-based investing options. You don’t have to master every strategy. Firms like Praxis Investment Management handle the research, engagement, and implementation. Your role is simpler—and profound: to say, "I want my money to reflect my values." When multiplied across many investors, even small portfolio decisions can move markets toward greater justice, dignity, and stewardship. And in uncertain times, that kind of disciplined conviction may be one of the most faithful investments you can make. On Today’s Program, Rob Answers Listener Questions: I’m 60 and recently lost a long-time job. I have about $1.5 million in a volatile 401(k) and would prefer not to draw from it yet. With my wife working part-time and ...