The Board of Trustees of the Praxis Core Stock Fund has decided to fold it into the Praxis Growth Index Fund citing poor performance on the part of the Stock fund, according to a recent Securities and Exchange Commission filing.
The $110 million Stock fund was managed by Kenneth Feinberg and Christopher Davis and was up 6.9% year-to-date as of November 12, according to Bloomberg. The Growth fund is about half the size of the Stock fund ($51 million) and is up 14% year-to-date. It is managed by Chad Horning.
According to the filing, the Stock fund “has struggled to to attract additional assets due to poor past performance”.
The Stock fund has an investment advisory fee of 74 basis points, while the Growth fund has a lower investment advisory fee of 30 bps. The current gross expense ratios for the Core Stock Fund’s Class A and Class I Shares are 161 bps and 91% bps, respectively. After the reorganization, the estimated gross expense ratios for the Growth Index Fund’s Class A and Class I Shares will be 113 bps and 49 bps, respectively.
A special shareholders meeting is scheduled for December 12 to determine the fate of the Stock fund.