Investors seek faith-based options; advisors can do more to provide solutions

Faith-based investing is a growing priority for many investors, but most advisors aren't equipped to respond, according to new research by Praxis Investment Management. The report,  Faith-Based Investing: The Conversation Clients Seek, The Value Advisors Can Add (April 2025), reveals a significant disconnect between what many investors want to discuss and what advisors are addressing.

In short, clients are interested in aligning investments with their faith values, but most advisors aren’t talking about it. This post summarises the report’s key findings on the communication gap, common misconceptions, and the mutual benefits of faith-aligned investing. It also outlines how financial professionals can act, highlighting FaithInvest’s Bridging the Gap masterclass as a practical resource to equip advisors for this growing area.

Investors Seek Faith-Based Investing Conversations, Advisors Stay Silent

According to the Praxis research, whether and how faith can be reflected in an investment portfolio is a conversation that over three-quarters of investors want to have with their advisor. Yet few advisors are initiating it. In fact, according to the report, 75% of investors are interested in discussing faith-based investing, but only about 9% of financial advisors are willing to bring it up proactively.

Most advisors – roughly 91% – do not raise the topic unless the client does, meaning this crucial conversation often never happens. This gap points to a breakdown in communication: clients may assume advisors don’t offer faith-consistent options, while advisors assume clients aren’t interested.

Part of the issue is low awareness on both sides. The concept of “faith-based investing” is still unfamiliar to many investors and advisors alike. Less than one-quarter (only 21%) of individual investors surveyed were even familiar with the idea of faith-based investing, although nearly half said they might be interested if they knew more about it. Advisors are somewhat more aware, but still only 59% of advisors say they know about faith-based investment offerings. This means a significant number of professionals lack basic familiarity with faith-aligned investment solutions. Compounding the problem, 65% of advisors perceive that there is little to no client demand or interest in faith-based investing. Client interest is there, but many clients don’t realise faith-consistent options exist, and many advisors aren’t asking the question to uncover that interest! The result is a classic communication gap: investors won’t mention their faith-driven goals if they think advisors can’t help, and advisors won’t mention faith-based investing if they assume clients aren’t interested.

Barriers and Misconceptions Preventing Advisor Engagement

What’s holding advisors back from addressing faith-based investing? The research identifies several barriers and misconceptions that make advisors hesitant to broach the subject:

• Misjudging Client Interest: As noted, most advisors believe their clients aren’t interested or aware of faith-based investing (65% hold this view). This bias can deter advisors from ever bringing up the topic, even when many clients are open to it.

• Limited Awareness and Expertise: Only about 6 in 10 advisors are aware of faith-aligned investments themselves. Many simply don’t feel knowledgeable enough – they express discomfort with the topic and low confidence in available solutions. An advisor who isn’t sure what products or strategies exist will naturally shy away from the conversation.

• Product and Performance Concerns: Some advisors have doubts about the practicality of faith-based investing. They report a perceived lack of suitable investment products, worry that incorporating religious values means sacrificing performance, and believe that screening out certain stocks could hurt returns. As we’ve written about in our recent report Faith-consistent Investing: Challenging the Performance Penalty Myth, these misconceptions (often rooted in outdated information) lead to scepticism about whether faith-consistent portfolios can achieve competitive results.

• Fear of Offending or “Getting it Wrong”: Advisors may also feel that religion is a personal arena that they lack the training to discuss. This discomfort can make them reluctant to initiate a faith-oriented discussion, fearing they might offend the client or be unable to deliver good outcomes. In short, they’re unsure how to navigate a values-based conversation and worry it “will not produce good results”.

These barriers are real, but they are surmountable. The Praxis study makes it clear that the hesitation is largely due to lack of knowledge and confidence, rather than lack of client need. Once advisors understand the opportunities and tools available, they can overcome these misconceptions. As Chad Horning of Praxis notes, advisors today are uncomfortable with the topic mainly because they have limited awareness of the solutions and little confidence in their efficacy. Bridging this knowledge gap is the key to moving past the barriers.

The Mutual Benefits of Engaging on Faith-Aligned Investing

When advisors and clients do engage in faith-based investing conversations, the payoff can be significant for both. Despite the biases and initial scepticism, those who are familiar with faith-based investing tend to share a positive view of its value.

Both investors and advisors who have experience with faith-consistent investing report clear benefits and this can increase clients’ overall satisfaction with their portfolio including giving investors a greater sense of purpose and meaning and opening the door to more trust-based relationships.  Discussing an advisory client’s faith-driven goals can strengthen rapport and demonstrate that the advisor truly understands what motivates the client. In practice, this deeper connection can translate into greater client loyalty. In other words, values alignment can encourage healthier investment behaviours, which benefit both client and advisor.

The research makes clear that now is the time for financial advisors to bridge this gap, and it recommends leveraging specialised training and resources by seeking guidance designed for financial professionals on how to implement faith-consistent investing.

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FaithInvest’s Bridging the Gap Masterclass: Equipping Advisors for Faith-Based Investing

One practical way for advisors to build competency in this arena is to take advantage of training tailored to working with faith-based asset owners. FaithInvest’s Bridging the Gap is a new masterclass designed to improve understanding between financial professionals and faith-based investors.  Bridging the Gap directly addresses this goal by providing the insights and strategies advisors need to engage this rapidly expanding market effectively.

The Masterclass for advisors will be delivered in individual two-hour sessions:

Masterclass 1: Tues Sept 9, 2025, 07:00-09:00 PT | 10:00-12:00 ET | 15:00-17:00 BST

Masterclass 2: Tues Sept 23, 2025, 10:00-12:00 PT | 13:00-15:00 ET | 18:00-20:00 BST

To register your place or to find more information, visit https://www.faithinvest.org/bridging-the-gap