zakur
5th April 2003, 01:24 PM
I've just discovered this relatively new trend of faith-based investing, i.e. only investing in individual companies or mutual funds that reflect one's own religious values. As a non-religious person, I had never even considered such a practice existed. But I guess it does make sense for religious investors who would want to avoid hypocrisy.Americans Take Stock in 'Faith-Oriented Investing' (http://news.christiansunite.com/religion/religion00983.shtml)
Of the 79 percent of respondents who described themselves as "religious or spiritual," the connection was even greater, the "Times" reported. Sixty-two percent of this group either applied their religious principles to their investment decisions or would like to, the survey found.
"Many in the financial world mistakenly see religion and values mixing with investing only for a small niche of investors," Liechty said. "This survey reveals that religion and ethical issues are cutting a much wider swath across investing than previously was understood."
The newspaper said it was unclear whether the stock market's 18-month slide "has encouraged faith-oriented investing." "I know I'm praying, and praying hard, for my portfolio," said Hugh Johnson, chief investment officer at First Albany Corp. in New York. "I think praying may work better than research."He needs to do better research.
And it appears that, for some, faith-based investing doesn't involve just finding companies that share one's own religious values, but actively pressuring companies to adopt your own:
Religious Funds: Stairway to Heaven or Highway to Hell? (http://abcnews.go.com/sections/business/funds/mutual_fund001215.html)
Other fund families, such as the Aquinas Funds, try to appeal to Catholics by investing only in companies that promote Catholic values. In addition, the funds participate in shareholder activism, trying to get companies to change their policies to reflect Catholic teachings. Aquinas Funds' president Frank Rauscher says the company's areas of interest include issues such as abortion, contraception, gender and race discrimination, military weapons of mass destruction and affordable housing.
One example Rauscher cites is Whirlpool, which Rauscher says stopped donating to Planned Parenthood because of pressure from the fund family. A Whirlpool spokesman said the company stopped giving funds to Planned Parenthood a few years ago, but could not confirm whether or not it was because of pressure from shareholders.Here is a small sample of faith-based funds and indexes:Dow Jones Islamic Market Index (http://indexes.dowjones.com/jsp/islamicMarket.jsp)
The Dow Jones Islamic Market Indexes were created for people who wish to invest according to Islamic investment guidelines. The indexes track Shari`ah compliant stocks from around the world, providing Islamic investors with comprehensive tools based on a truly global investing perspective.
Certain businesses are incompatible with Shari`ah Law. Thus, stocks of companies in these businesses are not considered suitable for Islamic investing. Incompatible lines of business include : Alcohol, Pork-related products, Conventional financial services (banking, insurance, etc.), Entertainment (hotels, casinos/gambling, cinema, pornography, music, etc.). Shari`ah scholars also do not advise investments in tobacco manufacturers or defense and weapons companies.MMA Praxis Fund (http://www.mmapraxis.com/corporate/about.html)
Invests according to Anabaptist Christian beliefs, including Amish and Mennonite principles. Supports the environment, employment, and human rights. Screens out companies that profit from weapons, alcohol, tobacco, gambling, nuclear power, and other services.Wouldn't a fund that invests according to Amish beliefs exclude companies that profit from any technology, not just nuclear power?
Capstone Social Ethics & Religious Values Fund (http://www.servfunds.com/index.html)
Invests according to Seventh-Day Adventist principles. Screens out companies that profit from alcohol, tobacco, gambling, caffeine, meat, and pornography.
Christian Stock Market Investing (http://christianinvest.com/)
When it comes to investing there are many important issues for Christians to consider besides profits. A Christian must consider God's potential thoughts concerning their investment strategies. The Bible criticizes Christians for not being as wise as the ungodly in business affairs in Luke 16:8. Christians should work hard and take responsibility in all areas including educating themselves in investment opportunities.
Some company's business practices, products, and/or services are totally anti-Biblical and exclude Christian products. Should you invest (promote growth) in these types of companies? I think not! And yet investing in them without considering these principles is common and accepted by a large majority of stock investors, fund managers and some Christians.
Of the 79 percent of respondents who described themselves as "religious or spiritual," the connection was even greater, the "Times" reported. Sixty-two percent of this group either applied their religious principles to their investment decisions or would like to, the survey found.
"Many in the financial world mistakenly see religion and values mixing with investing only for a small niche of investors," Liechty said. "This survey reveals that religion and ethical issues are cutting a much wider swath across investing than previously was understood."
The newspaper said it was unclear whether the stock market's 18-month slide "has encouraged faith-oriented investing." "I know I'm praying, and praying hard, for my portfolio," said Hugh Johnson, chief investment officer at First Albany Corp. in New York. "I think praying may work better than research."He needs to do better research.
And it appears that, for some, faith-based investing doesn't involve just finding companies that share one's own religious values, but actively pressuring companies to adopt your own:
Religious Funds: Stairway to Heaven or Highway to Hell? (http://abcnews.go.com/sections/business/funds/mutual_fund001215.html)
Other fund families, such as the Aquinas Funds, try to appeal to Catholics by investing only in companies that promote Catholic values. In addition, the funds participate in shareholder activism, trying to get companies to change their policies to reflect Catholic teachings. Aquinas Funds' president Frank Rauscher says the company's areas of interest include issues such as abortion, contraception, gender and race discrimination, military weapons of mass destruction and affordable housing.
One example Rauscher cites is Whirlpool, which Rauscher says stopped donating to Planned Parenthood because of pressure from the fund family. A Whirlpool spokesman said the company stopped giving funds to Planned Parenthood a few years ago, but could not confirm whether or not it was because of pressure from shareholders.Here is a small sample of faith-based funds and indexes:Dow Jones Islamic Market Index (http://indexes.dowjones.com/jsp/islamicMarket.jsp)
The Dow Jones Islamic Market Indexes were created for people who wish to invest according to Islamic investment guidelines. The indexes track Shari`ah compliant stocks from around the world, providing Islamic investors with comprehensive tools based on a truly global investing perspective.
Certain businesses are incompatible with Shari`ah Law. Thus, stocks of companies in these businesses are not considered suitable for Islamic investing. Incompatible lines of business include : Alcohol, Pork-related products, Conventional financial services (banking, insurance, etc.), Entertainment (hotels, casinos/gambling, cinema, pornography, music, etc.). Shari`ah scholars also do not advise investments in tobacco manufacturers or defense and weapons companies.MMA Praxis Fund (http://www.mmapraxis.com/corporate/about.html)
Invests according to Anabaptist Christian beliefs, including Amish and Mennonite principles. Supports the environment, employment, and human rights. Screens out companies that profit from weapons, alcohol, tobacco, gambling, nuclear power, and other services.Wouldn't a fund that invests according to Amish beliefs exclude companies that profit from any technology, not just nuclear power?
Capstone Social Ethics & Religious Values Fund (http://www.servfunds.com/index.html)
Invests according to Seventh-Day Adventist principles. Screens out companies that profit from alcohol, tobacco, gambling, caffeine, meat, and pornography.
Christian Stock Market Investing (http://christianinvest.com/)
When it comes to investing there are many important issues for Christians to consider besides profits. A Christian must consider God's potential thoughts concerning their investment strategies. The Bible criticizes Christians for not being as wise as the ungodly in business affairs in Luke 16:8. Christians should work hard and take responsibility in all areas including educating themselves in investment opportunities.
Some company's business practices, products, and/or services are totally anti-Biblical and exclude Christian products. Should you invest (promote growth) in these types of companies? I think not! And yet investing in them without considering these principles is common and accepted by a large majority of stock investors, fund managers and some Christians.