Biblically Responsible Investors See Comparable Returns—Or Better
According to Timothy Plan, Investors Who Take Their Faith to Heart in All Things Do Not Have to Sacrifice Their Bottom Line
ORLANDO, Fla.—When it comes to obeying the Lord in every aspect of their lives, tens of thousands of Christians around the country ensure that their finances also honor God. For those who are committed to Biblically Responsible Investing (BRI), it is of upmost important to honor God by aligning their investments with their values.
But does this mean sacrificing their return on investment? Certainly not, says Timothy Plan, which has helped investors achieve their financial goals while investing in a biblically and morally responsible manner by thoroughly researching each company to determine the actions of the firm on several levels.
For instance, Timothy Plan does not invest in companies that support pornography, the abortion industry or have other agendas contrary to the teachings of Scripture, or that are actively participating in activities that have proven to be destructive to our communities-at-large.
When it comes to comparable returns, a considerable body of research indicates that investors do not have to compromise their bottom lines while engaging in BRI and may even reap higher returns in some cases.
“Investors who want to honor God with their God-given resources should not fear the unknown when it comes to comparable returns,” said Timothy Plan founder and president Art Ally. “After all, as the Bible tells God’s followers in I Samuel 2:30, ‘Those who honor me I will honor, but those who despise me will be disdained’ (NIV).”
A 2016 study at the University of Pennsylvania’s Wharton School of Business found that screened investments performed favorably against unscreened investment funds: “Impact funds in the sample that seek market-rate-returns demonstrate that they can achieve results comparable to market indices, while still reporting mission preservation in the vast majority of their exited investments.”
The study, “Great Expectations: Mission Preservation and Financial Performance in Impact Investing,” posited that, “Market-rate-seeking impact investments in the sample, therefore, may be financially competitive on a gross basis with other equity investing investment opportunities. This financial performance may be why impact fund managers often assert that there is little inherent tension between profits and purpose.”
Additionally, an Oxford University 18-year study of screened funds comprising 180 U.S. companies for “sustainability” and other factors, such as excluding firms that employed child labor, showed better returns, including lower cost of capital and “stock price performance.” The authors compiled evidence “that High Sustainability companies significantly outperform their counterparts over the long term, both in terms of stock market as well as accounting.”
In 2015, a Christian Investment Forum study also noted that previous studies had established that Socially Responsible Investing, of which BRI is a subcategory, performed as well or better than unscreened funds.
The first of its kind, Timothy Plan is a family of mutual funds that screens its funds to ensure that no money is invested in companies that are supportive of ideals that are contrary to their biblical, moral imperative. The trend of biblically responsible investing, or BRI, is growing rapidly. In fact, last year, Timothy Plan alone reached $1 billion of assets under management.
Since 1994, Timothy Plan has existed to help advisers and investors achieve their financial goals through a pro-life, pro-family approach to investing—not only to benefit the investor but the broader culture. Timothy Plan is firmly committed to running a mutual fund company with the integrity, excellence and wisdom that brings honor and glory to Jesus Christ and is a beacon for Godly stewardship in the financial community.
Mutual funds are available through a prospectus by contacting the fund or a financial professional. When considering a mutual fund, investors should always carefully read the prospectus before investing to analyze the investment objectives, risks, charges and expenses.
Timothy Plan is distributed by Timothy Partners, LTD a member of (FINRA).