What values do you have that you would never want to violate simply to make a profit?
What are the things that are so important to who you are – things that are found deep at your core – that you would never want to violate earning a return on an investment?
Why are these things important to you?
Admittedly, these are rather deep questions!
They require reflection and thought. Left unanswered, however, an investor runs the risk of investing in something contrary to their values. Investing is never only about returns; it is also about values. Therefore, it’s important to understand the different approaches to investing before deciding how — or whether — they fit within a financial plan.
The goal of this article is not to persuade someone towards one method over the other. That’s something that needs to decided with your advisor, as well as your spouse and/or family members. Instead, the aim is to explain how we got where we are today and why we are offering Biblically Responsible Investing (BRI) as an option to our clients.
Over the Years
Values-based investing has evolved over decades. In the 1960s and 1970s, during the Vietnam War and the Civil Rights Movement, investors began questioning whether their money should support certain industries. This gave rise to Socially Responsible Investing (SRI). Early SRI funds focused on exclusions, avoiding industries like tobacco, alcohol, gambling, and weapons, while promoting companies with ethical labor and business practices.
Building on these frameworks, Biblically Responsible Investing (BRI) emerged in 1994 with the launch of Timothy Plan. For many years, the BRI options were few and far between. However, over the past two decades, it has come a long way. According to Brightline, today there are more than 231 faith-based mutual fund and ETF strategies run by 27 different managers with assets surpassing the $100 billion mark.
What was once a small subsection of a behemoth investing marketplace, has now become a robust option for the average retail investor. BRI applies similar screening and engagement strategies but asks a distinctly Biblical question: Does this company’s practices align with Christian principles of stewardship, human dignity, and moral responsibility?
BRI excludes companies in the industries listed above, as well as those tied to abortion and anti-family activism. It also supports those that promote human dignity, family structure, and transparent, ethical leadership.
Why Consider BRI?
For many Christians, faith influences:
- How we treat others
- How we serve
- How we give
- How we lead our families
Therefore, it follows that it’s worth asking, “Should faith influence how I invest?”
BRI allows investors to align their portfolio with their values. It provides a way to steward finances in a manner that reflects the life they are already seeking to live through their generosity, volunteering, and community involvement.
In Matthew 25:21, Jesus tells the faithful servant: “Well done, good and faithful servant! You have been faithful with a few things; I will put you in charge of many things.”
Faithfulness in Scripture includes stewardship — wisely managing what has been entrusted to us.
Our Approach
As a firm, we have spent considerable time in recent years researching and evaluating the Biblically Responsible Investing options available in the marketplace today. We have evaluated performance, history, cost, management styles, screening methods, just to name a few. We believe it is important that any strategy that we offer include three main components:
- Professionally constructed
- Diversified and disciplined
- Transparent in methodology
BRI is now an available option within our planning process. It is another way we can serve clients who desire greater alignment between their faith and their portfolio. However, this is merely an option. We view it as a matter of individual liberty. If you feel moved to continue the conversation, we’d be happy to do so. If not, that’s no problem at all. Again, we view our primary role regarding this topic as messenger. We want to ensure that we make you aware that you have new and additional options available to you, and BRI is one of them.
Interested in Learning More?
Investing is not just about accumulating wealth. It is about being faithful with what God has allowed us to earn and accumulate, and to make choices that reflect your values. If you would like to learn more about our Biblically Responsible Investing, or any other types of investing options available to you, we would welcome that conversation. We are happy to explain:
- How the screening process works
- How performance is evaluated
- How proxy voting is handled
- Whether BRI is appropriate for your specific goals
If you are not currently working with an advisor, you are welcome to connect with our team by completing our Discovery Questionnaire to schedule a 30-minute introductory call. We would love to learn more about your values, goals and the legacy that you would like to leave to determine whether Harvest Point® may be a good fit to serve you.
Sources:
https://www.cfainstitute.org/insights/articles/what-is-esg-investing
https://www.briinstitute.com/basis.htm?utm_source
http://efaidnbmnnnibpcajpcglclefindmkaj/https://static1.squarespace.com/static/638ebbc5514fd7313f399d8e/t/671942e10a53f4696db43835/1729708771013/Listed+Markets+Research+Paper+2024.pdf