Investment Management

Our Investment Process (the following 15 steps) provides an overview of our investment management approach to meeting the stewardship needs of Christian investors and the client service and fiduciary needs of their advisers.

A. Values Research

  1. Screening – own only companies that reflect biblical values

B. Portfolio Construction

  1. Growth – select rapidly growing companies to achieve good long-term growth
  2. Fundamentals – focus on companies whose stocks are attractively valued
  3. Concentration – own 28-34 stocks to focus research attention and increase investment discipline
  4. Diversification – choose companies from major S&P economic sectors, from different industries within each sector and from desired style boxes to reduce short-term volatility
  5. MPT Evaluation – use MPT (modern portfolio theory) statistics to better understand the investment characteristics of the portfolio and seek a good risk-adjusted return
  6. Benchmark – use a good benchmark (generally market cap weighted) to judge performance
  7. Asset Allocation – reduce risk and short-term volatility further by adding high yield stocks (such as REITs and trusts), government bond ETFs and / or other alternative investments
  8. Models – use model portfolios to serve investors equally, efficiently, and effectively

C. Portfolio Management

  1. Back Office Support – utilize third party expertise to serve clients effectively
  2. Sell Discipline – set and execute a sell strategy to avoid excessive erosion of capital
  3. Monthly Monitoring – track performance and MPT characteristics to identify and implement adjustments needed to achieve a good risk-adjusted, long-term return
  4. Quarterly Report – publish and explain the results to investors and their advisors
  5. Annual Review – conduct in depth, company by company, structural & tactical reviews each year and make appropriate adjustments consistent with this Investment Process
  6. Investment Management – attempt to discern interim company and sector trends and act on them selectively while maintaining a low turnover, buy-and-hold approach