BRI - Why It Matters
Many corporations in subtle and not so subtle ways, create wealth by extracting values from customers, employees, suppliers or the environment that are cross to God’s purposes and intent. Practically all major mutual funds or money managers hold companies in their portfolio that are involved in the below areas. Unintentionally, owners of these mutual funds are using their investment dollars to help support and promote areas to which they may be opposed. After all, the purpose of investing is to supply capital to businesses.
If we believe that God owns it all and that we are called to be good stewards of what he has given us to manage (refer to Biblical Application tab), then would we be less than good stewards if we did not seek to adjust our portfolios in light of the below factors?
A couple of the items below have hit close to home for me and I’ve seen the destruction they can cause. I’m inspired to offer products and services that screen out holdings that produce, distribute, research or contribute to the following business practices:
Abortion: Justice and mercy for the defenseless. Life is a precious gift from God. This screen seeks to protect the life of the unborn by screening out companies involved in the abortion industry.
Pornography: Our culture has exchanged sexuality for the lust of the eyes and impurity – and seeks to make it a commodity. This screen identifies companies engaged in the promotion of adult themes through its various channels.
Marriage: Marriage is holy – instituted by God. This screen seeks to protect the sanctity of marriage by identifying companies engaged in the promotion of lifestyles contrary to Biblical beliefs, while seeking to treat all persons with dignity and non-discrimination as to benefits granted to all employees.
Alcohol - Sobriety: Alcohol addiction hurts and destroys; therefore, we avoid companies that enable these abuses.
Gambling: We are called to be wise stewards of what God has given – not as one who gambles away his money or brings himself to ruin. This screen identifies gambling related activities including equipment manufacturers, casinos, riverboats, cruise lines, racetracks, and gambling software.
Tobacco: Known as a silent killer and a common cause of lung cancer. We avoid companies involved in the tobacco industry.
Anti-family Entertainment: This screen identifies companies engaged in entertainment through the promotion of violence, language, sex and drugs through advertisements and other channels.
Liberty – Rights: We are endowed by our Creator with certain unalienable rights. These rights are removed from many people across the world. This screen identifies companies that are involved in human oppression, human trafficking, slave labor, terrorism, and Christian persecution.
Understandably, the goal of mutual fund or private money managers is to gain monetary profit, but few give consideration to the morality of the companies they buy. Know there are mutual fund co’s & managers whose goal is to honor the Lord by avoiding holdings that delve into the above categories.
We can’t control the markets, certain events, terrorist attacks, etc. but we can control what companies we own when we invest. You have a choice and I hope you give consideration to how you can make a difference with your investment dollars. If I can be of help with your financial planning strategies or you’d like an assessment of your current investment holdings, or just have questions in general, please feel free to contact me.
FAQ’s:
Does performance suffer when implementing Biblically responsible investing?
Thus far I haven’t seen a difference. The goal of the mutual fund companies I work with are designed not to sacrifice earning competitive returns. The mutual fund or private money managers chosen have been carefully selected and are seasoned in this industry. That said, I try to remind clients that we are not immune to downturns and performance from time to time will suffer when investing in stocks regardless of BRI - and may or may not suffer more by utilizing BRI. However, over time I believe we can steer our way through the storms. Keep in mind, God has entrusted us to manage the assets and to be obedient with what He has allowed us to have – after all, it all belongs to Him.
On average, what percentage of mutual fund holdings own companies that I’m morally opposed to?
Due to the screening process for the seven categories listed, typically only 10 – 20% of companies listed on the exchanges are on the “no buy” list. However, 40% – 60% of many equity mutual fund holdings are invested in that 10 – 20%. So, the short answer is about half.
I offer a free report that will give a breakdown of your mutual fund holdings to show what percentage falls within the seven categories indicated and give further analysis of the holdings that participate in those areas.
Does it really matter according to Scripture?
As Christians we are called to be in the world but not of the world. Valuable information and Scripture basis on how money relates to our investments can be found by visiting www.briinstitute.com which includes a good short video, “Does God Care How We Invest?.” Additional resources can be found at www.stewardshipministries.org and a couple mutual fund and private money manager websites www.stewardshippartners.com or www.timothyplan.com.* I encourage you to visit these resources to be better informed on the financial aspects of what God desires for our lives. Here are a few verses I hope will help:
It's not our money, we are only the temporary managers of it. Psalm 24:1 - “The earth is the LORD's and the fullness thereof, the world and those who dwell therein.”
Romans 12:9 – “Abhor what is evil; cling to what is good.”
1 Thessalonians 5:15 – “[A]lways seek after that which is good for one another and for all men.”
1 Thessalonians 5:21-22 – “But examine everything carefully; hold fast to that which is good; abstain from every form of evil.”
Ephesians 5: 10-11 - "Try to discern what is pleasing to the Lord. Take no part in the unfruitful works of darkness, but instead expose them.”
Hebrews 5:14 – “[T]he mature . . . have their senses trained to discern good and evil.”
I Cor 4:2 – “It is required of stewards that they be found trustworthy.”
As Christians, our life belongs to God. I Cor 6: 19-20 – “You are not your own, for you were bought with a price.”
We are stewards (caretakers) of God's wealth. I Cor 4:1 – “This is how one should regard us, as servants of Christ and stewards of the mysteries of God.”
Matt 25:14 – “For it will be like a man going on a journey, who called his servants and entrusted to them his property.”
We are not to profit from ill gotten gain. Proverbs 1:19, Prov. 10:2, Deuteronomy 23:18
Leave A Legacy
Money is simply a tool. Consider leaving a spiritual legacy before leaving a financial legacy. Remember that it all belongs to Him. Invest in a way that honors the Lord.
* The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this website. We make no representation as to the completeness or accuracy of information provided at these websites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the websites you are linking to.