Title

Investment principles and strategies of faith‐based funds

Document Type

Journal article

Source Publication

Managerial Finance

Publication Date

10-2006

Volume

32

Issue

10

First Page

837

Last Page

845

Publisher

Emerald Group Publishing Limited

Keywords

Investments, Investment funds, Religion

Abstract

Purpose – To examine the rationale for the investment principles adopted by faith‐based funds from a biblical perspective and to evaluate the performance of faith‐based ethical funds.

Design/methodology/approach – A multi‐factor Carhart model is applied to examine the risk‐adjusted financial performance and investment strategies of faith‐based ethical funds.

Findings – The statistical results indicate that the faith‐based funds as a group do not under‐perform the market on a risk‐adjusted basis.

Practical implications – This suggests that investment managers may incorporate moral/ethical components into their investment decisions without unduly shortchanging their clients for whom they have fiduciary duties.

Originality/value – This is one of the very few papers which study faith‐based funds.

DOI

10.1108/03074350710688323

Print ISSN

03074358

E-ISSN

17587743

Publisher Statement

Copyright © Emerald Group Publishing Limited. Access to external full text or publisher's version may require subscription.

Full-text Version

Publisher’s Version

Recommended Citation

Boasson, E., Boasson, V. & Cheng, J. (2006) Investment principles and strategies of faith‐based funds. Managerial Finance, 32(10), 837–845. doi: 10.1108/03074350710688323