Our Investment Process (the following 13 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.
- Screening – Both negative and positive screening. Our objective is to own companies that reflect biblical values
- Growth – select rapidly growing companies to achieve good long-term growth
- Fundamentals – focus on companies whose stocks are attractively valued
- Concentration – own 20-30 stocks to focus research attention and increase investment discipline
- Diversification – choose companies from major S&P economic sectors, from different industries within each sector to reduce short-term volatility
- Benchmark – use a good benchmark (generally market cap weighted) to judge performance
- 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
- Models – use model portfolios to serve investors equally, efficiently, and effectively
- Back Office Support – utilize third party expertise to serve clients effectively
- Monthly Monitoring – track performance to identify and implement adjustments needed to achieve a good risk-adjusted, long-term return
- Quarterly Report – publish and explain the results to investors and their advisors
- Annual Review – conduct in depth, company by company, structural & tactical reviews each year and make appropriate adjustments consistent with this Investment Process
- Investment Management – attempt to discern interim company and sector trends and act on them selectively while maintaining a low turnover, management approach