Investment principles and strategies of faith‐based funds
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.
Keywords
Citation
Boasson, E., Boasson, V. and Cheng, J. (2006), "Investment principles and strategies of faith‐based funds", Managerial Finance, Vol. 32 No. 10, pp. 837-845. https://doi.org/10.1108/03074350710688323
Publisher
:Emerald Group Publishing Limited
Copyright © 2006, Emerald Group Publishing Limited