Not very long ago, investing in stocks never occurred to most people. Their money was too tied up in things like food and shelter to allow for much dabbling in the partial ownership of a corporation. But times have changed. Through mutual funds and various types of market-based saving, quite a few American households own some type of stock interest.
Of course, many who hold those interests have limited control over them. Odds are most stockholders aren't making buy/sell calls on a daily basis. For instance, participation in a mutual fund doesn't necessarily mean having a voice in the investments that fund makes.
That sort of limited control can be a concern for people who have strong Christian moral convictions. That's why Adam Auten, a Texas investment specialist, co-founded a company called Trinity Fiduciary Partners, LLC and organized the Epiphany Funds. Epiphany is a mutual fund dedicated to investing in solid companies that demonstrate respect for Christian values. That respect is measured based on how a company stacks up against the Socially Responsible Investment Guidelines created by the United States Conference of Catholic Bishops.
Investing with a Well Formed Conscience
On a day-to-day basis, we can all choose what we will and won't support with our dollars. Anti-Catholic newspaper? Don't buy it. Convenience store selling pornography? Shop elsewhere. But what about those bigger sums we rely on to provide for the future? Shouldn't the money we're counting on as a family legacy be building that legacy based on investments we're not ashamed of?
According to Epiphany's philosophy, a committed Catholic — indeed, any sincere Christian — deserves to know that his or her money isn't being invested in something morally wrong just because it's a good place to turn a dollar (e.g., embryonic stem cell research). That he or she doesn't hold shares in a company with a reputation for yielding high investment returns on the backs of an ill-treated workforce. That the money he or she is relying on to build a better future for loved ones isn't tied up in companies that jeopardize the future through complete disregard for the environment.
Auten puts it this way, "We started this fund to give people a quality investment vehicle that makes decisions based on values and beliefs shared by many faithful Christians as well as non-believers of good will. It's a great option for anybody who cares about corporate social responsibility."
Investing in socially responsible companies is subject to risks such as competitive industry conditions, limited earnings history and a reliance on one or a limited number of products. These factors may affect the value of your investment.
Turning a Profit While Making a Difference
A large part of Epiphany's mission is to help Christians be faithful stewards of their financial resources — to help them make a difference in the world while also making profitable investments. Says Auten, "Good returns and being choosy about how you earn those returns aren't mutually exclusive. I'm confident that our strategy and approach will be successful for our investors."
According to the Fund's philosophy, faithful stewardship of financial resources happens in two ways: 1) making morally responsible investments, 2) making financially responsible investments. The goal of the Fund's investment research is to balance those components, respecting both Catholic moral teaching and the importance of maintaining healthy financial resources for one's family.
It all begins by understanding that financial resources aren't just a necessary evil of life on earth, but genuine blessings. Not the "health and wealth" type, but blessings in the sense of having a place among the many gifts and tools God gives us in order to build His kingdom.
In a way, Epiphany emulates the good and faithful servant in the "Parable of the Talents" (Matthew 25:14-30), who was able to show his master a return on that which was entrusted to him. At Epiphany, that also means being able to show Our Lord that we earned our returns in honorable fashion. Auten says, "There are all sorts of investments out there for people who don't care how their profit is earned. But Epiphany shareholders do care; from time to time that may mean possibly accepting lower investment returns than we could earn elsewhere in order to walk our talk. For what it's worth, essentially all of my personal financial assets are in the fund. I believe in putting my own money where my mouth is."
Reviewing the Portfolio
Epiphany invests in companies whose stock represents a strictly defined value, that operate with easy-to-understand business models, and that deal in products or services that meet a real human need — one that won't disappear anytime soon. If the tides of fashion, constant reinventing, the whims of a wealthy elite, or large cash outlays are at the heart of a company's sales success, it's not the kind of stable investment Epiphany is looking for.
And just what does a solid Epiphany investment look like? Just look at the Fund's top five holdings as of March 31, 2007: Harris Corporation, United Parcel Service, Sallie Mae, Caterpillar Inc., and Arkansas Best Corporation. Each of those companies is a star in its industry and a bright spot on the landscape of corporate responsibility.
And each Epiphany Funds shareholder benefits from that glow.