To read this content please select one of the options below:

Investment principles and strategies of faith‐based funds

Emil Boasson (School of Business, Ithaca College, Ithaca, New York, USA)
Vigdis Boasson (School of Business, Ithaca College, Ithaca, New York, USA)
Joseph Cheng (School of Business, Ithaca College, Ithaca, New York, USA)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 October 2006

2523

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

Related articles