iQ 40 Days (Large Cap) Model
INVESTMENT OBJECTIVE
The iQ 40 Days Large Cap investment model seeks to provide returns in excess of index benchmarks by investing in stocks of large-cap companies that are not involved with activities deemed as "non-biblical".
INVESTMENT PROCESS
The iQ 40 Days Large Cap investment model implements the following rules-based process:
Begin with a starting universe of stocks that are held by faith-based '40 Act funds and select the largest 30 companies (as represented by market capitalization).
Select the top ten companies based on a multi-factor ranking system that consists of the following factors:
Share Buyback
Price Momentum
Technical Indicators
Balance Sheet Strength
Valuation
This model reconstitutes every February, May, August and November.
The Benefits of a Multi-Factor Process
An investment strategy that integrates share buybacks, price momentum, technical indicators, balance sheet strength, and valuation targets well-rounded opportunities. Share buybacks hint at a company's optimism, boosting stock value. Price momentum captures gains by following market trends. Technical indicators offer entry and exit cues, balance sheet analysis ensures financial robustness, and valuation identifies undervalued stocks. Together, these factors create a versatile strategy poised for superior returns across different market conditions.
What is “Biblically Responsible Investing?
Biblically Responsible Investing (BRI) is an investment strategy that aims to align an investor's values with their investments by selecting companies that meet certain moral or ethical standards based on Biblical principles. Here are some potential benefits of BRI:
1. Aligns with personal values: BRI allows investors to invest in a way that aligns with their personal values and beliefs, which can bring a sense of fulfillment and satisfaction.
2. Potential for long-term performance: Some studies have shown that companies that are socially responsible and align with BRI principles can perform well financially in the long term. This may be due to factors such as increased customer loyalty and employee satisfaction.
3. Reduces exposure to controversial industries: BRI investors can avoid investing in companies that engage in controversial practices such as abortion, pornography, or human rights violations.
4. Encourages positive change: By investing in companies that are aligned with BRI principles, investors can encourage positive change and influence corporate behavior towards more responsible and ethical practices.
5. Mitigates risks: Companies that are involved in controversies or scandals can experience significant losses in value. By investing in BRI, investors can avoid exposure to these risks and potentially mitigate losses in their portfolio.
It is important to note that the definition of BRI and the specific screening criteria may vary depending on the investor's interpretation of Biblical principles.
This form of investing has been around for centuries. In the 18th century, groups such as Quakers and Methodists provided guidance on "sinful" investments to avoid because they conflicted with religious values.