iQ BRI Growth Mutual Fund Model
INVESTMENT OBJECTIVE
The iQ BRI Growth Mutual Fund Model investment model seeks to outperform the S&P 500 Index over the long-term by selecting faith-based (Christian) equity mutual funds based on different durations and approaches to price momentum.
INVESTMENT PROCESS
The iQ BRI Growth Mutual Fund Model implements the following rules-based process:
Begin with a starting universe of all faith-based equity mutual funds.
Sort the starting universe by 10-month price momentum and select the top twelve mutual funds.
Sort the remaining twelve mutual funds by 15-month exponential price momentum and select the top four.
This model reconstitutes every February, May, August and November.
A Time-Tested Layered Strategy for BRI Mutual Fund Selection
The model starts by picking the top twelve faith-based mutual funds based on their 10-month performance, aiming to catch funds on the rise. Then, it narrows down to the top four by looking at 15-month performance, focusing on those with steady and strong results over time, suggesting they're stable and reliable.
Quarterly updates keep the portfolio updated with top faith-based funds, balancing market growth with ethical investing for both returns and values alignment.
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.