iQ BRI Stability Mutual Fund Model
INVESTMENT OBJECTIVE
The iQ BRI Stability Mutual Fund Model investment model seeks to achieve total returns independent of market direction by selecting faith-based (Christian) mutual funds across all asset classes.
INVESTMENT PROCESS
The iQ BRI Stability Mutual Fund Model implements the following rules-based process:
Begin with a starting universe of all faith-based mutual funds.
Sort the starting universe by 6-month Alpha and select the top eight.
Sort the remaining eight mutual funds by six-month exponential price momentum and select the top four.
This model reconstitutes every February, May, August and November.
The Benefits of an All-Assets Approach
An all-assets investing approach based on Alpha and price momentum across asset classes to capture market inefficiencies and trends. By selecting investments with high Alpha and strong momentum, the model aims for superior returns and long-term growth. Dynamic allocation helps reduce volatility, targeting a portfolio with single-digit standard deviation, balancing return maximization with risk control.
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.