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Article
Investment principles and strategies of faith‐based funds
Managerial Finance
  • Emil BOASSON, Ithaca College
  • Vigdis BOASSON, Ithaca College
  • Joseph CHENG, Ithaca College
Document Type
Journal article
Publication Date
10-1-2006
Publisher
Emerald Group Publishing Limited
Keywords
  • Investments,
  • Investment funds,
  • Religion
Disciplines
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.
DOI
10.1108/03074350710688323
E-ISSN
17587743
Publisher Statement
Copyright © Emerald Group Publishing Limited. Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Citation Information
Boasson, E., Boasson, V. & Cheng, J. (2006) Investment principles and strategies of faith‐based funds. Managerial Finance, 32(10), 837–845. doi: 10.1108/03074350710688323