- Investment funds,
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.