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Approaching the Faith-based Market. Using Stewardship Investing to Build Your Business. Socially responsible investing. Definition: Investment decision-making process that considers social and environmental implications Often takes the form of negative screens Perceived “activist” focus.
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Approaching the Faith-based Market Using Stewardship Investing to Build Your Business
Socially responsible investing • Definition: Investment decision-making process that considers social and environmental implications • Often takes the form of negative screens • Perceived “activist” focus
Faith-based investing • Definition: A form of investing that considers religious faith teachings to guide or influence investment decisions • Looks at why these issues are important • Can be “another door”
Stewardship investing • Definition: An investment decision-making process rooted in a faith-based understanding of holistic stewardship • Focuses on our responsibilities as stewards of God’s resources • Meshes financial and social responsibility in single process
Varied Religious Perspectives • Some well-known names have arisen in the area of religion and finance • Primary attention on personal budgets and debt reduction • Many continue to advocate separating religious faith and investment decisions • “Morality” or ”sin” issues dominate limited social considerations
MMA’s third way • MMA believes faith-based investors are interested in more than is commonly understood • Religious beliefs should be incorporated in all parts of your life • We’ve been doing it for over a half century
How MMA does it • The three pillars of Stewardship Investing • Company selection • Shareholder advocacy • Community Development Investing (CDI) • Rooted in a holistic understanding of a socially-engaged Christian faith
Why a faith-based approach could be important to you • MMA’s 2001 Investor survey • MMA’s 2002 Religious Fund Study • Cultural Creatives • Stock ownership responsibilities • A culture that expects to combine faith and finances • Commitment to stewardship
2002 Religious Fund StudyNumber of religious mutual funds 75 34
Growth of religious mutual funds relative to all funds 11% 16% 21% 121%
Cultural Creatives & Faith-based Investing • They are people who want to integrate spirituality into all of life • Interested in multiple social movements • Reject traditional media • Prime candidates for faith-based investing • One of the best ways to reach them • Wear your values on your sleeve
Combining faith and finance • Advisers are trained to understand three things about their clients: • Goals • Risk tolerance • Time horizon
Combining faith and finance • MMA advocates adding a fourth element • Your client’s ethical profile • Would you like your faith (or spiritual) values considered when I develop my investment recommendations?
Why you should include Faith-based Investing • Survey shows majority of investors think it is important • Many would participate if they knew more about it
Why you should include faith-based investing • To establish your uniqueness • To gain client loyalty and trust • To open a new opportunities for market growth
Our Challenge to You • Offer everyclient an opportunity to align faith values and investment decisions. • Present another “door” to draw people to socially engaged investing • Watch what happens!
Tools to help you • Engage Your Faith brochure • Religious Investor Survey booklet • MMA and MMA Praxis annual reports • Community Development Investing brochure • Stewardship Investing philosophy & guidelines • Shareholder advocacy reports • MMA Praxis prospectus • MMA and MMA Praxis web sites
MMA’s Newest Tool The Stewardship Investing Toolkit CD