The SMA allows institutions to eliminate certain stocks that they may have cause against or hold a position in. Investors will also have the opportunity to add companies of its choosing. With this customization option, investors can select the number of liquid stocks in its portfolio as well as chose a custodian or have FaithShares Advisors develop a custodial relationship. The SMA can also serve existing money managers with inclusion of faith-based mutual funds or specific denominationally affiliated money management platforms. It’s a passively managed Large Cap, equally weighed portfolio that carries a low cost with tax management and performance reporting. Institutions need a minimum of $500,000 to invest in the SMA.
Additionally, the SMA will screen for Christian and denominational values based on ESG (environmental, social, and governance) scores. FaithShares Advisors screening process involves evaluating 400 of the largest U.S. stocks, then tailoring each fund according to the tenets of the country’s four largest denominations and non-denominational fund. The top 100 stocks from this group–based on ESG scores–are weighed to match the MSCI USA Index; resulting in a portfolio of the most responsible and ethically run American companies.
However, organizations that can’t have religious affiliations in its portfolio have an alternative. FaithShares Advisors also offers an Ethical Equity Portfolio, which consists of 50-75 stocks with socially responsible investing philosophies based on ESG scores.
“FaithShares Advisors SMA fills a gap for institutions looking for a cost-effective way to participate in values-based investing. Our SMA will allow foundations, endowments, hospitals, retirement plans and other large institutions greater control over the stocks in which they invest, while still allowing the greatest possible return,” said Garrett Stevens, CEO of FaithShares Advisor, in a news release. “SMA’s are the natural next step for FaithShares’ corporate growth.”
FaithShares Advisors was founded December 2009. It’s the world’s first and only family of Christian values ETFs allowing investors to invest in alignment with their convictions.