God and the Advisor: Navigating Faith and Finance

Other advisors use a somewhat subtle means to communicate their religious emphasis. CFP Larry Mathis, founder of Mathis Financial, in Phoenix, and a member of United Planners Financial Services of America, prominently displays on his office bookshelf a large tome whose dust jacket states: “To God Be the Glory.”

“It’s a way of making clients realize when they come in that I’m not just accountable to them or to myself, but I’m accountable to the God that I believe in,” says Mathis, himself author of Tools of the Cross: Walking with the Master Carpenter (Morgan James, 2011).

Even if the topic of religion isn’t deliberately brought out, an advisor and client simply sharing the same faith can deepen the relationship.

Harris Konter, a wealth management specialist with Vidal Whitley & Konter Wealth Advisors of Raymond James Associates, in Atlanta, does lots of non-profit work in the city’s Jewish community; in addition, his sister is executive director of a synagogue there. Not surprisingly, Judaism crops up in the FA’s conversations with prospects and clients—for instance, experiences at a Jewish summer camp or membership in a Jewish college fraternity.

Though Konter refrains from elaborating his personal beliefs when relating with clients, in the interview, he says: “Judaism puts a big focus on morality and ethics. We’re certainly in a business where morality and ethics play a key role in what you do and how you do it. I have a strong moral compass.”

Fatima Iqbal, financial planner with Azzad Asset Management, based in Falls Church, Va., actively pursues the Islamic investor market by holding educational seminars at schools, Islamic centers and Muslim-sponsored conventions and conferences nationwide. Last December, for example, she rented a booth at an Islamic Circle of North America conference.

“The demand is growing: We have a lot of professionals who want to do good with their money and also want to stick with halal values and principles,” says Iqbal, a Muslim who, starting as an advisor five years ago, opted to work only with products aligned with Islamic values.

Halal guidelines prohibit investing in products that obtain more than 5% of their income from the sale of alcohol, tobacco, pork, weapons, gambling or pornography and forbid investing in companies that derive significant revenue from interest.

Thus, with conventional bonds off-limits, creation of a diversified portfolio including fixed income is a challenge. Consequently, in 2010, Iqbal’s firm launched the Azzad Wise Capital Fund. It invests in the deposit programs of banks offering interest-free transactions. It also invests in sukuk, also called Islamic bonds, which are certificates based on lease-type agreements.

Managing client investments in sync with the Christian faith, Rogers, with United Planners Financial Services, uses “positive” and “negative” screens, the former supporting patriotism and capitalism, among other values. Those, he says, “see stewardship of God’s creation as important.” “Negative” screens eliminate companies involved in, for instance, gambling or pornography, or in abortion, such as certain drug-makers.

Moore applies socially responsible screens with “a Christian dynamic,” he says, restricting companies engaged in the production of tobacco or alcohol, among others.

For religious clients, Mathis avoids firms that publish adult magazines. And some “ultra-conservative Christians,” he notes, shun investing in companies that support gay, lesbian and transgender rights.

Rowling expresses her Judaic beliefs by doing business with fund companies like American Century Investments, whose foundation established the Stowers Institute for Medical Research.

“The Judaism part is that it’s not all about making money—it’s about making the world a better place,” Rowling says. “A huge amount of profits produced by this company goes into cancer research, and my clients know that.”

Organized Work

Carving out a specialized sub-niche during the past six years, Jim Ryan, a private wealth advisor and vice president of global institutional consulting at Merrill Lynch, serves Roman Catholic non-profits including dioceses, parishes, hospitals and schools.

Trustees of these organizations, notes the New York City-based head of The Ryan Group, are “becoming increasingly sensitive to whether their portfolios reflect their faith—in addition to getting a good rate of return with minimizing risk.”

In drawing up a list of suitable investments, Ryan first references suggested guidelines of the U.S. Conference of Catholic Bishops, which support companies promoting “the Common Good” and avoiding those participating in “harmful activities,” such as production of contraception and nuclear weapons.

On the issue of pornography—“counter to the values of Catholic moral teaching,” say the guidelines—Ryan often suggests investing in companies that obtain no more than 5% in revenue from such enterprise.

“That allows trustees to buy hotel chains and cable television companies” showing adult entertainment, he notes.

Even those FAs representing a specific religious viewpoint count among their clientele folks of many other beliefs.

Moore, a Christian who espouses that “what the Bible says about money is good financial practice,” has a rabbi client. With Raymond James in another city before moving to Albuquerque, she searched the BD’s website for a local advisor and found Moore.

Recalls the FA: “When she came in and we talked about what we do here, she said, ‘It’s about time my portfolio had some biblical wisdom applied to it’.”