All About Timothy Plan Funds

Attempting to Invest According to "Biblical Principles"

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Since 1994, the Timothy Plan has practiced "biblically responsible investing," based on Judeo-Christian principles.

The Timothy Plan values life, stewardship, liberty, purity, longevity, family, sobriety, and marriage. As an investment firm, its main goals include defunding Planned Parenthood and preventing stem-cell research. It also claims to stand against addiction, pornography, and human trafficking.

The Timothy Plan filters publicly traded companies through its moral screening eVALUEator tool. It has identified 1,260 companies that fail the moral screening based on its values.

Learn more about what the Timothy Plan is and how it works.

Key Takeaways

  • The Timothy Plan avoids investing in companies connected to abortion, pornography, anti-family entertainment, non-married lifestyles, alcohol, tobacco, and gambling.
  • The plan publishes a list, called "Know Your Investments," which names companies that operate contrary to the firm's principles and are excluded from investments.
  • Funds in the plan aim to match or beat their respective benchmarks for performance.

What Is the Plan's History?

For almost 30 years, the Timothy Plan family of funds has called itself the U.S.'s first "pro-life, pro-family," biblically based mutual fund group. It avoids investing in companies it sees as contributing to the country’s “moral decline.” This means those involved in abortion, pornography, anti-family entertainment, non-married lifestyles, alcohol, tobacco, and gambling.

The funds were founded in 1994 by Arthur Ally, a former Lehman Brothers vice president. He wanted to address an investment need for the retirement plans of pastors of independent churches. While there were funds that screened for social or environmental issues, none was screened according to the principles of the pastors.

The Timothy Plan created a “Know Your Investments” list of companies, formally known as the “Hall of Shame." These are companies that operate contrary to the firm’s investing principles and are excluded from investments.

Aside from the moral screens, the funds aim to preserve capital. It also aims to match or beat their respective benchmarks. The list includes the top 30 companies that failed the eVALUEator screening.

Important

For all of the vices listed in the "Know Your Investing" analysis, climate change and inequality are not featured. This makes their approach divergent from that of Pope Francis's call to action on climate change.

What Are Other Types of Religious Funds?

Different strands of religious investing are now starting to emerge. One example would be Sharia investing; it has its roots in shared value and shared ownership. It shuns interest as a taboo practice.

Religiously mandated funds need to be understood, not only for the branch of the religion you are trying to match but also for the specific goals and the issues that each fund attempts to avoid or solve.

Timothy Plan's Current Fund Managers

Here are a few of the current fund managers that run the Timothy Plan:

Westwood Management

  • Timothy Plan Large/Mid-Cap Value Fund (TLVAX): average annual return of 7.88%.
  • Small Cap Value Fund (TPLNX): average annual return of 7.90%.

Barrow Hanley

  • Timothy Plan Fixed Income Fund (TFIAX): average annual return of 3.33%.
  • High Yield Bond Fund (TPHAX): average annual return of 5.18%.

Chartwell Investment Partners

  • Timothy Plan Large/Mid Cap Growth Fund (TLGAX): average annual return of 3.88%.
  • Aggressive Growth Fund (TAAGX): average annual return of 4.33%.

Timothy Partners Ltd.

  • Timothy Plan Strategic Growth Fund (TSGAX): average annual return of 2.35%.
  • Conservative Growth Fund (TCGAX): average annual return of 3.26%.

Eagle Global Advisors

  • Timothy Plan International Fund (TPIAX): average annual return of 2.60%.

Article Sources

  1. Timothy Plan. "Our Foundational Principle." Accessed March 17, 2021.

  2. Timothy Plan. "Know Your Investments," Page 2. Accessed March 17, 2021.

  3. Timothy Plan. "Our Story, Just the Beginning." Accessed March 17, 2021.

  4. Timothy Plan. "Know Your Investments," Pages 1-2. Accessed March 17, 2021.

  5. Vatican News. "Pope Francis on Climate Change: Time Is of the Essence." Accessed March 17, 2021.

  6. The Journal of Environmental Investing. "Sharia-Compliance and Sustainability." Accessed March 17, 2021.

  7. Timothy Plan. "Monthly Performance, 2/28/2021," Pages 1-2. Accessed March 17, 2021.