Since 1994, the Timothy Plan has practiced "biblically-responsible investing," based on pro-family, Judeo-Christian principles.
The Timothy Plan values life, stewardship, liberty, purity, longevity, family, sobriety, and marriage. As a pro-family investment firm, one of their main goals is to defund Planned Parenthood and prevent stem-cell research. They also stand against addiction, pornography, and human trafficking.
By filtering publicly-traded companies through their moral-screening eVALUEator tool, the Timothy Plan has identified 1,260 companies that fail the moral screening based on biblical values.
For almost 30 years, the Timothy Plan family of funds promoted itself as America’s first pro-life, pro-family, biblically-based mutual fund group.
It avoided investing in companies it saw as contributing to the country’s “moral decline,” meaning 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, who wanted to address an investment need for the retirement plans of pastors of independent churches. While funds were available that screened for social or environmental issues, none were screened according to the moral or culturally conservative principles of the pastors.
The Timothy Plan created a “Know Your Investments” list of companies—formally known as the “Hall of Shame”—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 and match or beat their respective benchmarks. The list includes the top thirty companies that failed the eVALUEator screening.
For all of society's ills 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.
Different strands of religious investing are now starting to emerge. An example would be Sharia investing, with its roots in shared value and shared ownership, shunning interest as a taboo practice.
Religiously mandated funds, therefore, need to be understood not only for the branch of the religion you are trying to match, but also the specific goals and issues that each fund attempts to avoid or solve for specifically.
Timothy Plan's Current Fund Managers
Here are a few of the current fund managers that run the Timothy Plan.
- Westwood Management manages:
- Timothy Plan Large/Mid-Cap Value Fund (TLVAX) with an average annual return since inception of 7.88%.
- Small Cap Value Fund (TPLNX) with an average annual return since inception of 7.90%.
- Barrow Hanley manages:
- Timothy Plan Fixed Income Fund (TFIAX) with an average annual return since inception of 3.33%.
- High Yield Bond Fund (TPHAX) with an average annual return since inception of 5.18%.
- Chartwell Investment Partners manages:
- Timothy Plan Large/Mid Cap Growth Fund (TLGAX) with an average annual return since inception of 3.88%.
- Aggressive Growth Fund (TAAGX) with an average annual return since inception of 4.33%.
- Timothy Partners Ltd. manages:
- Timothy Plan Strategic Growth Fund (TSGAX) with an average annual return since inception of 2.35%.
- Conservative Growth Fund (TCGAX) with an average annual return since inception of 3.26%.
- Eagle Global Advisors manages:
- Timothy Plan International Fund (TPIAX) with an average annual return since inception of 2.60%.