Category
Oral - Applied
Description
As the prominent student-led investment group at Liberty University, the Student Asset Management (SAM) Fund integrates Christian principles with real-world investments. Our research aspires to validate the virtue of biblically responsible investing (BRI) by illuminating its imperative and showcasing its potential to deliver comparable returns to conventional secular investment funds. BRI, rooted in biblical principles, catalogs violations of these principles such as alcohol, gambling, pornography, and abortion, encouraging investors to allocate capital towards companies that promote positive social and ethical practices. We employed a multifaceted approach, combining qualitative analysis to explore the moral significance of BRI with quantitative methods to compare the performance of a BRI portfolio against a non-BRI portfolio. The quantitative methods consist of historical data analysis and Monte Carlo simulations to assess the risk-adjusted returns of both strategies. Specifically, our study examines the Inspire 100 ETF (BIBL), comprising 100 U.S. large cap companies aligned with biblical principles. BIBL is comprised of companies that were screened through an objective scoring model that considers the negative and positive impact a given company has on their communities, customers, workplace, and the world. BIBL was juxtaposed with the iShares S&P 100 ETF (OEF) that offers similar market exposure without the use of a value-based screening mechanism. By evaluating management decisions and corporate practices, we aim to demonstrate that BRI can serve as a prudent and ethically sound investment strategy, resonating with the values and mission of Christian investors. On a broader scale, the SAM Fund aims to honor God by investing in companies that are fostering a global common good, paving the way for other investors to embrace this virtuous approach.
Assessing the Effects of Biblically Responsible Investing (BRI) on an Equity Portfolio
Oral - Applied
As the prominent student-led investment group at Liberty University, the Student Asset Management (SAM) Fund integrates Christian principles with real-world investments. Our research aspires to validate the virtue of biblically responsible investing (BRI) by illuminating its imperative and showcasing its potential to deliver comparable returns to conventional secular investment funds. BRI, rooted in biblical principles, catalogs violations of these principles such as alcohol, gambling, pornography, and abortion, encouraging investors to allocate capital towards companies that promote positive social and ethical practices. We employed a multifaceted approach, combining qualitative analysis to explore the moral significance of BRI with quantitative methods to compare the performance of a BRI portfolio against a non-BRI portfolio. The quantitative methods consist of historical data analysis and Monte Carlo simulations to assess the risk-adjusted returns of both strategies. Specifically, our study examines the Inspire 100 ETF (BIBL), comprising 100 U.S. large cap companies aligned with biblical principles. BIBL is comprised of companies that were screened through an objective scoring model that considers the negative and positive impact a given company has on their communities, customers, workplace, and the world. BIBL was juxtaposed with the iShares S&P 100 ETF (OEF) that offers similar market exposure without the use of a value-based screening mechanism. By evaluating management decisions and corporate practices, we aim to demonstrate that BRI can serve as a prudent and ethically sound investment strategy, resonating with the values and mission of Christian investors. On a broader scale, the SAM Fund aims to honor God by investing in companies that are fostering a global common good, paving the way for other investors to embrace this virtuous approach.
Comments
Undergraduate