How do we screen out companies we want to avoid in a biblically responsible investment portfolio?

Biblically responsible investment portfolios are screened using a service we subscribe to. This service provides us with reports on every single publically traded company.

BRI Portfolios present quite a challenge in that they require each and every stock consideration to be screened. The screening process is in-depth and provides us with a pretty great snapshot of the qualities of each business. In the case of our faith-based investment models, we will start with a list of stocks such as the Rusell 3000, which is comprised of more than 2,700+ stocks. Once we know the total pool of stocks we are working with, we need to have each and every single company screened for conflicts with our biblical worldview. We can then use the service we partner with to put together a report that will narrow down the list of stocks we have to work with. Once this new list is complete, we can begin trading them based on the selected investment strategy for the corresponding portfolio.

What do we screen out?

We attempt to screen out companies that violate Biblical worldviews. This includes any company that buys, sells, distributes, produces, advertises, or donates to anything that contributes to:

Lifestyle Issues

Lifestyle research seeks to embrace the sanctity of marriage and holiness of sexual relationships. This screen identifies companies actively engaged in the promotion of lifestyles contrary to biblical beliefs, including promiscuous, adulterous, and homosexual lifestyles. We believe all persons deserve to be treated with dignity and without discrimination.  In view of the effort for the appearance of universal endorsement, we give no credibility to being included on lists such as “best places to work” and HRC endorsements.

We are careful to identify activities as corporate policy-induced. Unless written in a corporate handbook, corporate policy is difficult to determine. eVALUEator has determined that five (5) activities or sponsorships within any twelve (12) month period is indicative of corporate policy, and results in a company being placed on the list of violating companies.

Abortion

Abortion research identifies companies engaged in manufacturing abortion-inducing medications and birth control methods that prevent implantation of fertilized eggs, insurance companies that provide elective abortion benefits, companies providing financial support to organizations promoting and providing abortions, and companies engaged in biotechnology that includes human cloning and research utilizing fetal tissue harvested after March 2001.

Alcohol

Abusive use of alcohol, a known cause of broken homes and abuse, is a family values issue. Alcohol research identifies brewers, distillers, microbrewers, winemakers, and dedicated retail liquor stores.

Tobacco

Tobacco and marijuana, both scientifically proven causes of lung diseases, cancer, and numerous other diseases, are a family values issue. This screen identifies companies engaged in tobacco and recreational cannabis production and distribution.

Gambling

Gambling research seeks to embrace the concept that all belongs to our Creator, and because of the financial devastation gambling can cause, it is also a family values issue. This screen identifies gambling related activities and facilities, including equipment manufacturers, casinos, riverboats, cruise lines, racetrack gaming, and gaming software.

Entertainment

Entertainment research is a second family values issue. This screen identifies companies engaged in the promotion of violence, vile language, graphic sex and drug abuse through advertisements, film, television, radio, games, “adult” establishments and retail stores, publications, and Internet access.

Pornography

Pornography research seeks to preserve human decency and modesty. This screen identifies companies engaged in the promotion of adult themes through advertisements, film, radio, games, establishments, retail store displays, publications and Internet.

Human Rights Issues

Rights research identifies and evaluates companies which operate under a regime or country that violates certain basic human rights, which are defined as freedoms established by international agreements that impose standards of conduct on all nations. Some specific human rights included in this screen include, but are not necessarily limited to, Christian persecution and discrimination, countries providing support to terrorist organizations and terrorist regimes, and countries that do not actively prohibit and prosecute adult and child labor violations.

How often do we re-screen the companies?

New reports are made on each company at least annually. New violations may not show up on the reports right away. However, we may disqualify a stock sooner as we learn about a potential violation. When a stock becomes disqualified, we seek to remove the company holding from our BRI portfolios as soon as prudently possible taking into account all other factors of our tactically traded models . A good example of this is Crocs. In 2022 they launched a campaign that became a conflict with the Biblical worldview of many of our investors. Because of this, even though our reports didn’t reflect this violation just yet, we took steps to remove them from our pool of eligible stocks going forward.