Yahoo Finance Invest 'by the Bible': new fund backs arms firms but avoids brands promoting gays
A new "biblical" investment firm is marketing funds which promise to adhere to the "God-breathed truth" - by avoiding investments in businesses which promote homosexuality or show gay lifestyles in a positive light.
They will, however, invest in the shares of arms manufacturers and oil companies.
The California-based firm aims to appeal to evangelical institutions and individuals who remain bitterly opposed to gay marriage and the growing prominence of same-sex couples in mainstream culture.
The Inspire Global Hope Large Cap and Inspire Small/Mid Cap Impact exchange traded funds launched earlier this week, and a bond fund is likely to follow.
"Investors are demanding vehicles with a conservative theme”, the chief executive of Inspire Investing Robert Netzly said.
Both funds follow stock indices created by Inspire. A scoring system gauges companies based on their "alignment with biblical values".
Firms that don't make the grade include those which “sell or support” the LGBT lifestyle. Those businesses supporting abortion, pornography, alcohol, tobacco and human rights violations are also excluded.
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Inspire is vague about what exactly would lead a company to fall foul of its rules.
But the list of major brands which have featured same-sex couples in adverts and other material is long and growing.
Fashion brands Gap and Rayban are among many to use same-sex models to promote their products. Hotel groups, airlines, media companies and a long list of food and drinks providers have followed. Jeweller Tiffany attracted headlines when in 2015 it advertised engagement rings with pictures of male couples.
Apple, which has been open in its support of LGBT rights, is excluded from the fund, but Mr Netzly said the sexuality of chief executive Tim Cook - who is openly gay - was not a factor, as it does not “discriminate against individuals”.
Technology firms, banks, law firms and other professional services industries now routinely promote their gay-friendly credentials - presumably narrowing the fund's investment universe further.
Mr Netzly told The Telegraph: “We are not against the LGBT community.
“We seek out companies that are blessings to people, their communities and the world.”
Companies that provide “Christian-themed products or services” are viewed positively by the scoring system.
Weapons and fossil fuel companies are not excluded, as they are “an important part of society” according to Mr Netzly, who describes himself as an “innovating visionary and thought leader in the biblically responsible investing movement”.
Inspire donates 50pc of its corporate profits to charities.
Examples on its website include charities involved in activities such as Bible distribution and a 24 hour phone service offering someone “ready to listen, encourage, and point chatters to Christ”.
When questioned on how Inspire arrived at its definition of “biblically responsible”, Mr Netzly said: “There is only one true interpretation of the Bible, and we strive to live as close as possible to that God-breathed truth.”
Apart from arms manufacturers and fossil fuel firms, the portfolios include other potentially controversial holdings.
The Small/Mid Cap Impact fund lists as one of the top holdings a firm called Bluebird Bio, a biotechnology company involved in gene editing.
Other "religious" funds already exist, including the GlobalX S&P 500 Catholic Values ETF, which claims to adhere to Catholic moral teachings.
Exchange traded funds trade as shares, so in theory are available to UK investors through investment platforms that offer international share dealing.
Investment platforms Hargreaves Lansdown and IG, which offer international share dealing, do not currently offer the funds. Both said they would only add them if there was sufficient demand from UK clients.
