*Chart of funds at article end.

Recent data from independent financial data reporting service Wiesenberger for the Mennonite Mutual Aid (MMA) Praxis Mutual Funds shows that the number of religious funds is up five-fold in the six-year period from 1993-1998, increasing in number from 6 to 34. This level of growth is more than double the increase in all mutual funds, which grew from 4,011 to 10,617 in the same period.

"The new data underscores the fact that more and more Americans want their money to be invested and saved in accordance with their beliefs -- social, environmental, and religious," said MMA Praxis Mutual Funds president John Liechty. "Religious mutual funds are an increasingly important alternative as the ranks of American investors continue to grow and become more and more a well-rounded picture of the U.S. adult population. The reality here is very simple; religious faith is a guiding influence in the lives of millions of Americans, most of whom do not check their most deeply held beliefs at the door when it comes to money."

A religious mutual fund is loosely defined as one that makes investment decisions based on the precepts of a particular faith. Most welcome investments from all walks of life but a few, like the Lutheran Brotherhood funds, are only offered to investors of the faith. MMA Praxis believes that its funds are attractive to secular investors because of the "holistic, faith-based values to which the fund subscribes."

In the past ten years, assets in religious mutual funds have grown 191 percent from $1.5 billion in 1989 to $4.5 billion today. According to Wiesenberger, the five and ten-year returns on these funds are competitive with the overall fund universe as well.

Type of Fund	5-Year	10-Year
Religious Mutual Funds	13.57	12.87
All Socially Responsible Mutual Funds	15.05	13.16
All Equity Mutual Funds	14.78	14.45

"Religious mutual funds still account for only a small fraction of all mutual funds and related assets, but it is clear that this subcategory of socially and environmentally responsible investing is growing fast," added Stephanie Kendall, a Wiesenberger analyst.

Largest/Most Well Known Religious Funds
Fund	Fund Family	Focus
MMA Praxis Growth Fund	MMA Praxis	Mennonite & others
MMA Praxis International Fund	MMA Praxis	Mennonite & others
MMA Praxis Income Fund	MMA Praxis	Mennonite & others
AAL Capital Growth	Ald Association for Lutherans	Lutheran
AAL International	Ald Association for Lutherans	Lutheran
Lutheran Brotherhood, A	Lutheran Brotherhood	Lutherans only
Lutheran Brotherhood, Income	Lutheran Brotherhood	Lutherans only
Aquinas Equity Growth	Aquinas Funds	Roman Catholic
Aquinas Equity Income	Aquinas Funds	Roman Catholic
Aquinas Fixed Income	Aquinas Funds	Roman Catholic
Aquinas Balanced Fund	Aquinas Funds	Roman Catholic
Catholic Values Inv. Trust Eq.	Catholic Values Inv. Trust	Roman Catholic
Amana Growth	Amana Mutual Funds Trust	Islamic
Amana Income	Amana Mutual Funds Trust	Islamic
Noah	Noah Fund	Conservative Christian
Timothy Plan	Timothy Plan	Conservative Christian
American Trust Allegiance	American Trust Allegiance	Christian Scientist

 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE