The KLD Catholic Values 400 Index

Do social factors influence investment behavior and performance? Evidence from mutual fund holdings

“…Peifer (2011) shows that alignment of investments with religious principles is not confined to SRI funds, thereby indicating that religious funds can be seen as a separate segment of the mutual fund universe that may avoid controversial business exposure. Examples of faith-based investments include Catholic investments (Kurtz and DiBartolomeo, 2005), Christian funds, and Islamic investments (Hoepner et al, 2011;Walkshäusl and Lobe, 2012). Since various religions investments reveal opposition to socially and morally objectionable business practices, the holdings of explicitly religious funds are expected to display a significantly weaker exposure to socially sensitive investments.…”

“…may have different attitudes towards specific social issues, their actual investment choices might have more in common (Ghoul and Karam, 2005). Exclusionary criteria such as tobacco, alcohol, and gambling appear on the agenda of Catholic investors (see Dibartolomeo and Kurtz, 2005), but also weigh into investment decision of many Islamic and Christian investors (Ghoul and Karam, 2005). Assuming that most dominant religions have a set of social consideration in common, we expect that the degree of local religiosity affects fund managers' aversion to socially sensitive investments.…”

The Effect of the Business Cycle on the Performance of Socially Responsible Equity Mutual Funds

“…The study also extends previous work comparing the performance of secular SRI funds with religious funds and the Vice Fund (Chong et al, 2006;Fabozzi, Ma, & Oliphant, 2008;Hemley et al, 2005;Hoepner & Zeume, 2009;Kurtz & diBartolmeo, 2005;Naber, 2001;Shank, Manullang, & Hill, 2005), which produced mixed findings. This comparison permits the identification of the relative value added by the criteria of SRI screens and the value added by giving preference to the 'sin" stocks usually excluded from SRI funds.…”

The Oxford Handbook of the Sociology of Finance

“…A signal example is the burgeoning global industry ofis.Jamic banking and finance, but other examples include the prosperity religions associated with some strands of Buddhism (Jackson 1999) and Pentecostal Christianity (Coleman 2000 ). Other, more staid examples include religiously motivated investment funds and screening mechanisms meant to safeguard or promote the expression of faith for believers participating in mainstream financial markets (e.g., Kurtz and diBartolomeo 2005;Mueller 1994).…”