This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Top-Returning Funds That Follow Religious Guidelines

The stocks in the Timothy Plan fund are similar to the holdings in other Westwood-run funds. But for the faith-based portfolio, the managers are barred from buying companies that are involved in "activities contributing to the moral decline of America."

The fund must avoid businesses that produce "anti-family entertainment" or that actively promote abortion and pornography. On its Web site, Timothy Plan provides a list of companies it has refused to own. Stocks in the Web site's "Hall of Shame" include cigarette maker Altria Group (MO), CBS (CBS), and casino operator MGM Resorts (MGM).

Religious screens helped Amana Trust Income excel during the financial crisis. According to Islamic principles, the fund is not permitted to own companies that collect interest. That eliminates financial stocks, some of the worst performers during the market turmoil. Partly because it held no banks or brokers, the Amana fund outdid 99% of its competitors in the downturn of 2008.

Even during periods when financial stocks performed well, Amana Trust Income has delivered competitive results. Portfolio manager Nick Kaiser focuses on rock-solid dividend payers that can grow for years. The portfolio is heavy with consistent blue chips, including Colgate-Palmolive (CL) and Kellogg (K).

Once he buys a stock, Kaiser often holds for a decade or more. He only turns over 3% of his portfolio annually, compared to a figure of 71% for peers.

To limit risk, Kaiser holds cash when stocks look shaky. In 2008, the fund had one third of assets in cash, which helped to damp losses. Lately Kaiser has been finding more bargains, and the fund currently has 7% of assets in cash.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Stan Luxenberg is a freelance writer specializing in mutual funds and investing. He was executive editor of Individual Investor magazine.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%
YHOO $44.45 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs