Approaching the Faithbased Market

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Approaching the Faith-based Market

• Using Stewardship Investing to Build Your
  Business

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Socially responsible investing

• Definition Investment decision-making process
  that considers social and environmental
  implications
• Often takes the form of negative screens
• Perceived activist focus

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Faith-based investing

• Definition A form of investing that considers
  religious faith teachings to guide or influence
  investment decisions
• Looks at why these issues are important
• Can be another door

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Stewardship investing

• Definition An investment decision-making process
  rooted in a faith-based understanding of holistic
  stewardship
• Focuses on our responsibilities as stewards of
  Gods resources
• Meshes financial and social responsibility in
  single process

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Varied Religious Perspectives

• Some well-known names have arisen in the area of
  religion and finance
• Primary attention on personal budgets and debt
  reduction
• Many continue to advocate separating religious
  faith and investment decisions
• Morality or sin issues dominate limited
  social considerations

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MMAs third way

• MMA believes faith-based investors are interested
  in more than is commonly understood
• Religious beliefs should be incorporated in all
  parts of your life
• Weve been doing it for over a half century

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How MMA does it

• The three pillars of Stewardship Investing
• Company selection
• Shareholder advocacy
• Community Development Investing (CDI)
• Rooted in a holistic understanding of a
  socially-engaged Christian faith

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Why a faith-based approach could be important to
you

• MMAs 2001 Investor survey
• MMAs 2002 Religious Fund Study
• Cultural Creatives
• Stock ownership responsibilities
• A culture that expects to combine faith and
  finances
• Commitment to stewardship

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MMAs 2001 investor survey
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2001 investor survey
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2001 investor survey
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2002 Religious Fund StudyNumber of religious
mutual funds
75
34
13
Growth of religious mutual funds relative to all
funds
11
16
21
121
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Cultural Creatives Faith-based Investing

• They are people who want to integrate
  spirituality into all of life
• Interested in multiple social movements
• Reject traditional media
• Prime candidates for faith-based investing
• One of the best ways to reach them
• Wear your values on your sleeve

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Combining faith and finance

• Advisers are trained to understand three things
  about their clients
• Goals
• Risk tolerance
• Time horizon

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Combining faith and finance

• MMA advocates adding a fourth element
• Your clients ethical profile
• Would you like your faith (or spiritual) values
  considered when I develop my investment
  recommendations?

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Why you should include Faith-based Investing

• Survey shows majority of investors think it is
  important
• Many would participate if they knew more about it

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Why you should include faith-based investing

• To establish your uniqueness
• To gain client loyalty and trust
• To open a new opportunities for market growth

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Our Challenge to You

• Offer every client an opportunity to align faith
  values and investment decisions.
• Present another door to draw people to socially
  engaged investing
• Watch what happens!

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Tools to help you

• Engage Your Faith brochure
• Religious Investor Survey booklet
• MMA and MMA Praxis annual reports
• Community Development Investing brochure
• Stewardship Investing philosophy guidelines
• Shareholder advocacy reports
• MMA Praxis prospectus
• MMA and MMA Praxis web sites

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MMAs Newest Tool

• The Stewardship Investing
• Toolkit CD