In 1928, an ecclesiastical group created what is recognized as the first publicly available socially responsible investment fund, The Pioneer Fund (now Pioneer Investments), according to Tom Roseen, head of research services at Lipper Thomson Reuters.
The fund was the first of its find to screen out tobacco, alcohol and gambling investments, according to a report. Today, many advisory firms invest based on SRI principles, and at least one firm well known to many advisors applies a long-term, principles-based investment strategy built on biblical truths.
That firm is Ronald Blue Trust, a division of Thrivent Trust Company, owned by Thrivent Financial. Ronald Blue is based in Atlanta and has more than 8,000 clients, 13 office locations, and $8 billion in assets under advisement (AUA). Ronald Blue & Co. joined Thrivent Trust Company in 2017.
Ronald Blue, a former registered investment advisor, converted to a trust company after joining Thrivent. Ronald Blue Trust, among other services, provides estate planning services and philanthropic counsel for its clients.
“We envision a world where Christians are more confident, content and living their God-given callings in service to one another, their churches and their communities,” according to Thrivent’s website.
The firm’s principles-based framework has proven to be successful in helping clients achieve their goals over the long term, said Brian McClard, director of Ronald Blue Trust’s Investment Strategy Group. However, “Ronald Blue Trust is first and foremost a financial planning firm,” he added.
Ron Blue Trust serves clients in four distinct divisions: private wealth (clients with typically $1 million to $5 million in investable assets), family office (serving clients with specific value and belief-based planning), everyday steward (populations underserved by the financial services industry) and professional athletes.
The firm’s principles-based investment philosophy includes several components, which are then applied to the firm’s planning strategies.
The first principle is of applied wisdom. It is based on the idea that the word of God transcends time and circumstance. The firm’s biblical worldview guides its perspective on economics and how financial markets are impacted, according to a white paper from the firm.
The firm’s principle of human productivity says that productivity is a product of both creativity and natural resources, and wealth is the direct result of individual human productivity. The aspect of creativity is first applied in the goal-planning process. “We want to help clients meet with goals and deal with the fear of missing out. The planning process begins with recognizing and prioritizing trade-offs that investors have to accept before moving forward,” McClard said.