The firm’s principle of uncertainty states that the future is uncertain; therefore planning, saving and investing are inherently important. The principle is guided by the belief that God created humans with the necessary tools to steward the world’s resources.
The principle of leadership and governance applies to where wealth is created and how people are led (government, corporations etc.). These components heavily influence the level of productivity, according to the report.
“Good leadership and governance is based on the biblical truth that ‘man is meant to be productive’; as a result, we look to buy in places where the economy is growing the fastest, and where there are cheaper prices and then diversify according to where clients need their money,” McClard explained.
The firm invests in nations and companies where it believes leaders act with integrity, according to a report from the firm.
This year, Ron Blue Trust partnered with Church Law & Tax, a publication of Christian Today, to provide content for ChurchSalary, a tool developed as a result of the National Initiative to Address Economic Challenges Facing Pastoral Leaders — an initiative to improve faith leaders’ financial confidence.
The platform features content on compensation best practices, guidance and personal finance, according to a press release from the firm.
The principle of inherent value is outlined in the firm’s process for identifying opportunity. Because investors and markets do not always behave rationally, opportunity and risk are identified using the firm’s valuation process.
“We don’t believe in overpaying for assets and will not invest in an asset because of its potential growth. Instead, portfolios are diversified to meet client time horizons and cash flow needs,” McClard explained.
Lastly, the firm’s principle of instability is applied to managing risk and preparing for loss. The concept is based on the biblical “fall” of mankind in the Garden of Eden.
The principle says that it is important to understand present risk and understand that provision against risk may ultimately fail. Because of sin, risk can never be completely avoided and despite the best efforts of man, occurrences like market crashes cannot be evaded, a firm white paper said.