Religious Investments

In some cases, faith-based funds seem to be accruing assets both because of, and in spite of, their moral goals. The Amana Funds, which specialize in investing according to Islamic principles, has grown from $30 million under management in 2003 to more than $700 million this year. A major reason, according to Deputy Portfolio Manager Monem Salam, is the funds' strong financial returns, which he says have attracted many new, non-Muslim investors.

Still, promoters of what's known as "morally responsible" or "biblically responsible" investing are expecting the values component to be a powerful drawing card.

Kingdom Advisors, a nationwide network of more than 1,200 Christian financial advisers, this year created a subgroup of those who offer biblically responsible investment products. Centurion Funds, named after a faithful figure in the Gospel of Luke, launched less than a year ago with a pledge from company President David C. Lenoir to "not just avoid the 'sin stocks' but to look for the good in companies."

And more than 600 investors, each committing at least $100,000 to private money management with Stewardship Partners in Matthews, N.C., have demonstrated there's a market for customizing equity portfolios according to what chief executive Howard J. "Rusty" Leonard calls "red state Christian values."

"Red state Christians [who tend to vote Republican in national elections] give money to Christian ministries that try to sway the political process," Leonard said. "They got their people elected, but they didn't see their issues advanced to any great degree. . . . Meanwhile, their opponents in the culture wars were coming around the left flank and going into the corporate sector, which red state Christians have ignored. We're hoping to change that."

For socially conservative activists, the process of engaging corporations has evolved gradually over two decades. Until now, the American Family Association, for instance, has focused on consumer action, such as a successful 2006 boycott that led to the demise of NBC's racy "The Book of Daniel." Consumer pressure is easier than investor pressure to explain and to use in rallying a broad base of supporters, according to AFA President Tim Wildmon.

But he says his organization has been remiss in letting agenda-driven investing be the near-exclusive province of left-leaning mutual funds with a "socially responsible" label.

"We just dropped the ball on that," he said. "We haven't been very smart in that regard. But now that's about to start changing."