1. Money

The Timothy Plan

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Minimum Investment:

$1,000. Waived if investment is part of a qualified plan.

Sales Charge:

5.5 percent on Class A shares.

Fund Managers:

Westwood Management a subsidiary of Westwood Holdings Group, Inc., manages the Timothy Plan Large/Mid Cap Value Fund and the Small Cap Value Fund.

Barrow, Hanley, Mewhinney & Strauss, Inc. (BHMS) of Dallas, Texas, manages the Timothy Plan Fixed Income Fund an the High Yield Bond Fund.

Chartwell Investment Partners of Berwyn, PA, manages the Timothy Plan Large/Mid Cap Growth Fund and the Aggressive Growth Fund

Timothy Partners Ltd., manages the Timothy Plan Strategic Growth Fund and the Conservative Growth Fund.

Eagle Global Advisors of Houston, Texas manages the Timothy Plan International Fund.

Background:

The Timothy Plan family of funds promotes itself as “America’s first pro-life, pro-family, biblically-based mutual fund group.” It avoids investing in companies that contribute to the country’s “moral decline,” meaning those involved in abortion, pornography, anti-family entertainment, non-married lifestyles, alcohol, tobacco and gambling.

The funds were founded in 1994 by Arthur Ally, a former Shearson Lehman Brothers vice president, who wanted to address an investment need for the retirement plans of pastors of independent churches. While there were funds available that screened for social or environmental issues, there weren’t any that screened according to the moral or culturally conservative principles of the pastors.

“They would preach on the evils of abortion or pornography and Art didn’t have a choice but to put them in a retirement plan that invested in companies that were in direct opposition to what they believed,” says Steven Ally, marketing director for the Timothy Funds.

Arthur Ally started the first fund in 1994 and the Timothy Plan today includes 10 funds. The firm has created a “Hall of Shame” of roughly 600 companies that operate contrary to the firm’s investing principles and are excluded from investments. Steven Ally says that aside from the moral screens, the funds aim to preserve capital and the match or beat their respective benchmarks.

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