What makes the Epiphany Core Equity Fund a good choice for Christian investors, and for Catholic investors particularly?

Actually, it's a good choice for anybody who cares about the concept of socially responsible investing. The Fund was started to give individual investors a quality investment vehicle that meets the social screening criteria established by the U.S. Catholic Bishops. Not all Catholic-oriented mutual funds do that. Since these criteria are based on values and beliefs shared by many faithful Christians as well as non-believers of good will, I believe the fund is an excellent choice for non-Catholic investors, as well.

What kind of stocks do you buy for the fund?

In the simplest terms, I am looking for quality, pro-life companies that I can buy for a reasonable price.

What is a 'pro-life' company?

A pro-life company is, first of all, one that doesn't violate the 'do no harm' elements of the bishops' guidelines and as outlined in the fund's prospectus. Beyond that, pro-life companies are also good corporate citizens that understand that success isn't measured just by the bottom line.

How would you describe your investment philosophy?

In addition to being grounded in the moral and ethical standards set by the bishops' guidelines, my philosophy is to seek consistent, reasonable returns over time by investing prudently in quality companies trading at a discount to their true or intrinsic value. To use a baseball metaphor, I am not trying to swing for the fences. I am not a speculator. I will avoid the Wall Street fads. I am not looking to buy the 'next big thing' or have any illusion that I can predict what the market holds in store for us tomorrow. This is a more conservative 'singles' and 'doubles' fund that may be appropriate for any investor looking for broad market exposure.

To keep the baseball theme going, what does a company need to have in order to get a turn at bat?

I seek to buy established, industry-leading companies that have a past history of success, and that I believe are undervalued relative to their true value. I tend to avoid stocks in the most unpredictable industries, because (among other reasons) it is much harder to confidently determine a good valuation. I apply a consistent and disciplined valuation methodology to every stock I purchase. I then purchase the stocks that I feel offer the most compelling return potential relative to the risk involved in owning each stock. It is important to remember that the best company in the world is only a good investment if it can be acquired at a good price, which is precisely what I am attempting to do on behalf of our shareholders.

When would you sell a stock?

From a valuation standpoint, I'll sell when a company's value appears to be fully reflected in the current price per share. From a moral standpoint, there's no catch-all answer to this question. Clearly, if a company starts to engage in activities that are prohibited by our prospectus, selling the stock may be our only remedy. But first I'd try to find out if that behavior was only temporary, or if there was a way for us to influence that company back onto the path, so to speak. Each situation is different and must be evaluated separately. My promise to all of our shareholders is to exercise sound judgment and prayerful discernment in such situations.

Are there any unique aspects of the fund?

Absolutely. First, I won't buy the stocks of companies that have the highest paid CEOs. As far as I'm concerned, CEO compensation is both an economic shareholder issue and a social justice issue. I believe in fair compensation for quality executives, but I also know that a company's profits belong to the shareholders. The amount that a CEO takes from the 'till' must be reasonable. This is an attempt to 'draw a line in the sand' as to what is reasonable.

Doesn't that eliminate a lot of otherwise great companies?

Of course, some good companies don't pass this test. But I haven't found this to be a major limiting criterion among the sort of stocks that I seek out.

Some may argue with this analogy, but I firmly believe that CEOs who accept reduced compensation are modeling 'albeit imperfectly' the servant leadership that was modeled perfectly by Our Lord. We are willing to suffer because our Lord suffered. I believe that employees are more likely to work hard and sacrifice when they sense that their leaders are willing to do the same. What employee (or shareholder) would be proud to stand up and say, 'I work for (or own) the company that has the highest paid CEO in America'?

What else is unique about the fund?

The Fund holds a relatively small number of stocks - somewhere between 20 and 30. And I am not interested in duplicating the sector holding percentages of any index. The fact is, the number of truly compelling investment opportunities is relatively small and can come from any sector. Plus, I don't want to dilute our ability to potentially influence the managers of the companies that we own.

Finally, we have the ability to take direct social action in the world. I have the ability to keep up to 5% of the Fund's assets in FDIC-insured community development deposits. This gives the Fund's shareholders an opportunity to directly impact lives by pooling their resources and putting a portion of those dollars to work in a very direct and positive way.

Do investors have to compromise on return in order to invest in a manner that reflects their values?

There are countless investment alternatives out there for investors who don't care how their profit is earned. Our shareholders do care. At times, that may mean that their investment returns are less than could be earned elsewhere. I know that good returns and being selective in terms of how you earn those returns aren't mutually exclusive. I am confident that over time, the fund's strategy will be very successful for our investors. And for what its worth, all of my own personal investment assets are in the fund. I have no qualms about putting my own money where my mouth is.

Because the securities the Fund holds fluctuate in price, the value of your investment in the Fund will go up and down. You could lose money. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the FDIC or other government agency.

Past performance does not guarantee future results. Please consider the investment objectives, risk, charges and expenses of the investment company carefully before investing. Please read the prospectus carefully before you invest.