What Does Biblically Informed Investing Actually Mean? A Guide for Canadian Christians
Most thoughtful people share a basic, agreeable conviction: the decisions we make in one sphere of life radiate consequences into others. For a growing number of investors, that conviction extends to their portfolios.
ESG (Environmental, Social, Governance) investing is one response to this, offering an answer to the question “How do I build an ethical, values-aligned portfolio?” But ESG wrestles with a follow-up question: “Ethical” based on what? If the definition of "ethical" rests on current social consensus, the foundation shifts with the culture. A portfolio that’s ethical today might not be by the next generation.
That lack of stability is what led to Capstone’s Biblically Informed Investing (BII). For investors who wanted a values-aligned portfolio built on something more permanent than cultural agreement, the question became: is there a foundation that doesn't move?
The answer is yes. BII is an approach to portfolio management where Christian values inform which companies are researched and selected, alongside rigorous financial analysis. Like ESG, it holds that an ethically shaped portfolio is an important one. But it starts from a different first premise.
Where ESG begins with the subjectivity of consensus, BII begins with a rather famous opening line: "In the beginning, God made . . . " (Genesis 1:1). BII builds on the objectivity and unchanging nature of God and His character. So the first question for a biblically informed portfolio is not "What is ethical?" It is "who is God?"
For the Christian investor, and we would argue for any investor, this is the most important question when building a portfolio. The answer shapes everything that follows.
Why Does the Christian Worldview Change How We Invest?
The Christian worldview does not leave room for a segmented life. But the reason why is different than, say, some version of the butterfly effect or the concept of "oneness."
Scripture teaches us that reality is concrete. You can stub your toe and hurt it. You can choose to never change your oil and find yourself with your hood open on the side of the road.
And Scripture teaches us that reality is connected. God made a “cause-and-effect” world where there are implications: you can train for a marathon and do better than someone who never ran a mile.
Reality is both concrete and connected because all things were created "through Him and for Him, and in Him all things hold together" (Colossians 1:16). God made everything. The Bible says that one of the things that makes us human is how we are made to care about creation like God does. He has given us abilities, talent, and resources to do something about that (Genesis 1:28).
This approach is explosive in how it changes everything when you embrace it, especially how we relate to our money. As author Randy Alcorn put it,
"When I realize that God has a claim not merely on the few dollars I might choose to throw in an offering plate, not simply on 10 percent or even 50 percent, but on 100 percent of 'my' money, it's revolutionary. If I'm God's money manager, I'm not God. Money isn't God. God is God. So God, money, and I are each put in our rightful place." — Managing God's Money: A Biblical Guide
BII is shaped by this conviction and turns it into a working methodology.
How Does Biblically Informed Investing Work?
Biblically informed investing combines traditional fundamental analysis with research grounded in Christian values.
The financial work comes first. A company must make sense based on its fundamentals: sound balance sheet, quality management, reasonable valuation. Only after meeting that standard is a biblical lens applied.
This layered process is unique because BII does not mean a biblically informed portfolio contains only "Christian companies." Rather, it looks to build a portfolio around biblical values such as justice, kindness, and humility (Micah 6:8).
No company is perfect. Applying biblical principles to imperfect markets requires wisdom, careful judgment, and accountability. And it should not be left solely to an algorithm.
At Capstone Asset Management, a dedicated analyst conducts ongoing research on portfolio holdings, evaluating each company against both financial criteria and biblical principles. Capstone also partners with Brightlight Impact, an independent third party resource that performs independent analysis in addition to Capstone's own research, providing additional support to the decision making process.
Every stock selection is then reviewed and approved by Capstone's Biblically Informed Overlay (BIO) Committee, composed of four members with over 120 years of combined investment experience, including one independent member external to Capstone.
This BIO Committee applies a Biblical Overlay Policy to the compiled research before any stock is included in a fund. This overlay is built on four guiding principles.
What Are the Four Guiding Principles of Biblically Informed Investing?
The four guiding principles of Capstone's Biblical Overlay Policy form a theologically grounded framework for evaluating every company in a portfolio.
1) Valuing Human Life
Every person bears the image of God. "So God created mankind in his own image, in the image of God he created them; male and female he created them" (Gen. 1:26–27). This principle evaluates how a company's practices and products impact human life and dignity. It means avoiding businesses that profit from exploitation, trafficking, or the manufacture and distribution of abortion inducing drugs.
2) Stewarding Creation Responsibly
God placed humanity in creation to work it and care for it (Gen. 2:15). This principle assesses how companies develop resources and manage their environmental impact, and looks for businesses whose core operations contribute positively through innovation, sustainability, and responsible use of resources.
3) Encouraging Human Flourishing
Businesses should foster environments that support human flourishing and self control, rather than exploit weakness or encourage harmful behaviours. This principle evaluates the physical, emotional, and spiritual well being of individuals and communities touched by a company's products and practices.
4) Applying Biblical Wisdom
Micah 6:8 calls us to act justly, love mercy, and walk humbly. This principle seeks companies whose values, culture, and business practices align with principles rooted in Scripture. It prioritises businesses that encourage integrity, moral clarity, and respect for God's design.
What Companies Does Biblically Informed Investing Exclude?
With those four principles as its foundation, Capstone applies specific biblical research criteria. Companies with significant exposure to activities inconsistent with Christian values are excluded.
Those criteria include predatory lending, gaming, weapons manufacturing, excessive political and social activism, alcohol/cannabis/tobacco, human rights violations, adult entertainment, and abortion.
The process also actively looks for companies demonstrating positive alignment with the four guiding principles: ethical leadership, products that contribute positively to society, and practices that support human flourishing.
Capstone uses proxy voting and shareholder advocacy to support values aligned governance in companies where it holds positions.
All of this sits on top of rigorous fundamental analysis conducted by the same experienced investment team that manages the Capstone Canadian Equity Income Strategy. The goal is to add a principled layer to what is already disciplined, active investment management.
How Is Biblically Informed Investing Different from ESG?
The different starting premises produce different portfolios.
A company that scores well on ESG metrics may still profit from practices that conflict with Christian convictions. And a company that ESG ratings agencies view unfavourably may operate in ways consistent with biblical principles. As Glenn Murray, CFA charterholder, president and chief executive officer of Capstone Asset Management, has noted, "It is inaccurate to suggest that biblical values align fully with ESG or ethics sets."
The methodology is also different. Many ESG approaches rely on third party ratings and automated data. BII, at least as Capstone practices it, relies on a dedicated analyst, independent analysis, and a BIO Committee that reviews every stock selection.
Who Is Biblically Informed Investing For?
BII is for anyone who believes their investment decisions should reflect their Christian values. That includes individual investors, financial advisors serving clients who care about where their money goes, and faith based organizations stewarding assets in alignment with their mission.
You do not need to overhaul your portfolio to get started. Many investors begin with a portion of their equity allocation and deepen their commitment over time.
Every investment supports something. Biblically informed investing helps ensure that what yours supports reflects what you believe.
As pastor Timothy Keller wrote, a relationship with God "changes everything. It radically transforms the way we work, the way we invest, the way we view money, all of it."
No company operates perfectly, and no portfolio will ever be without compromise in a fallen world. The goal, rather, is intentionality: bringing the same care and conviction to your portfolio that you bring to every other area of stewardship in God's economy.
This article is for educational purposes only and does not constitute investment advice. If the Capstone Biblically Informed Canadian Equity Fund or Capstone Biblically Informed U.S. Equity Fund are relevant to your financial planning, please read the prospectus carefully before investing.
Important Disclosures: Commissions, trailing commissions, management fees, and expenses may be associated with investments in mutual funds and exchange-traded funds. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. The simplified prospectus, fund facts, and ETF facts are available on SEDAR+ at www.sedarplus.ca or consult with a registered investment dealer or advisor