In the second part of our Biblically Informed Investing Education Series, Capstone Chief Investment Officer Paul Carter joins host Gerard Feliciano to discuss how Capstone’s investment philosophy, rooted in stewardship, long-term value creation, and alignment with Biblical principles, informs the launch of our new Biblically Informed Investment (BII) Funds.

Both funds apply the same disciplined, values-driven approach that Capstone has used for years to manage equity portfolios. They are designed to pursue sustainable long-term growth while maintaining a focus on quality, resilience, and risk management.

Drawing on more than two years of experience managing Capstone’s internal Biblically Informed strategy, Paul shares insights, lessons learned, and examples of how a structured, faith-aligned process can integrate moral and financial considerations in a thoughtful way.

Highlights include:

• Applying a values-based framework while maintaining a disciplined investment process
• Using a rigorous screening approach that combines third-party tools with in-depth in-house analysis
• Screening out companies involved in industries such as gambling, recreational cannabis, or abortion-related products
• Actively seeking businesses that align with Biblical principles and demonstrate long-term shareholder value creation

As more investors seek to align their financial goals with their faith, questions around how to practically apply values-based principles to investing are becoming increasingly relevant. Can you pursue strong returns without compromising on convictions? What does it look like to integrate Biblical values into modern portfolio management?

This discussion offers a transparent look at how Capstone helps investors make informed decisions, balancing sound fundamentals with convictions that matter.

Capstone’s Investment Philosophy and BII Strategy

Gerard: Welcome, everyone, to our video series about biblically informed investing. I'm Gerard Feliciano, and joining me in this conversation is the CIO, or Chief Investment Officer, of Capstone Asset Management, Mr. Paul Carter. Hi Paul.

Paul: Hi, Gerard.

Gerard: So, Paul, how would you describe Capstone's investment philosophy?

Paul: At its heart, Capstone's investment philosophy is about stewardship. We're focused on long-term value, solid fundamentals, and investing in companies that align with our Christian values.

Gerard: So it's not just about numbers.

Paul: Exactly. Financial performance is obviously important, but how a company earns money for shareholders is just as important to us. We deliberately avoid businesses that conflict with our values, even if it means missing out on a good rate of return opportunity on occasion.

How Capstone’s Philosophy Shapes BII Funds

Gerard: So, how does Capstone's investment philosophy shape our BII funds?

Paul: The BII funds are an extension of how we've managed equity portfolios for our clients for years. Now we're giving investors broader access to that same approach.

Gerard: That's good. And they're launching soon, right?

Paul: Yes. We're launching two funds: the Capstone Biblically Informed Canadian Equity Fund and the Capstone Biblically Informed US Equity Fund. Both are diversified portfolios built for durability and downside protection, with long-term growth in mind.

Gerard: So, same philosophy, but applied to different markets.

Paul: Exactly. Somewhat different portfolios, just because of the different structures of the US and Canadian stock markets, but the same disciplined, values-driven process behind both.

Track Record and Results

Gerard: Talking about our upcoming BII funds launch, you've managed this model strategy for over two and a half years, correct?

Paul: That's right, Gerard. Shortly after I joined Capstone in 2022, we developed our BII investment approach specifically for the Canadian equity market. We had a number of clients who wanted discretionary management of their Canadian equities portfolio, and we felt that we could offer a compelling solution by applying our investment philosophy specifically to this asset class.

Gerard: Can I ask what the results have looked like?

Paul: Overall, since 2022, we've been very pleased with the results. We've handily beaten the benchmarks and have been able to create industry-leading, risk-adjusted returns for our clients, and we're fortunate to have been able to grow our client base fairly steadily since launch, as the demand for a quality faith-based approach to the Canadian equities market has been growing.

Lessons Learned

Gerard: What lessons have you learned through this experience?

Paul: Quite a few, actually, but probably the biggest one is that applying a rigorous faith-based approach to company research and stock selection does not mean you have to sacrifice returns. In fact, looking at companies through a faith-based lens has yielded insights into specific company investments that perhaps we wouldn't have achieved had we only been looking for stocks that could make us the most money. Ultimately, we believe this will lead to even better outcomes over the long run.

Screening and Selection Process

Gerard: Paul, what kind of screening or selection process do you use to ensure the portfolio isn't invested in companies that are not aligned with the biblically informed investing values?

Paul: It's really an iterative and ongoing process, Gerard. First of all, there are just some companies that we're not going to spend time researching—for instance, those that derive profits from things like gambling, recreational cannabis, or abortion products. We use multiple third-party faith-based investing tools to help us with this, but then we also do the work ourselves by digging into the business models of the various companies within our investment universe. Once we've screened out those companies that don't align with our values, we then spend considerable time digging into the fundamentals of a company under consideration. It is during this process that we sometimes discover other aspects of a company's business, both positive and negative, that have not been picked up by these third-party research tools. We're finding that we are relying more and more on our own research.

Investing in Positively Aligned Companies

Gerard: And then what about those that are positively aligned with BII values?

Paul: It's the same approach. Through our detailed research process, we get to know in greater detail how a company makes its money, aspects of a company's business culture and practices, leadership, and so on. Ultimately, it is a judgment call on our part, but our goal is to invest in those companies that we can be proud of as Christians to support. Our primary goal, of course, is to make investments that ultimately yield strong risk-adjusted returns for our clients over the long run. However, we believe that companies that are highly aligned with biblical values tend to create more value for shareholders over time. So it isn't really an either-or choice.

Values-based investing doesn’t mean settling for less—it means being intentional about how your money is working for you. As discussed in this management series video, Capstone’s Biblically Informed Investing approach offers a thoughtful blend of financial discipline and faith-driven discernment, helping investors pursue long-term growth without compromising on convictions. With rigorous screening, in-depth research, and a proven track record, our BII Funds are designed to align both purpose and performance.

If you’re considering how to integrate your values into your investment strategy, the Capstone team is here to help. Connect with us for a personalized conversation, and be sure to tune in to our video podcast, Your Wealth Matters, for more insights on building a portfolio you can believe in.