TPFC targets companies with strong free cash flow generation while applying Timothy Plan's biblical values screening, excluding businesses involved in activities like abortion, pornography, alcohol, tobacco, and gambling. This creates a concentrated portfolio of cash-generative businesses that align with faith-based investing principles.
How It Works
The fund screens the broad U.S. equity market for companies with robust free cash flow metrics, then applies Timothy Plan's proprietary moral screening process to eliminate firms with objectionable business activities. The resulting portfolio likely overweights sectors like technology and healthcare while avoiding sin stocks entirely. Holdings are weighted by a combination of free cash flow yield and market cap, creating a quality-tilted portfolio with values alignment.
Key Features
- Combines quantitative cash flow screening with faith-based exclusions for dual-mandate investing
- Provides exposure to profitable, cash-generative companies without compromising religious values
- Offers a systematic approach to ESG that predates most providers with decades of values-based screening
Risks
- Sector concentration risk from excluding entire industries could lead to 20-30% tracking error vs broad market
- Limited liquidity with zero AUM suggests wide bid-ask spreads and potential closure risk
- Free cash flow focus may underweight growth companies, potentially lagging in momentum-driven markets
Who Should Own This
Best suited for faith-based investors who want equity exposure but refuse to profit from activities conflicting with biblical values. Works as a core holding for religious institutions, Christian advisors, or individual investors who prioritize moral alignment over pure performance. The free cash flow tilt appeals to those seeking quality companies with shareholder-friendly capital allocation.