TPFG targets companies with accelerating free cash flow generation while screening out businesses that conflict with biblical values. This faith-based approach seeks growth companies that can self-fund expansion without diluting shareholders or taking on excessive debt.
How It Works
The fund identifies companies with positive and growing free cash flow margins, prioritizing firms where cash generation is outpacing revenue growth. It excludes companies involved in alcohol, tobacco, gambling, pornography, abortion, and other activities deemed inconsistent with biblical principles. Holdings are weighted by a combination of free cash flow yield and growth rate, rebalanced quarterly to capture momentum in cash generation.
Key Features
- Focuses on free cash flow growth rather than earnings, catching companies before accounting profits catch up
- Biblical screening eliminates roughly 15% of the market, including most casinos, brewers, and cannabis stocks
- Zero expense ratio makes it cheaper than both secular growth funds and other faith-based options
Risks
- Faith-based screens could miss 20-30% rallies in excluded sectors like cannabis or gambling during legalization waves
- Free cash flow focus may underweight high-growth tech companies reinvesting heavily, missing some market leaders
- New fund with no track record - actual implementation of the strategy remains untested in different market cycles
Who Should Own This
Best suited for growth-oriented investors who want their portfolios aligned with conservative Christian values without paying the typical 0.50-0.75% premium for faith-based screening. Works as a core equity holding for those comfortable missing certain market segments, or as a 20-30% growth allocation for investors seeking companies with proven cash generation rather than story stocks.