TPFI delivers broad bond market exposure while screening out companies that conflict with biblical values — excluding businesses involved in alcohol, tobacco, gambling, pornography, abortion, and other activities deemed inconsistent with Christian principles.
How It Works
The fund invests across the investment-grade bond spectrum including Treasuries, corporates, and mortgage-backed securities, while applying Timothy Plan's proprietary faith-based screening process. Holdings are weighted by market value with regular rebalancing to maintain sector allocations similar to the broader bond market, minus excluded issuers. The screening process eliminates roughly 10-15% of the typical aggregate bond index.
Key Features
- Faith-based screening removes bonds from companies involved in activities conflicting with biblical values
- Maintains broad duration and credit quality exposure similar to aggregate bond indices despite exclusions
- Lower expense ratio than most actively managed ESG or values-based bond funds
Risks
- Interest rate risk could drive 5-10% losses if rates rise 1%; duration likely matches broad market around 6-7 years
- Tracking error versus standard bond indices due to sector exclusions, particularly in corporate bonds
- Limited liquidity and wide bid-ask spreads given minimal AUM; could face 1-2% trading costs in volatile markets
Who Should Own This
Best suited for faith-driven investors who want core bond exposure without compromising religious convictions — think church endowments, Christian financial advisors, or individual investors who already screen their equity holdings. Works as a direct replacement for AGG or BND in portfolios where values-alignment matters more than perfect index replication.