HOT DOGS, APPLE PIE AND ‘MORAL’ INVESTING FOR THOSE WHO VALUE U.S. VALUES

A nationwide network being organized by a Tennessee certified financial planner is targeting advisers that hew to “traditional American values,” and aims to have 2,000 members by next year.

Stephen R. Bolt’s Values Financial Network, which will be plugged in by early summer, will offer members “morally compatible” investments, like the Noah Fund, and a nationwide marketing campaign. The network also plans to launch its first proprietary product — a variable annuity — by summer’s end.

Mr. Bolt and his partners — marketers, trainers and investment product vendors — pitched in about $500,000 to roll out the network. The initial membership drive will take place at six seminars throughout the country this summer and fall. Cost of membership is $295. (The $95 seminar fee will be waived for those who join.)

Mr. Bolt supervises $20 million in assets as president of Shepherd Financial Group in Nashville. His organization would be the second planner group to tap into the vast market for financial advice to conservative Christians, following the January launch of the National Association of Christian Financial Consultants (Prophets of profit spread the gospel, InvestmentNewsFeb.9). Scott Fehrenbacher, a director of that Winter Park, Fla.-based group, says the movement continues to gain momentum.

“Clearly what (Mr. Bolt’s network) represents is the maturation of the industry,” says Mr. Fehrenbacher, founder of the Institute for American Values Investing in Redmond, Wash. “What you’re seeing is demand for a niche market that people have overlooked.”

raise tide for all

Mr. Fehrenbacher adds that such a group “will raise the tide for everyone. What they’re doing will be positive for the marketplace. We’ve been pounding the message out for three years and we’ve known all the while that opportunists would come along.”

Mr. Bolt, however, says the Christian membership base is about the only thing his group has in common with the Florida organization, which is headed by Arthur Ally, president of the Timothy Plan Mutual Fund. That group requires, for instance, a letter of recommendation from a clergy member.

“We don’t have a litmus test,” says Mr. Bolt. “My spirituality is between myself and God.”

Still, professional requirements are enforced. Financial advisers must do some sort of financial planning, be licensed to sell securities and have the ability to do business with more than one company.

You don’t have to be a church-going Christian (or a Christian at all) to become a Values Financial Network adviser, but it sure helps. You might not hear about the program unless you listen to gospel radio. Most of the group’s marketing campaign will be conducted on the 106 Solid Gospel stations throughout the country. The organization has committed to 175 90-second spots to be aired until June 8 on the syndicated gospel network. Mr. Bolt won’t disclose the cost of the ad, but does call the expense “a substantial amount, but doable.”

The radio infomercials features an interview by Mr. Bolt of popular gospel artist Karen Peck. The two discuss Social Security, stewardship and financial planning and values-based investing. The ads include the Values Network’s toll-free phone number. Listeners who call in for a referral are given the names and phone numbers of member planners.

While Mr. Bolt says all religions are welcome in the network, the group is decidedly conservative.

on right side of right

“We are on the right side of the political perspective,” he says. “It makes no sense for a Christian family on Sunday to pray against partial-birth abortion, then on Monday look at the 401(k)’s assets and find out they’re invested in a company that’s a big contributor to Planned Parenthood.”

Mr. Bolt says he started the network to become a link between the independent adviser and those who offer and market financial products.

“There’s no encyclopedia or database for him to select product or services from,” Mr. Bolt says. “We want to become a clearinghouse so the adviser can select these products.”

Philosophical issues aside, such networks can be valuable for smaller advisory firms, says Carolyn Person Taylor, an adviser in Del Mar, Calif.

“It’s a good way to network with other advisers,” says Ms. Taylor, president of Weatherly Asset Management, which manages $50 million in assets. “They can find out more about compliance, trading and Internet issues.”