Proxy Voting for the Kingdom with Brandon Pizzurro

FaithFi: Faith & Finance | Oct 9, 2024

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Show Notes

Many folks with 401ks and IRAs probably don’t think much about proxy voting…but it can be a powerful tool for the Kingdom.

As investors, we have an opportunity to make our Christian values known to the companies in our portfolio. We just need to take advantage of it. Brandon Pizzurro joins us today to tell us how.

Brandon Pizzurro is the President and Chief Investment Officer of GuideStone Capital Management, an underwriter of Faith & Finance.

What Is Proxy Voting?

When you purchase stock in a company, you become an owner, and as an owner, you have a say in how the company operates. This voice is exercised through shareholder meetings, typically held annually. At these meetings, shareholders can vote on corporate policies and other important matters. However, many shareholders are unable to attend these meetings in person. In such cases, they delegate their voting rights to another person or firm, known as a proxy, who votes on their behalf.

If you invest in a mutual fund, you technically own shares of that mutual fund, not directly in the underlying companies. The mutual fund company, being the legal owner of those corporate shares, holds the right to vote. With hundreds of stocks in some funds, attending every meeting would be impractical. As a result, mutual funds often use proxy firms to cast votes for them.

GuideStone's Faith-Based Approach to Proxy Voting

GuideStone Funds has a unique history with proxy voting, guided by Christian principles. Their investment strategies align with Christian values, even though no corporation is perfect. Recognizing this, GuideStone aims to engage with companies they invest in, encouraging them to adopt more God-honoring business practices. Proxy voting allows them to be a voice for faith in the marketplace, striving to use their influence to advance God’s Kingdom.

Previously, GuideStone delegated proxy voting to sub-advisers. However, they felt the need to make their voice clearer. In 2023, GuideStone brought in-house proxy voting, developed proprietary guidelines, and partnered with a proxy advisory firm. This move enables them to better align shareholder voting with their Christian values and those of their investors.

An Example: Standing Against Discrimination

One issue GuideStone addressed during this proxy season was “debanking,” a practice where banks refuse services based on social or reputational risk. Some banks have denied service to individuals or organizations solely due to their religious or political views. This growing trend reflects a larger issue of ideological discrimination in corporate cultures, where employees may feel unsafe to express their beliefs.

This year, many companies included proposals on their ballots addressing viewpoint discrimination. GuideStone proudly voted in favor of these proposals, advocating for freedom of expression and religious liberty.

Why Proxy Voting Matters

As Christians, we are called to be the “light of the world” (Matthew 5:14-16). Proxy voting is one way we can let our light shine in the marketplace, using our voice to reflect God’s values. More Christians are seeking to align their faith with their finances, and GuideStone is dedicated to helping them do so through faith-based investing strategies. By putting dollars to work in ways that honor God, investors can achieve both their financial goals and make an impact for His Kingdom.For more information on faith-based investing and proxy voting, visit GuideStoneFunds.com/Faith.

On Today’s Program, Rob Answers Listener Questions:

My daughter and her husband want to buy a $900,000 home. They have $300,000 for a down payment. I suggested they keep their paid-off $350,000 condo and get a loan against it for the new home's down payment rather than selling it. What do you think of this approach?
I'm almost 59 years old, and my daughters have asked me to stay with one of them for a while to help her get on her feet. I'm going to sell my house, and I don't owe anyone anything. I'm unsure what to do with the money from selling my home. Can you provide any advice?

Resources Mentioned:

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