To borrow a phrase from Disney’s Hannah Montana show: “It’s the best of both worlds”: Family Values Stocks that actually perform well.

Impossible?

Not according to a January 14, 2008 article in the Financial Times that rated the performance of the leading Faith-Based Stock Portfolios.

Leading the list was “The Timothy Plan,” a stock portfolio of companies with products or services that are consistent with core Christian values finished ahead of 35 other faith-based funds, with impressive average annual earnings in excess of 18% annually for the past 5 years, according to Morningstar data.

Second place went Islam-oriented Amana Trust funds.

Other contenders included Ave Maria for Catholics, Guidestone Funds for Southern Baptists and New Covenant funds for Presbyterians.

The Times reported that returns of the Timothy Plan’s biggest fund, Large/Midcap Value1, was up more than 17% for the year and averaged 18.6% annually over the past five years, according to Morningstar data, and that faith-based funds represented $17 billion in assets, up from less than $400 million a decade ago. Not bad, considering how badly the Dow has been dipping lately.

The Timothy, launched in 1994, has about $500 million in assets. It identifies its key investing screens as being in opposition to abortion, pornography, entertainment it sees as hostile to families, alternative lifestyles, alcohol, tobacco and gambling.

It might be worth checking out. Let us know what your thoughts are on investing in the stock market these days. What’s God saying to you about this strategy?