Church of England fund becomes top world performer

Always fascinating to see connections between religion and finance.

Came across this bit of news:

 The Church of England’s £7.9 billion (€9.1 billion) investment fund, which has in the past struggled to reconcile questions of morality and mammon, achieved its strongest returns in more than three decades last year, lifting it into the top ranks of the world’s best-performing endowment funds.
The Church Commissioners annual report discloses total return on assets of 17.1 per cent in 2016, with strong performances from global equities, private equity and timber.
Over 10 and 20 years, the fund returned 8.3 per cent and 9.5 per cent per annum respectively, compared with its target return of 5 per cent per annum above inflation. By contrast, returns from the Yale University endowment, top of the eight-member Ivy League, rose 3.4 per cent in the year to last June, with 10 and 20-year returns at 8.1 per cent and 12.6 per cent per annum respectively.
Armed with a long-term mandate and an in-house team of 35 investment professionals, the Church Commissioners are also known for taking positions counter to industry trends.
Tom Joy, investment director at the Church Commissioners, remains a supporter of active management at a time of massive inflows into passive index-tracking funds. He said as underperformance from active managers reaches new highs, it was not the time to switch from active to passive managers .“Like many things in markets, we think the success of active management is cyclical,” he said. “The really best managers go through periods of difficulty. Sometimes it is the right thing to stick with managers. We don’t have an obsession with three-year review periods.”
More here on the Church website. The church gives an annual investment just like many professional funds..

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