Church of England investment fund returns below target

The Church of England’s £8.3 billion (€9.4 billion) investment fund made a “very creditable” but below target return in 2017.

Public equities and the managers “strong” outperformance relative to the market drove the fund’s performance though the return of 7.1%, was below the year’s target of 9.1%.

Its active UK smaller companies manager and global managers performed “particularly strongly” and its emerging markets portfolio also contributed usefully to returns in the equities portfolio, the church commissioners said.

The fund’s investment objective is to generate a return of inflation 5% per annum on average over the long term.

As its private equity portfolio has significantly outperformed quoted equity markets, the commissioners said they wanted to increase the fund’s private equity allocation if suitable managers can be found.

The private equity portfolio returned 7% in 2017 and further commitments to the portfolio totalling £129 million during the year were agreed.

Successful active management by the in-house property team also added to the fund’s overall performance, the commissioners said.

©2018 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST