The case profitable ethical investment has been reinforced by the Church Commissioners for England, the fund announced divine returns on his financial portfolio for 2016.
The church of England sells investments fearing a slowdown in the market
The organization, which manages assets of Â£7.9 billion in order to â€œsupport the Church of England as a Christian presence in every communityâ€, said that he had broken the targets by making a 17.1% return on investment over the course of 2016 â€“ the numbers that is the envy of many personalities in the fund management industry.
In 2016, Woodford Equity Income, which is managed by the united KINGDOM’s best-known manager, Neil Woodford â€“ visited by 3.2%, compared with 8.8% gain for the Investment Association’s UK equity income average, according to the web site of the financial MoneyObserver.com.
The church of the outperformance of the fund over the last decade slightly exceeded even the Yale Endowment fund, which is classified by the Financial Times (paywall) as the most admired in the area.
The Church Commissioners, whose objective is to make a return of inflation plus five percentage points, said he had been in part helped in 2016 by sterling weakness after the brexit vote, with the falling value of the pound, which represents about half of the realized gains on its stock portfolio.
First church estates commissioner Mr Andreas Whittam Smith said: â€œto Contribute to this stellar has been a sharp increase in global equities (+32.9%), reflecting in part the depreciation of the pound sterling. Equally useful have been our private interests of the credit strategies (+33.1%), private equity (+26.1%) and timberland (+24.3%). The combined property portfolios delivered a commendable 11.6% in a relatively weak market environment.
â€œThe consistency has really been a guiding principle for the fund. Our historic performance over a period of 30 years, shows an annual growth of 9.6% per year, despite periods of turbulence on the financial markets and our own portfolio, or an average of 6% per annum ahead of inflation.â€
The Church Commissioners, said returns to say that it has contributed Â£230.7 m from the mission of the Church of England, even though she admitted that it was â€œonly about 15% of the church’s total income â€“ the major part of funding comes from the extraordinary generosity of the parishionersâ€.
The body said that he had also made the promotion of responsible investment, including being â€œinstrumental in the filing of the climate disclosure resolutions to the [mining groups] Anglo American, Glencore and Rio Tinto,â€ and to continue â€œto vote against the majority of the remuneration reportâ€.
Richard Saunders, head of equities, added: â€œWe have always maintained that ethical investment does not put us at a disadvantage â€“ so, I’m not going to argue, it puts us at an advantage [on the back of these returns]. We have a strong ethical approach and invest in the long term, we believe that will be successful. We are looking to reap returns over a long period of time.â€
The focus on ethical investment has long been part of the mandate of the organization, although some of its investment spikes have always led to debate.
In 2012, it has sold its shares in Rupert Murdoch group of media after the phone-hacking scandal. However, the following year, the church pension fund was found to have made an indirect investment in the controversial payday lender Wonga, while he has also invested in the areas of finance, that many see as contentious, such as hedge funds.