The head of the Church of England’s investment arm has flagged that its £7.9 billion fund will fail to match the stellar returns logged in 2016, but said ethical policies were not to blame.
While the fund managed to rake in a bumper 17.1% return on the back of a strong performance in equities in 2016, it sold down its stock holdings by around 17% or £500 million to help re-balance the portfolio during the same year, meaning a smaller boost from a further rise in stock prices is expected from 2017.
Andrew Brown, secretary and chief executive of the Church Commissioners, said: “Like all investors we were faced in 2017 with a number of headwinds and we’ve seen it with sterling, we’ve seen it with inflation and global markets have slowed.