The Church Commissioners for England reported a 14.4% total return on investments last year, following good performance in property, private credit and timber.
The group’s 2014 annual report revealed the property portfolio totalled just under £2bn at the end of 2014 with an average return of 27%, predominantly from capital growth including realised gains on sales.
The fund made two commitments to private credit in 2014 totalling £51m, which generated a combined return of 10.2% throughout the year.
Elsewhere, the timberland and forestry portfolio delivered a total return of 22.3% in 2014 following recent purchase of forests in Scotland and Wales. It also became the largest private owner of forestry in the UK.
In addition, the fund reported exceeding its long-term target of RPI +5% throughout the year and had achieved a return of 9.8% per annum over the past 30 years.
The fund’s assets under management increased to £6.7bn in 2014 up from £.2.4bn at the start of 1995.
Charitable expenditure in 2014 was almost £215m accounting for 16% of the Church’s overall mission and ministry costs. Commissioner-funded projects ranged from clubs and drop-ins to youth work and food bank hubs, all supported by local churches.
Some £123m was paid out in supporting pensions for retired clergy throughout the year.
Church Commissioners secretary Andrew Brown said: “Through continued strong ethical and sustainable financial performance we help provide for the spiritual and numerical growth of the Church of England. We continue to identify and help fund the Church’s work and mission in communities throughout England.”
Last month the Church Commissioners won the portfolio institutional award for best implementation of responsible investment.
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