Thursday, April 2, 2009

Church Pension Fund portfolio declined in 2008 but investments 'well-positioned,' report says


he Church Pension Fund's investment portfolio declined by 18.8 percent in 2008, but still has approximately $1.3 billion more in assets than liabilities, according to a recent report mailed to fund participants.
"No one knows the duration of the current global economic and financial problems, but the fund remains in an enviable position," wrote Dennis Sullivan, Church Pension Fund president, in a March 20 introduction to "Perspective," a periodic newsletter from his office.

"Despite the recent declines, the fund's reserves are sound and benefits are secure," the newsletter said. "We do not know what the next months will bring, but we believe the investment portfolio is well-positioned for the long term."

As of December 31, 2008, preliminary figures show that the fund's assets were $7.45 billion and liabilities were $6.2 billion, according to the newsletter. The investment portfolio's decline of 18.8% in 2008 compared to a 37% decline during the same period in the Standard & Poor's 500 Index, a broad gauge of U.S. stock market performance.

"The fund's 33% allocation to bonds cushioned the decline from equities," the Perspective newsletter noted, adding that the portfolio's "broad diversification" in its equities investments helped insulate the fund against the larger losses seen by other investors. Those investments include hedge funds, event arbitrage (purchasing securities of companies experiencing major events such as acquisition or reorganization), distressed debt (purchasing bonds of companies experiencing financial trouble) and absolute return strategies (aimed at producing a return even if markets are trending down).

http://www.episcopalchurch.org/79901_106646_ENG_HTM.htm

No comments: