Positioned for Long-Term Success

As we moved into the second year of coping with the impact of the coronavirus pandemic, the arrival of vaccines and increasing optimism about a return to normal life led to strong market returns in the US and around the globe.

The ability of The Church Pension Fund (CPF) to weather market fluctuations, historically and since early 2020, confirms that our investment portfolio is well positioned for long-term success. As of March 31, 2021, the value of CPF’s portfolio was $17.3 billion, significantly higher than the $13 billion of the previous year.

Including results over the past year, CPF has generated an annualized return of 9.5% over 10 years, exceeding our investment goal of 6.2% and the market benchmark of 7.5%. Over three and five years, the results surpassed our investment goals by an annualized 5.4% and 4.8%, respectively, and have also exceeded market benchmarks.

These strong returns during such volatile times stem from our disciplined, long-term strategy and a broadly diversified portfolio that is managed by external investment firms. These managers invest in a range of asset classes, including public and private equity, fixed income, and real estate. The portfolio is designed to ensure that it is able to generate sufficient returns to allow us to meet our future obligations.

This diversification has served us well, buffering some of the market instability and declines. Rebalancing the portfolio on an ongoing basis when the markets are fluctuating also allows CPF to be well positioned to capture value during these periods.

While we are cautious about expected returns for the next 10 years, our portfolio is very strong and we will continue to manage it prudently going forward.

Portfolio Performance

A diversified investment strategy executed through trusted long-term relationships helps us mitigate market risks and generate positive returns. At the same time, our approach to socially responsible investing allows us to have positive impacts on communities and companies while finding areas of alignment between Church values and economic values. 

Building Relationships

The lasting relationships we cultivate with investment managers are a vital part of our investment success. We look to work with firms that can deliver on a compelling investment strategy and whose values align with ours. Our 25-year relationship with Shorenstein is a case in point, with our investments helping to revitalize communities, create jobs, and protect the environment—all while delivering solid returns.

CPF's Total Investments
($ billions)

Asset Allocation

Investment Performance

Annualized Total Returns in Percentage (preliminary) for the period ending March 31, 2021.

*Investment goal is a return of 4.5% over inflation.
**The benchmark consists of 67% global stocks (Morgan Stanley Capital International All Country World Index) and 33% US bonds (Bloomberg Barclays Aggregate Bond Index).