The Church Pension Fund’s (CPF) investment portfolio must generate sufficient returns to pay benefits and related expenses for decades to come. In consultation with the CPF Board, the CPG Investment team establishes an asset allocation—a mix of stocks, bonds, real estate, and other assets—that is designed to achieve an appropriate investment return without taking on unnecessary risk. CPG then identifies carefully selected third-party investment managers to make and monitor specific investments.

As of March 31, 2024, the value of CPF’s investment portfolio stood at $17.5 billion, compared to $17.0 billion the prior fiscal year. Publicly traded stocks delivered strong increases over the past year. Bond markets fluctuated widely during this period but finished with modest gains. Private asset classes, such as real estate and private equity, continue to adapt to the earlier rise in interest rates and posted muted returns amid subdued market activity.

Over the past 10 years, the CPF investment portfolio has generated an annualized return of 7.6%, which exceeds its investment goal of 7.3% and the market benchmark of 6.3%.

To the extent possible, the investment team incorporates socially responsible investment (SRI) principles in its broader investment strategy. CPG’s four-pronged investment strategy includes evaluating how current and prospective investment managers reflect ESG issues in their analysis; investing for positive social impact when strong risk-adjusted returns can be achieved; engaging with companies on ESG issues as active shareholders; and sharing access to the expertise of thought leaders in SRI.

We remain vigilant about recognizing and managing risks and are poised to maintain the financial strength of CPF to meet our obligations for decades to come.