Church of England sells equity shares fearing global slowdown. With a Gloomy Global Outlook Projected, many are doing different things with their investments. For instance, some are selling off equity shares that they own even if the market conditions are stable and even favorable at the moment. One such instance is Church of England. It has offloaded about 250 million in pounds of the equity shares it has owned. The investment fund that the Church of England owned had achieved a return of 8.2%. It was a fall compared to previous year performance. This year it has not waited to see how much return, it would earn till the end. The religious organization stated that it has feared that an economic slowdown is coming forth. Governments would probably not be able to do much to push up growth in such a scenario. As a result, it has decided to offload much of the holdings that it has in the stock market.
About the church investment funds
The church has commissioners who manage the investment fund of the organization, amounting to £7bn. The organization stated that they had earned about 8.2% in the last year. But the forecast was that the fund might not be able to generate returns at the same pace in the coming year. The fund has been able to provide a return of 9.7% on an average over the last 30 years. Sir Andreas Whittam Smith is currently the church estates commissioner. He stated that the global markets being in a jittery state now, had prompted them to take such a decision. There have been several articles published in the Current State Of Global Economics as can be Found Here. The decision was taken in March when £250m was sold among the global share holdings of the organization. It represented about 6% of the equity holdings of the organization. Its holdings in equity amount to £4bn in total.
Recommendations and forecasts
The recommendations of the commissioner were put in the annual report. Here the past performance of the fund for thirty years was highlighted and the ending suggestion was that that equity holdings might as well as sold as the same performance might not be seen in the future. In general, it is felt that investors are jittery in the present stock market. They feel that governments do not have any effect or influence in being able to reverse the economic activity and the general direction of the stock market. Earlier governments would take the stance of reducing interest rates in order to stimulate growth. Today the same policy or stances can no longer work. Rates are already around zero and hence, that remedy will not work. Hence, many are apprehensive that the economic slowdown will occur and it will be moored at that stage without any stimulus known to get it out of the mire. Returns from the investment fund of the church helps to pay for most of the work and tops the donation that is received from church goers.