wfn.org | Church Pension Fund weathers stormy

[ENS.parti@ecunet.org (ENS)]

November 13, 1997
Episcopal News Service
Jim Solheim, Director
212-922-5385
ens@ecunet.org

97-2001
Church Pension Fund weathers stormy market

by Michael Barwell
       (ENS) As stock markets around the world joined the wild ride of
winners and losers October 27-29, the Church Pension Group,
responsible for the pension funds of thousands of clergy and lay
employees in the Episcopal Church, reported it is in "excellent shape."
       "Despite the decline in the stock market last Monday, the Church
Pension Fund remains in excellent financial condition," said Alan F.
Blanchard, president of the fund.
       The global financial free fall, in which the New York Stock
Exchange lost 7.2 percent of its value in a single trading day, had only a
moderate impact on the Church Pension Group's holding, according to
Joan Castagnone, spokesperson for the fund. A record-setting rally the
next day returned value to many stocks and portfolios. "At its lowest
point Monday our advisors estimated we were down only about 2
percent," Castignone reported.
       Blanchard indicated that the Pension Fund's diversity of
investments prevented significant losses.
       "Because of long-standing concern over the valuation levels of
both U.S. and international equities, our exposure to these areas was
below our normal levels and our exposure to bonds relatively high,"
Blanchard explained. "This significantly cushioned the impact of the
decline. Total fund assets remain in excess of $3 billion, as reported in
our 1997 annual report. We continue to have significant uncommitted
reserves," Blanchard said.
       "Even in a worst-case scenario we are well-enough funded to
meet our obligations for some time," Castagnone added. Fortunately, the
Pension Fund's $3.2 billion in holdings are widely diversified, leading to
long-term stability despite short-term market changes, she explained. The
Pension Fund's investments include foreign and domestic equities, bonds,
and alternative investments such as venture capital and real estate
interests.
       "The Pension Fund is very well-funded and very safe,"
Castagnone said. She noted that the fund's trustees recently announced a
2.5 percent increase in pension benefits, beginning January 1, 1998. The
fund also is implementing a new program allowing full benefits for the
early retirement of clergy who are 55 years old with 30 years of service.
The 30-year option, advocated by the Wellness Initiatives Committee,
was approved by the trustees last year and endorsed by General
Convention in July. 
       The value of the Pension Fund has tripled since 1992. 
       
--Michael Barwell is deputy director for news and information for the
Episcopal Church