Date: 7th August, 2024

We in ARRCC were pleased to find an Australian Catholic diocese which had, already some years ago, established a Diocesan Investment Fund that is guided by a robust ethical Investment Policy. The policy ‘promotes socially responsible investing, guided by Catholic social teaching and consistent with the moral and ethical standards of the Catholic Church’. These are investments that, for example, protect human life, encourage corporate social responsibility and protect the environment. Thus, for example, investment in renewables and clean technologies are favoured over fossil fuel intensive investments which come with long-term tail risk.

This has been operationalised by engaging the services of a trusted investment  firm with the right expertise. Importantly, this course of action, supported by investment research, is expected to lead to investment returns comparable to, or better than, unrestricted investments.

This testimonial was offered by the Diocesan Head Finance:

‘Following a rigorous process or recommendation, review, reference and interviews, we selected Morgan Stanley as our preferred partner to manage our Diocesan Investment Fund. They assisted us in finalising our draft Investment Policy Statement and together, we determined the appropriate portfolio mix to meet our return objectives with the lowest possible risk.

Through Morgan Stanley’s Religious Values portfolios and the regular reviews and conversations we have, we are assured that our investments remain free of activities we wish to avoid and align with our commitment to addressing climate change and promoting social improvement and cohesion in line with Catholic Social Teaching.

Morgan Stanley and other industry research and analysis gives us confidence that we can meet these objectives without compromising on our desired investment returns.

Our Investment Fund launched in late 2021 into a difficult market environment, but with a focus on the long-term, plenty of diversification in the portfolio and the liquidity to ride out market cycles, we have not wavered in our belief in the strategy pursued. This patience has been rewarded and our funds are showing solid gains giving us further confidence that our long-term goals are achievable.’

The case study is here.

Disclaimer: Note that ARRCC as an organisation is not explicitly recommending Morgan Stanley, but their services are valued by the diocese featured in this case study.