Church Commissioners Commissioners Church Annual Report 2013 Investing in the Church’s growth The Church Commissioners Annual Report 2013 Front cover: The Revd James Barnett, Pioneer Minister to new communities in Leeds, is funded by the Church Commissioners – see page 13 The Church Commissioners Annual Report 2013 Supporting the Church of England’s ministry particularly in areas of need and opportunity Presented to Parliament pursuant to section 12(2) of the Church Commissioners Measure 1947 Copyright © 2014 The Church Commissioners for England Any enquiries about this report should be sent to the Church Commissioners' Secretariat at: Church House Great Smith Street London SW1P 3AZ [email protected] This document is available for download at http://www.churchofengland.org/about-us/ structure/churchcommissioners/annual-reports.aspx This report is printed on paper from responsible sources Church Commissioners Annual Report 2013 01 CONTENTS This report explores how the Church Commissioners invest Overview the Church of England’s historic resources and how we identify areas of need and actively support our network: Contents Church’s ministry Church’s Supporting the Supporting the Review of Governance Financial Church’s ministry investment activity statements The Commissioners' The Commissioners’ fund Read about the work of the Full financial statements mission-funded projects returned 15.9% during 2013, 33 Church Commissioners. for the year ended around the country with longer-term numbers Six hold offices of state; the 31 December 2013 focusing on areas of also remaining strong. other 27 make up the Board along with the need and opportunity. The Commissioners are of Governors. independent auditor's ethical investors. report to the Trustees. activityinvestment of Review Page 9 Page 18 Page 27 Page 32 The Church network includes: 16,000 12,000 11,400 Governance churches listed churches clergy 5,700 9,662 active retired clergy readers, pastoral assistants and other serving lay officers This network offers spiritual care for all who Typically these include projects that support Financial statements might wish to engage with matters of faith children, families and the elderly through clubs, and community action in a Christian context. social gatherings, cultural events, outreach activities and community services. • The Church provides education in the Christian faith and encourages personal spiritual growth and well-being for all. • Its buildings are a community focus and a base for Church-run and other activities. 02 FOREWORD BY THE ARCHBISHOP OF CANTERBURY Changing the lives of local communities “ I pray that as the Commissioners continue to support the ministry and mission of the Church to the nation by providing financial support, we will see continued growth and new areas of opportunity.” JUSTIN WELBY ARCHBISHOP OF CANTERBURY Within the overall framework of the Five Marks of Mission and the Quinquennial Goals, the renewal of prayer and the Religious Life, reconciliation, and evangelism and witness are the three key priority areas for my ministry as Archbishop of Canterbury. Leading up to my installation in Canterbury Cathedral in March 2013, I undertook a prayer pilgrimage around different parts of the country, giving a chance to focus on these priorities and see living examples in the Church of England today. Renewal of church life starts with renewal of prayer and the Religious Life, in all the traditions, ancient and modern. It comes from Christians seeking Christ. I am delighted that the Church Commissioners continue to identify and fund areas of need and opportunity to support taking forward the spiritual and numerical growth of the Church of England. During 2013 I had the privilege of meeting and talking with many clergy and church members – hearing first- hand what the Church is doing at the grassroots level, working in its local community. For example, on my visit to Truro Diocese I visited a credit union and money advice centre, a family fun day, a community shop and a skate park all linked with local churches – along with meeting farmers and a lifeboat crew who shared the joys and tribulations of working life in Cornwall. In all this and in many other places I have seen the faithful witness of local churches, which bring the reconciling presence of God to the communities in which they are set; through prayer, individually and together, God puts into our minds new possibilities of how the Church can be Good News, both in working for the common good and helping more people to come to know Jesus. I pray that as the Commissioners continue to support the ministry and mission of the Church to the nation by providing financial support, we will see continued growth and new areas of opportunity. Church Commissioners Annual Report 2013 03 OVERVIEW The Church Commissioners’ Overview work supports the Church of England as a Christian presence in every community. Church’s ministry Church’s Supporting the We manage an investment fund of £6.1 billion and our ongoing responsibilities include: investment activityinvestment of Review • Supporting poorer dioceses with ministry costs • Providing funds to support mission activities • Paying for bishops’ ministry and some cathedral costs • Administering the legal framework for pastoral reorganisation and settling the future of Governance closed church buildings • Paying clergy pensions for service prior to 1998 • Running the national payroll for serving and retired clergy We provide public benefit in fulfilling these responsibilities. Financial statements 04 OVERVIEW The Church Commissioners at a glance The Church Commissioners’ £6.1 billion investment fund is well managed and has a significant spending capacity which we invest in our parish ministry and mission grants, including support for low income dioceses. Investment performance 700 Our investment objective is to generate 600 a total return (capital gain and income) averaging RPI +5% per annum over the 500 long term. Over the past 20 years our fund has achieved an average return of s 400 lion RPI +6.7% per annum. l bi 300 Our investment policy is to hold a diversified portfolio of investments across 200 a broad range of asset classes consistent with our ethical guidelines. 100 After taking account of expenditure, our fund has grown from £2.4 billion at the 0 1 1 7 7 2 2 5 4 3 8 3 5 4 8 3 9 6 9 6 0 0 1 start of 1994 to £6.1 billion at the end 0 0 0 0 0 0 0 01 0 01 0 01 00 0 00 00 2 199 2 199 199 199 199 2 199 199 2 of 2013. 2 20 20 2 2 20 20 2 2 20 Church Commissioners WM All Funds RPI +5% Global Equities (MSCI All World in GBP) Church Commissioners’ Church Commissioners’ charitable expenditure 2012 charitable expenditure 2013 120.3 121.5 40.9 31.2 9.1 5.1 87.0 86.3 Church Commissioners’ expenditure 2013 Our parish ministry and mission grants include support for low income dioceses, Pensions expenditure mission development funding and research and development. Case studies and Non-pensions expenditure examples are outlined in the Review. We also continue to support the ministry of Parish mission and ministry grants our archbishops, bishops and cathedrals. Other support includes some specific Archbishops’ and bishops’ ministry expenditure on church buildings, national clergy payroll costs and our own Cathedrals governance costs. Full details can be found later in the Report. Other expenditure Church Commissioners Annual Report 2013 05 Overview The Commissioners’ support per The new Diocese of diocese excluding clergy pensions Leeds (also known as and national cost the Diocese of West up to £1.0m Yorkshire and the Dales) replaced the dioceses of £1.0 – £1.5m ministry Church’s Supporting the Bradford, Ripon & Leeds £1.5 – £2.0m and Wakefield at Newcastle £2.0 – £2.5m Easter 2014. £2.5 – £3.0m More than £3.0m Durham Carlisle Ripon Sodor & Man & Leeds York Pioneer Minister Ben Norton in York Bradford Diocese is supported Blackburn by the Commissioners investment activityinvestment of Review Wakefield Manchester Ben is building on earlier Liverpool Liverpool Cathedral Sheield Church work on a major Mission Project is housing estate with no funded by the Chester Derby Lincoln physical church presence. Commissioners Southwell & Nottingham Zone 2 is an all-age, café style, informal worship Lichfield service that meets every Leicester Norwich Sunday at the same time Birmingham as the Choral Eucharist. Ely Peterborough Page 12 Worcester Coventry St Edmundsbury & Ipswich Hereford Governance St Albans Gloucester Chelmsford Oxford London Page 17 Bristol Rochester Guildford Southwark Canterbury Winchester Pioneer Ministry at Bath & Wells Salisbury Iwade, Canterbury Diocese, is funded by Portsmouth Chichester the Commissioners Exeter Cathedrals receive Commissioners’ A church plant and Truro support outreach for those living in the new housing areas at Iwade. Financial statements Winchester Cathedral's 2013 Symphony of Flowers combined as a visitor attraction and worship focus. Page 13 Page 27 06 THE FIRST CHURCH ESTATES COMMISSIONER Supporting the Church’s growth The year under review was a good one for the Church and for the Church Commissioners. Indeed, it may prove to have been a turning point, the moment when the Church decisively increased its focus on securing numerical and spiritual growth in Church membership. ANDREAS WHITTAM SMITH THE FIRST CHURCH ESTATES COMMISSIONER At the same time, the Commissioners, to assist this process, began to target their charitable distributions much more strategically. The extent to which the Church Commissioners can do this depends upon the performance of their large investment portfolio, whose total value rose from £5.5 billion to £6.1 billion in 2013. This is the balance after taking into account substantial distributions during the 12 months, not least £121.5m of pension payments to clergy under the scheme closed to new entrants since 1998.