Holy See adopts new investment policy

The new financial investment policy of the Holy See and the State of the Vatican comes into force on 1 September. The investment policy aims to generate sufficient income to support the funding of the activities of the Holy See through investments consistent with the teachings of the Catholic Church.

From 1uh In September next year, a new policy will be launched to pool the financial contributions of the Holy See and the Vatican. The announcement was made on 19 July by the Secretariat for Economics (SPE) in a Holy See press release. This new investment policy was discussed in the Economic Council with the support of specialists in this field. The prefect of the Secretariat for Economics, Father Juan Antonio Guerrero Alves, then addressed it to the leaders of the dicasteries of the Curia, as well as to the heads of institutions and bodies associated with the Holy See.

Investments in line with Church teachings

“New investment policy –we can read in the SPE press release– intends to ensure that investments are directed towards a more just and sustainable world. They protect the real value of the net property of the Holy See, generating enough profit to make a sustainable contribution to the financing of its activities; bringing them into line with the teachings of the Catholic Church, with the special exception of financial investments contrary to its founding principles, such as the sanctity of life, the dignity of man, or the common good.”

That is why, the press release continues, it is important that these investments “designed for financial activities of a productive nature, with the exception of transactions of a speculative nature, and, above all, are guided by the principle that the choice to invest in one place and not in another, in the productive sector and not in another, is always a moral and cultural choice .

Policy for five years

This new policy, adds the Secretariat of Economics, has been approved for a test period of 5 years and will come into effect on 1 September. The press release also explains how the new investment policy will begin: the institutions of the Curia – we read in the note – will have to entrust their financial investments to APSA by transferring their liquid funds for investment – that is, their securities deposited in banks of foreign countries or from IOR. APSA, as an institution managing the heritage of the Holy See, will create a single fund for the Holy See, in which investments will be channeled into various financial instruments. It will have an account for each institution.

Creation “againstomitted for investment»

Finally, the press release mentions a new investment committee set up under the new Apostolic Constitution. gospel predicate. This committeenoted will conduct – through APSA – appropriate consultations aimed at the implementation of the investment strategy, and assess the adequacy of the choice, paying particular attention to the compliance of the investments made with the principles of the Church’s Social Doctrine, as well as the parameters of return and risk in accordance with the Investment Policy.

On July 19, the Secretariat of the Economy released the regulation on the investment committee, which is responsible for determining investment strategies and ensuring their effective implementation. In accordance with the investment policy, the charter provides that the committee develops and updates the mandates that APSA must give to portfolio managers. Internal control over the activities of the committee is entrusted to a compliance officer appointed by the prefect of the Secretariat for Economics. This position guarantees the transparency and proper functioning of the committee, as well as the absence of conflicts of interest and oversees the proper management of risks. The Economics Secretariat is responsible for overseeing and monitoring the activities of the Committee, which submits an annual report on its activities to the Economics Council.