The Holy See adopts a new investment policy

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

From 1Er In September next year, a new policy of combining financial investments of the Holy See and the Vatican will begin. This was announced on July 19 by the Secretariat of the Economy (SPE) in a press release of the Press Center of the Holy See. This new investment policy was discussed in the Economic Council with the support of experts in this sector. Then the Prefect of the Secretariat for Economic Affairs Father Juan Antonio Guerrero Alves addressed the heads of the Dicasteries of the Curia, as well as the heads of institutions and bodies related to the Holy See.

Investments consistent with the teachings of the Church

“The new investment policy –can be read in the SPE press release– intends to ensure that investments are directed towards creating a fairer and more sustainable world. They protect the real value of the pure heritage of the Holy See by generating sufficient income to contribute to the sustainable financing of its activities; aligning them with the teaching of the Catholic Church, with specific exceptions to financial investments that contradict its basic principles, such as the sanctity of life or human dignity or the common good.”

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

The policy is for five years

This new policy, the Secretariat of Economy adds, was approved for a test period of 5 years and will come into effect on September 1. The press release also explains how the new investment policy will begin: Curia institutions – we read in the note – will have to entrust their financial investments to APSA, transferring their liquid funds for investment – that is, their securities deposited in banks abroad or with the IOR. APSA, as the institution that manages the heritage of the Holy See, will create a single fund for the Holy See, in which investments will be directed to various financial instruments. Each institution will have its own account.

Creation of a “againstomitted for investmentยป

Finally, the press release mentions a new investment committee created under the new Apostolic Constitution. Predicate Gospel. This committeenoted through APSA will conduct appropriate consultations on the implementation of the investment strategy and evaluate the adequacy of the choice, paying particular attention to the compliance of the investments made with the principles of the social doctrine of the Church, as well as the yield and risk parameters in accordance with the Investment Policy.”

On July 19, the Secretariat of Economy published the charter of the investment committee, which is responsible for defining investment strategies and ensuring their effective implementation. In accordance with the investment policy, the charter provides that the committee develops and updates the powers that APSA must give to portfolio managers. Internal control over the activities of the committee is entrusted to a responsible employee appointed by the Prefect of the Secretariat for Economic Affairs. This position ensures the transparency and proper functioning of the committee, as well as the absence of conflicts of interest and monitors the proper management of risks. Control and monitoring of the committee’s activities is entrusted to the Secretariat for Economic Affairs, which annually submits a report on its activities to the Council for Economic Affairs.