An investment manager which is majority-owned by the Church of England has been sold to rival Jupiter for £100million in a deal that has netted a cash windfall for the Church.
CCLA dates back to 1958 when an investment fund was set up to allow church organisations to pool resources.
Today, it also serves charities and local councils, and is the UK’s largest asset manager for non-profit organisations, looking after more than £15billion in assets.
Just over £3billion of that is invested by the Church of England.
CCLA – or Churches, Charities and Local Authorities Investment Management – is 54 per cent-owned by the Church of England investment fund.
That means the fund will receive a £54million windfall on the sale. The sum is expected to be reinvested rather than deployed for uses such as fixing church roofs.
Windfall: CCLA – or Churches, Charities and Local Authorities Investment Management – is 54% -owned by the Church of England investment fund
Also in line for a payout are the current and former executive directors of CCLA, who will between them receive £7.55million as a result of the deal.
Under CCLA’s ethical investment policy, its aim is ‘to meet our clients’ financial objectives in a way that we believe aligns with their values and furthers their mission’.
Last year, its chief executive Peter Hugh Smith spoke out over efforts to encourage the Chinese fast fashion giant Shein to list in London, arguing that the City must not become a listings venue of ‘last resort’ for companies with ‘dubious human rights records’.
The company shuns making investments that are judged to be making too much money from climate change, tobacco, cannabis, ‘indiscriminate’ weaponry and oppressive regimes.
After the sale to Jupiter, CCLA will be run as a stand-alone division with its ethical approach and investment strategies remaining unchanged, a spokesman said.
The deal was signed off by the firm’s advisory board, which includes representatives of the Church of England as well as charities and local authorities.
Andy Brookes, chair of the board of trustees overseeing Church investment funds, said: ‘CCLA is a crucial part of the wider Church of England family, serving some 11,000 parochial church councils, diocesan boards of finance, cathedral chapters and other Church of England charities by providing investment funds managed in line with our values and beliefs.
‘We are confident that joining Jupiter will enable CCLA to offer an even better service to church charities to support them in their mission.’
The deal, creating a group with combined assets of £59billion, remains subject to regulatory approval and is expected to complete by the end of 2025.
Jupiter chief executive Matthew Beesley said: ‘This acquisition helps us to increase scale in our home market of the UK, where Jupiter is already a leading player.’
Yesterday, shares in Jupiter surged 10.7 per cent, or 11.6p, to 120p.
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