First published in the Financial Times.

In his article (18 Feb) Sir John Ralfe portrays the Church of England’s clergy pension fund as a casino, and recommends locking its surplus into long bonds. That advice ignores both economics and ecclesiology.

The C of E is not a corporate sponsor in managed run‑off, but a centuries‑old institution with a multi‑generational horizon. For such an entity, the core risk to clergy is not short‑term volatility but long‑term erosion of real returns.

A diversified allocation to equities, infrastructure and private loans is a rational way to earn the growth premium needed to support inflation‑linked pensions over decades and to improve the conditions of the societies in which pensioners retire in.

To “lock in the surplus” at today’s gilt yields is also to lock in lower expected returns and shift risk to future parishioners and clergy who will have to pay more or receive less. As Galatians reminds us, “at the proper time we will reap a harvest if we do not give up.

Dan Hedley, Policy Director, New Capital Consensus