Diocese of Olympia Moves $100 Million Investment Fund to Episcopal Church Endowment

Diocese of Olympia Moves $100 Million Into Churchwide Endowment

For decades, a volunteer investments committee oversaw the Diocese of Olympia’s multi-million dollar funds. That volunteer era has officially drawn to a close. On October 28, the diocese announced it is shifting the management of its $100 million investment fund into The Episcopal Church endowment, according to reporting by Episcopal News Service.

The move makes the Olympia fund one of the largest diocesan trusts under churchwide management. The board of directors explained the shift bluntly in a letter to shareholders: while volunteer oversight served the diocese well for generations, the sheer complexity of modern financial markets now demands dedicated institutional expertise.

From Volunteer Oversight to Institutional Scale

Moving the assets into a new custodial trust account means the money will now be managed within the churchwide endowment by the Domestic and Foreign Missionary Society (DFMS), the New York-based corporate entity for The Episcopal Church. Episcopal Church Chief Financial Officer Christopher Lacovara noted that the broader program currently manages trust funds for more than a dozen dioceses, over 150 congregations, and various church charities, totaling $350 million on top of the church’s core $500 million endowment.

Diocese of Olympia’s investment fund joins Episcopal Church endowmenthttps://t.co/RXPcy1vuoO pic.twitter.com/2WH8dVPXWD

— https://x.com/GeorgeConger8/status/2116692699562774954

By pooling these resources, the Diocese of Olympia unlocks access to institutional asset classes and specialized managers that are typically restricted to much larger portfolios. Diversifying risk during bouts of market volatility becomes significantly easier at this scale.

Mission Alignment and Financial Performance

Beyond raw market access, the transition guarantees strict adherence to church values. The $100 million fund will now fully comply with The Episcopal Church’s official “no-buy” list and participate in corporate social responsibility initiatives governed by General Convention resolutions.

Financially, the numbers tell a compelling story for the diocese’s balance sheet. The DFMS Trust has delivered an average annual net return of 8.3% since 1993. By comparison, the benchmark previously used to evaluate the Diocesan Investment Fund showed an annual return of 7.8%.

“As faithful followers of Jesus in Western Washington, this change will help congregations better support mission-critical ministries throughout our diocese,” Olympia Bishop Phil LaBelle said in a public release. “We are thrilled to partner with DFMS in this way.”

Fee Structure and Ongoing Control

Cost containment played a vital role in the board’s decision. The Episcopal Church charges zero management fees for custodial accounts. Furthermore, investment fees remain highly competitive because of the massive scale of the DFMS Trust assets.

Diocese of Olympia Moves $100 Million Investment Fund to Episcopal Church Endowment — Photo: ecww.org

Despite handing over portfolio management to the churchwide entity, local administrative control remains intact. The diocese will continue to manage its own deposits and withdrawals from the fund. Local leadership also retains the contractual option to withdraw the assets from the DFMS Trust entirely in the future if circumstances change.