The 2009 Synod of the Anglican Diocese of Sydney has accepted an apology from the board which administers more than one hundred million dollars in church funds, for large losses associated with the Global Financial Crisis.

In a session lasting three and a half hours the Synod, effectively the diocese’s parliament, heard a detailed report of losses which totalled $160 million dollars at the height of the sharemarket crisis.

Chairman of the Glebe Administration Board, Phil Shirriff said the board was deeply conscious of the outcomes now impacting the Diocese and that it accepted full accountability and responsibility and apologised for the outcome.

He told the meeting that the investments comprised a diversified portfolio handled by external managers. And that while all sectors of the market fell, the board’s gearing strategy accentuated losses.

The Synod was told there were mistakes in timing related to the gearing and in risk management procedures.

Although the Synod was told a recovery in the investments had already begun, new church initiatives will have to be curtailed and job losses have occurred.

The Synod passed a motion which expressed regret at the losses but acknowledged the board was within its authority to implement a gearing strategy and had given regular reports both to the Diocese’s Standing Committee which meets monthly, as well as the Synod which meets yearly.

The results of a board review will be reported to the Synod in 2010.

In last night’s debate, an amendment which would have censured the board was rejected overwhelmingly by Synod members.

The movers of this amendment acknowledged in the debate that there is no suggestion of impropriety and they agreed that gearing is an acceptable way to enhance returns.
The Bishop of South Sydney Robert Forsyth said he was pleased with the conduct and thoroughness of the debate.

“It was the responsible thing to stop and consider this loss from all angles. Synod has noted the actions being taken and now can move on to the implications for our ministries.”

A more detailed report will appear in the print edition of Southern Cross due out on Monday