By Paul R. La Monica

One legacy of Pope Francis, who died this past Monday at 88, will be financial. The Vatican's investments have been profiting from a renewed focus -- led by the pontiff -- on social values aligned with the Catholic Church.

In 2023, the Administration of the Patrimony of the Apostolic See, or APSA, made nearly 46 million euros ($52 million) from its investments -- EUR37.9 million covered Church expenses, and the rest was profit. APSA invests in international and fixed-income securities, and provides the Church "consulting, financial solutions, and access to capital markets."

Profits rose more than 40% from 2022, when the Church outlined "faith-based measures for Catholic investors," eschewing abortion and birth control, pornography, excessive use of alcohol and other addictive substances, weapons, capital punishment, and mining. Many of the factors of ESG "resonate" with its aims, the Church said.

APSA doesn't list specific holdings, but the Global X S&P 500 Catholic Values exchange-traded fund, which also excludes "companies involved in activities perceived to be inconsistent with Catholic values," resembles an S&P 500 fund: Apple, Microsoft, and Nvidia are top holdings.

In 2022, APSA lost more than EUR6 million on its investments. It noted that 2023 maintained "a proper balance between risk and medium- to long-term profitability." The 2024 report won't be out until summer.

Write to Paul R. La Monica at paul.lamonica@barrons.com

Last Week

Markets

The week began as President Donald Trump again attacked Federal Reserve Chair Jerome Powell, sending the S&P 500 down 2.7%. The dollar sank, and gold, Bitcoin, the yen, and the euro rose. Trump walked back his Powell attacks, and Treasury Secretary Scott Bessent admitted the China-U.S. trade war had to end in "the very near future." Stocks rose on the seeming thaw and talk of Fed rate cuts, then wavered as China denied talks were taking place. On the week, the Dow Jones Industrial Average rose 2.5%, the S&P 4.6%, and the Nasdaq Composite -- whew -- 6.7%.

Companies

Harvard sued the federal government and is in talks to sell a billion dollars in private-equity stakes. Tesla's quarterly profits fell 71%, and Elon Musk said he would return to the company in May. Bullish signals from the Food and Drug Administration ignited a biotech rally. Intel said it would cut its workforce by over 20%. Swiss-based Roche and Novartis both announced big U.S. investments. The European Union fined Apple $571 million and Meta Platforms $228 million for antitrust violations; Apple accelerated its India iPhone production shift. Boeing reported a lower-than-expected loss, but a China shutdown loomed. Alphabet's profits rose 46%.

Deals

The Financial Times reported Chinese state funds have been pulling out of U.S. private-equity firms...Bank regulators approved Capital One Financial's $35 billion merger with Discover Financial...Bloomberg reported that Rite Aid is looking to liquidate as it nears a second bankruptcy.

Next Week

Tuesday 4/29

We enter the heart of earnings season, with roughly one-third of S&P 500 index companies reporting, the busiest week on the first-quarter earnings calendar. Coca-Cola and Visa announce earnings on Tuesday, followed by Meta Platforms and Microsoft on Wednesday. Amazon.com, Apple, Eli Lilly, and Mastercard release results on Thursday, while Chevron and Exxon Mobil close out the week on Friday.

Wednesday 4/30

The Bureau of Economic Analysis releases the personal consumption expenditures price index for March. Consensus estimate is for a 2.2% year-over-year increase, three-tenths of a percentage point less than in February. The core PCE price index, which strips out volatile food and energy prices, is seen rising 2.6%, compared with 2.8% previously. If the Federal Reserve's favored inflation gauge, the core PCE, comes in as expected, it would be the lowest annual reading since March 2021.

Friday 5/2

The Bureau of Labor Statistics releases the jobs report for April. Economists forecast a 130,000 gain in nonfarm payrolls, after a 228,000 increase in February. The unemployment rate is expected to remain unchanged at 4.2%.

The Numbers

$130 B

The U.S. financial-services trade surplus with the world in 2024, threatened by a global trade war.

3,521%

U.S. tariff on solar panels made in Cambodia, the biggest of the duties on four Southeast Asian nations.

23%

Increase in Chinese auto exports in 2024, or 6.4 million cars, over 50% higher than No. 2 Japan.

3.6 M

U.S. births in 2024, up 1% over 2023, but still below the replacement level of 2.1 births per woman.

Write to Robert Teitelman at bob.teitelman@dowjones.com

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April 25, 2025 20:00 ET (00:00 GMT)

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