Key Takeaways
- • Vatican Bank (IOR) launches two Catholic-aligned equity indices in partnership with Morningstar: the Morningstar IOR Eurozone Catholic Principles and Morningstar IOR US Catholic Principles, each tracking 50 large- and mid-cap companies selected for alignment with Church social doctrine.
- • Indices apply 20+ ethical screening criteria rooted in Catholic social teaching, including exclusions for abortion techniques, contraception, controversial weapons, coal/oil derivatives, gambling, and non-compliance with anti-money laundering and counter-terrorism standards.
- • 50-company portfolios include major institutional holdings such as Amazon, Meta, Tesla, Apple, JPMorgan, Deutsche Telekom, Banco Santander, UniCredit, and Allianz, providing exposure to large-cap secular and financial sectors while maintaining doctrinal alignment.
- • Tool addresses institutional Catholic investor base serving 12,000+ Church clients across 110+ countries, establishing a standardized reference benchmark for Catholic-principled passive equity investing and ESG-aligned portfolio construction.
- • Benchmarks complement existing Catholic values indices from S&P Dow Jones and Bloomberg, expanding the ethical investment framework available to institutional and family office managers with Catholic stakeholder obligations.
Summary
The Institute for Works of Religion (IOR), the Vatican's primary financial institution, announced the launch of two new equity benchmarks designed to serve Catholic investors seeking alignment with Church doctrine. The Morningstar IOR Eurozone Catholic Principles and Morningstar IOR US Catholic Principles indices were developed in collaboration with Morningstar, an independent financial data provider, and represent a formalized approach to ethical stock market investing grounded in Catholic social teaching.
Each index tracks 50 large- and mid-cap companies selected through a rigorous screening process applying more than 20 ethical criteria. The IOR's screening framework excludes companies engaged in abortion-related services, contraception manufacturing, stem cell research, controversial weapons production, small arms manufacturing, military supply contracts, fossil fuel extraction and derivatives, animal welfare violations, gambling operations, and entities non-compliant with anti-money laundering and counter-terrorism standards. This comprehensive filtering mechanism ensures constituent companies align with Catholic principles while maintaining sufficient scale and diversification for institutional portfolio construction.
The constituent companies span multiple sectors and geographies. Notable holdings cited include Amazon, Meta, Tesla, Apple, and JPMorgan in the US-focused index, alongside European large-caps such as Deutsche Telekom, Banco Santander, UniCorredit, and Allianz. This composition allows Catholic investors—including Church institutions, dioceses, and affiliated entities—to maintain exposure to major equity market participants while adhering to doctrinal constraints.
The IOR services over 12,000 clients working for Catholic Church organizations across more than 110 countries, positioning these benchmarks as significant infrastructure for institutional Catholic capital allocation. The indices establish a standardized reference point for passive equity investing strategies, addressing the practical challenge of reconciling fiduciary return objectives with religious obligations. This initiative complements existing Catholic values indices offered by S&P Dow Jones and Bloomberg, creating a multi-provider ecosystem for values-aligned equity benchmarking within the institutional investment community.
Each index tracks 50 large- and mid-cap companies selected through a rigorous screening process applying more than 20 ethical criteria. The IOR's screening framework excludes companies engaged in abortion-related services, contraception manufacturing, stem cell research, controversial weapons production, small arms manufacturing, military supply contracts, fossil fuel extraction and derivatives, animal welfare violations, gambling operations, and entities non-compliant with anti-money laundering and counter-terrorism standards. This comprehensive filtering mechanism ensures constituent companies align with Catholic principles while maintaining sufficient scale and diversification for institutional portfolio construction.
The constituent companies span multiple sectors and geographies. Notable holdings cited include Amazon, Meta, Tesla, Apple, and JPMorgan in the US-focused index, alongside European large-caps such as Deutsche Telekom, Banco Santander, UniCorredit, and Allianz. This composition allows Catholic investors—including Church institutions, dioceses, and affiliated entities—to maintain exposure to major equity market participants while adhering to doctrinal constraints.
The IOR services over 12,000 clients working for Catholic Church organizations across more than 110 countries, positioning these benchmarks as significant infrastructure for institutional Catholic capital allocation. The indices establish a standardized reference point for passive equity investing strategies, addressing the practical challenge of reconciling fiduciary return objectives with religious obligations. This initiative complements existing Catholic values indices offered by S&P Dow Jones and Bloomberg, creating a multi-provider ecosystem for values-aligned equity benchmarking within the institutional investment community.
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