The Isle of Wight Council has been challenged over more than £74million in pension fund investments which a local campaigner claims are linked to the oppression of Palestinians, amid calls for the authority to move its money elsewhere.
Isle of Wight resident Jenni Agricola raised the concerns at a meeting of the Council’s Pension Fund Committee on Wednesday (28th October), questioning why investments managed by global investment firm UBS had not been reconsidered.
Her intervention follows growing frustration among pro-Palestine campaigners on the Island, who have accused the authority of an ongoing failure to debate the ethical implications of its pension fund investments.
Ms Agricola highlighted the UK Government’s recent crackdown on trade with illegal settlements in the West Bank, as well as decisions by London councils Tower Hamlets and Newham to support divestment motions relating to companies implicated in breaches of international law.
In her written question to councillors, Ms Agricola said:
“When will the Isle of Wight pension fund committee (IWPFC) look at their UBS investments complicit in the subjugation and annihilation of the Palestinian people, which are now totalling more than £74 million, and tell their fund managers to invest elsewhere?”
She also described the situation as being “three years into a genocide”.
Speaking to the Local Democracy Reporting Service following the meeting, Ms Agricola clarified that her concerns related to UBS Asset Management, a major global investment manager.
Councillor David Llewellyn, Reform UK chair of the Isle of Wight Pension Fund Committee, said the committee recognised the importance of responsible investment but stressed that any decision to change investments must comply with its legal responsibilities.
He said:
“The fund continues to work towards joining Local Government Pension Scheme Central (LGPS Central) as a shareholder. Pending completion of that process, its investments remain with its existing managers.
“The committee remains responsible for the fund’s investment strategy and responsible investment objectives. Responsible investment includes consideration of environmental, social and governance issues, including human rights and their implications for investment risk and returns.
“Any investment decision requires a proper assessment of the evidence, the available options and the implications for the fund, consistent with the committee’s legal duties to scheme members and employers.
“The committee’s focus remains on securing appropriate pooling arrangements and maintaining a responsible approach to the fund’s investments.”
Councillor Llewellyn added that it would not be appropriate to commit to changing investment managers, products or investments solely in response to the question.
He said any such decision would need to be properly justified and comply with the legal requirements governing pension fund investments, including those involving non-financial considerations.
The Isle of Wight Pension Fund is currently working towards joining LGPS Central, which manages pooled investments for 14 local government pension schemes.
For now, the fund’s existing investment arrangements remain in place, with the committee maintaining responsibility for its investment strategy and decisions on responsible investing.
