Berkshire Pension Fund policy approved amid calls to divest

Councillors have approved a revised Berkshire Pension Fund investment policy – amid more calls to divest from companies linked to Israel’s actions in Palestine.

The Berkshire Pension Fund is managed by the Royal Borough and administers the Local Government Pension Scheme.

It is responsible for managing the pension of thousands of council employees across Berkshire.

At a meeting on Monday (September 15) an updated Responsible Investment (RI) policy was approved by the Berkshire Pension Fund Committee, but members called for further changes to be made.

This follows calls from campaign groups for the pension fund to divest from companies that supply arms or military technology to Israel.

Councillor Asghar Majeed (Con, Ascot and Sunninghill) said: “People are coming in and telling us that this pension is investing in companies which are involved in genocide so why don’t we just get rid of it.

“I don’t want that reputation for my pensioners, I don’t think anyone else does.”

Speaking at the Maidenhead Town Hall meeting, Jo Thistlewood, the head of the pension fund, said that the investments the Berkshire Pension Fund makes into multinational companies with links to Israel are ‘very small’.

Ms Thistlewood said: “I’m not trying to put a financial value on this crisis. It is an appalling situation, and we are doing the best that we can.

“But we do have to remember that we are investing. We’re not making our investment decisions on moral or political grounds.

“Our investments are at a high level in multinational companies who have a very small proportion of their business which may be directed or linked to the activities in [Palestine].”

Members were concerned about this ‘scale argument’ and requested that if the financial loss to the fund would be small, the fund should divest.

Cllr Mark Howard (Lib Dem, Bisham and Cookham) and Bracknell Forest councillor Stephen O’Regan (Lab, Binfield South & Jennett’s Park) agreed that divesting should be considered.

Cllr O’Regan said: “My feeling is that organisations that we have investments with, potentially could be pulled into some kind of breach of human rights.

“The policy could be, should be sharpened up in this area of conflict. I am a little bit disturbed by this scale argument.

“If these investments are a minor part of the fund well then, let’s divest them.”

A task and finish group carried out a review of the RI policy and in August this was brought forward to the board.

But Cllr Mark Wilson (Lib Dem, Eton and Castle), who was part of the task and finish group, said: “Since starting to be involved in the task and finish group, clearly things have escalated in terms of the Gaza situation so I’m thinking a little bit harder about the policy.

“We should not be taking political stances but then if we are giving consideration to how a Government is reacting to a fund divesting, that for me is a political stance. That, I’m very worried about.”

But members ultimately voted in favour of the policy as long as changes are made to define ‘conflict’ more clearly.

Cllr Howard said: “I’m happy with the policy, I would just like more definition and strength around the word ‘conflict’.”