City Hall’s pension fund will no longer be invested in Russia after the Russian invasion of Ukraine, it has been confirmed.
The London Pension Fund Authority (LPFA), which manages the pension funds of the GLA and several London boroughs, has announced its intention to stop investing in Russia and Belarus in response to a letter from Caroline Pidgeon, member of the London Assembly.
In total, the fund is invested in eight Russian stocks, three of which have already been divested. But the LPFA confirmed it was “unlikely” to divest any of the remaining five stocks any time soon due to the fallout from sanctions against Russia and stock market shutdowns.
About £1.5 million of LPFA pension funds is invested in Russia, which it claims represents 0.02 percent of the pension fund’s total assets.
Lib Dem meeting member Caroline Pidgeon, who raised the issue in an open letter to the LPFA, said it was a matter of “basic justice”.
She said: “I welcome the decision of the London Pensions Fund Authority that they want to divest from Russian and Belarusian investments wherever possible and most importantly, that they will not make new investments in Russia or Belarus.
“Ending investment in Russian companies and bonds is not just about basic justice and solidarity with the people of Ukraine, but also about the long-term economic interests of pension holders.”
In addition to administering the town hall pensions, the LPFA also administers the pensions of the borough councils of Camden, Greenwich, Hackney, Hammersmith and Fulham, Islington, Lambeth, Lewisham, Southwark, Tower Hamlets and Wandsworth.