GLA £5m tied up in Russia and Ukraine
AUTHORITY’S PENSIONS BODY SAYS IT WILL TRY TO SELL OFF SANCTIONS-COMPROMISED ASSETS
THE Greater London Authority’s pension body has £5 million in investments in Russia, Belarus and war-torn Ukraine, sister website MyLondon can reveal.
The London Pensions Fund Authority (LPFA) runs the pension fund for City Hall staff and many London councils – with billions in assets and 93,000 members across the capital.
Now it has emerged that a chunk of its investments are tied up in the sanction-hit countries of Russia and Belarus, as well as Ukraine, which faces a potential military takeover.
Campaign group Make My Money Matter has called on UK pension schemes and providers to stop investing in Russia and to ditch their Russian investments as soon as possible.
It comes after two weeks of Russia’s bombardment of the Eastern European country, where more than two million people have fled.
A spokesperson for the London Pensions Fund Authority said it planned to dispose of its Russian investments
They said: “LPFA have very limited exposure to assets in Russia, Belarus, and Ukraine (£5m) within our asset manager’s (LPPI) Global Equities Fund and the Credit Fund.
“Managers have been instructed
to cease making any new investments into Russia, Belarus and Ukraine and we are also working with them to sell the small holdings that already exist within the portfolio. The broader ramifications of the conflict on the wider global economy and markets are very hard to predict. We will continue to monitor and respond appropriately.”
Caroline Pidgeon, Liberal Democrat London Assembly Member, said: “The decision by the LFPA is welcome and is exactly what I have called for following Russia’s full scale invasion of Ukraine and the atrocities being committed. Ending investments in Russian companies and bonds is not just about basic justice and showing solidarity with the people of Ukraine, but also long-term economic interests for pension holders.”
The London Pensions Fund
Authority was formed to manage the former Greater London Council (GLC) pensions. As of 2017, the LPFA had around £4.6billion of assets.
Make My Money Matter CEO Tony Burdon cited a survey suggesting 86% of voters believed UK pensions should not be invested in Russia
“That’s why we’re calling on all pension providers to divest from their Russian investment as soon as possible,” said Mr Burdon
“In doing so, the financial sector can display moral leadership, sound financial management, and help protect the savings of UK pension holders.”
Last week the Pensions Regulator said UK pension fund trustees should be “vigilant” about how the Russian invasion of Ukraine and resulting sanctions might affect them.