Local Government Pension Scheme funds have been urged to consider the implications of any investments they have in assets linked to Russia, as other funds have begun a process of disinvestment.
The Scheme Advisory Board for England and Wales said it was advising funds to discuss “what action should be prudently taken” with their pools and asset managers.
It stated: “In the light of events in Ukraine and resultant extant and potential sanctions by the UK government any LGPS funds who are not already doing so are advised to consider the implications for their investment portfolios and discuss with their pools and asset managers what action should prudently be taken.”
It comes as the Universities Superannuation Scheme (USS), the UK’s biggest private pension scheme, said it had sold about half of its £450m portfolio of investments linked to Russia in the past few weeks.
Simon Pilcher, chief executive of USS Investment Management, told BBC’s Radio 4 Today programme: “We think there is a clear financial as well as moral case for divestment with respect to our Russian holdings.”
USS confirmed that about 0.5% of its £90bn portfolio was connected to Russia. It said it was looking to sell these assets, but there was currently very little trading.
A spokesperson added: “As markets reopen and when liquidity returns, we will look for opportunities to sell. It is clearly difficult to predict how this will play out.”
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