Sutton Council's Pension Fund is set to undergo a review of its investment policy following a petition concerning investments in Palestine. The decision was made at a Pension Board meeting on Thursday, 17 July 2025, where board members discussed the implications of a petition containing over 2,000 signatures.
The review was part of an update to the committee on the latest developments at the London CIV (LCIV) and the pooling position of the fund, according to the Review of Pension Committee Papers.
The petition calls for the council to divest from companies operating in the Occupied Palestinian Territories (OPT) or those complicit in human rights violations in Gaza. As of 31 March 2025, the fund had £6.5 million (0.67% of the fund) exposed to companies listed on the American Friends Service Committee (AFSC) divestment list, all held within London CIV pooled funds. The specific companies included in the £6.5 million investment were not named, but are listed on the AFSC divestment list and the Investigate (a project of AFSC) divestment list.
As of March 31, 2025, the Sutton fund had £602.1m directly invested in LCIV funds and £204.8m indirectly invested through life funds, which represents a total of 83.8% of the fund's total investments being in pooled assets. Pooled assets stood at £33.9bn, of which £19bn are in funds managed by London CIV.
The board agreed to review the fund's Responsible Investment Policy as part of the upcoming Triennial Valuation and Investment Strategy Review. A revised policy is planned for approval at the March 2026 committee meeting. Additionally, the board will provide annual reporting on the fund's stewardship activity, including engagement outcomes via the London CIV and underlying Fund Managers, and how voting rights have been exercised. The first report is scheduled for publication in December 2025.
The review and subsequent actions aim to balance ethical considerations with the fund's fiduciary duty. The Pension Fund Committee will consider the petition and the review's findings to determine the appropriate course of action.
