Sutton's Pension Fund is facing increasing pressure to divest from companies operating in Occupied Palestinian Territories (OPT). A petition with nearly 2,000 signatures was presented to the Sutton Council Pension Committee at their meeting on Tuesday, 24 June 2025, urging a review of the council's investment strategy.
The petition calls for the council to immediately review all investment funds, including the Local Government Pensions Scheme fund, to identify holdings in companies that supply the Israeli military or operate within the OPT. As of 31 March 2025, the fund had £6,490,942 invested in companies listed by the American Friends Service Committee (AFSC) and Investigate, representing 0.67% of the total fund value.
The committee discussed the fund's fiduciary duty to act in the best financial interests of its beneficiaries. A report pack included a legal opinion arguing that it would not be unlawful for administering authorities of LGPS funds to invest in entities involved with activities related to Israel's actions concerning Gaza or other Palestinian territories.
The committee agreed to review the Fund's Responsible Investment Policy as part of the upcoming Triennial Valuation, Investment Strategy Review, and outcome of the fit for the future
government consultation. A revised policy is planned for approval at the March 2026 committee meeting. Additionally, the committee agreed to provide annual reporting on the stewardship activity of the Fund, including outcomes of engagements undertaken through the London CIV and underlying Fund Managers, with the first report scheduled for publication in December 2025.
The Sutton Council Pension Committee also reviewed the fund's investment performance for the quarter ending 31 March 2025. The market value of the fund's assets stood at £962m, a decrease of £27m over the previous quarter. The fund underperformed the benchmark over the quarter by -1.0%, with a return of -2.7% against a benchmark of -1.7%.
Councillor Cryss Mennaceur (Chair: Pension Committee) and other committee members were present at the meeting.