A MULTI-BILLION Gwent pension fund will consider further advice after two local authorities demanded a review of investments linked to Israel’s war on Gaza.
The Greater Gwent Pension fund, which looks after more than £4 billion on behalf of current and retired public sector workers across the region, has faced calls to pull investments from firms linked to Israel’s military offensive.
Both Monmouthshire and Newport City councils, which are members of the fund, passed motions in September calling for a review of whether pension funds are held with firms linked to the conflict and violations of international law.
Local Palestine solidarity campaigners also called for pension funds to be divested from firms linked to the conflict and Israeli occupation of Palestinian territories.
The Gwent fund, which is administered by Torfaen Borough Council, is a member of the Wales Pension Partnership which implements a number of policies on behalf of its eight member authorities.
It has operated a policy of actively managing its investments which it says has the effect of being “exclusionary” as it expects appointed investment managers to properly consider ESG, or environmental, social and corporate governance, risks in decision-making.
The Welsh partnership has also said its view is engagement is “a preferred approach to divestment” but has undertaken work to consider how a “policy of exclusionary practices” – where an active decision against investment in certain sectors or firms is adopted – could be established and implemented.
‘Torfaen pension committee’
Councilllor Nathan Yeowell, chair of the Torfaen pension committee, said the Welsh funds have been working on an exclusions policy over the past year, due to “frustration” at any mechanism to withdraw funds from firms at odds with it climate change ambitions.
But Cllr Yeowell told councillors it wouldn’t be on geographic “jurisdiction by jursidiction” basis.
He also said the policy wouldn’t be an adoption of a “boycot, divestment and sanctions” or BDS position.
Cllr Yeowell said: “I don’t see this as any move to more of a BDS position.”
He acknowledged the chairs of the eight funds in the Wales partnership have been “serially ignored” by companies over climate change concerns, despite it having repeated it has sought to use its investements as a way of engaging and influencing firms.
The joint governance committee of the eight councils has asked the Welsh fund to prepare a draft exclusion framework for discussion in December which will consider the key principles that could be embedded in the framework.
Cllr Yeowell said the fund will respond to both councils and “set out the position where we are and the art of the possible in 2025.”
He said both had requested a review of investments and he said it is intended to provide those figures either by the end of December or in January.
Palestine Solidarity Campaign
The chairman also said the figure quoted by the Palestine Solidarity Campaign that the Gwent fund is exposed by around £233m with firms linked to Israel’s actions in Gaza, and the Wales partnership £1.1, billion are disputed.
He said private assessment undertaken by officers suggested the Gwent Fund held £3.8m of indirect investments in Israeli domiciled companies – worth the equivalent of 0.08 per cent of total assets as of June 2025.
The policy framework will also identify a list of companies that could be considered to be off limits for investment as well as set out how decisions on firms that couldn’t be invested in would be made, and which sources would be relied upon, as well as the policy and financial implications.
Reports for the Torfaen pension committee’s October meeting show the Gwent fund was worth £4.617 billion at the end of June, which was the second quarter of the year, a figure which increased by around £195m to £4.812bn at the end of August.
Over the past year, the fund returned at plus 7.31 per cent, which is 0.24 per cent below the benchmark return of +7.55 per cent.
Members were told to “remain mindful of the long-term nature of the fund’s investment strategy” and while it is “well positioned to benefit from market rallies” it is “suitably diversified” to mitigate short term risks with its long-term performance “positive”.