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Greater Manchester’s historic move on tobacco divestment
In September Greater Manchester Pension Fund considered a report recommending divestment from tobacco available here
The GMPF has already divested all of its directly held tobacco stocks becoming, as far as I am aware the first such fund to do so. Those funds that have taken similar decisions previously held tobacco only through pooled funds, so were not divesting as such, merely affirming a position that they did not wish fund managers to directly hold tobacco stocks.
As the largest individual LGPS fund, this move marks an historic first for the LGPS. The Treasurer to the Fund states:
“The tobacco sector is relatively small as a proportion of World equity markets and the Fund’s investment managers’ views are that such exclusion
is unlikely to have a material adverse impact on returns. If the Panel, in
the future, decided to increase the number of sectors excluded, this would have a more material impact on returns and volatility.”
The report is well worth reading, although it would have been strengthened by including consideration of the public policy position on tobacco and the FCTC.
Croydon Council announces move to ethical pension funds – Blue and Green Tomorrow
Croydon pension fund drops tobacco, nuclear power & arms shares | Investment | Local Government Chronicle
Havering Council tobacco investment ignites health row – Health – Romford Recorder
Perth and Kinross Council asked to consider stance on tobacco investments – Perth & Kinross / Local / News / The Courier
Tayside Pension Fundhas been consulting with its member employers about tobacco divestment.
Suffolk: Tobacco investment ban takes big step forward – Politics – East Anglian Daily Times
Councils paid to cut smoking, but have £2bn of tobacco shares – UK Politics – UK – The Independent
Councils paid to cut smoking, but have £2bn of tobacco shares – UK Politics – UK – The Independent.
Read my comments after the article too!
Value of county council’s tobacco shares increase despite a review of the investment plan – News – Ipswich Star
Some controversy at Suffolk County Council as fund managers increase tobacco holdings in business as usual move, while council consults on tobacco divestment. Will Suffolk follow Greater Manchester and divest?
Tobacco Free Pensions 