British University Pension Fund Withdraws £80 Million from Israel Investments
In a significant move reflecting growing public pressure, the British University Superannuation Fund (USS) has divested £80 million ($102 million) from its assets in Israel. This decision aligns the fund with a broader trend among global pension funds retreating from investments in the war-affected region. The USS, which manages assets worth £79 billion ($10.78 billion) and serves more than 500,000 members, has notably reduced its exposure to Israeli government bonds and the Israeli currency (shekel) over the past six months.
Continued Pressure Over Human Rights Concerns
The decision to withdraw investments comes amid ongoing concerns from USS members regarding Israel's human rights record in the occupied Palestinian territories. The fund's members, predominantly from the higher education sector, including faculty from prestigious institutions like Oxford and Cambridge, have expressed their unease since the onset of the Gaza conflict last year. In its recent annual report, the USS emphasized its legal obligation to act in the best financial interests of its beneficiaries while acknowledging the financial risks associated with its Middle East investments.
A Growing Trend Among Global Pension Funds
The USS's action is part of a larger movement, as various global pension funds, including Norway's KLB and Denmark's Pension Company, have also divested from Israeli investments due to similar pressures. The Universities and Colleges Union (UCU) has welcomed the USS's decision but is urging further action to eliminate ties with companies supporting the Israeli government. Interestingly, while some investors are pulling back, others see opportunities, as evidenced by a surge in demand for Israeli bonds from U.S. municipal councils since the conflict escalated. The ongoing situation remains complex, with financial implications for both investors and the regions involved.
- The British University Superannuation Fund's decision to divest is not isolated. Other notable pension funds have followed suit, reflecting a growing trend of ethical investing based on human rights considerations. The UCU's advocacy for further divestment highlights a broader call for accountability and ethical responsibility in investment practices. As the situation evolves, it will be crucial for pension funds to navigate the delicate balance between financial performance and ethical considerations.
