Avon Pension Fund Committee has voted to remain invested in aerospace and defence companies, despite a vigorous campaign by Palestine Solidarity Campaign pressing it to divest because of Gaza.
Avon Pension Fund is the Local Government Pension Scheme (LGPS) for Bristol City Council (Bristol CC) and a number of other councils and public authorities around Bristol. The administering authority of the Avon Pension Fund is Bath and North East Somerset Council, which delegates the supervision of the Fund to its Avon Pension Fund Committee.
Resolutions passed by Bristol CC and North Somerset Council in January and February 2025 called on Avon Pension Fund to divest from arms companies supplying the Israel Defence Forces. These resolutions were based on false allegations, such as the claim that the International Court of Justice had found that there was a plausible case that Israel was committing genocide.
UKLFI wrote to Bristol CC and the Avon Pension Fund Committee drawing attention to the serious inaccuracies in these resolutions and reminding them of the fiduciary duties of those responsible for investing pension funds.
UKLFI’s letters explained that pension fund trustees are required to seek to maximise the financial return on investments consistently with financial prudence and may only consider non-financial factors where two tests are both met:
- trustees have good reason to believe scheme members would share the concern; and
- the decision would not involve a risk of significant financial detriment to the fund.
Regarding the first condition, UKLFI also highlighted the guidance of the Law Commission that where an issue is “clearly controversial”, trustees should focus on financial factors rather than becoming embroiled in disagreements between members.
Avon Pension Fund commissioned a survey of a representative sample of its members as to whether they supported divestment by the Fund from aerospace and defence companies or favoured the Fund remaining invested in these companies. 42% supported divesting, while 47% favoured remaining invested.
The Avon Pension Fund Committee also took further legal advice, which confirmed the tests for considering non-financial factors mentioned above and noted that the member support condition requires a “high proportion of those members with a view” to support a decision based on non-financial factors.
UKLFI wrote to the new Chair of the Avon Pension Fund Committee commending the work done by the staff of the Administering Council and Avon Pension Fund and reminding the Committee of the guidance of the Law Commission that where an issue is clearly controversial, trustees should focus on financial factors rather than becoming embroiled in disagreements between members.
At its meeting on 12 December 2025, the Avon Pension Fund Committee voted 8–2 to confirm its earlier ‘in principle’ decision to remain invested in the aerospace and defence sector.
UKLFI Chief Executive Jonathan Turner said:
“We are pleased that the Avon Pension Fund Committee has acted consistently with its legal obligations. Where issues are highly controversial, trustees are required by law to focus on securing the best financial return, rather than adopting political positions.”
UKLFI will continue to engage with public bodies and pension funds to ensure that UK law is properly applied and that trustees are not pressured into unlawful investment decisions by political campaigns based on false allegations regarding Israel.