UK pension giant sold Israeli bonds after pressure from pro-Palestine campaigners: Report

The UK’s largest public sector pension investment pool quietly sold millions of dollars' worth of Israeli government bonds following months of pressure from pro-Palestine campaigners, according to a report by Middle East Eye.Border to Coast Pensions Partnership, which manages nearly £120 billion in assets on behalf of around two million local government workers, had purchased Israeli government bonds worth about $29.2 million during 2024 and 2025.The investments were later sold within months, although the organisation did not publicly announce the divestment or provide a detailed explanation at the time.According to Middle East Eye, campaigners linked to local government pension schemes discovered the investments while examining how pension funds were being managed during the Gaza war.Activists from groups including the South Yorkshire Pensions Divest for Palestine campaign said they were concerned pension money had been invested in Israeli government bonds while Israel faced accusations of war crimes and genocide in Gaza.Campaigners organised protests, petitions, and pressure campaigns targeting local pension authorities and Border to Coast throughout 2025.The report said the Israeli bond purchases had been carried out through Pimco, a US-based asset management firm and one of the world’s largest bond managers.

Border to Coast later confirmed the bonds had been sold but declined to state whether campaign pressure directly influenced the decision.A spokesperson for the pension partnership said the organisation continued to monitor the impact of the Israel-Gaza conflict on investments “in line with our consideration of ESG issues and our responsible investment policies”.The issue also highlighted wider tensions within UK pension funds over investments linked to the Gaza conflict and the lack of direct guidance from the British government.The Scheme Advisory Board for the Local Government Pension Scheme reportedly sought clarification from ministers about potential legal liabilities connected to Gaza-related investments.Local government minister Alison McGovern later stated that foreign policy decisions, including sanctions and divestment policies, were matters for central government rather than local authorities.However, she added that pension funds could still change investment strategies for financial or fiduciary reasons.The report said Border to Coast still retains investments in several companies listed on a United Nations database of businesses operating in illegal Israeli settlements, including Airbnb, Booking.com and Bank Leumi.Campaigners have continued urging further divestment from companies linked to Israeli settlements and the Gaza conflict.