Divestment

Meeting: 
MQT on 2015-10-21
Session date: 
October 21, 2015
Reference: 
2015/3490
Question By: 
Fiona Twycross
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

How exposed are pension rights holders of the London Pensions Fund Authority to the rapid devaluation of carbon assets?

Answer

Answer for Divestment

Answer for Divestment

Answered By: 
The Mayor

Pension benefits are fully protected. The financial performance of the LPFA's investments does not have a direct bearing on the future entitlements of members of the Fund or their beneficiaries. When analysing investments the LPFA balances a wide range of factors in order to weigh the merits and risks relevant to that investment. If at any point they feel that the balance of risk and return are no longer in their favour they will seek to reposition the investment. The Fund's investment portfolio is diversified across a range of assets, sectors and geographies which limit the impact from any single sector. Therefore, LPFA do not feel that there is currently a substantial risk to the Fund from stranded or devalued assets.