Dear Ms Bishop,

Thank you for your email and for setting out your concerns regarding nuclear weapons-related investments held by the West Midlands Pension Fund (WMPF or the Fund). We appreciate the strength and sincerity of your views.

As a pension fund, WMPF’s primary responsibility is to invest and manage assets in the best financial long-term interests of scheme members, ensuring pensions can be paid as they fall due. The Fund therefore operates within a framework of fiduciary duty, relevant legislation, professional investment advice, and its agreed Investment Strategy Statement and Responsible Investment Framework & Strategy.

The Fund takes investing responsibly seriously. Integrating financially material environmental, social, and governance (ESG) factors into investment decision making forms an important part of the Fund’s investment approach. One of the Fund’s current responsible investment priorities is maintaining social equality, which includes the management of human rights related risks and opportunities.

You raise the specific issue of investments in companies involved in the manufacture of nuclear weapons. The Fund recognises that nuclear weapons and defence-related investments are matters of significant concern for some members. However, any proposal to exclude a particular company, sector or activity from the Fund’s investment portfolio would need to be considered carefully through the Fund’s established governance processes, taking account of professional advice, legal considerations where appropriate, the Fund’s responsible investment policies, and its fiduciary obligations. Investment decisions cannot be made due to political statements or in response to single-issue campaigns.

You can read more about the Fund’s stance in its position statement on Defence and Aerospace Exposure available here.

Your views on this issue have been noted and will be considered through the Fund’s responsible investment and governance framework alongside other responsible investment matters raised by stakeholders.

Thank you again for taking the time to write. Your engagement with the Fund is valued.

Kind Regards,

Laura Parker-Marsden on behalf of The Responsible Investment Team
West Midlands Pension Fund