The UK's largest pension fund has sold Israeli assets worth £80 million ($108 million), the Financial Times reported on Thursday. By doing so, the USS fund joins a series of global pension funds withdrawing investments due to public pressure following the war in Gaza.
According to two people familiar with the matter, the fund, which manages £79 billion in assets and has more than 500,000 members, has "significantly" reduced its exposure to Israeli investments over the past six months, including in government bonds and the local currency (New Israeli Shekel). They noted the fund began selling its holdings in bonds and currency as early as March.
USS declined to comment.
According to the report, the move was driven by ongoing pressure from fund members who alleged human rights violations by Israel since the war against Hamas began on October 7. Most of the fund's members are employees in the higher education sector, including lecturers at prestigious universities such as Oxford and Cambridge.
The University and College Union (UCU), which represents members of the pension fund, raised concerns with the fund's managers about investing in companies listed for violating international law by the UN.
"We welcome what they [USS] have done by disposing of Israeli government bonds and currency, but we want them to go further and divest from companies that are supporting the Israeli government in its conflict in Gaza," said UCU spokesperson Dolly Hart.
In its annual report published last month, USS said it had a " legal duty to invest in the best financial interests of our members and beneficiaries." The report also revealed the fund reduced its exposure to the Middle East "in response to clear financial risks."
The move follows similar actions by other major pension funds worldwide, which have sold assets related to Israel due to pressure from their members. In June, for example, Norway's largest private pension fund, KLP, announced it sold nearly $70 million in holdings of American equipment manufacturer Caterpillar, citing concerns its equipment is used to harm Palestinians.
Similarly, Pension Denmark, one of Denmark's largest pension funds with over 800,000 members, withdrew all its investments from Israeli banks.
In contrast, local authorities in the U.S. have become enthusiastic purchasers of Israeli bonds in recent months. In May, Israel Bonds reported that it sold bonds worth more than $3 billion since October 7, reaching three times the annual average.