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28 February 2022
The Scottish Parliamentary Corporate Body has this evening called for all Russian holdings in the Scottish Parliamentary Pension Scheme to be divested with immediate effect.
In a letter to the chair of Trustees, the Presiding Officer calls for representations to be made to the scheme’s fund manager, Baillie Gifford, following the attack on Ukraine.
The Chair of the Trustees, Pauline McNeill MSP, has in turn, written to Baillie Gifford on behalf of all scheme members seeking its action.
The text of both letters are as follows:
Dear Pauline
I am writing on behalf of the SPCB.
As you will be aware, there is significant concern amongst Members over reports that the SPPS’s Managed Pension Fund has holdings in the state-owned Russian bank, Sberbank.
In light of the invasion by Russia of Ukraine, the SPCB collectively urges the Trustees to make representations to Baillie Gifford for the immediate divestment of all Russian holdings within the fund, and from any other fund in which member pension contributions are invested.
We recognise that the SPCB cannot direct the Trustees in exercising its fiduciary duties on behalf of scheme members, but given the seriousness of the threat against our European neighbours, I am certain that all Members, past and present, will be supportive of such representations to Baillie Gifford.
As a contributor to the fund, the SPCB would be grateful for your early update on Baillie Gifford’s response and an understanding of its future investment strategy with regard to Russian businesses.
I look forward to hearing from you.
Yours sincerely
Alison
Presiding Officer
Dear Baillie Gifford
I am writing on behalf of the Trustees of the Scottish Parliamentary Pension Scheme.
With the horrifying situation unfolding in Ukraine, the Fund Trustees are deeply concerned that the Baillie Gifford’s Managed Pension Fund has holdings in the state owned Russian bank Sberbank.
I recognise entirely the SPPS is one of many investors in the Managed Pension Fund, and as a pooled fund, we the Trustees cannot direct individual investments. I am nevertheless writing to you in the strongest possible terms to request that Baillie Gifford divests immediately from Sberbank and all other Russian companies.
Similarly, I would ask that any such holdings in our other investment vehicles, the Diversified Growth Fund and Global Stewardship Fund, be divested as a matter of urgency.
The appalling events in Ukraine make it incumbent upon all of us to stand against aggression and unlawful military action in any way we can. Exerting economic pressure upon Russian financial institutions by divesting our pension holdings is an important step.
I should be grateful also if you could advise me, as a matter of urgency, of Baillie Gifford’s investment strategy - in the immediate short to medium term - with regard to Russian investment.
This information will enable the Fund Trustees to make an informed decision about its future investment strategy for the SPPS.
I look forward to hearing from you.
Yours sincerely
Pauline McNeill MSP
Trustee