SURREY County Council will continue with its investment in tobacco companies, it was decided today.
At a meeting at County Hall, Kingston, this morning, the Surrey Pension Fund Board decided to continue with the council's current strategy of investing in tobacco companies.
The announcement comes after questions were raised over whether the council should maintain investment in tobacco companies after it took on public health responsibilities on April 1.
The Surrey Pension Fund currently (as of March 31) has holdings in tobacco related companies which amount to 0.5% of the total Fund.
This equals to just over £11.1 million in equities and £1.5 million in fixed income corporate bonds, totalling
£12.6m.
Speaking at the meeting earlier today councillors said they understand the difficulty between personal opinion of investments and what is ultimately best for the funds and members.
Confirming the agreement to continue with the current policy, committee chair councillor Denise Le Gal said changing policy on tobacco investment based on interests other than financial returns could have implications down the line.
"That would set a precedent for all other industries and related industries for investment," she added.
But Cllr Le Gal confirmed that the council's investment fund policy would continue to be reviewed.
Councillor Stuart Selleck added: "I think the report puts down both sides of the argument. It's a difficult situation in it's the personal view against the fiduciary duty. It comes down to personally, I don't think we have a problem."
