The Trustees wish to avoid investments in any assets that imply diminution of their commitment to the public sector. This is due to the nature of property investment, which offers less scope for engagement than equities, in part because property investors do not have voting rights. In order to judge the suitability of investments for inclusion within the Scheme's property portfolio the Trustees have liaised with AVIVA. The Trustees have identified three areas that they wish to avoid including in the Scheme's property portfolio:
- Private Healthcare
- Private Finance Initiatives and
NHS Local Improvement Finance Trusts
AVIVA invests in pooled property funds. Due to the nature of these investments AVIVA cannot usually directly influence the underlying fund managers' policies on ESG. However, AVIVA will apply screening criteria that reflect the above exclusions in the following ways:
- Specialist funds - AVIVA will not make any investment in pooled funds which specialise in, or could be reasonably expected to specialise in, investing in any of the above 3 areas, and
- Non-specialist funds - AVIVA will not make any investment in funds which have more that a 10% allocation to the above 3 areas in total, or could be expected to increase the total allocation to these 3 areas above 10% in the short term.