Asset managers add ESG to defence portfolios


A M109 155mm self-propelled howitzer at a position in the Donetsk region. Photographer: Anatoli Stepanov/AFP/Getty Images

FRANKFURT: In the world’s biggest environmental, social and governance (ESG) fund class, portfolio managers are getting more comfortable with holding military assets against a backdrop of mounting political pressure and industry profits.

At the end of the third quarter, 1,238 funds claiming to “promote” ESG goals held stocks in the industry classification code aerospace and defence, according to Morningstar Inc data.

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