Initiative: index funds are supposed to banish weapons manufacturer

investors invest mainly in private for reasons of cost, often in index funds and buy so that automatically shares of producers of controversial weapons. A scandal, especially since it is in many European countries is prohibited by law to Finance certain weapons manufacturer, directly or indirectly. However, the index provider previously deaf. An Initiative from Switzerland, wants to change that now.

Lothar Gries, boerse.ARD.de

to remove In an open letter to well-known Fund providers, banks and asset managers call on the index providers, weapons manufacturers from the major stock market indices.

The financial sector was able to promote responsible investments is crucial and should be part of that manufacturers "will be difficult to controversial weapons" access to financing, - stated in the letter that over 100 investors have signed and published in several media.

manufacturers of controversial weapons

exclude it also States in the Letter, if someone wanted to still invest in "controversial weapons", he could do this in a specially imaginary Index, or direct systems access. "We are deeply convinced that - in Accordance with international conventions, investment practices, and public opinion - the exclusion of manufacturers of controversial weapons from the active equipment Standard should be," the asset Manager age in your letter.

To "controversial weapons" the nuclear weapons of countries that have not signed the nuclear non-proliferation Treaty of 1970, biological and chemical weapons, anti-personnel mines and cluster bombs. So far, the investors have encountered with your claim, however, on deaf ears.

Also, the DWS is a signatory to the

The initiative comes from the Swiss Fund company Pictet Asset Management and will be managed by the Association Swiss Sustainable Finance (SSF). The SSF was founded five years ago by large investors, such as insurers Helvetia and Swiss Re. It is the aim of Switzerland to establish itself as a leading centre for sustainable financial services.

According to many Swiss investors are to be found on the list to the now published letter to the index provider. The Fund subsidiaries of banks, Credit Suisse and UBS. But also Dutch, British and Swedish companies, as well as the Fund company of Deutsche Bank, DWS, have joined the Protest. According to the signatories in total, the equivalent of about six trillion euros to manage.

The critics on several arguments: more and more investors – professional and private – want to have to do out of Conviction-nothing to do with weapons producers. Thus, the index provider MSCI company has excluded the chemical or biological weapons.

In some countries there are bans

it is Also illegal in countries such as the Netherlands, France or Spain, to Finance manufacturers of so-called "controversial weapons" such as Anti-personnel mines directly or indirectly. Nevertheless, a small number of listed companies produces still, such weapons. An Overview of these producers, for example, has worn the Association for responsible investment (SVVK).

investors who invest in ETFs that track a global stock market index, are not able to avoid such companies. Institutional investors therefore demand for some time by the index providers, the title of manufacturers to banish controversial weapons from its main indices.

directly to investors, the Easiest way

Already, there are indices such companies to avoid. An example of this is the MSCI ex Controversial Weapons. Which does not exclude this Index, however, are producers of nuclear weapons.

Also, more and more investors in manufacturers of controversial weapons to banish from your portfolio. Worldwide in 2016, managed assets in the value of 13.5 trillion euros with the so-called exclusion, which were mostly manufacturers of controversial weapons, filter the investors write in your open letter. In Europe, this exclusion relating to criteria, almost half of the funds invested.

The easiest way to the investor who invests his money directly in individual stocks. Its investment process is based on a positive Selection.

1/5, The shares of these weapons manufacturers should

full image to be banished