Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Monday, March 27, 2017

Do Your Mutual Funds Have Exposure to Controversial Weapons?

WeaponsOver 6,500 funds that were sold to retail investors around the world have been found to have high exposure to controversial weapons, casting doubt over the asset managers’ efforts to invest responsibly. Specifically, the research reviewed the global mutual funds’ exposure to chemical and biological weapons, cluster munitions, white phosphorus, laser weapons, nuclear weapons, and several more. The research also found that 6,678 mutual funds had at least 5% of their portfolio invested in companies that either manufacture or distribute these weapons. Experts are worried that this callous way to make a profit will do nothing to restore trust in the financial services industry.

See Aime Williams, Mutual Funds Have Exposure to Controversial Weapons, Financial Times, March 26, 2017.


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Since the funds in question aren't Socially Responsible Investment (SRI) funds, I don't see why this is a story. People that invest in non-SRI funds want to maximize their returns. If they were concerned about not investing in weapons manufacturers, they would have bought an SRI fund. Like the one that did the study, and for which the FT article is a blatant advertisement.

Posted by: jpe | Mar 28, 2017 5:59:32 AM

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