PFA expands opportunities to invest in the defence industry
Russia's invasion of Ukraine has created a growing need to invest in the defence industry for the benefit of our collective security. Therefore, PFA is now expanding its investment universe for defence stocks.
Unfortunately, these are turbulent times we are living in, and therefore both in Denmark and generally in the EU, it has become evident that there is a need to strengthen and invest more in defence. Consequently, PFA is now expanding opportunities to invest in European and American defence stocks.
"The world has changed significantly since Russia's invasion of Ukraine, and there is both here at home and broadly in Europe a growing understanding that we need to invest more in defence to safeguard our own security. As part of this development, we have now adjusted our investment policy so that we can invest in a broader selection of defence stocks," says director of responsible investments at PFA, Rasmus Bessing.
Some requirements are eased, others remain
According to Rasmus Bessing, it will now be possible for PFA to invest in approximately ten new companies, including well-known European companies such as Airbus, Thales, and BAE Systems, as well as the American company Boeing. These are companies that were previously excluded because they did not meet PFA's policy for responsible investments.
"We have previously had a policy of not investing in companies that produce components for nuclear weapons. This has prevented us from investing in a number of well-known companies in the defence and aerospace industries, such as Airbus, Boeing, and Dassault Aviation, where only a very small part of the revenue comes from components for nuclear weapons," says Rasmus Bessing.
He emphasises that despite the adjustment of the investment universe, there are still many arms stocks that PFA does not wish to invest in. This includes companies involved in the manufacture of controversial weapons such as cluster munitions, biological or chemical weapons, or companies that otherwise violate global norms or PFA's guidelines for responsible investments.
PFA’s customers have the option to choose
Although PFA's decision to increase opportunities for investing in defence is in line with global developments, Rasmus Bessing also acknowledges that it is a contentious area that can divide opinions among customers. Therefore, PFA also wants to give its customers the option to choose.
"Just as there are customers who think it is irresponsible to invest in weapons, there are others who think it is irresponsible not to do so. We want to take this into account, and therefore we are giving our customers the option to exclude weapons as well as to invest more specifically in defence stocks. If one does not want weapons, they can choose our Klima Plus product, while customers who want to invest extra in defence can do so via two new defence funds available on our Du Investerer platform," says Rasmus Bessing.
He adds that PFA's most important goal is still to create as much financial security as possible for its 1.3 million customers. Investments in defence are therefore not an end in themselves but only happen as long as they go hand in hand with the opportunity to create a good, long-term return.