ESG fund bosses battered by years of underperforming returns are rapidly redefining their mandates to make room for highly lucrative defense bets.
ESG fund managers, facing underperforming returns, are increasingly investing in defense stocks, once considered unacceptable. The share of sustainable European funds with aerospace and defense holdings has risen significantly since the Russia-Ukraine war. European officials are also working to ease regulations hindering investment in the defense sector.
