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Index provider open letter: Global investor's demand for an undisputed ban on weapons


In an open letter to the Financial Times, Neue Zürcher Zeitung and Le Temps today, the signatories act as exponent providers to find representatives of FTSE Russell, Morningstar, MSCI, the S & P Dow Jones Index and STOXX.

Investments in controversial arms companies are already in violation of some national regulations and international agreements. However, the common index still considers them. Aggressive investors, excluding them, mean additional tracking errors compared to standard benchmarks and surcharges. Passive investors, on the other hand, usually have no choice. This is because a number of overwhelming strategies can track existing indexes without exception.

As a result, investors using key vendor benchmarks are now funding companies involved in the production of controversial weapons.

The initiative in Switzerland was coordinated by Swiss Sustainable Finance and has gained international momentum with the presence of the PRI Collaboration Platform.

Sabine Döbeli, CEO of Swiss Sustainable Finance, explains: "Matching our portfolio of investors to existing values ​​and standards has become a new standard for pension funds and other institutional investors because our initiatives have gained the support of many organizations and are a strong signal for our index providers, I think it is logical to reflect. "

Eric Borremans, director of ESG at Pictet Asset Management, said, "We believe that funds for disputed arms manufacturers should not be readily available in line with international agreements, best practices and public opinion. The Index is the basis for many active and passive investment products We believe that arguable weapons manufacturers should be basically excluded, "he said.

Peter Damgaard Jensen, CEO of the Danish Pension Fund (PKA A / S), said: "We are excluded from all investments because we use undisputed weapons as responsible investors representing over 300,000 pension funds. Because we do not share this principle, it is difficult to ensure that other investors do not fund controversial weapons manufacturers. Together with other investors around the world, we deliver this message at once, We will be able to exclude weapons that are not controversial from the general index. "


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