Controversial weapons are part of the standard exclusion lists of our clients. This list applies to all asset classes. In addition to this exclusion list, we do think that certain sectors are irresponsible in general. For this reason, tobacco producing companies have not been invested in the internally managed equity portfolio since 2012. For other sectors we are extremely hesitant to invest in them. We have, for example, no investment in the defense sector in our internally managed listed equity portfolio.
Furthermore, the conduct of a company is reviewed. When we investigate a company and it turns out that it is involved in, for example, the most polluting activities of the fossil fuel sector, we can make the decision not to invest (irrespective of whether the company is on our exclusion list). Companies that breach human rights or pollute the environment can be excluded based on their specific conduct after a process of engagement.
Lastly, we exclude countries that are on the UN sanction list. Also businesses that are more than 20% state owned in these countries are excluded.