Published by Global Banking & Finance Review®
Posted on March 31, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleAllianz Global Investors drops exclusions on nuclear and military investments, supporting Europe's rearmament drive and allowing sustainable funds to invest in defence stocks.
By Iain Withers
LONDON (Reuters) - Germany's Allianz Global Investors has dropped two exclusions blocking its sustainable funds from investing in defence, becoming one of the first major European asset managers to change their policies to help finance the region's rearmament.
AGI wrote to its clients late last week to advise that its sustainable funds could now buy into companies that earned more than 10% of their revenue from military equipment and services.
Removal of a second exclusion means they can also now invest in nuclear weapons activities as long as they are within the Nuclear Non-Proliferation Treaty, which seeks to stop the spread of nuclear weapons-making capabilities.
The investor had recognised the restrictions were too "onerous", said Matt Christensen, AGI's global head of sustainable and impact investing, in an accompanying blog post published online.
"Nuclear weapons are a critical and credible deterrent to large-scale conflict and, in Western countries, the production of nuclear weapons is fully integrated into the industry and cannot be separated," Christensen added.
AGI, part of insurer Allianz, manages about 570 billion euros ($615.77 billion) in assets.
The changes come amid a broader drive by European investors to reconsider their policies on investing in defence, under pressure from clients and some politicians to loosen restrictions.
Funds badged as sustainable have come under particular scrutiny, as they often have stricter exclusions. Few asset managers have actually changed their policies so far.
Defence stocks have soared in value this year as European countries, under pressure from U.S. President Donald Trump, have vowed to increase military expenditure, with Germany unveiling a massive ramp-up in defence and infrastructure spending.
AGI's changes apply to funds classified as 'Article 8' under the European Union's Sustainable Finance Disclosure Regulation, and would apply in most cases, the investor said in its letter to clients.
Article 8 is the broadest category for sustainable funds under the EU rules, while the higher Article 9 category refers more directly to sustainability.
AGI said several exclusions would still apply, including to companies that severely violated international rules and to manufacturers of chemical and biological weapons.
($1 = 0.9257 euros)
(Reporting by Iain Withers; Editing by Tommy Reggiori Wilkes and Jan Harvey)
The article discusses Allianz Global Investors' policy change to allow investments in nuclear and military sectors, supporting European rearmament.
Allianz recognized the restrictions as too onerous and adjusted to support Europe's increased military spending.
Article 8 funds are classified under the EU's Sustainable Finance Disclosure Regulation, focusing on sustainable investments.
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