Latest news with #SXPARO
Reuters
07-04-2025
- Business
- Reuters
Europe defence shares set for biggest daily drop since April 2020
April 7 (Reuters) - European defence company shares plunged on Monday amid a steep selloff in equities sparked by U.S. President Donald Trump's sweeping tariffs and fears of an ensuing global recession. An index of aerospace and defence companies (.SXPARO), opens new tab, which so far this year has been enjoying a record -breaking run, dropped 9.3% at 0721 GMT, following an 8% decline on Friday. here. If losses continue, this will mark its biggest one-day decline since early April 2020. German defence companies Rheinmetall ( opens new tab, Hensoldt ( opens new tab, Renk ( opens new tab were down between 12% and 14%. Europe's biggest defence company by market value, BAE Systems (BAES.L), opens new tab was down 5%. France's Dassault Aviation ( opens new tab and Thales ( opens new tab dropped between 8% and 13%. Sweden's Saab ( opens new tab was down 7%. Britain's Rolls-Royce (RR.L), opens new tab, Chemring Group (CHG.L), opens new tab, Babcock International (BAB.L), opens new tab and Qinetiq (QQ.L), opens new tab were all down between 5% and 8%. Defence companies had previously ranked among the best performers in Europe in 2025, driven up by the prospect of a swell of government spending on regional security.
Reuters
18-03-2025
- Business
- Reuters
Belgian financial firm Belfius to invest in NATO defence companies
BRUSSELS, March 18 (Reuters) - Belgium's state-owned financial firm Belfius said on Tuesday it would invest in defence companies headquartered in NATO countries, as fund managers tap into Europe's race to re-arm itself in light of the Russia-Ukraine war. "By focusing on investments in defence companies headquartered in NATO countries, Belfius intends to offer a clear framework. NATO includes Europe's main strategic allies in terms of defence," said Belfius in a statement. "In this way, Belfius is ensuring that it supports an industry that is essential to the Alliance's defence capabilities, while avoiding opening the door to players whose interests might diverge," it added. Belfius' move comes as many European asset managers reconsider policies on investing in defence, after U.S. President Donald Trump demanded more military spending from European NATO states, and as Europe in turn has aimed to become less reliant on the United States' military help. The EU's spending boost has sent European aerospace and defence stocks including Germany's Rheinmetall ( opens new tab and Italy's Leonardo ( opens new tab to record highs along with the sector index (.SXPARO), opens new tab, while the VanEck Defense UCITS exchange traded fund is up nearly 23% since the start of the year. Belfius, which has nearly 200 billion euros ($218.6 billion) worth of savings and investments, declined to say how much it was targeting in terms of its defence-related investments but said it was backing the EU's military spending plan. "Belfius supports the European Commission's European Defence Industrial Strategy," it said. ($1 = 0.9147 euros)
Zawya
14-03-2025
- Business
- Zawya
Europe's top money managers start to bring defence stocks in from the cold
LONDON - European asset managers are reconsidering their policies on investing in defence, under pressure from clients and some politicians to loosen restrictions and help fund the continent's race to re-arm. Under European Union rules, a number of funds badged as sustainable need to ensure their investments 'Do No Significant Harm'. Many have avoided the sector entirely, with even engine maker Rolls Royce RR.L and Airbus which has a big commercial aviation division, judged off limits. But as the EU now seeks around 800 billion euros ($870 billion) of investment to bolster defence after U.S. President Donald Trump said Europe must take more responsibility for its own security, the sector is too important to ignore. Britain's largest investor Legal & General LGEN.L is among those planning to increase exposure to defence, saying the sector's appeal has "risen dramatically" amid deeper geopolitical tensions, Reuters reported on Thursday. Some of Europe's largest fund groups have separately begun to review their policies at board level, people familiar with the companies told Reuters, although the complexity and controversial nature of rewriting sustainability policies to include arms makers make the process tricky, the people said. Switzerland's UBS Asset Management UBSG.S told Reuters it was reviewing defence sector exclusions across funds while Mercer, a leading consultant to pension funds, said investors were asking asset managers to include defence in portfolios, including those with sustainability aims. The EU's spending boost has sent European aerospace and defence stocks including Germany's and Italy's Leonardo to record highs along with the sector index .SXPARO - and left investors without exposure ruing missed opportunities. "Some (asset managers' clients) are saying, we actually think it's important that... Europe be able to defend itself. And so we'd actually like you to make investments in this sector," said Rich Nuzum, global chief investment strategist at Mercer, which advises investors managing $17.5 trillion of assets. Exclusions on investing in controversial weapons – such as cluster munitions and biological weapons – are widely held and informed by international treaties. EU and UK rules do not ban investment in most other defence companies, but an investor focus on environmental, social and governance (ESG) helped dissuade big asset managers from doing so, like with tobacco. "We're coming to a point where the atmosphere is that if you rule out defence, you're the one who has to explain, not the other way around," said Carl Haglund, CEO of Finnish pension and insurance group Veritas and ex-defence minister of Finland. Reuters contacted 10 of Europe's largest asset managers to ask if they were reviewing their policies. As well as UBS, Allianz Global Investors said it was reviewing its exclusions, but that the timing was coincidental. France's BNP Paribas reiterated its commitment to defence. Amundi and Schroders SDR.L said their policies were unchanged, while DWS HSBC Asset Management HSBA.L and Insight Investment declined to say if their exclusions were under review. The global head of listed assets at Mirova, a smaller Natixis-owned manager, said rearmament efforts and Europe's rising security threats compelled the firm to reconsider its "cautious stance" to defence as it seeks to balance ethical considerations with a need for robust defence capabilities. But Herve Guez noted the complexity of backing arms makers, highlighting problems around the risks that certain weapons end up in "controversial" countries. POLITICAL PRESSURE British politicians last week urged investors to support the military sector and France has floated removing ESG-related curbs on defence loans. Norway's central bank chief has said ethical investing standards may need to change. Clients have begun asking about defence because companies like Rolls-Royce are "completely excluded from our investments", said Siobhan Archer, global stewardship lead at LGT Wealth Management, part of the private banking group of the Princely Family of Liechtenstein. LGT is looking "really closely" at what to do, Archer added. Some fund managers are sceptical. Carmignac's head of sustainable investing, Lloyd McAllister, said it was wrong to blame ESG funds for thwarting investment into defence, with most traditional funds - which hold far more in assets - including its own, able to invest. Sustainable funds, he said, were for where "the positive benefit is much more visceral than a load of weapons sat in a warehouse". Other investors are capitalising on an opportunity. WisdomTree this week launched what it called the first European defence exchange traded fund. Tom Vile Jensen, deputy director of trade body Insurance & Pensions Denmark, told Reuters he expected the country's retirement and pension groups to drop most remaining bans on defence investment. There are signs sustainability-minded funds are rowing back. European asset managers held 1.1% of their portfolios in aerospace and defence at the end of 2024, up from 0.7% two years earlier, Morningstar data showed. ESG fund holdings rose to 0.5% from 0.4% a year earlier, the data showed. Barclays analysts this week said the ESG underweight in defence had fallen "markedly" since last year. "We will go along with a more positive stance (on defence), it's inevitable if you consider the geopolitical situation," Legal & General's CIO Sonja Laud said. ($1 = 0.9228 euros)
Reuters
13-03-2025
- Business
- Reuters
Europe's top money managers start to bring defence stocks in from the cold
Summary Companies Europe eyes billions of euros in investment, stocks hit records Some end-clients push fund managers to lift curbs on defence Asset managers reviewing ESG policies, defence sector limits LONDON, March 13 (Reuters) - European asset managers are reconsidering their policies on investing in defence, under pressure from clients and some politicians to loosen restrictions and help fund the continent's race to re-arm. Under European Union rules, a number of funds badged as sustainable, opens new tab need to ensure their investments 'Do No Significant Harm'. Many have avoided the sector entirely, with even engine maker Rolls Royce (RR.L), opens new tab and Airbus ( opens new tab, which has a big commercial aviation division, judged off limits. here. But as the EU now seeks around 800 billion euros ($870 billion) of investment to bolster defence after U.S. President Donald Trump said Europe must take more responsibility for its own security, the sector is too important to ignore. Britain's largest investor Legal & General (LGEN.L), opens new tab is among those planning to increase exposure to defence, saying the sector's appeal has "risen dramatically" amid deeper geopolitical tensions, Reuters reported on Thursday. Some of Europe's largest fund groups have separately begun to review their policies at board level, people familiar with the companies told Reuters, although the complexity and controversial nature of rewriting sustainability policies to include arms makers make the process tricky, the people said. Switzerland's UBS Asset Management (UBSG.S), opens new tab told Reuters it was reviewing defence sector exclusions across funds while Mercer, a leading consultant to pension funds, said investors were asking asset managers to include defence in portfolios, including those with sustainability aims. The EU's spending boost has sent European aerospace and defence stocks including Germany's Rheinmetall ( opens new tab and Italy's Leonardo ( opens new tab to record highs along with the sector index (.SXPARO), opens new tab - and left investors without exposure ruing missed opportunities. "Some (asset managers' clients) are saying, we actually think it's important that... Europe be able to defend itself. And so we'd actually like you to make investments in this sector," said Rich Nuzum, global chief investment strategist at Mercer, which advises investors managing $17.5 trillion of assets. Exclusions on investing in controversial weapons – such as cluster munitions and biological weapons – are widely held and informed by international treaties. EU and UK rules do not ban investment in most other defence companies, but an investor focus on environmental, social and governance (ESG) helped dissuade big asset managers from doing so, like with tobacco. "We're coming to a point where the atmosphere is that if you rule out defence, you're the one who has to explain, not the other way around," said Carl Haglund, CEO of Finnish pension and insurance group Veritas and ex-defence minister of Finland. Reuters contacted 10 of Europe's largest asset managers to ask if they were reviewing their policies. As well as UBS, Allianz Global Investors ( opens new tab said it was reviewing its exclusions, but that the timing was coincidental. France's BNP Paribas ( opens new tab reiterated its commitment to defence. Amundi ( opens new tab and Schroders (SDR.L), opens new tab said their policies were unchanged, while DWS ( opens new tab, HSBC Asset Management (HSBA.L), opens new tab and Insight Investment declined to say if their exclusions were under review. The global head of listed assets at Mirova, a smaller Natixis-owned manager, said rearmament efforts and Europe's rising security threats compelled the firm to reconsider its "cautious stance" to defence as it seeks to balance ethical considerations with a need for robust defence capabilities. But Herve Guez noted the complexity of backing arms makers, highlighting problems around the risks that certain weapons end up in "controversial" countries. POLITICAL PRESSURE British politicians last week urged investors to support the military sector and France has floated removing ESG-related curbs on defence loans. Norway's central bank chief has said ethical investing standards may need to change. Clients have begun asking about defence because companies like Rolls-Royce are "completely excluded" from our investments, said Siobhan Archer, global stewardship lead at LGT Wealth Management, part of the private banking group of the Princely Family of Liechtenstein. LGT is looking "really closely" at what to do, Archer added. Some fund managers are sceptical. Carmignac's head of sustainable investing, Lloyd Macallister, said it was wrong to blame ESG funds for thwarting investment into defence, with most traditional funds - which hold far more in assets - including its own, able to invest. Sustainable funds, he said, were for where "the positive benefit is much more visceral than a load of weapons sat in a warehouse". Other investors are capitalising on an opportunity. WisdomTree this week launched what it called the first European defence exchange traded fund. Tom Vile Jensen, deputy director of trade body Insurance & Pensions Denmark, told Reuters he expected the country's retirement and pension groups to drop most remaining bans on defence investment. There are signs sustainability-minded funds are rowing back. European asset managers held 1.1% of their portfolios in aerospace and defence at the end of 2024, up from 0.7% two years earlier, Morningstar data showed. ESG fund holdings rose to 0.5% from 0.4% a year earlier, the data showed. Barclays analysts this week said the ESG underweight in defence had fallen "markedly" since last year. "We will go along with a more positive stance (on defence), it's inevitable if you consider the geopolitical situation," Legal & General's CIO Sonja Laud said. ($1 = 0.9228 euros)
Reuters
04-03-2025
- Business
- Reuters
Europe's defence stocks extend rally as Trump pauses U.S. military aid to Ukraine
March 4 (Reuters) - European defence company shares rallied for a second day on Tuesday, after U.S. President Donald Trump paused military aid to Ukraine. Shares in Rheinmetall ( opens new tab, which provides parts for the Leopard 2 tank, were up around 3%, while sensor maker Hensoldt ( opens new tab soared 16% and BAE Systems (BAES.L), opens new tab rose 1.7%. Shares in Renk ( opens new tab rose another 9%. An index of aerospace and defence companies (.SXPARO), opens new tab rose 0.8%, having logged its biggest one-day jump since November 2020 on Monday after leaders from major European economies agreed to ramp up defence spending, opens new tab. Get a look at the day ahead in European and global markets with the Morning Bid Europe newsletter. Sign up here.
