Danish pensions provider Danica is adjusting its investment framework to make it possible to invest in more defence companies that supply important components for the build-up of European defence and security, it announced today.
In the future, Danica will be able to invest in more companies with different technologies, products and solutions, it stated, adding that the adjustment means that around 30 companies will be removed from its restriction list.
The portfolio adjustment is expected to be fully implemented during May. All investments in the defence sector will be made within the framework of Danica’s responsible investment policy.
The pensions provider said that for investment and regulatory reasons, it could not disclose which companies would be removed from its restricted list as a result of the adjustment.
“We are continuously assessing our investment frameworks so that they align with reality and enable us to create attractive long-term returns for customers on a responsible basis. The world has changed significantly recently, and we have taken stock of this and revisited the frameworks. They are now more finely tuned and enable us to invest in more companies that supply important military equipment,” said Mads Kaagaard, Danica’s chief executive officer.
More investment options
The adjustment gives Danica more opportunities to enter the defence industry more broadly and into companies that produce both more traditional weapons systems and technologies for modern defence, such as satellite and surveillance systems, drones and other communication technologies, the firm said.
“Defence has become an important topic today, providing new economic perspectives and attractive investment opportunities. With the adjustment, we can better align our customers’ investments so that they reflect developments and at the same time support the political line in Denmark and Europe,” Kaagaard said.
Danica maintains investment restrictions on companies with activities related to cluster bombs, anti-personnel mines, biological and chemical weapons, and nuclear weapons outside the Non-Proliferation Treaty.
Investment restrictions in the Danica Balance Responsible Choice investment option remain unchanged. There are still restrictions on activities related to military equipment, which are not part of the investment portfolio.
Earlier last month, Denmark’s €400bn pensions industry proposed the state issue defence and security bonds to finance some of the extra DKK120bn (€16bn) the Nordic country is having to invest in Danish armaments over the next few years.
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