(Bloomberg) — Deutsche Bank AG’s investment unit is removing restrictions that had prevented a number of its funds from holding defense assets, according to its chief executive officer. The move, made possible by a recent adjustment in Germany’s investment guidelines, has the potential to free up “hundreds of billions” of euros across the country’s asset management industry for defense allocations, DWS Group CEO Stefan Hoops said in an interview on Wednesday. It’s part of a wider reset across Europe’s investment industry, as fund managers from Scandinavia to France look for ways to support an industry whose geopolitical significance has soared in the face of war and souring ties with the US. The pivot has also helped boost investment returns, with defense assets such as Germany’s Rheinmetall AG having more than doubled in value this year alone. Industry rules for funds marketing themselves as ESG (environmental, social and governance) used to largely exclude arms manufacturers, but “that has now changed,” Hoops said. That’s also due to the defense sector’s financial performance, he said. Several industry standard setters for the German asset management industry late last year agreed to change a rule known as ESG Target Market Concept, DWS said in a separate statement to Bloomberg News on Wednesday. Developed in 2021, “when there were no standards for sustainable products in the EU,” the rule excluded many defense investment from ESG funds. The decision to change the guidelines applies across Germany, enabling the country’s asset managers to open ESG funds to defense investments. Freeing Funds DWS is now in the process of adjusting the documentation of funds applying its DWS Basic Exclusions filter, according to the statement. The change, which will go into effect on May 21, will scrap a threshold that had prevented funds from holding companies that got more than 10% of their revenue from defense activities. It will also free funds to add shares of companies linked to nuclear weapons, DWS said. The adjustments mean that 34 members of the MSCI World Index — accounting for 2.26% of its weight — will be added to the universe of investable firms for DWS funds previously subject to defense restrictions, according to the statement. The asset manager’s Controversial Weapons policy, which excludes cluster munition and other arms, continues to apply, it said. “The Target Market Concept has to change for the industry, then the prospectuses have to change, and then we can make the changes,” Hoops said in the interview, explaining how the changes take effect. Catch-Up Expected DWS isn’t planning to put all the money that’s unlocked by these adjustments into defense, Hoops said. “But if the question is, what quantum of funds can then all of the sudden start investing, those are hundreds of billions of notional that can then start investing in defense.” “There will definitely be a catch-up,? in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. Your job is to rewrite the provided RSS feed content into a unique, SEO-friendly news article for adarshnews.com. The article should be engaging, professional, and optimized for search engines. Follow these steps: 1. **Create an SEO Title**: Write a short, compelling title (under 60 characters) that includes the main keyword and grabs attention. 2. **Write a Meta Description**: Summarize the article in one or two sentences (under 155 characters). Make it engaging and include the primary keyword naturally. 3. **Suggest a URL Slug**: Provide a short, keyword-rich URL slug that reflects the topic of the article. 4. **Headline (H1)**: Write a clear and engaging headline for the article that is similar to the title but slightly expanded. 5. **Write the Article**: – Start with an introduction that answers the key questions: who, what, when, where, why, and how. – Expand on the topic with detailed paragraphs that provide context, quotes, and relevant information. – Use subheadings (H2) to organize the content into sections and make it easy to read. – Include related keywords naturally throughout the article. – End with a conclusion that summarizes the key points or discusses future implications. 6. **Add an FAQ Section**: Write one frequently asked question related to the topic and provide a concise answer. Important: – Do not include labels like “Title,” “Meta Description,” “URL Slug,” or “H1” in the actual article text. – Keep all SEO elements separate from the main content. – Ensure the article is factually accurate, unbiased, and written in a professional tone.
The head of Deutsche Bank’s investment division has announced a reduction in restrictions on holding defense-related assets.
