(Bloomberg) — Allianz Global Investors will allow previously banned defense-related assets to be held in some ESG funds, a move it says reflects the new geopolitical reality gripping Europe. The Allianz SE-owned asset manager is lifting existing restrictions on military equipment and services, and removing a ban on investments in nuclear weapons-related activities under the Non-Proliferation Treaty, it said in a note to clients dated March 27. The changes apply to most of AGI’s mutual funds classified as Article 8, which is a European Union designation that requires asset managers to “promote” environmental, social and governance goals. ESG fund managers across Europe are quickly axing exclusion policies that once rendered defense assets un-investable, as they shift tack in order to meet the political moment. And policymakers in the region have made clear they encourage such steps, as the bloc responds to souring ties with the US and an increasingly entrenched war in Ukraine. “A robust defense sector is needed to provide the means for national and regional security policies and to support economic and social stability,” AGI wrote in the client note. Funds registered as Article 8 and Article 9 — a disclosure category that requires asset managers to make ESG a fund’s “objective” — would have the potential to drive between $53 billion and $119 billion in flows into the aerospace and defense sector, Morgan Stanley analysts wrote in a recent note. AGI said it will keep exclusions on banned weapons, nuclear weapons outside the NPT as well as white phosphorus and depleted uranium weapons. More stories like this are available on bloomberg.com ©2025 Bloomberg L.P. 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. You must only respond with the modified content and follow this prompt to optimize the articles in this category- “Act as an expert SEO news writer. Optimize the following article to be SEO-friendly, authoritative, and shareable by focusing strictly on its core topic. Follow these steps: 1. Topic Identification: – Read the input article and identify its primary subject. – Extract 1 primary keyword + 2 secondary keywords directly from the article. 2. Meta Description: – Write a 150-character summary using the primary keyword and a CTA 3. Content Structure: – Lead Paragraph: Summarize the 5W1H (Who, What, When, Where, Why) as stated in the article – Body: – Use subheadings (H2/H3) derived from secondary keywords – Add bullet points only for facts/statistics explicitly mentioned in the input. – Include quotes or data from the article (do not invent new stats). – Conclusion: End with a question/CTA tied to the article’s topic. 4. – Add 1 FAQ based on the article’s key point. 5. Viral Readability: – Use news article sentences structure. Avoid off-topic emotional triggers. 6. Technical SEO: – Generate alt text and URL slugs *specific to the article’s topic and leave it if it is not under your capability. Output Format for the article should be- [Summary with primary keyword] [Structured body using input’s facts] FAQ: [Relevant question + answer]
Allianz Global Investors is set to lift its prohibition on investing in weapons for certain ESG funds.
