CCLA gets tough on arms firmsOctober 2004
Britain’s largest manager of charitable funds has tightened its criteria for investment in defence companies.
CCLA Investment Management says its Charities Investment Fund, which has assets of £2billion ($3.6bn) held on behalf of 90,000 charitable bodies in England and Wales, will no longer invest in any company deriving more than 40 per cent of turnover from selling armaments. Previously the threshold was 50 per cent.
The change is expected to capture some three companies in the UK and six overseas.
CCLA has made the change after a survey of 3000 charity clients found trustees believed avoiding defence companies had ‘most relevance’ for their charities, more than tobacco and gambling. The fund’s policy not to invest in companies deriving more than half of turnover from tobacco and gambling will remain unchanged.
CCLA is raising the bar against defence companies to make its exclusion policy more ‘robust’. The fund accounts for 40 per cent of the £5bn managed by CCLA.
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