YOUR PORTFOLIO Defence stocks
Louder than bombs Dennis Hall , director of Yellowtail Financial Planning , has had some “ interesting conversations around ESG ” with clients in recent weeks , not just about armaments , but oil & gas , too . Several of his clients who work in energy point out these companies are investing more than most other industries in alternatives to fossil fuels . For this reason , many proponents of ESG investing continue to hold oil & gas , but take an active approach to engaging with these businesses .
On face value , this seems counterintuitive , but they believe influencing the transition to renewables is more productive than selling out to investors who want these companies to focus on their core business of oil & gas . “ It ’ s not always cut and dried ,” says Hall . “ There are consequences . But performance has been pretty encouraging over the past year , and some investors who placed all their money in tech have had their faith in ESG shaken as this sector has fallen , while energy stocks have risen .”
Performance of indices over 1yr FTSE 350 Aerospace & Defense ( 28.9 %) FTSE 350 ( 12.7 %)
40 % |
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35 % |
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30 % |
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25 % |
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20 % |
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15 % |
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10 % |
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5 % |
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0 % |
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-5 % |
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Apr21 |
Jun |
Aug |
Oct |
Dec |
Feb22 |
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Source : FE Analytics |
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/ 28 / trustnet . com |
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