Jefferies Says Investors Boost ‘Nuclear Exposure’: ESG Investing

Almost two-thirds of fund managers permit some level of “nuclear exposure,” with 34% allowing investments in nuclear weaponry, according to Jefferies Financial Group Inc.’s fourth-annual ESG and defense survey.

The report finds that many money managers have loosened policies in recent years to become more receptive to defense investments. Still, 38% prohibit holding stakes in companies involved in manufacturing nuclear weapons.

“Nuclear is increasingly investable, but it remains the most contentious boundary,” Jefferies analysts wrote in a report published Friday. Where investors permit exposure, they often rely on rule-based constraints tied to alliances or treaties rather than fully endorsing ...