The global asset manager follows peers by opening up lucrative defence stocks to over 130 of its European funds in a major shake-up of the firm’s ESG policies.
JPMorgan Asset Management has removed restrictions on defence stocks across a broad swathe of its European funds, a shift that could open tens of billions of institutional capital to listed weapons manufacturers and aerospace groups as military spending rises.
Notices filed with investors show the changes affect 95 Luxembourg‑domiciled funds, 29 Ireland‑based vehicles and five UK ESG products, all classified under the EU’s Sustainable Finance Disclosure Regulation (SFDR) as Article 8 funds. Under the revised policies, the previous 10% revenue threshold on conventional weapons exposure has been dropped, allowing those funds to hold companies with larger defence business.
The revisions cover a mix of active equity and fixed income strategies, including several of JPMorgan’s largest European ETFs, such as its US Research Enhanced Index Equity Active fund and its global equivalent, which together total about €19 billion in assets.
JPMorgan said the move reflects “evolving client expectations relating to defence preparedness” and changes in the geopolitical environment. The firm noted the updates are not a material change to how the funds are managed or their risk profiles.
The shift comes as defence equities and sector‑focused ETFs have drawn significant investor interest, buoyed by sustained multi‑year spending commitments from NATO members and other governments following Russia’s invasion of Ukraine. In the first half of 2025, European thematic ETFs focused on defence and related technologies attracted record inflows, pushing net raises into the billions of euros.
Asset managers across Europe, including Franklin Templeton, Columbia Threadneedle, DWS and Allianz Global Investors, have also relaxed similar exclusions in recent months, aligning fund mandates with a backdrop of rising defence budgets and shifting ESG investor attitudes.
JPMorgan Asset Management is one of the world’s largest investors, managing €3.4 trillion in assets.