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War in Ukraine and conflict in the Middle East have focused attention on military capability, armaments and the defence industry – for investors, probably the most divisive of all industrial sectors.
Some investors believe that financing the defence industry is a moral step too far in the money-making process.
But others argue that, far from being ‘sin stocks’, companies involved in the defence sector, as guarantors of democratic freedoms, should sit as easily within a portfolio of environmental, social and governance (ESG) investments as a business involved in clean energy production, or one acknowledged as a superb employer.
On such an emotive subject, the decision to invest in defence or defence-related stocks resides with the individual. For those comfortable seeking exposure to this sector, we’ve asked several experts – Jarek Pominkiewicz, industrials equity analyst at Quilter Cheviot, Julian Wheeler, partner and in-house US equities specialist at Shard Capital, Jeff Brummette, chief investment officer at Oakglen Wealth, and Nicolas Owens, industrials equity analyst at Morningstar – for their defence company recommendations.
