BNP Paribas Asset Management announced its €228bn ($283m) mutual fund business will stop investing in tobacco stocks, selling all positions in the sector by the end of the year. The move comes after a series of scandals involving cigarette companies and their marketing to children. The asset manager's stance follows a similar move by Dutch fund manager Robeco, also considering dropping its investments in tobacco companies because pension scheme members are concerned about holding such stocks. Potential for investors to take legal action against trustees over the damage that smoking causes is also a concern.
BNP Paribas Asset Management announced its €228bn ($283m) mutual fund business will stop investing in tobacco stocks, selling all positions in the sector by the end of the year. However, a spokesman said the move would not extend to its entire range of funds. The asset manager's stance follows a similar move by Dutch fund manager Robeco, also considering dropping its investments in tobacco companies because pension scheme members are concerned about holding such stocks. Potential for investors to take legal action against trustees over the damage that smoking causes is also a concern.