Germany’s Wealth Fund Is Dropping Restrictions on Weapons

Germany’s sovereign wealth fund is abandoning long-held restrictions on investing in weapons manufacturers, as it responds to an increasingly tense geopolitical reality.

The fund, known as Kenfo, will now be free to buy stocks and bonds issued by defense firms, Chief Executive Officer Anja Mikus said in an interview. The investor had previously been barred from holding liquid assets in companies that generate more than 5% of their revenue from defense-related activities.