Dutch asset manager Robeco, now known as ORIX Corp. Europe NV, will exclude tobacco-related investments from its mutual funds, saying the industry is increasingly seen as "socially disadvantageous."
The exclusion applies to all listed firms involved in the production of tobacco or significant components of cigarettes, the company said March 7. Such holdings amount to €129 million, or 0.24% of Robeco's total €161 billion in assets, Reuters reported the same day, citing a company spokeswoman.
Robeco, which already excludes tobacco-related investments from its sustainable fund range, said the exclusion will now extend to its mainstream funds, including subadvised funds, although it will not apply to client-specific funds and mandates. The move is expected to be completed by the end of the third quarter.
Robeco is owned by Japan's ORIX Corp.
