Swiss initiative against investing in weapons

I read about the "Kriegsgeschäfte-Initiative" a new initiative being launched in Switzerland called the which basically would prohibit the Swiss national bank, pension funds, etc. from investing in arms manufacturers. I assume the prohibition would also forbid investments in government bonds from the U.S., China, Brazil, Russia, Germany and other governments which finance weapons manufacture including (I assume) the Swiss government. Plus stocks in Airbus, Boeing, Daimler Benz, General Motors and all other civilian / arms manufacturers would have to go too. Then there are software and high-tech companies which also develop for military and arms companies. So what options for investment would be left if the initiative made it? How would pension funds and the Swiss franc be affected?

Hi there,

The popular intitiative "Für ein Verbot der Finanzierung von Kriegsmaterialproduzenten" or "Pour une interdiction du financement des producteurs de matériel de guerre" is still in its fledgling stages.

If the initiative achieves enough popular support to be voted into law, it would be up to the Swiss federal council to adapt it in a way which would make it implementable.

As the initiative stands now, it would only apply to investments made by the Swiss National Bank and government or occupational pension schemes and would only prohibit these from investing in companies which earn more than 5% of their revenues from military weapons.

The Swiss national bank and pension funds would no longer be able to own stocks in these companies or provide them with loans or financing. The initiative includes a clause which would prohibit investment in funds or other financial products which serve to finance eligible companies. The initiative does not mention government bonds.

Best regards from Moneyguru

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