Many fund managers pursuing a ‘responsible investment’ strategy have weapons exclusion policies. Some are now rewriting those policies to accommodate reality. In so doing, they are scaling back their offensive on stocks in the defence sector. It is curious, then, that other fund managers are going the other way and expanding their idea of what a defence stock is, specifically by placing some AI and ICT stocks in their crosshairs.

It is a truism that the integration of AI and tech into defence systems and weapons has increased correlation in stock prices across the AI/ICT and defence sectors. Investors are aware of this already. Long or short, they have always observed the extent of correlation across sectors.

Those in the business of divesting and excluding stocks from their portfolios for political or other non-financial reasons are also attuned to this increased correlation. They consider exposure to such AI and tech........

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