Cluster Bomb Companies Could Lose Investors

Arms manufacturers are expected to face a barrage of questions from investors over their involvement with the manufacture of cluster bombs.

Cluster bombs disperse several smaller bombs over a wide area and can remain unexploded for decades.

According to a recent report in UK newspaper The Guardian fund managers view cluster bombs as an ethical concern on par with investment in the Sudan and Myanmar.

Pension fund manager Hermes has recently asked BAE to clarify its involvement in the industry, and last month French insurer Axa said it was pulling investment from companies involved with the manufacture of the weapons.