Fund managers remain nervous about the tobacco industry, which has been under regulatory, technological and social change over the past decade, despite a turnaround in performance over the past year.
As consumers became more health-conscious and aware of the risks associated with smoking and the tax on tobacco products climbed with almost every Budget in recent years, the industry began to see a fall in demand and an acceleration in volume decline. While this posed a threat to profitability, the popularity of e-cigarettes and heat-not-burn products signalled a positive transformation for both consumers and investors. Update: Robeco latest firm to exclude tobacco investments But this transformation proved to be slower than expected, leading some managers to begin reducing their ...
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