Many public bodies, including NHS trusts, churches, local authorities, universities, trade unions and charities, continue to invest in the arms trade, despite their commitment to beneficial and ethical goals, according to a report published yesterday.

They include Cancer Research UK, Mencap, the Co-operative Insurance Society, British Coal Pension Fund, and the Royal National Lifeboat Institution.

Local authorities hold arms company shares while claiming to have ethical investment policies, the Campaign Against the Arms Trade (Caat) says.

Its list includes Essex, Durham, North Yorkshire, and East and West Sussex county councils and the London boroughs of Bexley, Camden, Haringey, Tower Hamlets, Havering and Sutton, as well as Strathclyde pension fund.

The report concentrates on bodies investing in seven of the biggest British arms companies: BAE Systems, Alvis, Cobham, GKN, Rolls Royce - which also makes a wide range of civil products, including engines for passenger aircraft and cars - the Smiths group and VT Group (formerly Vosper Thornycroft), which builds ships.

Caat has disclosed the full list of investors on its website www.caat.org.uk as it seeks to influence their investment strategies.

"It is staggering that organisations committed to public welfare and health continue to hold shares in arms companies that sell weapons across the world," said Ian Prichard of Caat, which is launching a "clean investment campaign".

He added: "Do donors to Cancer Research UK or the Royal National Lifeboat Institution expect their money to be invested in this way, or nurses and lecturers expect their pension fund to hold hundreds of thousands of shares in arms exporting companies?"

The campaign discerns a disturbing trend: many investors presenting themselves as having an ethical investment policy while holding large numbers of shares in big arms exporters.

"This is clearly inconsistent and arises when investors adopt a policy of 'engagement' with the companies in which they hold shares," Liz Morton, the coordinator of the campaign, said.

"Engagement is where investors talk to companies, identify problem areas, try to persuade companies to commit themselves to change, and then monitor progress."

The arms trade was "not a normal, legitimate business and should not be treated as if it is", she said.

Caat said its list was based on the latest available figures, and published after contacting the investors.

Among the bodies Caat cites are: the Corporation of London, Greater Manchester pension fund, London borough of Brent in north London and Maudsley NHS trust, the Boys Brigade, Church of England Funds, St Hilda's College, Oxford, the Universities' superannuation scheme, Dundee University pension fund, Glasgow University endowment fund, Liverpool University endowment fund, Manchester Metropolitan University, the Amalgamated Engineering and Electrical Union general fund, the Union of Shop, Distributive and Allied Workers staff pension fund, the British Steel pension funds and the Nurses pension fund.