Anti-arms campaigners have criticised universities with stakes in financial funds that invest in the arms trade.

Freedom of Information requests have revealed funds from Brighton University are invested in Britain's biggest military contractor BAE Systems, VT, a major warship manufacturer, and Rolls Royce, whose customers include most of the world's armies and navies.

Funds from the University of Sussex are invested in Smiths Group, whose military products include gun pods for Hawk jets and parts for US-made Apache jets used by Israel.

It also has research centres funded by Rolls Royce and BAE Systems.

Tim Street, of lobby group Campaign Against Arms Trade, which is trying to pressure universities to break links between arms companies and higher education, said: "When students pay fees to an institution, they deserve a say over what it does with its money.

"And they should be deeply concerned their university's money is funding a trade that fuels international tensions, and companies that regularly arm oppressive regimes. Many academic activities are also fundamentally at odds with the arms trade.

"How, for instance, can Sussex University justify running a major human rights law programme, yet also generate funding by investing in a company such as Smiths Group?"

Mr Street added: "Research centres funded by arms companies direct the output of entire university projects and departments towards the technological needs of specific military companies.

"Postgraduates may soon have to choose between following their consciences or joining the best-funded, most prestigious projects and departments."

Brian Fitch, a Brighton and Hove City councillor who is the secretary general of the International Federation of Peace Messenger Cities, of which Brighton and Hove is one, said: "Brighton and Hove is a Peace Messenger city and its public bodies should not be getting involved in the arms trade."

A spokeswoman for Brighton University said: "The university has appointed a fund manager, who places investments on its behalf.

"Small investments are made in income trusts, which are designed specifically for charity investors.

"In the instance of the major UK companies quoted, the investments amounted to £11,500 in BAE Systems, £8,200 in Roll Royce and £7,000 in VT Group. The investment is therefore indirect, makes up a very small part of the university's investment portfolio and the fund manager makes the investment decisions."

A spokeswoman for the University of Sussex said: "The university has a long-standing commitment to be sensitive to the values of our institution when investing funds.

"The university has not deliberately tried to directly invest in Smiths Group.

"However, the university does have money staked in an investment fund - called the COIF Charities Investment Fund - which holds shares in Smiths Group.

"The COIF Charities Investment Fund is a socially aware investment policy, which has an ethical criteria for companies it invests in. Smiths Group, which manufactures medical devices, detection systems, aerospace systems and mechanical seals, meets COIF's ethical criteria. The university has less than £10,000 indirectly invested in Smiths Group."