Investors evaluate their positions with the escalation of defense spending

Money managers who considered the assets of defense companies and to invest in them began to reconsider their positions, in collaboration with the increase in defense spending in Europe. The recent investment portfolios that focus on defense assets have recently spread, with investment funds with symbols such as “war” and “NATO”. Data collected by “Bloomberg” shows that the number of investment funds focused on the defense sector has doubled over the past year to reach a record number of 47 funds, after decades of such products in very limited numbers. The data also indicates until mid -February that this upward trend continues. As proof of a transformation, investors focusing on environmental, sociology and management standards (ESG) began to reduce strict policies followed, aiming to exclude specific sectors, which made way to invest in defense assets. “It seems” D “(reference to the word” defense “, that is, the defense) has become a new addition to the” ESG “shortcut. Europe is accelerating to improve defense spending, Europe is now responding to the strengthening of Atlantic relationships that arose by US President Donald Trump to the White House. to come, and to fulfill, and to come. 2024. “He added that the fund attracts new flow, ranging from $ 20 million to $ 30 million a day. Bloomberg Economics estimates that the protection of Ukraine and the expansion of European armies can cost the most important powers in Europe over the next ten years. This comes after decades of investment deficits in this sector, according to a report released in September last year on the Competitiveness of the European Union, compiled by the Italian Prime Minister and former European Central Bank President Mario Draghi. Europe should attract defense investments, Draghi report indicated that Europe should make its defensive industry more attractive to investors, including adjusting sustainable financing to support investments in this sector. The European Union leaders are currently conducting discussions on joint financing, and the president of the European Commission, Ursula von der Line, will host a comprehensive plan next month that includes incentives for investors. The managers of the investment funds in the shares of the environment, sustainability and management (ESG), which increase their exposure to defense shares, have significantly better returns compared to what they can achieve through conventional green stocks such as wind and solar energy. The “S&P Global 1200” index for space and defense increased by 17% last year, and this has increased by 6% so far this year. On the other hand, the ‘S&B Global’ index of the conversion of Clean Energy has seen a slight change this year, after losing 27% in 2024. The data collected by “Bloomberg” showed that the company “Rheinmetall AG” that produces tanks and ammunition currently owns assets in about 650 funds for the environment, sustainability and management. Lockheed Martin Corp, known for its fighters and rocket systems, has shares in about 370 boxes of this. BAE Systems PLC, which produces ammunition, missile launching platforms and cannons, has assets in more than 450 boxes of these boxes. Defense shares have excelled their peers, Kiran Aziz, the head of the responsible investment in the Norwegian pension fund “KLP” (KLP), indicated that the defensive shares exceeded the shares of other industries, as well as on the “MSCI” (Global SCI) index, especially in the past three years. She said that only technology shares ‘could partially compete with the defense shares’. Funds by identifying the shares and bonds issued by the defense companies as a sustainable assets, to unleash many more investments. There are currently $ 14 trillion funds. For the controversy. Barclays analysts wrote in a recent memo that the traditional funds launched last year were accepted the controversial weapons, as only 23% of these funds were excluded. Their capitalist flow to destinations is used in destruction. Aziz explained that the “KLB” fund excludes controversial weapons, a category that includes clusters, chemical weapons and anti -staff mines; Because it is “unable to distinguish between military and civilian targets.” She added that space and defense companies currently make up 1.4% of the funds owned, compared to less than 1% in December 2019. For her side, Lorridana Mouharmi, an analyst in “Moringstar Inc”, said the fund sector awaits better directions from the regulatory authorities in Europe. She added, “The explanations will support greater investments in these areas.”