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Global Security Fund continued to deliver strong returns in June with an increase of 7.39 %. Since the beginning of the year, the fund is up 44.81 % and with the best-performing fund on Avanza for the first half of 2025 among 1400 funds. During the month, tensions in the Middle East escalated to one of the most serious situations in several years. On the night of June 13, Israel carried out a large-scale airstrike against Iranian nuclear facilities and bases linked to the missile program during Operation Rising Lion. Several high-ranking commanders in the Iranian Revolutionary Guard Corps (IRGC) were reportedly directly targeted, including managers responsible for Iran's drone program and missile technology. A few days later, the United States followed up with airstrikes on underground nuclear facilities. Using new bunker-buster bombs, likely GBU-57A/B, targets as deep as 30 meters underground that were previously considered inaccessible were hit.
The conflict has once again highlighted the need for strategic bombers, advanced unmanned systems and robust cybersecurity. Northrop Grumman's B-21 program, previously questioned due to costs, has now received a major boost in prestige. Meanwhile, Iran's use of ballistic missiles and drones has reinforced global demand for air defense systems such as Patriot, Iron Dome and the European Sky Shield.
After a week of intense fighting, the US, Turkey and the EU led negotiations that resulted in a ceasefire on June 24. However, the situation remains unstable with a high military presence in the region.
In parallel, the NATO summit was held in The Hague, where member countries agreed to increase defense spending to 5% of GDP by 2035, a significant increase in ambition that is expected to drive investment in the sector in the coming years.
| June 2025 – Highest development | June 2025 – Lowest development | ||
| AST SpaceMobile | 103% | ispace | -50% |
| BigBear.ai | 63% | Mildef Group AB | -24% |
| Planet Labs | 59% | Clavister AB | -15% |
| Exail Technologies | 47% | Leonardo | -11% |
| Hyundai Rotem | 34% | Theon International | -8% |
Company-specific news
We maintain an overweight to European defense during the summer but have also increased our exposure to the Pacific region through new investments in several South Korean and Japanese defense-related companies. The selection has been selective with a focus on players that have low correlation with our larger European holdings. The aim is to increase the portfolio's diversification while also enabling exposure to a possible continued rally in Europe. In total, we now have over 15% of the portfolio allocated to the Pacific region. The fund aims to provide broad exposure to the defense market without having too much vulnerability to setbacks in European companies like the one for Kongsberg on July 9.
Austal Limited is an Australian shipbuilder specialising in high-performance vessels for both defence and commercial purposes. The company has shipyards in Australia, the US and the Philippines. Austal secured $488 million in new credit facilities to support its expansion programme in the US, including final assembly and submarine module manufacturing projects. South Korea’s Hanwha Group plans to increase its ownership in Austal from 9.9 % to 19.9 %, after receiving approval from US authorities.
Hyundai Rotem is a South Korean manufacturer of military equipment and transport vehicles. In June 2025, it was reported that the company is close to finalizing an export deal with Poland for K2 tanks worth USD 6 billion. On June 30, 2025, Hyundai Rotem published its 2025 Sustainability Report, reporting a 10.7% reduction in waste and presenting its ESG strategies.