EN 
SE 
Geopolitics in imbalance
The Global Security Fund continued its strong performance in 2025, delivering a return of 1.16% in March, bringing the fund's year-to-date return to 16.35% through April. The month was marked by continued focus on the Trump administration’s foreign policy, which contributed to heightened geopolitical tensions and clear reactions in global equity markets.
In March, President Donald Trump implemented sweeping tariffs on all imports—a general 10% tariff, with higher rates for certain regions: 54% for China, 20% for the EU, and 24% for Japan. These measures raised concerns about a potential global recession and led to broad declines in financial markets. A survey by MillTechFX showed that over 60% of global companies plan to increase or extend their currency hedging in light of the deteriorating geopolitical climate.1
At the same time, the conflict in the Middle East intensified. In March 2025, the U.S. launched large-scale air and naval strikes against Houthi targets in Yemen—the most significant military operation in the region during Trump’s second term. The goal was to halt Houthi attacks on civilian vessels in the Red Sea and Gulf of Aden. President Trump also issued a stern warning to Iran, emphasizing that further Houthi attacks would be regarded as acts of aggression from Tehran.
| Top 5 | Bottom 5 | ||
| Thales | 28,15% | Redwire* | -26,85% |
| Rheinmetall | 25,99% | Cloudflare | -22,44% |
| Saab | 23,19% | Aerovironment | -20,34% |
| Clavister | 17,65% | Planet Labs* | -17,80% |
| Huntington Ingalls | 16,21% | Fortinet | -10,88% |
* Price performance since the fund’s purchase of the shares
Company-specific news
Boeing was awarded a strategic contract from the US Air Force to deliver the new The F-47 fighter jet within the framework of the advanced Next Generation Air Dominance (NGAD) programThe new fighter jet will replace Lockheed Martin's F-22 Raptor and is designed to work with drones in future air battles. The initial contract value is USD 20 billion, with the potential for additional orders in multiples of that amount from the US and its allies. Lockheed Martin shares fell sharply on the news, illustrating the significant impact on competitive dynamics in the sector. On the macroeconomic front, President Trump’s broad import tariffs raised concerns about disruptions to the defense industry’s global supply chains, particularly with potential impacts on collaborative programs such as the F-35. The increasing pressure on international trade relations risks negatively impacting the cost picture and production rates for players such as Lockheed Martin, Northrop Grumman, RTX and General Dynamics.
The fund places great emphasis on assessing risks and opportunities as above. This is also a major reason why the fund has had a more cautious allocation to the US, except for RTX, which has performed well and been well positioned.
In March, we began investing directly in the space sector, through holdings in Planet Labs and Redwire. So far, the exposure has been indirect, but the fund is now looking for companies with good long-term prospects. As the sector is characterized by high volatility, we are keeping exposure limited at this time.
The European defense industry continued to rally, driven by a massive €800 billion arms upgrade plan called Readiness 2030. The program aims to reduce Europe's dependence on US military support and strengthen the Union's independent defense capabilities. Among the winners were Rheinmetall, Thales, Saab and Leonardo, all of which saw strong price gains during the month.