Monthly comment February 2022

Russia's invasion of Ukraine is a great tragedy with major humanitarian consequences. One would never have believed that this could happen in Europe in 2022. The result of Putin's actions will be, in addition to heavy sanctions, a greater focus on defense around Europe, where Sweden, for example, has increased defense funding by 40 percent for the next 5-year period.

We have long emphasized the importance of the defense sector for the stability and security of our society, but now it unfortunately turns out that we are right and there is even talk of defense companies being able to be classified as ESG investments. It is something that we have also spoken about for a long time - that defense is central to being able to secure the stability of society in accordance with the UN's global goal number 16 on peaceful and inclusive societies.

The Global Security Fund rose by 11.2 % during the month of February and has thus risen by 9.43 % since the beginning of the year. Both traditional defense companies and cyber security companies are currently benefiting greatly from developments in Ukraine, and our view is that this development may continue if there is a protracted conflict. In the long term, increased defense funding will drive demand for defense companies and technology companies with a focus on global security.