Active managers races to build European defense funds

Unlock the editor’s digestion free

FT editor Roula Khalaf, chooses his favorite stories in this weekly newsletter.

Active managers are in a hurry to build stock trading funds in the European defense sector, as the last rally, because the latest rally forced investors to re-think their positions, including disputed shares in their portfolios.

Europe’s largest active manager Amundi is working on the increase in two people in connection with the increase in military expenditures between two people, and two people are working on a European ETF in connection with defense companies. Vaneck, a $ 114 billion fund manager, is also investigating the start of a similar investment tool.

“It’s a massive race to build products,” he said.

Earlier this month, the United States company Wisdomtree said that only in the stock market in Germany, Italy and Britain, the first ETF to European defense companies. The fund has been $ 575 mln since then.

“There is a lot of great interest,” said Pierre Debru, Head of European research in Hendomtree. “We have pension funds, but also wealth managers, retail investors … We are looking at each side of customers.”

A sudden explosion of the United States’s investment interest in European defense is planning to follow the strategic autonomy with many European governments, after the United States has cut a military support against Russia.

The Stoxx Europe Total market is 34 percent this year, which extends to 600 European 600 more than 600 Europe 600, waiting for a aerospace and defense index, investor spending boom.

Rally Often marked the grace for a sector they vibrate by large investors of the continent. Funds invested in the environment, social and management framework, are often protection companies, portfolios such as Germany’s Rheinmetall and Italian Group Leonardo.

However, some retirement investors claim that investment in weapons producers became important for the protection of democracy, softens defensive operations.

Denmark Pension Fund, General Investment Officer Anders Schelde, AcademicianPension, said that the annual general meeting next week, the defense policy will be discussed. “I will not rule out the outcome of softening our position,” he added that the existing exception policy was “very tough.”

Ronald Wuijster, CEO of APG, who has 616 billion euros on behalf of the four Dutch pension fund, said he said to help finance the Dutch and European defense. The largest European Pension Fund’s manager currently invests in companies related to sector in close to 2 billion euros.

“I have never seen such a turn (for European markets) … We can not see us as a more reliable, reliable partner, and this is where money in recent weeks,” said Bernstein

It seemed to end in Europe for a long time in “all investors who want to join the party.”

Tom Bailey, Tom Bailey in London, Tom Bailey – This week, announced the launch plans of the European Defense, including defense companies, including defense companies, said.

“Some of them are worried that any defense company is worried, but now interest rises everywhere,” he said.

Historically, investors were “wells” and Squeamish “Squeamish, the largest Pension and Savings provider of England’s largest pension and savings provider of Britain, Eakins.

But now he said, “Long-term active owners …. need to invest more in defense.”