High. This portfolio invests in sectors influenced by geopolitical developments, supply chain shifts, and commodity price fluctuations. While these trends may offer long-term growth opportunities, they are also subject to policy changes, economic cycles, and market volatility.
You want to invest in sectors positioned to benefit from rising geopolitical tensions, supply chain diversification, and increased focus on national self-reliance.
The Deglobalization Portfolio provides targeted exposure to companies positioned to benefit from the ongoing shift away from globalization. As geopolitical tensions rise, supply chains are being restructured, and nations place greater emphasis on self-sufficiency. These dynamics are driving increased demand in sectors such as defense, industrial automation, energy security, and critical commodities.
Rising defense spending reflects governments' efforts to strengthen national security amid global uncertainties. At the same time, companies are investing in automation and advanced manufacturing technologies to localize production and reduce dependence on complex international supply chains. The focus on energy security is also growing, with countries seeking to develop domestic energy resources and infrastructure to minimize reliance on foreign sources.
By investing across these industries, this portfolio aims to provide a balanced mix of companies involved in defense manufacturing, automation technologies, industrial equipment, logistics, and resource management. This approach is intended to capture opportunities arising from long-term structural shifts in the global economy, driven by supply chain realignments and efforts to build greater economic resilience.
For this portfolio, we have identified the below companies:
| Company | Description |
|---|---|
| ATI Inc. (ATI) | ATI provides high-performance materials like titanium and specialty alloys essential for domestic aerospace, defense, and industrial manufacturing, strengthening critical national supply chains. |
| Axon Enterprise, Inc. (AXON) | Axon is a leading domestic provider of vital public safety technology, including body cameras and Tasers, contributing to national security and internal stability without foreign reliance. |
| Caterpillar Inc. (CAT) | Caterpillar manufactures heavy machinery crucial for building domestic infrastructure, mining, and energy projects, which directly supports a nation's self-sufficiency and onshoring efforts. |
| Curtiss-Wright Corporation (CW) | Curtiss-Wright develops critical components and systems for the domestic aerospace, defense, and power generation industries, which enhances national technological sovereignty and security. |
| Eaton Corporation plc (ETN) | Eaton offers power management solutions that are essential for upgrading, securing, and increasing the resilience of domestic electrical grids and industrial facilities. |
| General Dynamics Corporation (GD) | As a primary defense contractor, General Dynamics provides mission-critical systems for national security, directly supporting a country's self-defense capabilities and reducing reliance on foreign military hardware. |
| General Electric Company (GE) | General Electric focuses on vital domestic sectors like aerospace and power, providing essential technology and services that are fundamental for national infrastructure and defense. |
| HEICO Corporation (HEI) | HEICO produces specialized aerospace and defense components that are crucial for maintaining domestic military and commercial fleets without dependencies on foreign supply chains. |
| Honeywell International Inc. (HON) | Honeywell provides automation, aerospace, and building technologies that help localize manufacturing and improve the efficiency and security of domestic supply chains. |
| Hubbell Incorporated (HUBB) | Hubbell manufactures essential electrical and utility components that are fundamental for building out and modernizing a nation's independent power and communications infrastructure. |
| Howmet Aerospace Inc. (HWM) | Howmet Aerospace engineers advanced materials and components for the domestic aerospace and defense industries, securing the supply chain for critical national assets. |
| J.B. Hunt Transport Services, Inc. (JBHT) | As a leading domestic logistics and transportation provider, J.B. Hunt strengthens internal supply chains, making the country less dependent on global shipping networks. |
| L3Harris Technologies, Inc. (LHX) | L3Harris Technologies is a major defense contractor providing advanced communication and electronic systems that are fundamental to national security and independent military operations. |
| Lockheed Martin Corporation (LMT) | As one of the world's largest defense contractors, Lockheed Martin builds advanced military aircraft, missiles, and defense systems, ensuring national sovereignty and security. |
| Northrop Grumman Corporation (NOC) | This leading global security company provides essential defense technologies, including autonomous systems and spacecraft, which are crucial for national independence and defense superiority. |
| Parker-Hannifin Corporation (PH) | Parker-Hannifin manufactures motion and control technologies that are vital for automating and improving the efficiency of domestic industrial and manufacturing operations. |
| Rockwell Automation, Inc. (ROK) | Rockwell Automation specializes in industrial automation solutions, enabling companies to reshore manufacturing operations and create smarter, more efficient localized factories. |
| Woodward, Inc. (WWD) | Woodward designs and manufactures control systems for the aerospace and industrial markets, supporting the domestic production of aircraft, power generation, and transportation equipment. |