High. This portfolio invests in companies across the defense, aerospace, and national security ecosystem. While these businesses benefit from long-term structural tailwinds such as rising global defense budgets, geopolitical realignment, and sustained government spending, they remain exposed to policy and procurement cycle risk, budget segregation, contract concentration, regulatory scrutiny, and geopolitical shifts that could alter spending priorities. Portfolio performance may be influenced by changes in government defense appropriations, international arms agreements, export control regulations, and the pace of adoption of next-generation defense technologies.
You are seeking long-term exposure to the global defense and national security industry through companies enabling advanced weapons systems, aerospace technology, cybersecurity, satellite communications, and defense intelligence infrastructure. This portfolio is suitable for investors who are comfortable with policy-driven cycles and higher volatility in pursuit of long-term capital appreciation linked to the structural increase in global defense spending and the modernization of national security capabilities worldwide.
Defense and national security have moved from being cyclical government expenditures to becoming permanent, long-duration strategic priorities for governments worldwide. Decades of underinvestment in defense infrastructure, combined with a rapid deterioration in geopolitical stability across multiple regions, has triggered a broad-based and sustained increase in defense budgets globally. NATO members are accelerating their commitments to meet and exceed defense spending targets, while nations are fundamentally rethinking their national security postures.
Companies in this space typically operate across defense systems and platforms, aerospace and aviation, satellite and space infrastructure, cybersecurity and intelligence, command and communications technology, and logistics and supply chain solutions for defense organizations. Their ability to secure long-term government contracts, maintain technological superiority, and execute on large-scale procurement programs positions them as critical partners to governments and defense establishments worldwide.
Key drivers supporting this theme include the sustained rise in global defense budgets, the increasing complexity and digitization of modern warfare, growing demand for satellite and space-based defense capabilities, and the strategic pivot of major economies toward defense self-sufficiency and technological sovereignty. As nations compete for strategic advantage across land, sea, air, space, and cyberspace, the companies enabling these capabilities are positioned to generate long-term, contracted, and recurring revenue streams that are largely insulated from broader economic cycles.
The Defense & Security portfolio provides focused exposure to this theme by investing in a select group of companies across the defense and national security value chain that combine technological leadership, deep government relationships, and long-duration contract visibility. By emphasizing businesses aligned with the structural increase in global defense spending, the modernization of military platforms, and the digitization of national security infrastructure, the portfolio aims to participate in what is shaping up to be a multi-decade expansion in defense investment globally.
For this portfolio, we have identified the below companies:
| Company | Description |
|---|---|
| ATI Inc. (ATI) | ATI Inc. produces high-performance specialty materials and complex components, including titanium and nickel-based alloys that are critical for military aerospace and defense applications. |
| Axon Enterprise, Inc. (AXON) | Axon develops connected public safety technology, including TASER devices, body cameras, and digital evidence management systems, which are essential for domestic law enforcement and security. |
| The Boeing Company (BA) | This global aerospace leader designs, manufactures, and services a wide range of military aircraft, satellites, and defense systems for customers in more than 150 countries. |
| Carpenter Technology Corporation (CRS) | The company manufactures and distributes high-performance specialty alloys and engineered products that are used in mission-critical applications within the defense and aerospace industries. |
| Curtiss-Wright Corporation (CW) | Curtiss-Wright provides highly engineered products and services for critical applications in the defense, commercial aerospace, and power generation markets, supporting national security infrastructure. |
| General Dynamics Corporation (GD) | As a global aerospace and defense company, it offers a broad portfolio of products including combat vehicles, nuclear-powered submarines, and secure communications systems. |
| General Electric Company (GE) | GE Aerospace is a leading provider of jet engines, components, and integrated systems for military and commercial aircraft, playing a vital role in national defense aviation capabilities. |
| HEICO Corporation (HEI) | HEICO manufactures and sells niche aerospace, defense, and electronics products, including FAA-approved replacement parts and components for military aircraft and space applications. |
| Howmet Aerospace Inc. (HWM) | Howmet provides advanced engineered solutions, including critical fastening systems, forged components, and engine parts for the aerospace and defense industries worldwide. |
| L3Harris Technologies, Inc. (LHX) | This defense technology innovator delivers mission-critical solutions across air, land, sea, space, and cyber domains, supporting national security and intelligence gathering efforts. |
| Lockheed Martin Corporation (LMT) | Lockheed Martin is a global security and aerospace company engaged in the research, design, and manufacturing of advanced technology systems, including fighter jets and missile defense. |
| Northrop Grumman Corporation (NOC) | As a premier global security company, it provides innovative systems and solutions in autonomous systems, cyber, space, and strike capabilities to government customers. |
| Rocket Lab USA, Inc. (RKLB) | Rocket Lab develops and launches rockets that provide critical access to space for the commercial, civil, and defense sectors, including national security missions. |
| RTX Corporation (RTX) | RTX Corporation operates as a major aerospace and defense company providing advanced systems like missiles, air defense, and avionics to military and government customers. |
| TransDigm Group Incorporated (TDG) | This company is a leading global supplier of highly engineered aircraft components for use on nearly all commercial and military aircraft currently in service. |
| Woodward, Inc. (WWD) | Woodward designs and manufactures control system solutions and components for the aerospace market, including critical systems for military aircraft, guided weapons, and vehicles. |