Security and defense issues have become one of the strategic pillars for the long term in a context where geopolitical risks are multiplying. The international environment, marked by persistent instability, reinforces the importance of a modernized and resilient defense capacity — a dynamic that is set to continue, or even intensify, over the coming years. Since Russia's invasion of Ukraine and the October 2023 attacks in the Middle East, a global arms race has begun. Most major economic zones have significantly increased their military budgets: Japan, China and emerging Asia, the Middle East, Europe, and the United States. Recent events in Iran again demonstrate persistent regional tensions, while Russia remains a major risk for European countries. In this context, military spending is expected to continue growing, both within NATO member countries and among non-member states seeking to strengthen their strategic autonomy.
In a volatile economic environment, the defense sector stands out for its defensive profile, supported by recurring cash flows, high structural demand, and historically solid order books. It is in this perspective that, in partnership with Kepler Cheuvreux Solutions, Renalco has chosen to integrate targeted exposure to the security and defense theme within its new investment strategy. Kepler Cheuvreux's research teams have identified the best-positioned players to support this long-term trajectory.
Do not hesitate to contact Renalco SA to learn more if you are interested in this opportunity (info@renalco.ch).
