More and more non-US companies are winning defense contracts, says Finserve Nordic.

Europe’s reliance on the US in the defense and security sector is a topic of concern for many investors and industry experts. According to Joakim Agerback, the lead portfolio manager of Finserve Nordic’s Global Security fund, European and Asia-Pacific companies are now getting more defense contracts that were traditionally awarded to American prime contractors. This shift indicates a growing trend where non-US companies are stepping up in securing defense contracts once dominated by US firms.

The exposure of Finserve Nordic’s flagship Global Security fund to the US remains high, and there was even a slight increase in 2025. However, Agerback suggests that this situation may not be permanent. The current dynamic could evolve over time, leading to a rebalancing of the fund’s holdings. The changing landscape presents an opportunity for European companies to play a more significant role in the defense industry, reducing the continent’s dependence on American suppliers and contractors.

This shift in defense contracts underscores the changing global economic landscape and the need for investors to adapt to evolving trends. Agerback’s insights point towards a future where Europe becomes increasingly attractive from an investment perspective. As European and Asia-Pacific companies secure more defense contracts and reduce their dependency on American contractors, there is a growing potential for growth and diversification in the European defense sector.

The investment community is closely watching these developments, especially amidst the current political climate. The Nordic region, in particular, is seeing a shift in interest from passive to active investment strategies. With the Trump administration creating turmoil in global markets, investors are reevaluating their positions and looking for new opportunities. This transition towards active management reflects a broader trend in the industry, where investors seek to capitalize on market volatility and changing economic conditions.

In light of these changes, international asset managers like Franklin Templeton are targeting growth in the Nordic region. By merging US and European alternative credit firms, Franklin Templeton aims to expand its presence and tap into new opportunities in the European market. This strategic move aligns with the shifting dynamics of the investment landscape, where diversification and flexibility are key to success.

Regulatory requirements also play a role in shaping the investment decisions of financial institutions. Avanza’s pension business, for instance, faced challenges due to regulatory burdens, highlighting the importance of compliance and risk management in the sector. Similarly, Danske’s appointment of an Aktia veteran to manage its Finnish equities underscores the strategic importance of experienced professionals in navigating complex market conditions.

As the investment landscape continues to evolve, investors and fund managers must stay vigilant and adapt to changing trends. By diversifying portfolios, exploring new markets, and staying informed about regulatory changes, financial institutions can position themselves for long-term success. Europe’s increasing role in securing defense contracts signals a significant shift in the global economy, presenting new opportunities for investors to capitalize on emerging trends and markets.