The fund was up 2 % during the month, which is positive given that the stock market in the USA Nasdaq was down 1 % and MSCI World TR
What a start we had to the stock market year 2023 and positive returns broadly across several asset classes. It has been a risk on and risk-taking has paid off
The mega trends that define how the world will evolve over a 30 year period point to major changes at an ever faster pace.
This will lead to great opportunities as well as great risks, which explains why Sweden is increasing its investments in global security.
Geopolitical risks can negatively impact your investments and it is important to think about how you can build a more resilient portfolio.
Cyber security and IT-related security develops at an extreme rate. Authorities, states, corporations, large and small, and individuals are affected by the development and everyone needs to relate to the risk of intrusion and viruses. Many have been hit, with huge costs as a result. The cost of security solutions increases with each passing day. Companies that are at the forefront of technology are the winners when more and more capital is spent on security.
The security situation in the world is strained. In order to maintain a safe and stable world, NATO decided in 2014 that by 2024 all member countries should spend at least 2 % of the respective countries' GDP on defense. The decision means that investment in defense is estimated to increase by $320 billion in 2024. Companies in the defense industry are favored, which in turn creates great opportunities for investors.
GDS Fund is a global equity fund and is the world's first actively managed fund that combines investments in defense and security. An investment in GDS Fund provides exposure to companies with a high degree of innovation and technological development. The sectors have had exceptionally good returns for more than 20 years, and have also been less exposed to business cycles than the broader stock market. Against the background of the security policy situation in the world and the extreme technological development, our assessment is that companies in the defense and security sectors have a bright future for decades to come, even in a deteriorating global economy. GDS Fund should thus be seen as a building block in a broader portfolio, which can help reduce risk and increase the return on investors' portfolios.
The team behind GDS Fund has a long and solid experience, both from the administration, defense and security industry, including the armed forces and the Swedish intelligence service. The team has extensive experience in analyzing defense procurement and contract grants, and has many years of experience in management from leading financial institutions in Sweden, the UK, the Netherlands and Australia.
The methodology in our analysis process derives from the methodology used in intelligence services around the world. The methodology combined with the team's unique competencies is gathered in what we call Global Intelligence. Global Intelligence is used to collect and compile information, which, together with financial analysis, is used to find the companies we believe have the best conditions to succeed.
Fundamental to the management of GDS Fund is to follow rules and ethical standards developed by countries and intergovernmental bodies. Against this background, there is a solid policy for what GDS Fund can invest in. The GDS Fund's policy is called the Ethical Investments Screening & Monitoring Policy, which in some parts goes beyond the UN conventions.
The GDS Fund also complies with the regulations that apply when the Swedish defense conducts procurement. Companies that invest in GDS Fund comply with international law and have a trading history with the Swedish government or the European Union.
