Sweden’s SEB Groupe, one of the region’s most influential institutional investors, is widening its footprint in the European defence sector. Starting in August and September 2025, more of its funds will be allowed to allocate capital toward conventional defence industry stocks, marking a clear evolution in Nordic attitudes toward military and security investment.
“The funds do not have the option to invest in companies involved in the development of nuclear weapons programmes or the production of nuclear weapons, companies engaged in the manufacture, development or sale of prohibited or controversial weapons (such as cluster bombs, landmines, white phosphorus, and chemical or biological weapons), or companies deriving more than a limited portion of their revenue from the production or sale of civilian weapons,” wrote the fund in a release.
This expansion follows SEB’s 2022 policy shift, which opened select equity and bond funds to defence holdings. Now, five additional funds will gain that option: SEB SEB Sverige Indexnära (from August 18), and Charlottes Fond, Hercules Fonden, SEB Global Focus Fund, and Sophiahemmets Fond (from September 1). These additions reflect not only internal strategic alignment but also rising client demand after the Russian invasion of Ukraine.
Alongside these fund updates, SEB also confirmed that it will launch a thematic European defence fund after the summer The fund will focus on companies tied to the continent’s military capabilities, safety, and geopolitical independence. With this, SEB joins the growing ranks of asset managers—among them BlackRock, Amundi, and WisdomTree—pivoting to defence as a long-term European priority.
“The fund’s mandate is to invest in stocks and equity-related securities of companies with a connection to Europe’s defence capability, safety, and geopolitical independence,” the fund told Citywire.
Investor flows show this is not a short-term trend. The first half of 2025 saw $7.9 billion enter European and global defence funds. Rheinmetall, Germany’s most visible military-industrial stock, returned 235% in that period, topping multiple performance rankings.
As Europe fortifies its defence and industrial base, Swedish capital is following closely. SEB’s entry into thematic defence aligns with the EU’s strategic autonomy goals and a regional push for supply chain security in aerospace, cybersecurity, and dual-use technologies.
