Global Investors Increase Stakes in Aselsan Shares
International asset management firm Ninety One has strategically increased its holdings in the Turkish defense industry giant Aselsan Elektronik Sanayi ve Ticaret AS, marking a significant shift in its emerging markets portfolio. By bolstering its position in Aselsan, the firm aims to diversify its assets against the backdrop of an AI-dominated market landscape. Portfolio manager Varun Laijawalla confirmed that Aselsan has emerged as a cornerstone of their 12.5 billion dollar emerging markets strategy, a notable development given that Turkey’s weighting in the MSCI emerging markets index remains below one percent.
- Ninety One has expanded its investment in Aselsan to diversify its portfolio beyond artificial intelligence technology stocks.
- Aselsan shares have experienced a significant valuation increase of approximately 220 percent over the past year.
- The company secured over 2 billion dollars in export contracts last year, strengthening its international financial position.
- Aselsan plays a critical role in the development of Turkey’s domestic air defense network, known as the Steel Dome project.
Defense Industry Stocks Attract Global Capital
The global surge in military expenditures, driven by ongoing geopolitical tensions in Ukraine and the Middle East, has provided a strong tailwind for defense sector equities. Aselsan has outperformed many of its peers, recording a 60 percent gain since the beginning of 2026. {{WP_IMAGE_1}} While many institutional funds remain heavily concentrated in information technology, Ninety One views Aselsan as a vital, high-growth hedge that offers lower correlation with broader, crowded tech market fluctuations.
The firm’s decision to increase its stake in a state-backed entity underscores a strategic pivot toward companies with tangible, defense-oriented value propositions.
Export Success Strengthens Financial Foundations
Aselsan has successfully transitioned from a domestic supplier to a major global exporter, clinching deals exceeding 2 billion dollars in the last fiscal year alone. Its diverse product portfolio, ranging from high-tech wearable cameras to sophisticated anti-drone systems, has captured significant international interest. Furthermore, the company is spearheading the development of Turkey’s “Steel Dome” project, an advanced layered air defense network that has drawn comparisons to Israel’s Iron Dome system.
Analysts point to the company’s improved cash flow generation and the reduction of legacy receivables as key drivers behind its current financial resilience.
Market Outlook Remains Positive for Defense
Laijawalla notes that the company’s expansion into European markets has been particularly instrumental in bolstering its balance sheet. Unlike many Asian-based technology firms that are currently subject to extreme market volatility, Aselsan offers a distinct profile that aligns with the fund’s long-term growth objectives. As global defense spending shows no signs of abating, the company remains well-positioned to maintain its competitive edge in both local and international arenas.
As international capital flows continue to favor established defense technology leaders like Aselsan, we would like to hear your perspective on this trend. Do you believe the current growth trajectory in the defense sector is sustainable in the long term, or will market conditions shift? Please share your thoughts in the comments section below.
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