Evelyn Chow’s Neuberger Berman Next Generation Space Economy Fund has shifted its focus to Europe, snapping up shares in Leonardo SpA, Avio SpA and Indra Sistemas SA. The move follows a sharp sell‑off triggered by the Iran conflict, creating a buying window amid rising global defense budgets. The fund remains roughly 60% US‑centric but eyes cheaper European exposure.

Chow’s fund delivered a 66% return last year, outpacing the MSCI All‑Country World Index’s 29% gain and the iShares Global Aerospace & Defense ETF’s 32%. European defense spending has accelerated, with Germany boosting military budgets and Italy producing end‑to‑end satellite and rocket systems. These dynamics attract investors seeking stable, high‑growth exposure.

Among the fund’s biggest European buys is Avio SpA, Italy’s sole propulsion‑system maker, whose shares have more than doubled. Chow notes solid rocket motors rank in the top supply bottlenecks, critical for missiles and launchers. European players like Airbus SE and BAE Systems also supply satellites and missile‑warning systems, diversifying the sector beyond US giants.

SpaceX’s looming IPO, projected above $2 trillion, has amplified demand for space stocks, pushing US valuations higher than Europe. Chow remains open to joining the IPO, though the final price will dictate her stake size. With European rivals such as Eutelsat and SES poised to fill gaps left by Starlink’s limited military roll‑out, the region’s space economy looks set for sustained growth.