This has forced some funds to shun some of the biggest companies in the industry, including BAE Systems and QinetiQ.
Phoenix already invests in the bonds of BAE Systems, but it is understood that any new investment made by Phoenix will not involve companies that make weapons.
The money is expected to focus on artificial intelligence and cyber security, as well as drone technology aimed at boosting the country’s domestic and economic security.
Mike Eakins, chief investment officer at Phoenix, suggested Russia’s invasion of Ukraine had been a defining moment for the global economy.
He said: “The events of the past three years and continued geopolitical tension have demonstrated that energy security and robust defence are key components of economic resilience, which is required to mitigate the risk of inflationary shocks.
“As part of our diversified investment programme, we invest at scale within the energy and defence sectors, and see these early-stage growth companies as an opportunity to increase investment in these sectors.
“They represent attractive asset opportunities for capturing optimal returns, with tangible benefits to the UK’s energy security, defence, infrastructure and economic growth.”
Sir Keir Starmer warned earlier this week that the world was “more dangerous and volatile” than before, as he launched a “root and branch” review of the Armed Forces that he said would ensure Britain’s defences were fit for the future.