INSIDE NORDEA 17
„ The US is the most innovative and
flexible economy in the world, offering exceptional companies to invest in. Joakim Ahlberg portfolio manager at Nordea Asset Management
Joakim Ahlberg: As many readers of nordic friends would know, all of our ESG STARS strate- gies at NAM have three clear objectives: invest in companies living up to robust ESG standards, create a lasting impact through our capital allocation, and deliver alpha for our clients by beating the bench- mark. 1 Speaking specifically about our region, the US is the most innovative and flexible economy in the world, which will continue to offer exceptional companies to invest in over the long term. This is why North American equities will remain a corner- stone allocation in most investor portfolios. Moving to ESG, the North American stock market has historically been less concerned with sustainability factors relative to Europe. Have you noted any change over the course of managing this fund? Joakim Ahlberg: We certainly have. Five years ago, many companies turned down our invitation to meet and talk about ESG. Today, not only do most companies want to discuss ESG, but manage- ment teams are also listening to, and acting upon, our proposals. While there are still some broader headwinds, such as political interventions in certain states, corporate management teams increasingly recognise the need to improve ESG profiles and reporting practices. We do not believe this momen- tum can be stopped.
Lead portfolio manager Joakim Ahlberg (left) and co-portfolio manager Johan Swahn not only keep an eye on the North American stock markets but also its ESG progress.
Nordea Asset Management’s (NAM) ESG STARS fund range hardly needs an introduction for long- time readers of nordic friends. Since the launch of the first STARS fund in 2011, Nordea has built up a strong suite of equity and bond solutions where environmental, social and governance (ESG) factors are an integral part of the investment process. Today, NAM’s ESG STARS funds include both global and regional offerings. One such regional strate- gy, the Nordea 1 – North American Stars Equity Fund , was re-engineered under the STARS philoso- phy in late 2018. Below, nordic friends talks to lead portfolio manager Joakim Ahlberg and co-portfolio manager Johan Swahn about ESG developments across the North American region and the prospects for equity markets in 2023 and beyond. Hi Joakim and Johan. Firstly, Joakim, it has been almost five years since this fund transitioned into NAM’s renowned ESG STARS suite. Can you quickly sum up what you are trying to achieve with this strategy?
Johan, can you tell us a little about your bottom- up fundamental process for selecting stocks?
At a glance ` Corporate management teams across North America are increasingly recognising the need to improve ESG profiles and reporting practices ` With markets displaying heightened volatility, the portfolio managers have maintained a focus on higher-quality securities ` The Biden administration’s green spending programmes will provide a long-term tailwind for selected industries
1 There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
ISSUE 01.2023
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