18 INSIDE NORDEA
The two portfolio managers are convinced of the long-term investment opportunities in the US for investors with a sustainability focus.
Johan Swahn: Joakim and I have almost 40 years of combined investment experience and our active approach is centred upon identifying compelling opportunities across two types of stocks. This process is identical to the Nordea 1 – Global Stars Equity Fund , which we also oversee. In the first bucket are what we call our “moat and tailwind” stocks, which constitute about 70% of the portfo- lio. The distinguishable competitive advantages or moat and the idiosyncratic or structural tailwinds for these stocks have the potential to provide attractive long-term returns on a risk-adjusted basis. 2 The remaining 30% of the portfolio is allocated in what we call the “expectations gap” bucket, which are stocks where we have a materially different view than the market. This is often more research-inten- sive, requiring an exhaustive due diligence before taking on a position. However, this effort can deliver very attractive upside. We have witnessed elevated market volatility over the past year or so. How is this impacting your outlook for equities? Joakim Ahlberg: While our long-term view of North American stocks is optimistic, it has been prudent to be slightly defensive and focus on higher-quality se- curities throughout this volatile period. However, as bottom-up investors, we aim to generate our alpha from stock picking, which is why we are constantly looking to take advantage of shorter-term market
dislocations. On a longer-term horizon, it is definitely worth mentioning the significant tailwind of “green” spending in the US, such as the USD 370bn of climate-related investment within the Biden administration’s Inflation Reduction Act.
Do you have an example of a company set to benefit from the US green revolution?
Johan Swahn: One company we are optimistic about is NextEra Energy3, the largest renewable energy generator in the US. As energy generation is responsible for more than 70% of global greenhouse gas emissions, decarbonising the sector is essential for our net zero ambitions. NextEra – which gen- erates electricity from wind, solar and natural gas – has one of the highest quality utilities businesses in the entire country, its Florida Power and Light subsidiary. More broadly, we are confident about the company’s long-term solar energy capability.
Nordea 1 – North American Stars Equity Fund Manager Fundamental Equities Team Base currency USD ISIN LU0772958525 (BP-USD) LU0772957808 (BI-USD) Launch date 30.05.2012 (BP-USD, BI-USD)
2 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. 3 Reference to companies or other investments mentioned should not be construed as a recommendation to the investor to buy or sell the same but is included for the purpose of illustration.
nordic friends
Made with FlippingBook - Online Brochure Maker