INSIDE NORDEA 17
„ Today, we have 17 ESG STARS strategies, and our belief in the power of ESG integration is stronger than ever.
In addition to utilising our own proprietary models and ESG scoring, a primary distinctive feature of the design of our ESG STARS strategies is the element of true ESG integration. ESG is not an overlay; it is a portfolio management decision. This is also reflected in the team setup. We have made a point of ensuring that our ESG analysts work hand in hand with the portfolio managers as part of one integrated team – something we believe is still quite unique. Engagement is another key part of the ESG STARS concept. We foster change with our investments by engaging with the companies or sovereign entities we invest in around specific ESG topics.
developed a compelling concept to also address the key issue of societal inequality, with our Social Empowerment solution. Now, we are on the cusp of further change: the upcoming MiFID II requirements will integrate sustainability into the suitability process for end clients. As a consequence, we expect ESG to go beyond thematic and become truly main- stream. We believe our ESG STARS range will play a central role here, too.
In what sense?
What has been the investor reception to NAM’s broader ESG range?
Over many years, we have been able to forge strong partnerships with our clients across Europe. Today, we manage in excess of EUR 17.5bn (as of 30.09.2021) across our ESG STARS range, in both equity and bond strategies. Our clients understand our history and credentials, and our longstanding commitment to ESG. We are now increasingly becoming a trusted partner for their growing responsible and ESG fund allocations and we seek to provide them with all the building blocks they need. While the Nordea 1 – Emerging Stars Equity Fund was our first vehicle, we have been extremely pleased by the reception that our other ESG STARS strategies have received in recent years. For exam- ple, despite some scepticism surrounding the value of ESG within the US market, our North American Stars Equity Strategy has proven that it is possible to extract alpha in even the most efficient market, 1
Looking at the industry overall, significant flows have been allocated to thematic ESG strategies in recent years. With such a long track record in the ESG space, we have been fortunate to benefit from the trend through our Sustainable Thematic bou- tique. Building on our Climate and Environment capability, which is renowned across Europe, we
At a glance ` A decade on from the launch of its first ESG STARS fund, NAM now has 17 strategies across both equity and fixed income, and the group’s commitment to the cause is stronger than ever ` NAM’s ESG STARS range is poised to play a central role in adviser portfolio construction, particularly in relation to upcoming MiFID II requirements ` As it is crucial for advisers to get up to speed with the rapidly evolving ESG and sustainability landscape, NAM is ready to help at every stop along the journey
1 The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of your investment can go up and down, and you could lose some or all of your invested money.
ISSUE 02.2021
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