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Setting things in motion In April, Nordea was delighted to announce the launch of its third climate-focused solution. The Nordea 1 – Global Climate Engagement Fund focuses on driving sustainable change in the companies it invests in.
The new fund is managed by Alexandra Christiansen and Robert Madsen, members of Nordea’s Sustainable Thematic Team. The two port- folio managers can build on NAM’s many years of experience managing climate strategies such as the renowned Nordea 1 – Global Climate and Environment Fund . However, unlike its predecessors, the new fund does not focus on companies offering climate solutions. Instead, it targets companies in the earlier stages of transitioning towards sustainable business models. By pushing these companies to catch up with climate leaders, this approach unlocks under-appreciated value and contributes to the re- duction of real-world emissions. “For years, we have witnessed a flight of capital out of areas that were deemed ‘not green enough’. Yet, many businesses that are carbon intensive today will still be relevant in the future green economy or even critical to enabling the energy transition. Our goal is therefore to gen-
Making change happen: the managers of the newly launched fund encourage companies to adopt more climate-friendly business practices.
erate alpha by de-risking the fundamentals of these companies1 through engagement on decarbonisation targets and strategy,” Christiansen explains.
On the lookout for solutions Rising interest rates, record inflation, the impact of the pandemic and war in Europe: in recent months, investors could easily feel at a loss as to which way to turn. Fortunately, Nordea’s experts are here to provide guidance.
Considering risk first Record-high inflation, central banks changing their course and war in Europe: in the first months of 2022, European fixed-income investors found themselves at the centre of a near perfect storm. In the midst of all this turmoil, the Nordea 1 – European Covered Bond Opportunities Fund was able to post a positive return.2 “The key is to understand the risk drivers in the portfolio and how they correlate,” says portfolio manager Henrik Stille. “The correct assessment of these risks was the basis for the right decisions – and the very good performances.3 In 2022 as well as the years before.”
Diversification is key Equities bring access to future growth potential into a portfolio; however, that potential comes at a risk. To counterbalance that risk, Nordea’s experts have developed a range of unique alternative risk premia strategies. “Our Alpha MA strategies use risk premia to replace the role of traditional duration in multi- asset portfolios, while still allowing us to capture some of the upside potential embedded into equities,” says Asbjørn Trolle Hansen, Head of NAM’s Multi Assets Team. The result is impressive: “There is not a single traditional asset class out there that can offer such a high and attractive expected return with such a low sensitivity to equities.”1
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. 2 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 shares can greatly fluctuate as a result of the sub-fund’s investment policy and cannot be ensured, you could lose some or all of your invested money. 3 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.
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