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EDITORIAL + CONTENTS
In this edition
Dear reader,
It has been an incredibly difficult be- ginning of the new decade for inves- tors, as well as for the world around us. Just as it seemed we were return- ing to some sort of normality, we have been confronted with new challenges following the outbreak of war in Europe. We remain deeply concerned about the conflict and our hearts go out to all Ukrainians affected.
From an investment perspective, the events seen in recent months reinforce our belief in the importance of taking environmental, social and governance (ESG) considerations into account. While all investors have been directly or indirectly impacted by the war, a robust ESG process can undoubtedly help to avoid potential risks. Our Emerging Market Debt Team, for example, has not invested in Russian debt for years due to its strict governance framework. While Covid-19 and then war heightened fears of a derailing of the climate change agenda, it is pleasing to note that the commitment to decarbonisation remains intact. We talk to Hilde Jenssen, our Head of Fundamental Equities, about some of the emissions-reduction actions undertaken within our flagship ESG ‘STARS’ strategies. Furthermore, visit the lounge section for information on the latest addition to our family of climate strategies, the Nordea 1 – Global Climate Engagement Fund . By engaging with heavy emitting companies and promoting progressive actions, we truly believe we can help to significantly curb real-world emissions, as well as generate meaningful alpha.1 As fears of stagflation and recession also increase, it is no surprise we are witnessing heightened interest in the solutions offered by our renowned Multi Assets Team, headed up by Asbjørn Trolle Hansen. Inside, Asbjørn talks about how his team has successfully protected investors from turbulence for almost two decades. Also, as investors face up to inflationary pressures not seen in at least a generation, the managers of our Nordea 1 – Global Real Estate Fund discuss property’s proven history of delivering during periods of sharp price increases. Finally, all of us at NAM understand the continued challenges you face in this uncertain environment, so we are extremely grateful for your ongoing support and trust. We hope you have a safe and enjoyable summer, and we look forward to seeing you soon.
Cover story
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Making an impact Increasingly, investors are asking themselves how they can make a difference with their investments. Fund in focus 8 Stability in turbulent times For 17 years now, the Nordea 1 – Stable Return Fund has been able to live up to its name. Market view 12 A real inflation shield In the past, listed real estate offered protection in times of high inflation. Does that still work now? Macro opinion 15 Deflating a hot air balloon After years of ultra-loose monetary policy, central banks must now change course – a delicate task. Inside Nordea 16 No shortcuts to net zero What is the most effective way to achieve the goal of net zero? Hilde Jenssen provides answers. ESG decrypted 19 How can you meet clients’ ESG preferences? Once the changes to MiFID II come into force in August, there are three routes to MiFID-eligibility. Lounge 20 Are you ready for ESG and MiFID II? Let’s come together! Nordic point of view: Embracing change
Yours faithfully,
Christophe Girondel Global Head of Institutional and Wholesale Distribution
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 01.2022
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