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Nordea soft-closes giant Stable Return fund

Nordea soft-closes giant Stable Return fund

Nordea Investment Management has soft-closed the giant Stable Return fund effective immediately after experiencing a substantial uptick in assets under management.

The Nordea 1 - Stable Return fund, which was featured in Citywire Investment Research into the biggest-selling funds of 2015 and over the course of 2016, closed to new investors today.

The fund added €2.6 billion in assets over the three months to the end of March 2016, having seen €4.1 billion of new money enter the fund over the course of 2015. This investor interest appears to have significantly increased again.

According to the July 2016 fund factsheet, the Luxembourg-domiciled fund currently has €17.0 billion in assets under management. According to Citywire data, the fund had only around €12 billion in assets as recently as May and €10.9 billion at the end of the first quarter.

In a statement to shareholders seen by Citywire Selector, Nordea said the decision was being taken to protect the investment process of fund managers Claus Vorm, Asbjørn Trolle Hansen and Kurt Kongsted.

‘In order to allow the investment manager to continue managing effectively the SRF, and in order to allow existing Stable Return Fund shareholders to continue benefiting from the performances of SRF, the board of directors of Nordea 1, SICAV has decided to soft close SRF as of 7 September 2016 and for an undetermined period of time.’

‘This means that, as of 7 September 2016, subscriptions and conversions in shares of SRF requested by an investor who is not a shareholder of SRF will not be accepted.’

It marks the second soft-closure for Vorm this year, with his Nordea 1 – Stable Long/Short Equity fund, which he co-runs with Robert Naess, being closed to new investors in March after exceeding €1 billion assets under management.

The Nordea 1 – Stable Return fund returned 23.5% in euro terms over the three years to the end of July 2016. This compares to an 8.6% return from the average manager in the Alt Ucits – Absolute Return sector over the same timeframe.

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