Nordea Investment Management has announced plans to launch a new multi-asset absolute return fund just one day after closing the giant Stable Return strategy to new investors.
The Nordic firm closed the Nordea 1 – Stable Return fund on September 7 following a substantial increase of assets into the multi-asset fund over the past year. It swelled from around €10 billion in assets at the end of 2015 to €17.07 billion at the end of July.
In an effort to safeguard the portfolio management team’s investment style, Nordea IM told shareholders it would not be accepting any new investments into the Luxembourg-domiciled fund.
The firm has now opted to capture this heightened investor interest through the launch of a similar strategy, which will be overseen by the same management team of Asbjørn Trolle Hansen, Claus Vorm and Kurt Kongsted.
The new fund will seek an annual return of cash +3% while keeping volatility at 4%. The existing fund targets a 4% annual return, while also having a 4% volatility target.
It will also invest in on a total return basis focusing on fixed income, currencies and equity, while attempting to produce bond-like returns and volatility.
Nordea said this new approach should be a ‘carefully-balanced mixed asset fund with a low equity allocation’. This will also benefit from the 40-strong multi-asset team and the associated macroeconomic investment calls.