Nordea AM Launches Two New Article 9 Bond Funds
16 MAY, 2024
By Jose Luis Palmer from RankiaPro Europe
Nordea Asset Management (NAM) has introduced two new sustainable bond funds under the Article 9 classification of the Sustainable Finance Disclosure Regulation (SFDR). These funds aim to cater to the growing demand for sustainable investment solutions by applying rigorous ESG standards.
Focus on Sustainable Investment
The newly launched funds, Nordea 1 - European Corporate Sustainable Labelled Bond and Nordea 1 - European Sustainable Labelled Bond, are designed to leverage NAM’s expertise in credit and rates, in collaboration with its responsible investment team. Both funds will implement a "double" ESG due diligence process, scrutinizing both the issuer and the use of the bond issue to ensure compliance with ESG standards and to measure real-world impact.
Nordea 1 - European Corporate Sustainable Labelled Bond Fund
This fund focuses on euro-denominated investment grade corporate bonds. It includes both labelled and non-labelled bonds from issuers engaged in activities that contribute to environmental or social objectives. Managed by Nordea’s credit team, this fund is available in most markets except Belgium and Portugal.
Nordea 1 - European Sustainable Labelled Bond Fund
Managed by NAM’s fixed income rates team, this fund targets euro-denominated investment grade labelled bonds issued or guaranteed by sovereigns, sub-sovereigns, supranational or government-owned entities. The fund is not registered in Belgium, Portugal, or the UK.
Growing Market and Demand
A spokesperson for Nordea highlighted the significant development of the sustainable and labelled bonds asset class in recent years. 'The European market is currently valued at about €480bn and continues to grow, with tailwinds including the EU’s need to fund sustainable projects,' the spokesperson stated.
As the market for sustainable bonds matures, there is increasing interest from asset allocators who are shifting from thematic approaches to more asset-class-based investing. NAM's launch of these Article 9 funds reflects this evolving demand, offering investors robust sustainable investment options with strong ESG credentials.
Nordea Asset Management's introduction of these funds underscores its commitment to providing high-impact, sustainable investment opportunities, aligning with broader market trends and regulatory requirements in the ESG space.
