SINGAPORE, 18 Oct 2024 — Nordea Asset Management (NAM) is pleased to announce the launch Nordea 1 – Diversified Growth Fund, LU2812614878 (BP-EUR) / LU2812614951 (BI-EUR).
In response to the rapidly evolving investment landscape characterized by a new rate environment and persistent inflation, Nordea Asset Management has launched the Nordea 1 – Diversified Growth Fund (4 June 2024).This strategy was meticulously designed to meet the demands of investors seeking robust returns while mitigating downside risk in today’s challenging market conditions.
The Nordea 1 – Diversified Growth Fund departs from traditional defensive multi-asset strategies that thrived in a low-rate, low-inflation environment. Instead, it embraces a total return, net-long multi-asset growth portfolio aimed at delivering returns comparable to equities but with relatively lower volatility. This distinct approach combines both aggressive and defensive assets, with a pronounced tilt towards growth-oriented investments. The fund is managed by Nordea’s esteemed Multi Assets Team, which boasts nearly two decades of experience in navigating diverse market environments. Ana Dhoraisingam, Chief Executive Officer of NAM SG and Head of Asia-Pacific Distribution ex-Japan, said, “We are pleased to introduce this new fund, expanding NAM’s comprehensive suite of multi-asset and absolute return funds available to accredited investors in Singapore.”
“Investors must rethink their portfolio construction strategies,” said Claus Vorm, co-portfolio manager of Nordea 1 – Diversified Growth Fund. “Investors who are focused on achieving equity-like returns, but also concerned about the risks, will find that our Diversified Growth Fund offers a compelling alternative that seeks to maximize returns while managing volatility. We believe investors can expect a positive asymmetric return profile.”
This innovative strategy ensures that while the fund remains exposed to aggressive growth assets—such as high-quality equities—it also incorporates defensive strategies, including high-quality government bonds and quantitative strategies, to provide a cushion during market downturns.
The Nordea 1 – Diversified Growth Fund aims to provide investors with equity-like returns (targeting cash + 7%)1 while mitigating sensitivity to equity sell-offs. Historical back-tests demonstrate the fund’s effectiveness in managing volatility and drawdowns compared to pure equity investments.2
With the launch of the Nordea 1 – Diversified Growth Fund, Nordea Asset Management is committed to providing an attractive investment solution for those looking to enhance their portfolios in a dynamic market.