A year ago Nordea launched a new family of Sustainable Choice funds which have proved highly popular despite a turbulent year on the financial markets. With customers increasingly leaning towards sustainable options, the positive trend looks set to continue.
Nordea’s Sustainable Balanced funds have just passed a major milestone: net inflows over the past 12 months now exceed 500 million euros.
“Despite the market turbulence caused by the COVID-19 pandemic the funds have gone from strength to strength since they were launched in November 2019,” says Vesa Ollikainen, Head of Investment Center.
Easy to relate to
The Sustainable Balanced funds were launched primarily for personal customers with a sustainability preference. There are three in total, corresponding to different investor profiles: prudent, balance-seeking and bold. The word “balanced” refers to the balance of equity and fixed-income instruments that make up the funds.
“The funds are simple and easy to relate to for customers: they just agree the risk level with their adviser and after that the balance between equities and fixed-income instruments will remain the same regardless of how the market develops,” explains Vesa Ollikainen.
“Nordea will take care of the rest: a team of experienced Nordea portfolio managers manage these funds, paying special attention to environmental, social and governance factors,” he continues.
The demand for sustainable savings and investment options is on the rise across the Nordics. Between Q3 2019 and Q3 2020, there was a 67% increase in the number of personal banking customers who expressed a preference for sustainable options during Nordea savings advisory meetings.
Vesa Ollikainen concludes: “If this trend continues, we can expect the Sustainable Balanced funds to pass further milestones in 2021.”
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