Nordea Asset Management has launched a range of SFDR Article 9 bond funds, which will apply “double ESG due diligence” through the issuer and use of issue.
Out of the suite, the Nordea 1 – European Corporate Sustainable Labelled Bond fund is registered in the UK. It will be managed by Nordea’s credit team and will invest in euro-denominated investment-grade labelled corporate bonds and non-labelled corporate bonds.
The launch follows the liquidation of the Nordea 1 – Global Social Bond in April after being introduced in 2022. Nordea said the fund was closed due to “the size of the AUM and muted demand for the single-themed strategy”.
According to Nordea, the current sustainable and labelled bond asset class has grown in a value of near €480bn in the European market. Green bonds, social bonds, sustainable bonds, and sustainability-linked bonds fall under this umbrella.
Christophe Girondel, global head of distribution at Nordea, said: “With more than 30 years’ experience in ESG investment and as a trailblazer in ESG bond funds, NAM is launching Article 9 products designed to deliver both returns and tangible impacts. These building blocks are ideal for asset allocators creating sustainable fixed income portfolios.”
The second fund, which is not registered in the UK, is the Nordea 1 – European Sustainable Labelled Bond fund, managed by the fixed income rates team.
This article first appeared on PA Future’s sister title Portfolio Adviser.
