Nordea Asset Management (NAM) has added the first fixed income fund to its ESG Stars range, which will focus on controlling ESG issues’ credit risk with respect to corporate debt.
The new strategy, called Nordea 1 – European Corporate Stars Bond Fund, will focus on detecting long-term changes that are essential for credit quality.
Managed by lead portfolio manager Jan Sorensen, the fund will incorporate bottom-up credit selection in investment grade corporates.
The investment team managing the vehicle will work alongside Nordea’s in-house responsible investment team.
NAM co-head of responsible investment Marjo Koivisto said: “We draw on Nordea’s vast organizational experience in ESG and our proven track record with the STARS equity strategies to apply our STARS concept to fixed income solutions.
“Emphasising ESG factors can help deliver better risk adjusted returns.”
NAM operates in Cologne, Copenhagen, Frankfurt, Helsinki, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, Santiago de Chile, Singapore, Stockholm, Vienna and Zurich. The business managed €216.8bn at the end of September 2018.
Earlier this month, NAM launched a North America equity fund as part of its ESG range.
Called the Nordea 1 – North American Stars Equity Fund, this strategy aims to generate alpha within the US equities space by integrating ESG standards and proactive engagement.