Nordea 1 - Global Sustainable Equity is one of Europe's leading environmental funds specialising in investments in companies that comply with ESG (Environment, Social Responsibility, Corporate Governance) principles. The fund was established within the framework of a sustainability strategy and aims to combine financial success with social and environmental responsibility. It aims to provide long-term returns for investors while supporting companies that implement sustainable practices.
↑ Basic information about the fund
- Fund type: Equity fund
- Management company: Nordea Asset Management
- Country of incorporation: Sweden
- Investment region: Global market
- Asset category: Shares of companies with high ESG indicators
↑ Objectives of the fund
The main objective of Nordea 1 - Global Sustainable Equity is to provide investors with the opportunity to gain long-term returns from investing in companies that demonstrate leadership in sustainability. These companies implement environmentally friendly technologies, take care of their employees and follow the best corporate governance practices.
The fund focuses on the following aspects:
- Environmental Responsibility: Investing in companies engaged in renewable energy, waste recycling and other environmental technologies.
- Social responsibility: Supporting businesses that provide favourable working conditions, equality and access to education.
- Corporate Governance: Choosing companies with transparent governance structures and high standards of ethics.
↑ Investment strategy
↑ Selection of companies
The Fund uses a multi-stage process to select companies for its portfolio:
1. ESG analysis: Companies are scrutinised for compliance with environmental, social and governance standards. For example, their environmental impact, carbon footprint and participation in pollution reduction programmes are taken into account.
2. Financial sustainability: In addition to ESG criteria, management teams analyse companies' financial position, growth and earnings potential.
3. Global coverage: The portfolio includes stocks of companies from different regions of the world to minimise the risk of capital concentration.
↑ Investment sectors
The fund's portfolio is focused on the following sectors:
- Renewable Energy: Companies involved in solar, wind and hydro power generation.
- Green Technology: Companies developing solutions to reduce carbon footprints.
- Health and Education: Companies that provide access to quality health care and education.
- Digitalisation: Technology firms creating innovative solutions to improve quality of life.
↑ Advantages of the fund
1. High ESG standards:
The fund only invests in companies that meet strict sustainability criteria.
This makes it attractive to investors interested in ethical investments.
2. Long-term approach:
The management teams focus on long-term trends such as the transition to renewable energy and the digitalisation of the economy.
3. Global coverage:
The portfolio is diversified by geography, reducing the risks associated with dependence on a single region.
4. Professional management:
An expert team of analysts and managers ensures quality asset selection and continuous monitoring of the portfolio.
5. Stable profitability:
The sustainable development sector demonstrates high growth rates, which makes the fund attractive for long-term investors.
↑ Risks of investment
Like any other fund, Nordea 1 - Global Sustainable Equity has its own risks:
1. Market risks:
Investing in equities always involves market volatility. Prices may fluctuate due to economic or political factors.
2. Concentration in specific sectors:
Since the fund invests predominantly in companies with high ESG ratios, its portfolio may be less diversified than other funds.
3. Risk of changes in ESG standards:
If sustainability standards change, some companies may lose their attractiveness to the fund.
↑ Who is this fund suitable for?
Nordea 1 - Global Sustainable Equity is ideal for the following categories of investors:
- Environmentally conscious investors: Those who want to support companies implementing sustainable practices.
- Long-term investors: The fund is focused on delivering results over several years, so it is not suitable for speculative transactions.
- Risk-averse investors: Despite high ESG standards, equities remain more volatile than bonds or cash instruments.
↑ Fund's recent returns
Nordea 1 - Global Sustainable Equity has shown significant growth in recent years, exceeding the market average. This is due to the increasing demand for sustainable investments and the growing popularity of companies implementing environmental technologies. However, it is important to remember that past performance does not guarantee future results.
↑ Conclusion
Nordea 1 - Global Sustainable Equity is an excellent choice for those who want to combine financial success with social and environmental responsibility. With its focus on sustainable development and global coverage, the fund offers investors a unique opportunity to participate in the growth of the cleantech sector and socially relevant projects. However, before investing, it is important to consider the risks involved and carefully analyse your financial goals and investment horizon.
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