Nordea Asset Management

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1 Nordea Asset Management

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3 Nordic Ideas Our Nordic way of thinking and ideas underline our values. The Nordea personality helps others to see us, recognise us, approve of us and make the right choice. Our personality is built around being innovative, open-minded, simple and flexible. By embracing changes and challenges while building stable client relationships and remaining focused on our targets, we continuously strive to deliver superior quality and to create value for our customers.

4 One Nordea Team Nordea Group Nordea is the largest financial services group in Northern Europe with a market capitalisation of approximately EUR 45.3bn, total assets of EUR 682.7bn and EUR 286.1bn AuM. With approximately 10 million customers, more than 650 locations and 29,719 employees, Nordea has a market position of number one or two in most Nordic markets. The Nordea group is the safest bank in the Nordic region named by Global Finance that lists the world s 50 safest banks based on an evaluation of long-term credit ratings from Moody s, Standard & Poor s and Fitch and total assets of the 500 largest banks worldwide.* Its shares are listed in Stockholm, Helsinki and Copenhagen. As a testimony to its successful strategy, Nordea now qualifies within the top European financial institutions in terms of market capitalisation. Nordea Asset Management Nordea Asset Management has a global business model and manages asset classes across the full investment spectrum. Our client base is equally split between captive and non-captive clients. A total of close to 600 employees are employed in asset management, of which 1/3 are dedicated investment specialists within four investment centres in Bergen, Copenhagen, Helsinki and Stockholm. With close to EUR 191bn in assets under management, Nordea is naturally the leading investment manager in the Nordic Region but has also developed a large global business servicing clients across continents (Europe, Americas and Asia). As an active investment manager, Nordea focuses on two legs within its fund range namely alpha and outcome. Alpha strategies are the cornerstone of our multi-boutique approach which combines the expertise of specialized internal boutiques with exclusive external competences. On the other hand, outcome products - as opposed to benchmark - oriented solutions are built on our stability investment philosophy to meet clients risk appetite and needs. Social responsible-oriented thinking is inherent in the Nordic mentality and so it is not surprising that the Scandinavian countries are global leaders in numerous related aspects. In November 2007, Nordea signed, as one of the first major banks in the Nordic Region, the United Nations Principles for Responsible Investment (UNPRI). By signing, Nordea commits itself to incorporate environmental, social and corporate governance issues into investment analyses and decisionmaking processes. Source: Nordea, *Source: Global Finance Magazine,

5 A growing global presence In order to distribute its funds cross-border, Nordea offers segregated accounts but has foremost developed a single global platform in Luxembourg using a single vehicle: the Nordea 1, SICAV. This umbrella, which currently consists of 69 actively managed solutions, is the preferred domiciliation for launch of new investment funds within the whole Nordea organisation. Our products are distributed by various distribution channels, via captive distribution and non-captive activities, both being evenly split in terms of assets under management. As part of our non-captive activities, Nordea services 16 wholesale clients out of the top 20 largest wealth managers** and works actively with more than 400 distributors and institutional clients across the globe. So as to build long-term, stable client relationships, sales teams are located around the globe with offices being present in Cologne, Copenhagen, Frankfurt, Helsinki, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, São Paulo, Singapore, Stockholm, Vienna and Zürich. Our local presence goes hand in hand with our willingness to be accessible, open and humble towards the views and cultures of our clients. ** Top 20 largest wealth managers as defined by Scorpio.

6 To create alpha, we believe investment managers will perform better if they are autonomous and independent when it comes to their investment process.

7 Our approach to investing Asset management at Nordea To facilitate the best possible return for a given level of risk, Nordea focuses on two legs within its fund range namely alpha and outcome. 1. Alpha strategies are the cornerstone of our multi-boutique approach which combines the expertise of specialized internal boutiques with exclusive external competences. 2. Outcome products - as opposed to benchmark - oriented solutions are built on our stability investment philosophy to meet clients risk appetite and needs. Our strategy is key as we strive to deliver stability to our clients who look for a sustainable and long-term business partner for sourcing investment solutions. It s all about providing various products, meeting different investment environments as well as delivering strong support. Over the past years, our product range has matured and become more complex. Our multi-boutique approach has allowed us to build a product offering which provides the possibility to deliver alpha in a stable way. Our Nordea 1, SICAV encompasses all our strategies aiming at providing alpha and outcome solutions in a single platform and serving our clients in every market condition One platform, Many Specialists. Our multi-boutique approach to create alpha Using alpha strategies is all about giving the fund manager freedom to invest with minimum constraints in order to maximise investor return, making it a more challenging proposition. To satisfy the growing demand for alpha strategies, Nordea has established a multi-boutique approach. This means creating boutiques, either internally or externally, where expertise in a given area can add competitive advantage and ultimately generate higher returns than the peer-group. Our concept is based on a very simple principle: To create alpha, we believe investment managers will perform better if they are autonomous and independent when it comes to their investment process. Providing alpha consistently is rare. Low tracking error (beta) investment management can be easily performed and replicated at any financial organisation. In contrast, providing alpha requires higher conviction but also stronger focus on money management: it is almost impossible for an asset manager to create alpha in all asset classes and all regions. Specialisation is a must. By employing a multi-boutique approach combining internal strengths with external competences, know-how and quality in investment, management becomes possible across a broad product range, in part through exclusive agreements with some of the world s leading investment management companies.

8 Internal boutiques We have established segregated teams for key asset classes, allowing each team to focus on their primary activity: managing money. This means retaining competence centres that leave freedom to the investment managers. Our internal boutiques employ around 160 investment professionals who are located in our four investment centres: Bergen, Copenhagen, Helsinki and Stockholm. We naturally possess in-depth investment expertise in managing Nordic equities and credit solutions but our strengths also lie in various asset classes outside of the Nordic area. Over the years, we have built well-established track records in both equity and fixed income strategies ranging from Credit or Covered bonds to Global, European and Emerging Markets equities as well as Multi Asset solutions. External boutiques The sourcing of external managers lays with the Nordea External Products team which is based in the Nordic Region and consists of 20 people. Their goal is to meet investor needs by selecting best-of-breed asset managers who can generate alpha in specific regions or asset classes. The brief is to concentrate on boutiques focused purely on money management in the belief that fund distribution distracts investment managers from their primary objective: generating exceptional investment performance. Outcome: stability as a cornerstone of our philosophy Today, many investors realise the importance of outcome as opposed to benchmark oriented solutions. Over the past ten years, we have put a lot of emphasis on building our stability investment philosophy to meet clients risk appetite and needs. Our internal Multi Asset boutique, which manages around EUR 70bn in assets under management, has designed specific investment solutions with the ambition of delivering long-term stable returns in all market environments. As such, our Stable Return strategy was launched in 2005 with the aim of offering clients a balanced strategy with a total return focus. Not being constrained by a benchmark allows the management team to focus on its primary goal: to minimise the portfolio s absolute risk. Their objective is straightforward: to deliver stable returns with a focus on capital preservation.

9 The multi-boutique approach allows us to propose some of the best investment solutions to our clients by combining internal strengths with exclusive external competences to deliver alpha to our clients.

10 A stable partner and active manager More than ever, stability, consistency and quality has become key in the asset management business. Nordea offers, through its broad product offering, strategies that aim to provide alpha and outcome solutions in every market condition. Achieving stable alpha generation through our multi-boutique approach imply that investors gain from our ability to manufacture investment solutions by bringing together the capabilities of each boutique. We believe that the success of our multiboutique model lies on building on the strength of a boutique investment approach and combining them with the scale and stability of a larger company. We also embrace our outcome product line whose basis, stability investment philosophy, was designed to meet clients risk appetite and needs. By attentively listening to our clients, we have developed investment solutions that put stability at the core of their strategy a concept which has proved successful over the past decade. It s all about providing better service, better products, and better investment returns.

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12 Nordea Asset Management and any of its underlying entities and affiliated companies. This document is intended to provide the reader with information on Nordea s specific capabilities. This document does not amount to an investment advice nor does it constitute a recommendation to invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. This document is not an offer to sell, or a solicitation of an offer to buy any security. Any such offering may be made only by an Offering Memorandum, or any similar contractual arrangement. Consequently, the information contained herein will be superseded in its entirety by such Offering Memorandum or contractual arrangement in its final form. Any investment decision should therefore only be based on the final legal documentation, without limitation and if applicable, Offering Memorandum, contractual arrangement, any relevant prospectus and the latest key investor information document relating to the investment. This document contains information which has been taken from a number of sources. While the information herein is considered to be correct, no representation or warranty can be given on the ultimate accuracy or completeness of such information and investors may use further sources to form a well-informed investment decision. Prospective investors or counterparties should discuss with their professional tax, legal, accounting and other adviser(s) with regards to the potential effect of any investment that they may enter into, including the possible risks and benefits of such investment. Prospective investors or counterparties should also fully understand the potential investment and ascertain that they have made an independent assessment of the appropriateness of such potential investment, based solely on their own intentions and ambitions. Investments in derivative and foreign exchange related transactions may be subject to significant fluctuations which may affect the value of an investment. Investments in Emerging Markets involve a higher element of risk. The value of the investment can greatly fluctuate and cannot be ensured. Additional information for Nordea 1, SICAV: Any investment decision in the Luxembourg domiciled Nordea funds should be made on the basis of their adherent current prospectus, which are available, along with the Key Investor Information Document, the current annual and semi-annual reports, electronically in English and in the local language of the market where the mentioned Funds are authorised for distribution, without charge upon request from Nordea Investment Funds S.A., 562, rue de Neudorf, P.O. Box 782, L-2017 Luxembourg, from the local representatives or information agents, or from our distributors. The Depositary of the Nordea 1, SICAV is J.P. Morgan Bank Luxembourg S.A. For further details of investment risks associated with these sub-funds, please refer to the relevant Key Investor Information Document, available as described above. Further information can be obtained from your financial advisor. He/she can advise you independently of Nordea Investment Funds S.A. Unless otherwise stated, all views expressed are those of Nordea Asset Management any of its underlying entities and affiliated companies. This document may not be reproduced or circulated without prior permission. Reference to companies or other investments mentioned within this document should not be construed as a recommendation to the investor to buy or sell the same, but is included for the purpose of illustration. The level of tax benefits and liabilities will depend on individual circumstances and may be subject to change in the future. BRO_Corporate_INT_2015Q2_eng