Fund manager Nordea Asset Management has increased the investment universe of its Nordea 1 – Global Gender Diversity Fund and says it is increasing engagement.
The fund is now called Nordea 1 – Global Diversity Engagement Fund, and it will be reclassified as an Article 8 product under the EU’s Sustainable Finance Disclosure Regulation.
This is the firm’s second thematic ESG strategy, with engagement as a defined element of the investment process, following the launch of the Nordea 1 – Global Climate Engagement Fund in April last year.
The move coincides with Nordea AM’s participation as a cofounder in the Diversity Project Europe – a cross-company initiative aiming to create a more inclusive asset management industry across Europe. Diversity data disclosures reveal that societal demands for change to improve diversity and inclusion continue to evolve beyond gender representation, noted the asset manager.
With the engagement-focused diversity strategy, Nordea AM aims to capture companies early in diversity and inclusion development.
Portfolio managers Julie Bech and Audhild Aabø will continue to manage the expanded portfolio with guidance from the firm’s responsible investment team.
The managers said that helping companies adopt positive diversity and inclusion practices can unlock long-term value, as the market is increasingly likely to reward companies displaying “sound ESG practices”.
The asset manager aims to maintain a minimum proportion of 50% in sustainable investments. Bech said: “The refocusing also allows us to place a stronger emphasis on engagement to drive both alpha and social change.”
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