Nordea AM to cap flagship fund's institutional inflow despite soft close status

Earlier this year, Nordea Asset Management decided to soft close one of its premier strategies, but existing institutional clients have kept pouring capital into the fund.

Photo: Thomas Borberg

In February 2021, Nordea Asset Management (NAM) decided to soft close its Global Climate and Environment Fund for an undetermined period of time. This was after assets under management had doubled over the past 12 months.

However, inflows from existing clients have continued, and institutional investors in particular have continued to show big appetite for the climate fund.

Now, NAM is enforcing a daily cap on subscriptions and conversions within the fund's institutional share classes of EUR 1m per shareholder. The aims to protect interest of all shareholder and to ensure efficient management of the fund.

"The flow development in the fund will be continuously monitored and these additional restrictions for the institutional share classes shall be reassessed should they be insufficient to maintain flows in the fund at an acceptable level," NAM writes in a shareholder notice.

The cap will come into effect from 25 June 2021.

The fund is managed by portfolio managers Thomas Sørensen and Henning Padberg. They have generated a return of 129.77 percent over the past five years, outperforming the 83.47 percent benchmark, measured in EUR. This has resulted in a Shape Ratio of 1.13 based on annualized three year data.

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