ABN AMRO Backs Nordea with €1B ESG Covered Bond Mandate

The strategy is classified as Article 8 SFDR and integrates ESG criteria through Nordea AM’s methodology, which includes an exclusion framework and a responsible investment process applied throughout the decision-making process, from research to portfolio construction. Covered bonds are among the most stable asset classes in the European bond market.

Nordea Asset Management (NAM) has been awarded a sub-advisory mandate worth almost €1 billion by ABN AMRO Investment Solutions for a European ESG covered bond strategy , called ABN AMRO Nordea European Covered Bonds and managed by Nordea AM’s Fixed Income Rates team.

Nordea Secures Major ESG Covered Bond Mandate Amid Rising Demand for Stable Fixed Income

The transaction confirms ABN AMRO Investment Solutions’ core allocation to European covered bonds, an asset class considered strategic due to its low risk profile and ability to offer higher returns than traditional government bonds , as well as the high reliability of the management delegated to Nordea Asset Management.

Covered bonds, debt instruments issued by banks or mortgage lenders and backed by pools of assets such as residential mortgages or public sector loans, are increasingly used as an alternative to sovereign debt thanks to their dual protection . With over 200 years of history and no recorded defaults, they represent one of the most stable asset classes in the European bond market .

“ABN AMRO’s decision to entrust NAM with this sub-advisory mandate demonstrates the confidence they have in our European Covered Bonds strategy,” said Christophe Girondel , Head of Global Distribution at Nordea Asset Management.

For ABN AMRO Investment Solutions, the choice is consistent with the company’s open-architecture model . “This mandate demonstrates the strength of our open-architecture model and our ability to select and work alongside leading investment specialists,” said François-Xavier Gennetais, Chief Executive Officer of ABN AMRO Investment Solutions.

According to Christophe Boucher, Chief Investment Officer of ABN AMRO Investment Solutions, the strategy is based on an experienced team and a proven ability to generate value relative to the benchmark across the entire market cycle.

The strategy is classified as Article 8 SFDR and integrates ESG criteria through Nordea Asset Management’s methodology, which includes an exclusionary framework and a responsible investment process applied throughout the decision-making chain, from research to portfolio construction.

Nordea AM’s Fixed Income Rates Team, with over 20 years of experience in the covered bond segment and over €40 billion in assets under management, operates from Denmark, one of the asset class’s historic main markets. The team’s expertise is part of Nordea Asset Management’s sustainable multi-boutique approach, combining internal and external expertise to generate stable value over time.

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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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