Nordea Asset Management

We are optimistic and see a high level of structural growth potential in India, Brazil and Mexico, specifically in Indian banks and the Brazilian consumer.

Longer term, current bond valuations are attractive and that makes expected returns for Multi Assets portfolios very attractive over the longer term.  

High yield is understandably a primary area of focus for investors today, as yields on sub-investment grade credit remain elevated following the significant spike during 2022—EU HY has seen yields are sitting between 7-8% as of end Sept 2023.

Equities can be an unparallel tool to navigate an environment where inflation is expected to be somehow higher compared to the past decade.

We believe a significant factor in unlocking value in these businesses is convincing the wider market of their improving sustainability and ability to generate positive returns in the future green economy.

The listed real assets universe – an $8trn market[1] – is uniquely positioned to lead and benefit from global sustainability initiatives.

An interview with Henning Padberg, manager of Nordea 1 - Global Climate and Environment Fund and Nordea 1 – Global Climate and Social Impact Fund

If the world has any chance of slowing the excessive rate of global warming, urgent action must be undertaken to cut methane emissions.

Following the total write-down of Credit Suisse’s AT1 bonds, both regulation and volatility are likely to increase in the high-yield sector. Nevertheless, he is cautiously optimistic about the coming months.

Investors have encountered experienced several periods of severe market turbulence since the global financial crisis. Fortunately, the sharp drawdowns experienced proved to be temporary, and the bull run for stocks and bonds ultimately resumed.