Nordea is set to add two value-style funds to its Luxembourg Sicav: a wide-ranging global equity fund and a Japanese equity product.
The Global Value Fund is designed for investors who would like to invest in companies in the four major world market segments at the same time with minimum risk. Covering more than 95% of the world's stock markets, Nordea is trying to provide investors with ease of entry for investing in companies operating in different countries and sectors across the globe.
By investing in companies from different countries that do not always move in the same direction, the chances of simultaneous portfolio declines are substantially reduced.
The Japanese Value fund invests in companies that will benefit from the major structural changes in the corporate Japanese landscape.
The portfolio was launched to capitalise on this market. Numerous Japanese companies are emerging from a prolonged period of weakness. The main focus of the portfolio will be on companies in the domestic market that are restructuring right now.
Nordea's value philosophy looks at the ability of a company to generate a substantial discretionary cash flow for its owners. In choosing companies, an analysis is performed of management and agents in the company, as well as financial statements, industry structure, product life-cycles, the operating environment and the company's place in the value chain. Portfolios consist of around 50 holdings.
Companies whose balance sheets cannot be verified and whose discretionary cash flows cannot be analysed are rejected.
The two sub-funds bring the total number of funds under the Nordea umbrella to 32. These are authorised for sale in eight European countries: Austria, Finland, France, Germany, Luxembourg, Sweden, Switzerland and the UK.
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