Nordea Stable Return becomes one of Europe’s largest funds


The Nordea Stable Return fund became one of the largest open-ended funds in Europe over the month of July, while behemoth funds from M&G and Franklin Templeton continued to suffer outflows during the period.

The €17bn Nordea fund has seen organic growth of assets under management reach 126.9 per cent over a one-year period, according to Morningstar figures released today, seeing it join the top-10 largest funds in Europe.

The mixed-asset fund saw inflows of €2.2bn in July, bringing it to €8.4bn total inflows for the year-to-date.

Meanwhile, the €19bn Templeton Global Bond fund and the €18.2bn Templeton Global Total Return fund saw outflows of €503m and €461m respectively in July. The €18bn M&G Optimal Income fund saw outflows of €156m for the month.

In May alone Franklin Templeton saw outflows of €3bn in its European-domiciled funds, while the M&G Optimal Income fund has lost 40 per cent of assets over a 12-month period.

Europe’s largest fund, the €31.4bn Standard Life Investments Global Absolute Return fund, saw outflows of €6m in July.

The Morningstar report said the Nordea Stable Return fund’s “long-term performance, augmented by the robust showing in the volatile markets in the past 12 months, have propelled inflows to unseen highs”.

The mixed-asset fund – managed by Asbjørn Trolle Hansen, Claus Vorm and Kurt Kongsted since its launch in 2005 – has returned 28.1 per cent over a one-year period.

In a recent Morningstar report, in which the fund was upgraded to a bronze rating, analyst Thomas Lancereau said a “disciplined approach to asset allocation, implemented by an experienced and stable team, supports our positive assessment of this fund”.

However, Lancereau noted: “While capacity has been managed wisely so far, clearer guidelines regarding capacity limits going forward would be beneficial.”

Nordea also saw the largest inflows for all asset managers in July, with €3bn, followed by Pictet (€2.1bn) and Pimco (€1.6bn).