LUXEMBOURG, LU, 06/09/2023 Nordea Asset Management (NAM) is pleased to offer monthly distributing share classes (M-shares) for several Nordea 1 funds.
In answer to the shift of many investors toward cash, deposits or sovereign bonds due to high interest rates, NAM now offers M-shares for eight Nordea 1 funds. Investors seeking regular cash flows from their investments can tap into these monthly distributing share classes to benefit from an income stream while retaining their exposure to the total return opportunities offered by other fixed income, equities or multi asset solutions.
NAM’s M-shares are available for a number of Nordea 1 funds across various asset classes and will fully distribute the income produced by the investment, whether bonds, equities or multi-asset solutions. This will ensure that investors’ income needs are met while still enjoying the longer-term benefits of investing in these assets.
By investing in deposits or sovereign bonds, investors may be overlooking the higher yields now offered by other asset classes. For example, the Nordea 1 – European High Yield Bond Fund is currently offering a distributed yield of 6.8%3, while the Nordea 1 – European Financial Debt Fund offers 7.5%.
Equities also offer robust dividend yields in addition to the capital growth generated by the underlying businesses. As an illustration, the Nordea 1 – Stable Return Fund is yielding 6.5% and the Nordea 1 – Global Sustainable Listed Real Assets Fund is yielding 4.2%.2 For investors in NAM’s multi-asset solutions, which do not have a specific income stream, NAM will distribute the fund’s expected return. 1
Nordea 1 funds offering new M-shares are: European Cross Credit Fund, European High Yield Bond Fund, European Financial Debt Fund, European Stars Equity Fund, Global Listed Infrastructure Fund, Global Real Estate Fund, Global Sustainable Listed Real Assets Fund and Stable Return Fund.
Any investment decision in the sub-funds should be made on the basis of the current prospectus and the Key Information Document (KID) or the Key Investor Information Document (KIID) for UK investors.
For more information on the risks applicable at asset class level, please visit http://www.nordeaassetmanagement.com/risks-information
In a negative environment, the monthly distribution income accrued in the M-shares may be taken from the capital. This may reduce capital and constrain future capital growth.
Equity and Fixed Income funds will fully distribute the dividend/ coupon income generated by the fund. Multi Assets solutions will distribute the expected return of the fund + the relevant currency’s 1M cash return.
As at July 31, 2023. The performance represented is historical; past performance is not a reliable indicator of future results and investors may not recover the full amount invested. The value of your investment can go up and down, and you could lose some or all of your invested money.