ECP | Luxemburg, 11.09.2020
We hear that several large asset managers are throwing the towel on value investing. One example is Nordea merging its Nordea European Value Fund into the Nordea European Stars Equity Fund. I have been co-manager of Nordea European Value Fund between 2002 and 2014 so I can state with a certain level of confidence I have some understanding of the underlying investment strategy and process of this Fund. I also understand the receiving fund targets large-cap companies that appear to offer superior growth prospects and investment characteristics and focusses on ESG. My personal conclusion is the 2 strategies are as different as they can be. Investors should therefore not expect to see similar investment results over the long run, as the initial strategy of over more than 20 years, is a strategy selecting companies with undervalu ed earning power.
Mit freundlichen Grüssen aus Luxembourg
Léon Kirch, CIO & Partner
