Nordea Explains Asset Management and its Role
Nordea Bank Abp aims to clarify the concept of asset management, a service involving investing and managing wealth on behalf of clients. The bank's asset management division manages over EUR 250 billion.
Asset management is the practice of investing and managing financial assets for individuals, companies, and institutions with the goal of increasing their wealth over time. Asset managers make decisions on buying and selling investments such as shares, bonds, and funds, balancing risk and potential returns.
Nordea Bank Abp operates as an asset manager through its Nordea Asset Management unit, which employs approximately 200 investment professionals. The division serves around 800 institutional clients globally and manages over EUR 250 billion in assets under management. Notably, about three-quarters of these assets are classified as ESG (Environmental, Social, and Governance) investments.
The field of asset management encompasses both active and passive strategies. Active management involves fund managers analyzing markets and making strategic trading decisions to outperform market averages. Passive management, conversely, adopts a "buy and hold" approach, typically tracking market indices with lower fees while accepting market-level returns.
For individual investors, Nordea provides various service levels, including self-directed investing, guided options, and expert-managed portfolios, often accessible through digital platforms. These services aim to guide clients through their investment journeys, offering tools for managing savings and investments, such as its digital advisor, Nora.