Investments

Framework and goals

The asset management of Nordea-fonden is aimed at creating the best possible financial basis for the distribution of grants.

The statutes stipulate that “the foundation’s funds must be invested soundly and in the best possible way”. The overall objective of Nordea-fonden’s investment strategy is to define a framework and goals for the management of the foundation’s assets with a view to generating a return on investments that secures in the best possible way the financial basis for the foundation and the liquidity needed to distribute grants.

The foundation works to incorporate sustainability in all its strategic dimensions, including investments. The objective is operationalised using an ESG model. This means that the foundation makes investments based on sustainability within E: environment, S: social responsibility and G: governance.

The foundation’s investment strategy is updated continuously to keep up to date with developments in society. Implementation of the strategy is handled by Nordea-fonden with sparring from an investment committee set up by the Board. The investment committee also participates in the preparation of proposals for decisions on new investments submitted to the Board.

Read Nordea-fonden’s current investment strategy (2024-2028) here.

Investment strategy principles

Nordea-fonden has liquidity resources to ensure with great certainty that the foundation has adequate liquid assets (deposits and short-term bonds) to meet the foundation’s payment obligations in relation to, for example, the distribution of grants as well as its investment commitments.

Within the framework of the investment strategy, excess liquid assets may be invested at a higher risk in accordance with the following principles:

• The objective is to achieve a return commensurate with the market development.
• The focus is on ensuring that the investment costs incurred contribute to achieving an attractive return. 
• Nordea-fonden wants openness and transparency about its investment activities, including the incorporation of ESG.
• The investments will generally always be made through external asset managers (outsourcing) and possibly in collaboration with other investors.
• Investments must comply with the foundation’s ethical guidelines.

Since 2017, the foundation has actively worked to ensure a gradual diversification of its investments under the investment strategy to reduce the concentration risk of Nordea Bank Abp. From 2016 to 2023, the share of the foundation’s capital invested in Nordea Bank Abp has thus been reduced from 89 to 77 per cent.

The gradual diversification of the composition of the investment assets in Nordea-fonden is shown graphically below: 

Investments

In Nordea-fonden’s Annual Report 2023 (only available in Danish), investments as at 31 December 2023 have been itemised in notes 11, 12 and 16 (pages 64-66).

Nordea-fonden works together with selected external assets managers that make investments – on behalf of Nordea-fonden – with focus on sustainability (ESG) and based on Nordea-fonden’s ethical guidelines for investments.

Here you will find an overview of Nordea-fonden’s assets (listed/unlisted) and the asset managers that handle the investment task for Nordea-fonden. 

Listed assets

Shares: 

• Nordea Bank Abp
  More info here.  
  Value as at 31 December 2023: DKK 12,944,324,374
   
• Nordea Asset Management
  Get an overview of the current share portfolio here.
  Value as at 31 December 2023: DKK 767,581,355
   
• Carnegie Investment Bank
  Get an overview of the current share portfolio here.
  Note: Nordea-fonden has actively opted out of investments in financial companies, the tobacco industry and fossil fuel companies, see the ethical guidelines for investments.
  Value as at 31 December 2023: DKK 405,984,952
   
• Qblue Balanced
  Get an overview of the current share portfolio here.
  (Select the ‘Portefølje’ (Portfolio) tab and then click ‘Vis hele porteføljen’ (Show the whole portfolio). 
  Value as at 31 December 2023: DKK 407,715,405.

Bonds:  

• Mortgage bonds
  Get an overview of the current holdings of bonds here. 

Unlisted assets 

The foundation’s unlisted investments are shown below. The market value is shown in the Annual Report (available only in Danish). 

Properties:

• Heerings Gaard TG Partners VI P/S Holding
• TG Partners VI P/S Holding

Infrastructure:

• Antin Infrastructure Partners V SCSp
• Copenhagen Infrastructure III K/S
• Copenhagen Infrastructure NMF I K/S
• Copenhagen Infrastructure IV K/S

Private Equity:

• Capidea Capital III K/S
• 2150 Fund I SCSp
• Dansk Vækstkapital III K/S
• CoreCapital I K/S
• Capidea Kapital IV K/S
• Axcel VII K/S
• Heartcore Capital Fund V K/S

To ensure that the investments in listed assets, i.e. shares and bonds, comply with Nordea-fonden’s ethical guidelines, ISS ESG performs a half-yearly independent screening of Nordea-fonden’s portfolio. This is an additional measure for ensuring, among other objectives, that Nordea-fonden’s portfolio does not include investments in tobacco-producing companies or companies engaged in activities connected with weapons that are contrary to conventions prohibiting or restricting the use thereof.

Mission-related investments 

Nordea-fonden has an ambition to make mission-related investments (MRI). MRI underpin the foundation’s mission to support activities that promote the good life. MRI are based on the foundation’s grant distribution strategy, but are made independently of the grants.

Ethical guidelines

The foundation has ethical guidelines for all its investments. The guidelines are based on the foundation’s core values. 

Every second year, Nordea-fonden submits a Communication on Engagement report to UN Global Compact on actions, initiatives and progress in relation to the Ten Principles. The latest report from March 2024 is available at UN Global Compact.

The ethical guidelines are directional for the foundation’s actions. For all the foundation’s investments, the manager must sign a declaration of compliance with the foundation’s ethical guidelines, including sustainability criteria. If ethical guidelines are not complied with, the foundation cannot make the investment.

If the foundation ascertains persistent violations or an unwillingness towards dialogue and improvement in a company in which the foundation has already invested, this will ultimately have the consequence that the foundation’s investment will be terminated.

Nordea-fonden collaborates with external data providers that specialise in assessing, independently of the asset managers, whether investments comply with established standards and the investors’ ethical guidelines. They report regularly every six months. In addition, the foundation may screen specific companies on an ongoing basis.

Active opt-outs and restrictions

Nordea-fonden does not invest in companies that are involved in the production of tobacco in any way. Likewise, no investments are made in companies (for example supermarkets and transport companies) which generate more than 5 per cent of their earnings from tobacco-related activities.

The foundation wants to phase out investments in fossil fuel extraction by 2029 at the latest. Exempt from this, however, are investments in companies that contribute positively to accelerating the transition to a low-emission society and to meeting the goals of the Paris Agreement. The companies must continuously document their performance in executing their transition strategy, which includes:

• A well-defined transition strategy towards the goals of the Paris Agreement
• An initiated execution of the strategy
• Ongoing follow-up on goals and sub-goals
• Identification and management of deviations
• Divestments if breaches of the foundation’s ethical guidelines have been ascertained and the breaches are expected to be of long-term duration or persistent.

Nordea-fonden and its affiliated asset managers must comply with all international conventions to which Denmark has acceded, which includes ensuring that the investments do not contribute to activities associated with weapons prohibited by conventions. In its due diligence in connection with unlisted investments, the foundation requires that there is compliance with requirements for good tax practice through increased transparency and through the prevention of aggressive tax planning defined in principles and recommendations, see the Tax Code of Conduct, prepared by a number of Danish pension companies and funds.

Investment decisions

The foundation uses a decision-making tree when preparing new investments. This includes documentation of the investment process, including liquidity resources, compliance with ethical guidelines for investments, due diligence for the investment and an external tax assessment of the investment in relation to the foundation’s own tax affairs.