Nordea 1, SICAV - Profile
The value investment style adopted by the value funds under the umbrella of Luxembourg-domiciled UCITS fund Nordea 1, SICAV has clearly established itself as a style for all seasons.

The main objectives of Nordea 1, SICAV are to provide its range of 32 sub-funds with active and professional management, to diversify investment risks and satisfy investors seeking income, capital conservation and longer-term capital growth.

With this in mind, its value-oriented fund managers constantly strive to seek out companies that represent compelling investment opportunities based on their intrinsic worth irrespective of whether stock markets are in decline, on the rebound or simply treading water.

Value style with attitude
Basic tenets in the application of the value approach include an intense qualitative understanding of the targeted company’s management combined with a thorough analysis of the company’s discretionary cash flow. This is the cash that is generated from operations, less the capital expenditure and other investments necessary to sustain and grow the business.

Value fund managers preserve capital by strictly observing the rule that the fund will not buy into a company at greater than about 50 per cent of its fair value. In calculating the fair value, the managers make estimates of the free cash flow over the coming three to five years and apply a discount appropriate to the business.

If a company is being managed well, then it is also likely that its value will grow over the five-year period, hence achieving or even surpassing the objective of doubling capital on individual holdings making up the fund. To profit from a company’s success, the value fund manager must exercise patience and disregard stock market movements that more often than not are likely to be of a short-term nature.

Main fund platform
With Nordea 1, SICAV as its main fund platform, Nordea Investment Funds S.A. serves as the Nordea Group’s European fund distribution company, promoting investment funds in Europe via intermediaries, such as broker pools, funds of funds, insurance companies, etc.

Nordea is the leading financial services group in the Nordic and Baltic region and among the top 20 banks in Europe measured in market capitalisation. With 33,000 employees, it serves 11 million customers, commanding EUR 270 billion in total assets and EUR 102 billion in assets under management.

Since its formation in 2001, Nordea Investment Funds has achieved widespread recognition and acclaim based on the superior performance of many of the funds it distributes.

While Nordea 1 has a wide array of sub-funds to choose from, the concept of value investing as implemented by its value funds has proved of particular appeal. Here, its European Value Fund, Far Eastern Value Fund and North American Value Fund stand out with their consistently good performance.

Completing the range
The trio was joined in October 2003 by two additional value funds in the form of the Global Value Fund and the Japanese Value Fund. Adding the two completes the geographical range of the value funds under the Nordea 1 umbrella.

The Global Value Fund is designed for investors, who would like to invest in companies in the four major world market segments (i.e. Europe, Far East, Japan and North America) at the same time and with limited risk. Covering more than 95 per cent of the world’s stock markets, it provides ease of entry for investing in companies operating in different countries and sectors across the globe.

The second new fund under the Nordea 1 umbrella is the Japanese Value Fund. Owing to major structural changes in the corporate Japanese landscape, including rationalisation measures and stricter corporate governance rules, Nordea 1, SICAV believes that there are compelling arguments to consider Japanese companies as a serious buying opportunity for the first time in over a decade.

Nordea Investment Funds S.A.
Aerogolf Center
1A, Heienhaff
P.O. Box 782
L-2017 Luxembourg
Tel + 352 43 39 50 - 1
Fax + 352 43 39 48

Website: http://www.nordea.lu
Email: nordeafunds@nordea.lu

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