Stockholm (HedgeNordic) – Just over five years after its launch, Nordea’s European Rates Opportunity Fund is being renamed Global Rates Opportunity Fund to better reflect its expanded global exposure. With the name change and the removal of geographic restrictions, the fund aims to gain greater flexibility in seizing opportunities across global fixed-income markets. Since mid-2019, the fund has delivered an annualized return of 8.8 percent without a single down year, growing its assets under management to €344 million.
“This change has been implemented to better reflect the global exposure of the fund for investors, which has always been the case since the fund’s inception in 2019,” explains the team at Nordea Asset Management. “With the markets evolving, we want to have the flexibility to exploit new opportunities (geographically) without constraints. That’s why we removed the constraints on ‘a minimum two-thirds allocation to European Bonds’ and changed the name accordingly.”
“With the markets evolving, we want to have the flexibility to exploit new opportunities (geographically) without constraints. That’s why we removed the constraints on ‘a minimum two-thirds allocation to European Bonds’ and changed the name accordingly.”
The investment team remains unchanged, and neither the strategy nor the investment process will be affected. The fund will officially adopt the name Global Rates Opportunity Fund at the end of March. Managed by Nordea Asset Management’s Fixed Income Rates Team (pictured), the fund has traditionally focused on capturing alpha from relative value opportunities within European covered bonds rather than relying on directional positions.
Nordea’s European Rates Opportunity Fund has delivered an annualized return of 8.8 percent since its launch in mid-2019, maintaining a perfect track record with no negative years. It was a standout performer in the Nordic fixed-income hedge fund space in 2022 with a return exceeding 10 percent, when most other funds incurred losses. After a relatively flat 2023, rebounded strongly in 2024, gaining 18.8 percent. The fund oversees about €344 million in assets under management. In mid-2024, Nordea launched a separate Global Rates Opportunity Fund, which currently oversees an additional €25 million in assets.
