Northern Europe-based asset manager Nordea Asset Management announced that it has been awarded a nearly €1 billion ESG-focused European Covered Bond mandate by ABN AMRO Investment Solutions (AAIS).

According to Nordea AM, the new tailor-made strategy, ABN AMRO Nordea European Covered Bonds, will use the firm’s methodology for sustainability in Covered Bonds, including incorporating an exclusion framework and integrating a responsible investment process from research to portfolio construction.

The strategy is classified as Article 8 under the EU’s SFDR regulation, and will be managed by Nordea AM’s Fixed Income Rates Team.

AAIS CEO François‑Xavier Gennetais said:

“We are delighted to partner with Nordea AM to deliver a solution that combines strong governance, investment alignment and in‑depth expertise.”

Covered bonds are fixed-income securities issued by banks or mortgage lenders and backed by pools of assets such as residential mortgages or public-sector loans. According to Nordea AM and AAIS, the asset class is increasingly seen as a compelling alternative to government debt due to their dual layers of protection.

Christophe Girondel, Head of Global Distribution at Nordea Asset Management, said:

“We’re proud to offer a solution that combines the safety and reliability of covered bonds with the potential for consistent returns, alongside long-term stability — an especially powerful combination in today’s unpredictable environment.”

AAIS has described its approach as incorporating ESG and sustainability investing in its investment philosophy, with a focus on ESG due diligence, comprehensive analysis, assessment of the CSR principles of asset managers, and the evaluation of ESG integration at the fund strategy level. The firm is also a member of the Net Zero Asset Managers (NZAM), pledging to achieve net-zero emissions by 2050.