What are Nordea’s Enhanced funds?
Nordea’s Enhanced funds combine some of the characteristics of both passive and active investments. The Enhanced funds are actively managed, but the level of activity, i.e. their deviation from the benchmark index, is small. The portfolio manager makes fewer selections than in a traditional actively managed fund, but may exclude some of the companies included in the fund’s benchmark index if they are considered unattractive investments.
This means that the portfolio manager of an Enhanced fund has more freedom than the manager of a passive fund. With appropriate stock picking, the Enhanced funds aim to outperform their benchmark index. However, since they are not truly active funds, stock picks are made fairly infrequently to guarantee relatively low management costs.