Various asset classes, such as equities, fixed income instruments and possible other assets, have a different return relative to each other at different times. The overall risk of an investment portfolio can be reduced by including several asset classes in your portfolio, providing more stable returns.
We recommend to you suitable weights of different asset classes, allowing you to control your investments systematically and comprehensively in the long term.
Our approach to portfolio management is based on key investment theories and the long-term risk and return expectations defined by Nordea for different asset classes.
It is difficult to pick the best individual investment in advance. Moreover, constant selling and buying of investment instruments increases your wealth management costs. A long-term financial plan helps you avoid the costs incurred from excessive trading, making your portfolio management more effective.
In our view, distributing the investments in your portfolio across and within different asset classes will give you the best chance to manage the risks relating to your portfolio and achieve your overall investment target.
The combination of different asset classes is the key factor affecting the total risk and return of your portfolio in the long term. The structure of your portfolio is based on your choices and your targets for the risk and return.
We know it is not easy to make investment decisions. That is why we are offering you our investment strategy, based on which we will recommend changes to the structure of your portfolio according to the situation in the market.
Our view is based on market conditions and information as well as on the analyses and recommendations of Nordea's experts on the economy and markets.
We will provide our view of the distribution of various asset classes, market regions and sectors in your investment portfolio. Our view is mainly updated once a month, or more often, if necessary.
Your Private Banker will help you see how our recommendations affect your portfolio.
For investment portfolios worth more than one million euros, we recommend a customised in-depth portfolio analysis. We also offer this service to institutions.
The portfolio analysis is a method developed by Nordea and includes an analysis of the contents of your portfolio and its risk concentrations. At the same time, we will estimate your portfolio's expected long-term risk and return using various alternative portfolios.
The portfolio analysis serves as a tool for deciding on how to diversify your investments across different asset classes and investment markets in order to gain the best possible return with the risk level you have chosen.
As a Private Banking customer your investment alternatives include equities, ETFs and certificates, funds, bonds, investment bonds and unit-linked insurance.
In addition, our specialists will tailor products specifically for certain investments.
At Private Banking, Nordea's fund selection is complemented with a carefully selected number of funds from outside Nordea.
You can also entrust your wealth to be managed completely or partially by us. In such a case, you have a range of discretionary portfolio management alternatives to choose from.