Stockholm (NordSIP) – At the end of January, J. Safra Sarasin Group appointed Nordicus as its wholesale and institutional asset management distribution partner in the Nordics. J. Safra Sarasin (JSS) is a Swiss private bank with over 180 years of experience in Wealth and Asset Management and a strong focus on sustainable investing.
“We are pleased to partner with Nordicus to expand our presence in the Nordic region. This collaboration aligns with our strategic ambition to deliver differentiated, ESG-driven investment solutions to investors in the region,” Oliver Cartade, Head of Asset Management at JSS said on this occasion. “We are delighted to work with J. Safra Sarasin Group, a high conviction asset manager with a long history, excellent track record and a strong focus on ESG. This makes J. Safra Sarasin especially well-suited for the highly competitive Nordic institutional market,” Henrik Norén, Managing Director at Nordicus, added.
NordSIP reached out to both organisation to hear about the ambitions behind this new Nordic outreach.
Bringing New Sustainable Solutions to the Nordics
According to Cartade, the partnership means that JSS plans to introduce two sustainable investment solutions to the Nordic market.
“There are two key strategies that we have selected for the Nordic market. The JSS Sustainable Equity – Green Planet is classified as an SFDR Art. 9 strategy given its strong sustainability focus. The fund aims to tackle a wide range of environmental themes and capitalise on attractive opportunities stemming from the green transition. Governments worldwide are stepping up, and the global economy is already investing over USD 1 trillion annually in clean solutions and its supporting infrastructure. With current policies in place, this figure is set to double in coming years. To this end, the fund invests in environmental solution providers. It targets pure-players and smaller companies focused on improving water, soil and air quality, and fighting against climate change,” Cartade says.
“JSS Twelve Sustainable Insurance Bond is classified as an SFDR Art. 8 strategy, and invests in subordinated bonds issued by insurance companies that are rated JSS ESG A-rated. The objective of the strategy is to deliver attractive returns to our investors, consisting of high and recurring coupon income plus a moderate capital appreciation. This is achieved by investing in high quality issuers while capturing attractive subordination and complexity risk premium. The strategy is managed by our partner Twelve Capital, a highly specialised investment manager that combines insurance and capital markets expertise,” Cartade continues.
A Trusted Partner
Given its wish to expand into the Nordics, JSS needed to find the right partner.
“J. Safra Sarasin Sustainable Asset Management aims to strengthen its wholesale and institutional asset management distribution across the Nordic region, reinforcing its commitment to sustainable growth and delivering our ESG-driven investment solutions. It is an important step, as we intend to expand our asset management footprint in the Northern Europe. Building on the Bank’s expertise sustainability foundations with over 35 years of ESG expertise and active management, we wish to become an asset manager of choice for clients in the Nordic region,” Cartade explains.
When selecting Nordicus as its partner, Cartade argues that JSS considered four criteria. First, the partner had to have a Strong local presence, with an established network in targeted Nordic countries, and a proven track record. Second, it had to be a trusted partner and a recognised player in the industry. Third, JSS Group was looking for “people-driven success”. “Peter, Henrik and David bring unparalleled expertise and market insights,” Cartade says. Finally, the Swiss manager was looking for a focus on long-term success and a commitment to building a sustainable and lasting partnership.
Marketing JSS’s Sustainable Investment Solutions
According to Norén, the quality of JSS’s sustainable offering speaks for itself and combines with Nordicus’ presence to facilitate the asset manager’s expansion into the Nordics.
“JSS is one of the pioneers in sustainable investing and their well-established Sustainability Matrix is a door opener in the Nordics, where sustainability done right is a clear value-add. Together with our longstanding Nordic presence and continuous dialogue with Nordic institutional investors, we believe that the conditions are good for identifying the right potential investors for the JSS offering,” Norén argues.
Nevertheless, Norén is open about the fact that JSS’s expansion will have to contend with home bias and competitiveness from local players. “In any market there is home bias, meaning that local AMs are preferred over less known foreign AMs, especially among retail investors but to some degree also among institutional investors. Moreover, the Nordic region is highly competitive and fee pressure is perhaps even more pronounced here than elsewhere in Europe. By strengthening the JSS brand in the Nordics and stressing their asset management capabilities and strong sustainability focus across the product board, we believe we will overcome these hurdles,” Norén adds.
However, Norén is confident that Nordicus’s expertise complements JSS’s offerings to meet the demands of Nordic investors. “We are three partners at Nordicus with jointly over 75 years of experience within fund distribution and asset raising. The firm’s ten-year track record has yielded an extensive contact network and access to the Nordic investor community. Together with JSS’s long track record and impressive sustainability profile, we believe that our collaboration is especially well suited for the Nordic market,” Norén concludes.
