As the Article 9 fund universe continues to adapt to ongoing political, regulatory, monetary and geopolitical changes, sustainable investing remains a long-term commitment. However, in an industry often shaped by short-term market dynamics, maintaining regular engagement with asset managers is essential to assess how their strategies and priorities are adjusting to the changing landscape.
This review covers 54 global actively-managed Article 9 funds, encompassing 14 Nordic-based equity funds, 11 fixed-income funds, and 29 international funds, split between public (20) and private asset strategies (9).
Both international partners and Nordic global Article 9 equity managers underperformed in Q4 on average. In both groups, managers reported that the rotation into small caps and value sectors’ performance that took place in Q3 had been reversed in Q4. Indeed, the last quarter of 2024 was characterised by the return of large-cap stocks with IT stocks came back into market favour, as did Consumer Discretionary and Communication Services. Meanwhile, Renewables lagged, once again. This reversion to the previous market paradigm was a reflection of broader bullish market trends following the re-election of Donald Trump, which was originally accompanied by expectations that he would be more accommodating of investors than his predecessor.
In the Fixed Income space, the rate cuts by the the Federal Reserve, European Central Bank and Nordic central banks did not stop bond yields from rising, although yield curves did not move in tandem on both sides of the pond. Green bond framework revisions and seasonal issuance trends were the dominant concern of Article 9 fixed income managers.
Emerging market growth and a lack of credit events facilitated positive returns for private market funds, despite regional geopolitical tensions in the Middle East and Asia. The return of Donald Trump to the White House also raised concerns about the robustness of agricultural investments in the USA given the president’s attitude to labour and immigration.
As the Article 9 fund universe continues to adapt to ongoing political, regulatory, monetary and geopolitical changes, sustainable investing remains a long-term commitment. However, in an industry often shaped by short-term market dynamics, maintaining regular engagement with asset managers is essential to assess how their strategies and priorities are adjusting to the changing landscape.
This review covers 54 global actively-managed Article 9 funds, encompassing 14 Nordic-based equity funds, 11 fixed-income funds, and 29 international funds, split between public (20) and private asset strategies (9).
Both international partners and Nordic global Article 9 equity managers underperformed in Q4 on average. In both groups, managers reported that the rotation into small caps and value sectors’ performance that took place in Q3 had been reversed in Q4. Indeed, the last quarter of 2024 was characterised by the return of large-cap stocks with IT stocks came back into market favour, as did Consumer Discretionary and Communication Services. Meanwhile, Renewables lagged, once again. This reversion to the previous market paradigm was a reflection of broader bullish market trends following the re-election of Donald Trump, which was originally accompanied by expectations that he would be more accommodating of investors than his predecessor.
In the Fixed Income space, the rate cuts by the the Federal Reserve, European Central Bank and Nordic central banks did not stop bond yields from rising, although yield curves did not move in tandem on both sides of the pond. Green bond framework revisions and seasonal issuance trends were the dominant concern of Article 9 fixed income managers.
Emerging market growth and a lack of credit events facilitated positive returns for private market funds, despite regional geopolitical tensions in the Middle East and Asia. The return of Donald Trump to the White House also raised concerns about the robustness of agricultural investments in the USA given the president’s attitude to labour and immigration.
