Euroclear Finland and Euroclear Sweden premier with Nordea actively-managed ETFs
Helsinki and Stockholm, 26 September 2013 – For the first time, Euroclear Finland and Euroclear Sweden, the central securities depositories for the Finnish and Swedish markets, respectively, are today making actively-managed Exchange Traded Funds (ETFs) available for settlement and custody in their book-entry systems.
Coincidentally, Nordea is launching today the region’s first two actively-managed ETFs on NASDAQ OMX Stockholm and NASDAQ OMX Helsinki. Depending upon where the two multi-listed ETFs are traded, transactions will settle locally in kronor at Euroclear Sweden or in euros at Euroclear Finland.
The two new ETFs listed by Nordea are Nordea Global Emerging Market Equities UCITS ETF and Nordea Stable Equities UCITS ETF. The price of these ETFs will be determined and provided by a dedicated market-maker throughout the trading day. Trading in actively-managed ETFs is the same as trading in equities, and thus both retail and institutional clients will need a book-entry account with either Euroclear Finland or Euroclear Sweden to process these transactions.
Heikki Ylipekkala, Head of Commercial at Euroclear Finland and Euroclear Sweden, said: “Euroclear Finland and Euroclear Sweden’s electronic book-entry systems are the most secure and modern way for investors to manage their investments. We are delighted to add Nordea’s two innovative ETFs to the many types of domestic securities we service. Actively-managed ETFs have established themselves as viable investment choices in countries like the United States, where according to ETF experts, actively-managed US-listed ETFs account for around USD 14 billion of assets under management. It is natural that investors in Finland and Sweden will want to buy into this new asset class and expect Euroclear to service them.”
Jari Kivihuhta, Managing Director of Nordea Investment Funds, added: “The number of actively-managed funds is expected to rise, particularly as we experience a growing demand for equity-like products. Our mutual funds have been successful during the last few years. We feel very comfortable to launch a new kind of actively managed ETF with Euroclear, and to benefit from their years of fund processing experience.”
Note to editors
Actively-managed ETFs are a relatively new type of product in the
Nordic countries, which differ from traditional ETFs. Actively-managed
ETFs aim to produce a greater return for investors through the use of a
dedicated active manager, compared to passively-managed ETFs which
track predefined indices. Actively-managed ETFs also track bond, equities
or commodity indices. Although the investment strategy is systematic,
portfolio managers will have discretion over ultimate investment decisions
as to the stocks or bonds in which the fund invests.
Euroclear Finland and Euroclear Sweden are the central securities
depositories (CSDs) of Finland and Sweden. They provide advanced,
low-cost settlement facilities for a wide range of equities, corporate and