Investment strategy

What is the right portfolio for you? We will map your investment needs and define your investment and risk profile before helping you build it, based on your preferences as an investor.

Investment planning Investment Risk Profile Tactical investment advice Investment planning

How we help you meet your investment goals

How your wealth is allocated among various asset classes has a great bearing on achieving your investment goals.

We will map your investment needs and preferences to determine the long-term composition of different asset classes in your portfolio. This ensures that you can successfully meet your long-term investment goals as the allocation between risky and less risky assets can explain more than 90% of the risk and return in your portfolio.

There are three key steps to this process:

  • Determine how much risk you feel comfortable with in your portfolio.
  • Decide with you which asset classes to include. It’s generally good to have a well-diversified portfolio with exposure to many asset classes to reduce long-term risk without diminishing long-term return.
  • Decide on the specific investment vehicles to use in order to achieve the exposure to the asset classes chosen.

After that, we regularly review your portfolio to make sure it’s still on track and make adjustments as necessary.

Investment Risk Profile

Which investment risk profile suits you best?

Exposure to risk is a key element of all investment decisions. But what is your personal appetite for risk? By answering a series of questions about your investment goals, time frames and attitude, you can together with your advisor determine your most suitable risk profile – which will help you make the right investment choices for your situation.

Nordea’s five distinctive Investment Profiles:

You prefer to minimise the fluctuations of your investment value and therefore accept modest wealth accumulation. You are also aware that even a modest wealth accumulation does not exclude that for a short period of time the value of your investment can decline somewhat or increase more than on average in the long-term.
You have a low risk tolerance, but you also wish for a moderate wealth accumulation. Therefore, you accept some decline in your investment in shorter periods of time in order to increase expected returns on your investment over time.
You strive for a somewhat higher expected return on your investment. Therefore, you accept fluctuations in your investment value for shorter periods over time to enable clear accumulation of your wealth over time.
You strive for high expected return and can tolerate large fluctuations in the portfolio value both on short and long term in order to enable clear accumulation of your wealth over time.
Your main objective is high expected return and you can tolerate large fluctuations in the portfolio value over time including negative portfolio value not only for a short period of time but also for longer periods of time. Therefore, you accept that time is needed for high average return to materialise into clear accumulation of wealth, i.e. you have a long investment horizon.
Tactical investment advice

How we add value to your investments

Once we have the right mix of long-term assets in place to match your risk profile, we take a tactical investment approach. This aims to exploit shorter-term market opportunities and add further value to your portfolio by adjusting it according to our market outlook. 

We continuously monitor and evaluate six main parameters for how asset classes will behave:

  • business cycle;
  • monetary policy and liquidity;
  • earnings;
  • valuation;
  • currencies;
  • sentiment.

Based on this evaluation, we provide recommendations on which asset classes, equity regions and bond segments to favour. These recommendations are summarised in our monthly Global Asset Allocation Strategy. 

This is not about picking individual securities, however, as this comes in the next stage in your dialogue with your Wealth Partner.