Europe’s Nordea Asset Management will enter the New Zealand market after winning its first two mandates from Pathfinder Asset Management, an ethical investment manager dedicated to driving lasting positive change through responsible investing”.

The appointment of the mandates by Pathfinder follows a rigorous process in which over 70 managers were evaluated for ethical alignment, quantitative capability and sustainability leadership.

Nordea emerged as the clear leader because it offered a customized approach that allows Pathfinder “to deliver world-class global equity capability to its clients without compromising its ethical framework”.

Under the mandates, Nordea will act as sub-investment manager for Pathfinder’s Responsible Investment Fund and Global Water Fund, with both portfolios to be managed by Nordea’s diversified equity team, which has worked together for over 15 years and currently has over €80 billion ( US$94.07 billion ) in assets under management in beta-plus strategies.

This partnership combines Nordea’s expertise in sustainable and systematic investing with Pathfinder’s focus on ethical investing and long-term performance.

The portfolios will be managed using Nordea’s beta-plus framework, which “goes beyond market exposure by combining quantitative portfolio construction with disciplined risk management and integrated sustainability”.

These solutions, the company points out, “are designed to generate consistent excess alpha through repeatable active strategies, delivered in a cost-efficient manner, with the beta-plus range comprising both traditional and sustainable building blocks, giving investors flexible  and customizable solutions aligned with long-term investment objectives”.

“Pathfinder’s strong commitment to ethical and ESG [environmental, social and governance] investing aligns closely with our own philosophy,” says Christophe Girondel, Nordea’s global head of distribution, “and together we’re bringing a differentiated beta-plus framework that blends alpha generation and risk management with sustainability integration.”

John Berry, Pathfinder’s CEO and co-founder, adds: “We selected Nordea for its world-class quantitative and responsible investment expertise. By combining our ethical standards with its global ESG horsepower and institutional-grade systems, we strengthen our mission to generate both individual wealth and collective wellbeing for our members.

“Ultimately, this partnership is expected to deliver more consistent global equity returns and stronger risk management to improve investment quality, without compromising Pathfinder’s ethical integrity.”