Nordea to merge US growth mandate into all-cap fund

Nordic asset management firm Nordea is set to merge its $100 million North American equity growth strategy into its recently launched North American All Cap fund by the end of the year.

The move follows the launch of the Nordea 1 – North American All Cap fund in March which is being run by Florida-based investment boutique Eagle Asset Management.

Last week Nordea named Eagle Asset Management’s Ed Cowart as lead manager on the Nordea 1 – North American Growth fund in order to oversee a smooth transition of the fund.

The merger is expected to be completed by December 7 this year.

Cowart replaces the fund's previous lead manager Peter J. Eichler Jr. of Aletheia Research and Management, who had run the mandate since July 2008.

The US boutique's existing mandate, the Nordea 1 – North American All Cap Fund is overseen by Cowart with support from David Blount, John Pandtle and David Powers.

Cowart and his team favour a value and reasonable growth approach, which will form the core of the North American All Cap fund.

Looking at the fund Cowart and his team are absorbing, the Nordea North American Growth has 78% invested in the US market and 16% in Canada, according to its most recent factsheet.

On a sector basis, the fund's main areas of investment are currently materials (23%), energy (17%) and healthcare (14%). The single largest position is in US oil and energy company Continental Resources (4.6%).

Over the past three years, the Nordea 1 - North American Growth fund has returned 9.63%. This is while its Citywire benchmark, the S&P 500 TR, rose 46.7%.