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Nordea says hit by “major” mandate loss

SWEDEN – Nordea’s asset management division has been hit by the loss of a “major” institutional mandate.

Nordea Asset Management & Life said its net inflow of institutional funds was low in the second quarter. “Despite significant gross inflows, especially in fixed income from Swedish clients, net flow in this segment institutional_clients was low due to the withdrawal of a major existing mandate,” the Nordic bank said in its earnings statement.

Nordea spokesman Erik Evrén declined to comment on the identity of the client. “We would not divulge that information,” he said.

Total assets from institutional clients rose by five percent to 20.7 billion euros on the first-quarter figure. Nordea Asset Management & Life’s total assets under management have risen to 101.9 billion euros from 100 billion euros a year ago.

Asset management revenues fell 11 million euros, or 8.9%, from 124 million euros a year ago.

The group’s overall operating profit rose 52% to 579 million euros, up from 380 million euros in the first quarter.

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