Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Nordea Asset Management suspends Brazilian government bond purchases due to Amazon fires

Stock MarketsAug 30, 2019 10:16AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Gwladys Fouche

OSLO (Reuters) - The asset management arm of Nordea (HE:NDAFI), one of the Nordics' biggest banks, said it is suspending purchases of Brazilian government bonds, the latest Nordic investor to take action in response to the outbreak of Amazon (NASDAQ:AMZN) forest fires.

Nordea Asset Management said its current exposure to Brazilian sovereign bonds was approximately 100 million euros ($111 million).

Thousands of fires tearing through the Amazon in the past week have spawned an international crisis for Brazil, with public protests and world leaders voicing concern that President Jair Bolsonaro's government is doing too little to protect the world's largest tropical rainforest.

"We are taking action by temporarily quarantining Brazilian government bonds both denominated in USD and BRL, meaning no additional purchases and only potential selling action," Thede Ruest, head of Nordea emerging markets debt, told Reuters.

"If we assess positive developments, we can lift the quarantine prior to a set date – equally if the situation worsens, we may have to exclude Brazil government bonds from our universe," he added.

Helsinki-based Nordea Asset Management had 205 billion euros in total assets under management as of the end of 2018.

Other Nordic investors that have taken action as a result of the Amazon fires include KLP, a Norwegian pension fund with over $80 billion in assets under management.

Environmentalists claim most of the fires were illegally set by land speculators and ranchers seeking to expand pastures in the Amazon and who feel emboldened by Bolsonaro's criticism of excessive environmental protections. Bolsonaro has denied the fires were deliberate.

KLP said this week it was contacting U.S. firms in which it was invested that did significant business with agricultural producers in Brazil to ask for "concrete actions".

KLP said it had contacted U.S. firms Bunge (N:BG), Cargill (UL:CARG) and Archer Daniels Midland (N:ADM), in which KLP has invested 453 million crowns ($51 million) in stocks and bonds.

"We will also look into Norwegian companies which import soy products from Brazil in order to evaluate this and urge them to do all they can to protect the rainforests," Jeanett Bergan, KLP's head of responsible investment, said in a statement.

Meanwhile the asset management arm of Norwegian insurer Storebrand (OL:STB) said it would commit to a new deforestation policy as a result of the fires in the Amazon.

"Deforestation has been an important issue in our investments for a long time. Now, our role as an active owner will be intensified, in order to halt deforestation," CEO Jan Erik Saugestad.

In practice, this means Storebrand wants to have a portfolio of investments that by 2025 does not contribute to deforestation; that it would influence "high-risk companies", vote at annual general meetings and collaborate with other institutional investors on these issues.

Norway has worked closely with Brazil to protect the Amazon rainforest for more than a decade and has paid $1.2 billion into the Amazon Fund, to which it is by far the biggest donor.

However, in August Oslo suspended donations to the Amazon Fund after Brasilia blocked operations of a fund receiving the aid.

($1 = 8.9564 Norwegian crowns)

($1 = 0.8973 euros)

Nordea Asset Management suspends Brazilian government bond purchases due to Amazon fires
 

Related Articles

Apple to increase pay for U.S. workers
Apple to increase pay for U.S. workers By Reuters - May 26, 2022

(Reuters) -Apple Inc has raised the pay for its hourly U.S. employees, the iPhone maker said on Wednesday, as companies face a tight labor market, a surge in unionization efforts...

Trip.com ADR Earnings Beat, Revenue Inline In Q1
Trip.com ADR Earnings Beat, Revenue Inline In Q1 By Investing.com - May 26, 2022

Investing.com - Trip.com ADR reported on Wednesday first quarter earnings that beat analysts' forecasts and revenue that was inline with expectations. Trip.com ADR announced...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Pa Fa
Pa Fa Aug 30, 2019 11:31AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the world needs more actions like these....
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email