Nordea Asset Management has lifted its Brazilian government bond quarantine following Lula election victory on Sunday.

Following Nordea AM’s decision in 2019 to no longer buy Brazilian government bonds for any of its internally managed emerging markets debt strategies, the move comes after positive pledges from president-elect Luiz Inácio Lula da Silva after his election victory on Sunday.

In 2020, the firm became a founding and advisory member of the Investors Policy Dialogue on Deforestation (IPDD), a collaborative engagement aimed at initiating and coordinating a public policy dialogue on halting deforestation.

Thede Rüst, head of emerging markets debt at Nordea Asset Management, says, “Based on policy announcements from the president-elect – including the expected return of Marina Silva in a central policymaking role, and the effective concession of the election by the outgoing president – our emerging markets debt team at Nordea Asset Management has decided to lift the quarantine on Brazilian government bonds.”