A price battle is on the horizon for the new breed of do-it-yourself fund investment services aimed at Nordic retail customers. Nordic financial group Nordea is expected to launch a product that directly challenges Danish bank Danske Bank's June service. Nordea intends Nora ­ short for "Nordea Robo Advisor" ­ to be cheaper than June, according to a report from Danish business news service Finans.

Nora will initially contain five low-cost funds — named One, Two, Three, Four and Five ­ which have already been introduced in Sweden. The associated on-going costs are between 0.59 and 0.79 percent.

"The Danish prices won't be exactly the same as they are in Sweden, but they'll be close. We firmly expect our price to be competitive. The new funds are so-called enhanced funds, similar to the USA fund we introduced last year with an annual operating expense at 0.64 percent. The ethical part is included as a bonus. All our funds are screened for ESG criteria — environment, social factors and governance — and the riskiest investments have been removed," CEO of Nordea Invest Eric Pedersen tells Finans.

June's average annual operating expense is at 0.8 percent. The on-going costs begin at 0.7 percent for the most risky, June Opportunity, and the least risky fund costs 0.74 percent, says Danske Bank Wealth Management's press officer Claes Lautrup Cunliffe to Finans.

Pedersen also explains that Nordea Invest — aside from the five low-cost funds — will introduce four new index funds. These will be so-called enhanced index funds, similar to the USA fund that was launched last year. The new funds include a European fund, one in Japan, one global fund and one emerging markets.

English edit: Daniel Frank Christensen