Storebrand Asset Management Q4 2024 business update

Business Highlights

• Net revenue of NOK 653 million Q4
• Net inflow of NOK 16 billion Q4
• Strong AuM growth to NOK 1 469 billion

Positive inflow, and strong markets, and the integration of majority-owned AIP (95bn) contributed to Storebrand Asset Management’s AuM increasing to an all-time high of NOK 1 469 billion, as of the end of the fourth quarter of 2024.

"In the fourth quarter, we witnessed the strength of our multi-asset offering, and it was encouraging to see strong flows in the second half of 2024. Very supportive markets contributed to performance and helped us achieve our client's ambitions. We also saw increased activity in the alternative space, both in transaction activity and inflows" - Jan Erik Saugestad, CEO, Storebrand Asset Management.

Strong performance across the Nordics
In our Nordic home markets, we experienced a positive fourth quarter in terms of business development, with substantial net flows in both conventional assets and alternative investments.

Net flows in conventional funds from Norwegian institutions were particularly strong in December, totalling NOK 2.4 bn. Fixed income and passive equity were the focus of client commitments, while active equities saw less interest, in reaction to the underlying trend of shifting to passive low-cost strategies.

In Sweden, we saw strong inflows from institutional clients into fixed income and passive equities. Additionally, we received commitments to the real estate fund Storebrand Fastigheter, indicating a growing demand for real estate investments

In Denmark, December was a record month, contributing net flows of NOK 800 million, primarily in passive equities.

Progress beyond the Nordics
We ended 2024 on a high note with inflows from institutional and distribution clients in France, the UK, Iceland, and the Netherlands. Q4 completed what could be described as a turnaround year for our international markets beyond the Nordics, as we established our presence locally in several key markets, achieving increased client activity and brand recognition within them.

We achieved a key distribution milestone in Q4 2024, achieving full platform coverage for our SICAV range in the UK. This means our funds are now universally accessible to all UK-based Wealth Managers & IFAs. We expect this distribution channel access to play a key role in the success of our strategy in 2025, and already have a strong pipeline of potential new UK investors in our funds.

Clients rebalancing strategies and allocating towards alternatives
In response to market conditions, clients are increasingly diversifying their portfolios by balancing equity and fixed income with alternative assets. We are seeing a rise in transaction activity across various alternative asset classes, highlighting a new pipeline of opportunities.

Our Norwegian real estate fund attracted new commitments in the quarter, bringing the year’s total to a record NOK 1.5 bn. The Storebrand Nordic Real Estate fund made its second acquisition of a logistics property. In Norway, through our Norwegian property fund, we made a major new purchase, of an office property in central Oslo. With the general sentiment expecting interest rates to inch downwards, particularly in Denmark and Sweden, we’re optimistic about the deal flow for the start of 2025.

Our private equity boutique Cubera had the final close this December of its global private equity program, the ‘24 vintage, amassing a total fund size of EUR 254 million. Increased activity in the transaction market during Q4 led to more exits and distributions to investors.

The previously announced acquisition of a majority stake in AIP, successfully closed in November, strengthening Storebrand’s offering and footprint in the fast-growing sustainable infrastructure investment area. During the quarter, the Storebrand Infrastructure Fund and AIP jointly invested in VALOREM, one of France’s largest independent power producers. The current investment pipeline in the sector is encouraging, and coordinated fundraising efforts will accelerate in Q1.

Engaging on key sustainability issues
Storebrand played an active role in shaping the dialogue ahead of and during the COP16 Biodiversity conference, through our involvement in the Finance for Biodiversity Foundation (FfB), providing clear policy recommendations to governments on alignment of financial flows and the range of financial instruments that can be used to finance nature.

At the event, important milestones were achieved, such as enhanced recognition of alignment of financial flows with the biodiversity goals and greater participation from finance ministers and central banks. Other notable progress included the launch of the “Cali Fund,” a global mechanism designed to share benefits derived from digital sequence information (DSI) on genetic resources. This initiative will see industries reliant on DSI, such as pharmaceuticals and agriculture, contribute a portion of their profits to support developing countries and Indigenous communities.

However, critical discussions on nature financing mechanisms were postponed. We believe it to be vital that governments reach agreement on the outstanding items of the COP16 agenda, during the intercessional COP sessions scheduled to be held in Rome this February.

With human rights rising on the investment and business agenda, Storebrand was privileged to deliver a featured presentation at the recent UN Forum on Business and Human Rights, where we shared insights and worked to encourage investor participation in advancing methodologies and securing broad implementation of best practices in this critical area.

More information and insights on our work on sustainability can be found in our quarterly Sustainable Investment Review >>