Q2 - Assets under Management exceeds 1 000 billion NOK

The strong growth in Assets under Management (AuM) continues with an increase of NOK 50bn in the second quarter. Total AuM as of Q2 amounts to NOK 1.037bn, a growth of NOK 157bn, 18% year on year.

The second quarter is characterized by positive flows of NOK 5bn and strong returns strengthen by currency effects. The revenues in Q2 amounts to NOK 454mn, an increase of 20% compared to the same period last year.

- Our main objective is to create value for our clients. 1000 billion in AUM is in this context a milestone that we are very proud of and a sign of our clients continued trust in us. Sustainability is still a key driver as our clients continue to ask for investment solutions that align their portfolios with their overall climate ambitions or other key ESG concern such as nature related issues.

- An increased client interest in alternative investments has also contributed to the strong results. Clients increasingly recognize the need to be sustainable across all asset classes including Real Estate, Private Equity and Infrastructure. Creating value in this space is a key part of our strategy going forward, says Jan Erik Saugestad, CEO Storebrand Asset Management.

Business Highlights

• AuM passes the milestone of 1 000 bn and now amounts to NOK 1.037bn
• 18% YoY growth in AuM by end Q2
• 20% YoY growth in revenues
• First closing of Cubera Impact with Storebrand as cornerstone investor and final closing of Cubera PE III, oversubscribed on hard cap by EUR 150 million
• Storebrand mutual funds listed in Denmark pass 1bn
• Still rated number 1 in Sustainable Investments by Prospera , in Norway and Sweden.
  
  

Continued growth in the Nordics and beyond
In Denmark, following the registration of select key equity funds on NASDAQ and the opening of a local office in June 2020 we have seen a steady growth in assets across all segments. Institutional investors pension funds as well as cities and municipalities are to date the largest group of investors, but retail is growing rapidly.

We also continue to grow in Finland and Iceland where we have established strong relations with key institutions locally and made our funds are available via key distributors and local financial institutions. Our success is based on our ability to be a productive discussion partner for institutions looking to increase the sustainability of their investments.

We continue to pursue many UK opportunities and Storebrand Global ESG Plus now has formal approvals by the Irish authorities in place so it can be introduced as a CCF solution for clients, a milestone.

Fund raising in infrastructure ahead of expectations
Client interest in infrastructure continues to grow. Through partnership and captive capital, Storebrand Asset Management offer client's access to a large and diversified investment pool. Client interest has been great, and fund raising so far has been ahead of expectations with a total of EUR 700 mill. since launch in February. Infrastructure is a very attractive investment area providing both diversification benefits, good financial return as well as investment opportunities with strong sustainable impact that are highly in focus for our offering.  

Growing appetite for active value-based equities
SKAGEN had a strong second quarter. Investment performance benefitted from continued momentum in value stocks as clients adjust their portfolios for higher economic growth and rising interest rates. All equity funds generated positive absolute returns and all bar one are ahead of benchmark in 2021. This has seen strong demand from direct consumers, subscribing ahead of professional investors where interest in active value-based equities is also growing.

Digital transformation
As a modern multi boutique in asset management Storebrand has demonstrated the benefits of scale and consolidated and moved its entire core asset management platform to the "cloud". The migration of the technology platform is a key enabler for continued growth and future development of innovative services. The project has been completed over a 14-month period and has resulted in a fully automated infrastructure, improving quality, increasing efficiency, reducing risk, lowering costs and strengthening security.

People and recruitments
Storebrand Asset management works actively to develop the organization in order to realize the ambition of further growth. So far 17 new colleagues have been recruited this year, of which 70% are women. It is our fundamental belief that inclusion and diversity are crucial for our future success. We strive to have an inclusive, value-driven culture where employees feel valued, respected and involved irrespective of who they are, what they believe and where they come from.

Launch of TNFD
The Taskforce on Nature-related Financial Disclosures (TNFD) was formally launched in June. Its mission is to create a reporting framework to help organisations manage biodiversity risks and identify opportunities. Storebrand has been a member of the taskforce's Informal Working Group since start, a 74-strong team that began the work in 2020 to devise the practical recommendations for its scope and workplan.

- We are committed to continue supporting the taskforce in rebuilding the world's ecosystems. Degradation of natural capital through human activity has brought us to a tipping point. The risks are multiple, from declines in economic growth to the uncertain future of our species and we cannot continue to leave nature outside the economic system.

TNFD is aligned with the Finance for Biodiversity Pledge.

New phase of the pandemic
The disruptions marked by the past year are yet to be fully defined but many parts of the world have entered a new phase of the pandemic and can now start to plan for the future. The challenges that the pandemic have left us with are clear, but there have also been some silver linings.

- We all agree that we must ‘build back better’ calling for a greener, fairer and more sustainable transition of the world economy. The financial sector plays a vital role here but cannot operate in a vacuum. Investors, companies, governments, and civil society must all do their part. It is only when we come together that success becomes real. On climate action we win or lose together, Saugestad concludes.

Other Important initiatives Q2
Investors mobilize to support human rights in Myanmar
Where´s the beef - the critical need to reduce the level of greenhouse gases emitted by the global agricultural supply chain
Storebrand Asset Management signs the Finance for Biodiversity Pledge
The Nordic CEOs for a Sustainable Future, the Norwegian Finance Ministry, and the Oslo Stock Exchange Declare Support for the TCFD Recommendations
Storebrand Asset Management urges action on deforestation at Bunge AGM