Q1 - Fastest growing Asset Manager in the Nordics

The strong growth in Assets under Management from last year continues and Storebrand Asset Management enters 2021 with an increase of NOK 25bn in the first quarter. Total AuM now amounts to NOK 987bn, +19% year on year.

Q1 is characterized by strong positive net flows of NOK 24bn, where underlying returns were offset by currency effects. Revenues in Q1 amounts to NOK 446mn, an increase of 12% compared to the same period last year.

- We are very pleased with the first quarter. Sustainability is still a strong driver for growth as well as an increased interest in alternative investment solutions such as Real Estate, Private Equity, Private Debt and Infrastructure, says Jan Erik Saugestad, CEO Storebrand Asset Management.

Business Highlights

• Fastest growing asset manager in the Nordics last year according to data provided by AMWatch.
• 19% YoY growth in AUM by end Q1. Current AuM amounts to NOK 987bn (EUR 99bn), NOK +158bn YoY.
• The total AuM in fossil free funds amounts to NOK 375 billion (273 billion per Q1 2020)
• Our portion of assets invested in solutions companies has increased from NOK 9,7 billions Q1 2020 to NOK 25,6 billions in Q1 2021.
• Storebrand Asset Management awarded, ”Best Fund House: Overall (in Sweden)” by Morningstar.
• Escalating interest in sustainable alternative investment solutions such as Real Estate, Private Equity, Private Debt and Infrastructure.

Sustainable Finance Disclosures Regulation in place
Following three years of preparation, the EU Sustainable Finance Disclosures Regulation (SFDR) came into effect this first quarter. The main aim of the regulation is to promote sustainable investments, increase transparency and avoid greenwashing. As of Q1 2021 69% of Storebrand Asset Management's AUM is classified as article 8 or 9 according to the SFDR (including the Boutiques SPP Funds, Delphi Funds and SKAGEN Funds).

- We have been positive to the regulation from the start and are confident that it will help end investors evaluate which investors truly integrate sustainability in their processes. In this first phase of classification exercise, asset managers may have taken different approaches based on their interpretation of the regulation. It is likely we will see different measures in order to position even more strategies in line with the portfolio characteristics required in for category 8 or 9 funds. We also expect greater regulatory scrutiny to follow the current self- assessment.

Fastest growing Asset Manager in the Nordics
The strong trend for sustainable funds continues across Europe and the number of funds have grown more than twice as fast as other funds the last five years. This concerns both completely new funds, and the fact that sustainability criteria's have been added for existing funds. Sustainable funds have also in general performed better, and at a lower average fee*.

- The size of the capital invested in sustainable funds has increased sharply over the last five years and we see the same trend in our own inflows. Last year we were the fastest growing asset manager in the Nordics as our assets under management grew by 15.7 percent very much due to our focus on sustainability.

- As clients seek diversification the interest in the alternative investment space such as Real Estate, Private Equity, Private Debt and Infrastructure continue to evolve. Our clients also increasingly demand that their assets are managed sustainably across all asset classes, a space where we are aiming to maintain leadership.

Further expansion into sustainable infrastructure
Storebrand Asset Management has invested in Infranode II and becomes a strategic co-investment partner to Infranode to unlock investment opportunities pursuing the ambition to further expand into infrastructure. This complements our existing partnership with AIP, PKA and Pensam well.

-Infranode is an experienced player with a strong track record. They have a likeminded focus on investment targets, sustainability, and share our ambition to make an impact. The collaboration with Infranode enables us to expand our offering further and gives our clients access to an even more diversified investment pool through co-investment opportunities.

- The Nordic way of sustainable investing is recognized globally, and we have a long tradition of collaboration with other investors. We believe partnerships are key to make progress on sustainable issues.

Raising the bar - Storebrand, PKA and PenSam commit to a new climate and infrastructure fund of up to NOK 45 billion

Re-enforced commitment to net zero
End of March Storebrand Asset Management along with 42 new investor signed the Net Zero Asset Managers Alliance initiative. The group of Asset Managers will work in collaboration with clients to achieve 2030 emissions reduction targets and reach net zero by 2050 or sooner. The initiative has a total of 73 global asset manager signatories, representing $32 trillion in assets under management, representing more than a third (36%) of the total assets under management across the globe.

- Our commitment to become Net Zero by 2050 dates back to 2019, and we have re-enforced our commitment by joining the Net Zero Asset Managers Alliance. There is a lot we can do on our own in accelerating the green transition, but we are much more powerful in alliances. It is when we team up with other investors, asset managers, companies', regulators and governments that we are most successful. On climate action, we win or lose together, Saugestad concludes.

Launches & Key Recruitments

• Storebrand Asset Management launches a sustainable Nordic Real Estate Fund
• Kamil Zabielski appointed Head of Sustainable Investments

*Report from Efama (European Fund and Asset Management Association) ESG-investing in the Ucits market – A powerful and inexorable trend”