Storebrand Asset Management announces Q1 2023 business update

Business highlights

• Net revenue of NOK 450 million
• Net inflow of NOK 18 billion
• AuM of NOK 1111 billion – all-time high

Storebrand Asset Management recognized net revenue of NOK 450 million for the first quarter of 2023. Overall, results in the quarter were impacted by positively trending markets and the weakening of the NOK against most currencies.

In the quarter, we experienced inflows totalling NOK 18 billion, ending the period with NOK 1111 billion in Assets under Management (AuM), an increase of NOK 91 billion in 2023.

"Our sustainability position and multi-boutique business model have been important to our growth and positive institutional inflows. In the current investment climate of persistently high interest and inflation rates, the importance of building a resilient portfolio with diversified assets is underlined." - Jan Erik Saugestad CEO Storebrand Asset Management.

Strong performance and high activity across markets
We are experiencing high levels interest in our fixed income offerings across the Nordics, given the new landscape for the asset class. In Norway, we won several new mandates, including a 1bn fixed income mandate and a mandate as an operational service provider.

The Swedish market is returning to business as usual, although institutional investors seem to be cautiously awaiting the effects of inflation and interest rate hikes. The distribution and retail segments seem more optimistic. Storebrand Fonder had a strong first quarter with a total net inflow of SEK 6.5 billion, the second-highest in the Swedish fund market, and was named Fund Company of the Year by Söderberg & Partners.

The Norwegian equity team continued to deliver strong returns for our clients, with all active mutual funds outperforming year-to-date. This follows on strong returns in recent years, for which the team was recognised in the Morningstar Awards for "Best active, Norwegian equity product" in March 2023.

In Denmark, our volume of professional clients continues to increase, driven by new institutional client inflows to our passive strategies. In general, we see increasing interest for our index-aware strategies, Cubera’s secondary private equity strategy and sustainable 'solutions strategies'.

Our Nordic Real Estate business, won several new mandates in the commercial and residential segments.

During the quarter, the Storebrand Infrastructure Fund invested in Germany's largest planned offshore wind farm, the 960 MW construction-ready He Dreiht project. This investment in renewable energy infrastructure, with projected stable long-term cash flows, represents the ongoing ambition of the fund.

Engaged on ESG issues
In the quarter, we remained highly active in engagement with companies on sustainability, with the majority of our activities being proactively planned and working in partnerships, for maximum leverage on the issues. In March, Storebrand jointly launched the Net Zero Engagement Initiative (NZEI), an ambitious new climate effort in which we are leading joint engagement with Nordic companies.

Following the recent board elections in the national Sustainable Investment Forums (SIFs) in Finland, Norway and Sweden, Storebrand Asset Management is now represented on the board in all three countries. The SIFs are important investment forums aimed at promoting sustainable investment practices, disseminating information, and engaging the community.

With the next SFDR milestone, we continue to see the need from clients for guidance around the regulation. We have also noted increased investor ambition to add new sustainability KPIs to their evaluation and reporting of strategies.

Within the alternative asset space, impact- and sustainability-focused investments are one of the fastest growing investor-pockets. Cubera Impact I has made four investments to date that are well-diversified across the Nordics, the EU and the US. The investments cover low-carbon technologies, sustainable agri-/aqua-culture and companies that improve social inclusion. A fifth transaction, currently in progress, focuses on decarbonization solutions.

Learn more about our work on sustainability in our latest Sustainable Investment Review>>

DISCLAIMER Historical returns are no guarantee of future returns. Future returns will depend, among other things, on market developments, the manager's skills, the fund's risk profile and management fees. The returns can be negative as a result of price losses. There is risk associated with investments in the fund due to market movements, developments in currency, interest rates, economic conditions, industry- and company-specific conditions. Before investing, customers are advised to familiarize themselves with the fund's key information and prospectus, which contains further information about the fund's characteristics and costs.