Storebrand Asset Management announces third quarter 2021 results

Successful fundraising and strong performance, leading to all-time high in Assets under Management and profits. Active in engagement, ahead of vital COP26 and COP15 conferences.

BUSINESS HIGHLIGHTS

• Record high level of NOK 1,058bn in Assets under management (AuM)
• 15% YoY growth in AuM by end of Q3 2021
• 16% YoY growth in revenues in Q3
• Closed acquisition of Capital Investment and strengthened position as gateway to the Nordics for alternative investments
• Secured additional international investors in our sustainable fund solutions

Continued growth in Assets under Management
Storebrand Asset Management's strong growth in AuM continued, with an increase of NOK 21 billion during the third quarter of 2021. Total Assets under Management amounted to NOK 1,058 billion as of the end of the quarter, with growth of NOK 138 billion (15%) year-on-year. Revenues recorded during in the quarter amounted to NOK 484 million, representing a year-on-year increase of 16% for the period. Year to date revenues are 407 million higher than same period last year.

"We are very pleased with the result and the fact that our clients continue their commitment to their relationship with us, and our portfolio of diversified investment solutions. We still see increased client interest in alternative investments and are therefore delighted to welcome Capital Investment to the group", says Jan Erik Saugestad, CEO Storebrand Asset Management.

Strengthened position in alternatives
The acquisition of the Danish real estate manager and investment advisory Capital Investment was completed during the third quarter.

The acquisition of Capital Investment accelerates Storebrand Asset Management's growth strategy within Nordic alternative assets and real estate in particular, adding more diverse investment capabilities and a complementary network for deal sourcing.

New investors in our tax-transparent sustainable strategies targeting climate risk
As of Q3 2021 Storebrand Asset Management, in partnership with AMX, has launched a tax-transparent sustainable strategy that targets climate risk. The goal is to provide better outcomes for pension funds across the EMEA (Europe, Middle East, and Africa) area.

AMX Storebrand Global ESG Plus is a fossil-free equity strategy that aims for long-term alignment with the Paris Agreement goals and demonstrates lower carbon risk with better climate solutions and ESG scores than the global index.

The tax-transparent structure of the fund allows Storebrand to offer its industry-leading sustainable strategy to UK pension funds and other large European investors while assuring tax reclaims are being correctly administered in the different countries they are invested.

"By using the AMX Common Contractual Fund, we can meet the demands of pension schemes in the UK and beyond, for offerings that address the climate emergency and access global equity strategies in the most tax-efficient manner. AMX provides the fund structure, the management company and manage the operational set-up. This fund represents an important step for Storebrand's international development", Jan Erik Saugestad comments.

The AMX Storebrand Global ESG Plus fund has already attracted investors, including the East Sussex Pension Fund (ESPF), a local UK government pension scheme. The fund has also attracted significant additional commitments from institutions that are in the process of funding.

New Solutions Fund: Storebrand Smart Cities
Storebrand Asset Management has launched a new addition to its "Solutions" family of funds: Storebrand Smart Cities. The new fund invests in companies whose products and services contribute to three central themes that are the foundation of success for sustainable smart cities: urban planning, mobility and water management. Storebrand Smart Cities is currently available in Norwayand Sweden.

Storebrand in joint call for climate policy changes ahead of COP26
With the 2021 UN Climate Change Conference (COP26) set to take place in Glasgow at the end of the month, time is running out for countries to commit to more ambitious and effective policies before crucial climate negotiations begin at the event.

Ahead of the meeting, Storebrand Asset Management signed the 2021 Global Investor Statement to Governments on the Climate Crisis. The declaration, signed by 587 investors responsible for a total of US$46 trillion in AuM, calls on governments to raise their climate ambitions and implement robust policies to address the climate crisis.

"To deploy the trillions needed to tackle the climate crisis, government policies must change. They need to raise their climate ambitions and implement meaningful policies that support a just transition to net-zero emissions. The climate crisis is a financial risk. Addressing it will help stimulate economic prosperity. We wish to invest more in climate solutions, but often a lack of the necessary enabling policies remains a barrier", Saugestad stresses.

"We encourage all governments to strengthen their climate commitments and implement domestic policies to limit global warming. The UN Climate Conference (COP26) is a key moment for global climate action."

Learn more about the 2021GIS>>

Storebrand joins alliance aiming for biodiversity policies ahead of COP15
Storebrand Asset Management is one of 78 financial institutions that are urging world governments to halt and reverse biodiversity loss. The alliance, representing more than $10 trillion in assets, is calling for a realignment to a nature-based economy that could generate $10 trillion of business opportunities annually while supporting nearly 400 million jobs by 2030. Read more about the Finance for Biodiversity Pledge>>

During the quarter, Storebrand Asset Management published an opinion piece on Why we need deforestation-free portfolios by 2025>>

Storebrand in an advisory role as part of the TNFD Forum
The Taskforce on Nature-related Financial Disclosures (TNFD) has formally been launched. Storebrand Asset Management participated in the preparatory work and now moves into an advisory role as part of the TNFD Forum.

"We continue our work through the TNFD Forum, a consultative body of institutions that support the vision and mission of the Taskforce on Nature-related Financial Disclosures. Managing nature-related risks is the next frontier for sustainable finance and business, says Jan Erik Saugestad.

The consultative grouping of institutional supporters will make global, cross-sector expertise available to support the work of the Taskforce on Nature-related Financial Disclosures (TNFD).

For more information about our work on sustainable investments and active ownership, read our recent Q3 report, Sustainability Insight, attached document below. 

Disclaimer
A fund having performed well in the past is no guarantee for future returns. Other factors with an impact on how a fund may perform in the future include market developments, the fund manager's performance, the fund's risk profile, and management fees. When the shares a fund is invested in decline in value, it may lead to negative returns.