Storebrand Asset Management Q1 2025 business update

Business Highlights

• Net Q1 revenue of NOK 747 million
• Net Q1 inflow of NOK 3 billion
• Negative market returns resulting in a decline in AuM of NOK 27 billion

The first quarter of 2025 was marked by significant levels of market turmoil, which contributed to a negative effect on AUM. Storebrand Asset Management’s AuM declined by NOK 27 billion, ending the quarter at NOK 1 442 billion.

"The quarter has undoubtedly been marked by turbulence, and we expect the landscape going forward to be more volatile than in previous years. However, we remain cautiously optimistic that some degree of stabilization will return in the financial markets, making a steady, long-term perspective more important than ever.

In this environment, our multi-boutique model continues to be a strength—enabling us to stay responsive to shifting market dynamics and our clients’ evolving needs." - Jan Erik Saugestad, CEO, Storebrand Asset Management

Partnering with Clients to navigate market volatility
The first quarter presented notable challenges, amid ongoing geopolitical uncertainty and market volatility—particularly for conventional investment products. In response, many investors took a more cautious stance, reallocating portfolios to mitigate risk. The same client sentiment was noted across all markets.

Under these conditions, we were able to respond to clients' needs, especially around customized asset allocation and multi-asset strategies. As markets are anticipated to gradually stabilize, we expect clients’ risk appetite to recover, albeit at a slower pace.

Our SICAV publicly traded open-end investment fund product continues to perform strongly across distribution channels. Meanwhile, demand for sustainable passive investment strategies remains robust, further fuelled by the retreat of some U.S. competitors from major global sustainability initiatives. Our commitment to sustainability continues to resonate with client values and priorities.

Investor interest for alternative investments in general remained steady throughout the quarter, underscoring the growing demand for diversification. We expect clients to seek out these opportunities as we move into the second quarter.

New sustainable infrastructure investments
During the quarter, Storebrand Infrastructure Fund and AIP signed two new investments in sustainable infrastructure: the Pine Forest solar photovoltaic (PV) and battery energy storage system ("BESS") project in Texas; and the independent power producer, Silicon Ranch, which operates across the US and Canada. The investments build on our strategy to increase investments in the sustainable infrastructure asset class, combining a focus on clean power at scale with strong, risk-adjusted return.

We continue to see a strong pipeline of sustainable infrastructure opportunities, underpinned by the long-term demand, growth and structural trends that are driving the energy transition.

Strong deal flow in private equity secondary markets
So far, we see signs that the progress made in 2024 in returning to normal private equity-backed M&A transaction levels is somewhat subdued by heightened geopolitical uncertainty.

There is still some capital scarcity in the market, as many investors await distributions from existing portfolios which have yet to pick up. This situation continues to create opportunities for Cubera’s investment platform, with strong deal flow in the secondary market, growing co-investment deal flow and more “seasoned primary” opportunities.

Real Estate transactions attract high interest from investors
In the real estate segment, our investor dialogues are progressing, and investors seem keen on entering into transactions.

Our Nordic fund, SNRE I, which is 55% invested, is actively exploring investment opportunities. Furthermore, we are in the planning phase for our next fund, which also will have a comprehensive Nordic mandate.

Our Norwegian Fund, SEN KS has acceptance for an acquisition of an office property valued over 1 billion NOK in Oslo, pending completion of the due diligence process.

Our performance on tenant satisfaction in Norway was affirmed during the quarter, as our annual tenant survey showed that 98% of our tenants recommend Storebrand Real Estate as a landlord.

Steadfast commitment to sustainability
Following more than a decade of powerful growth and mainstream acceptance, sustainable investing is currently facing some resistance, driven partly by political and cultural factors mainly from the US. Here in Europe, there is also an ongoing effort to streamline EU sustainable finance regulations, which we support but emphasize that it is critical to preserve the principles, aims and core substance of the regulations. Overall, we stand firm in our view that investing sustainably creates the best long-term value for our clients.

World's first commercial green bond fund marks ten years
During the quarter, we celebrated the anniversary of the launch of the world's first commercial green bond fund, Storebrand Green Bond fund, building on the World Bank’s issuance of the first-ever green bond in 2008. Since then, the market for green bonds has mushroomed, with more than US $1 trillion of sustainable bonds now being issued annually. In Sweden, Storebrand Green Bond is still the largest green bond fund with over SEK 10 billion in assets under management. The fund finances a variety of sustainable projects such as energy-efficient housing, sustainable waste management, train connections and bike lanes.

For more insights on our work on sustainability read our latest installment of the Sustainable Investment Review>>

NOTE Historical returns are no guarantee of future performance. Money invested in funds can both increase and decrease in value, and it is not certain that you will get back the entire invested amount. Fact sheets and information brochures can be found on our website.