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Robust performance and strong growth in AUM driven by significant flows into sustainable investment solutions and successful fund raising in alternatives

STOREBRAND ASSET MANAGEMENT – FULL YEAR – The COVID-19 pandemic has been challenging and had a significant impact on our personal life and the way we do business. Under these conditions, Storebrand Asset Management has proved its resilience and managed to safeguard the interest of clients and employees. Sustainable investments continue to perform strongly and attract new capital as governments, investors and consumers continue to steer capital towards solutions that offer robust returns while contributing to a green transition and a more sustainable development. The strong public capital markets and low bond yield continue to increase the appetite for alternative assets such as private equity and debt, real estate and infrastructure.

Published 10.02.2021 by Press Release

- The pandemic is still with us and it is difficult to fully grasp the impact on business and markets going forward. We recognize that the challenges our industry has faced due to the pandemic are negligible compared to the human, social and economic consequences others have experienced. We are grateful for this and at the same time also proud we have managed to deliver a year of strong growth and provided clients with significant value.

Jan Erik Saugestad
CEO Storebrand Asset Management

Following a weaker first half year impacted by COVID-19, the strong growth in AuM in Q3 and Q4 is due to both a rebound in the financial markets, and strong positive net flows in our main markets, Sweden and Norway. Storebrand Asset Management experienced an AuM-growth of approximately €9bn in the fourth quarter, whereof approximately €2bn in net inflows. Revenues in Q4 are €65 mn, an increase of 8% compared to the same period last year.

Jan Erik Saugestad, CEO Storebrand Asset Management

Business Highlights

  • Assets under management ("AUM") increased 9% to €92 billion (2019 €84 billion)
  • Majority of our investment strategies have continued to outperform global and regional markets
  • SPP Fonder €2,2 billion in net inflows in 2020, 28,5% of net flow in the market
  • Storebrand Funds with €1,7 billion in net inflows in 2020, 34% % of net flow in the market
  • Successful closing of Cubera IX of €525 million in 2020
  • Established a new JV in infrastructure with total commitments up to 45bn NOK
  • Breakthrough outside our home markets Norway and Sweden
  • Significant recognition of our sustainable solutions abroad and a large 400 mill GBP mandate in the UK

The trend is our friend

It is evident that the trend toward sustainable investments has grown stronger. Flows into sustainable funds has increased, helped by a heightened interest in ESG issues in general according to Morningstar. The disruption caused by the pandemic has highlighted the importance of building sustainable and resilient business models based on multi-stakeholder considerations.

- The trend has been clear for years and is now accelerating fast. With this in mind, we are confident that our funds will continue to interest clients with an ambition to invest in a more sustainable manner. Our sustainable funds have over the years built a strong track record and gained a lot of traction in especially the Nordics but also across Europe as awareness of the financial value of sustainability has increased.

Increasing demand for fossil free funds and investments in solutions

The total AUM in our fossil free funds now amounts to €33bn, an increase from €27bn last year. Our portion of assets investments invested in solutions has also increased from 6,6% in 2019 to 9,6% in 2020.

The growth is a result of strong customer demand as clients continue to ask for investment solutions that align their capital with their overall climate commitments. Institutional investors, pension funds as well as cities and municipalities are to date the largest group of investors in fossil free funds but there is also a growing demand from private investors.

Scaling up action on biodiversity - "We need to bring back the "eco" in economy

There is a strong business case for scaling up action on biodiversity. As an investor, it is important to understand business impacts and dependencies on biodiversity and translate these into risks. Acknowledging and measuring these dependencies and impacts on biodiversity can help businesses and financial organizations manage and prevent biodiversity-related risks, while harnessing new business opportunities. Ecosystem services provided by biodiversity such as crop pollination and water purification, are worth an estimated USD 125-140 trillion (US dollars) per year, i.e. more than one and a half times the size of global GDP according to OECD.

[articleQuote quote="- I strongly believe the need to treat biodiversity with the same level of urgency and importance as climate change. Without biodiversity, there is no economy. We need to bring back the "eco" in economy, Mr Saugestad concludes."/]

Launches & Clients

Strengthened climate policy to accelerate green transition

Storebrand Asset Management launches a sustainable Nordic Real Estate Fund

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

Storebrand wins £400 million climate mandate from East Sussex Pension Fund

Other Highlights

Storebrand Asset Management appoints Kamil Zabielski as Head of Sustainable Investments

Storebrand signs the United Nations-backed Sustainable Blue Economy Finance Principles

Storebrand included in the Dow Jones Sustainability Index

Supporting the blue economy

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