AMWatch

Net inflows account for more than half of AUM increase at DNB AM

DNB Asset Management increased assets under management by 6.1 percent in the first quarter of 2021. Norway's second-largest asset manager reports increased sales of mutual funds savings agreements.

DNB's Headquarters in Bjørvika, Oslo. | Photo: PR/DNB

The asset management unit of Norway's by far largest bank reported a first-quarter increase in assets under management of 6.1 percent, or NOK 45bn (EUR 4.5bn), to total NOK 787bn (EUR 79bn), of which NOK 25.3bn (EUR 2.6bn) came from net inflows.

"DNB experienced an increase in sales of mutual fund savings agreements during the quarter, and assets under management continued to increase," DNB states in the Q1 report released on Thursday.

On Wednesday, Norway's largest asset manager, Storebrand, reported an increase of NOK 25bn (EUR 2.5bn) to NOK 987bn (EUR 98.8bn) in assets under management.

Compared to Q1 last year, DNB AM's assets under management rose by 29 percent.

Net inflows

During the first quarter, DNB Asset Management saw a total net inflow of NOK 25.3bn (EUR 2.6bn), with net inflows of NOK 9bn (EUR 910m) from retail customers and NOK 16.4bn from institutional clients.

Assets under management from retail clients increased by 11.4 percent – or NOK 16bn (EUR 1.6bn)  – to NOK 157bn (EUR 15.8bn).

AUM from institutional clients rose by 4.8 percent to NOK 630bn (EUR 63bn), of which NOK 304bn (EUR 30.6bn) stems from DNB's life insurance business, DNB Livsforsikring Group. The AUM from the external institutional products increased the most, namely by 7.6 percent to NOK 326bn (EUR 32.8bn) .

DNB reports that it is winning market shares in the Norwegian mutual fund market.

"The market share of mutual funds grew from 37.8 percent at the end of March 2020 to 40.5 percent at the end of February 2021," the banking group writes.

Higher profit

First-quarter profit rose to NOK 189m (EUR 19m) , up from NOK 161m (EUR 16.2m) in Q4 2020 and NOK 43m (EUR 4.3m) in Q1 2020. Total income rose to NOK 405m (EUR 40.8m) from NOK 399m (EUR 40m) in Q4, while operating expenses fell to NOK 153m (EUR 15.4m), down from NOK 194m (EUR 19.5m).

In Q1, DNB AM's profit made up 3.2 percent of the NOK 5.9bn (EUR 590m) profit for the DNB Group as a whole.

Stronger krone bites Storebrand's growth after robust performance in Q1, says AM unit's CEO 

DNB wants to win over clients with knowledge – starts with a "big bang"

Substantial growth at most of the big Nordic asset managers 

DNB WM expects retail inflows to stay at a high level for the years to come

DNB Asset Management's AUM boosted by retail inflow in Q4 

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