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Institutional flow drives Storebrand's AUM close to NOK 1trn mark

In the third quarter, Storebrand saw assets under management grow partly driven by its external mandates from institutional and retail investors. The group's AUM has more than doubled over the past eight years.

Photo: Storebrand/PR

The Norwegian pension and insurance group Storebrand saw its AUM increase by NOK 40.4bn (EUR 3.69bn) to NOK 921bn (EUR 84.18bn) in the third quarter.

This represents a quarterly increase of 4.6 percent – and 17.1 percent compared to last year.

This growth in managed assets is driven by market returns and net flows from institutional investors and pensions customers, according to the company's Q3 result, released Wednesday morning.

"Over the past 8 years, assets under management have more than doubled to NOK 921bn. In addition to managing internal pension funds, Storebrand is growing its external mandates from institutional and retail investors," Storebrand writes and describes its asset management platform as competitive and scalable for further growth.

"With the acquisition of Skagen, Storebrand is a top three mutual fund provider in Norway and with the acquisition of Cubera (private equity company, ed.), Storebrand has one of the strongest offerings of alternative assets in the Nordic Region. Storebrand also has a strong track record with ESG-enhanced mutual funds and aims to increase the distribution in the European fund market," the company writes.

Storebrand's Savings segment reported a profit of NOK 394m (EUR 36.01m) for the quarter, a decrease from NOK 396m (EUR 36.19m) compared to Q2. Besides asset management, Savings is comprised of defined contribution pensions in Norway and Sweden as well as retail banking products.

Fee and administration income for the segment rose to NOK 1,038m (EUR 94.87m) from NOK 974m (EUR 89.02m) in Q2.

New climate policy

During the third quarter, Storebrand launched a wide-ranging climate policy for investments to quicken the green transition.

"With this investment policy we further improve our position as a sustainable asset manager contributing to reduced carbon emissions – leading to reduced climate risk and securing long term returns. The policy strengthens our methods, including increased investments in solutions, active ownership and divestments, says Storebrand Group CEO Odd Arild Grefstad in the statement on the Q3 report.

As a consequence of the climate policy, Storebrand has divested form oil supermajors Exxon Mobil Corp. and Chevron Corp. and is accelerating a full exit from coal.

Earlier this year, Storebrand Asset Management initiated a dialog with Brazil heading a group of 29 investors to to stop the rapid deforestation of Brazil's Amazon rainforest.

Storebrand, however, recently lost its long-term head of sustainable investments Matthew Smith, who decided to leave for KPMG in Norway after 12 years at Storebrand.

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