Press release -
Storebrand Asset Management announces third quarter 2022 business update
Business highlights
- Net quarterly revenue of NOK 464 million
- AuM of NOK 1001 billion
- Net quarterly outflow of NOK 2 billion
- Net inflow of NOK 7 billion YTD
Storebrand Asset Management recognized net revenue of NOK 464 million for the third quarter of 2022. Overall, business in the quarter was impacted by geopolitical tensions, inflation, widening credit spreads and rising interest rates, which together are driving market turmoil and uncertainty.
In the quarter, we experienced outflows totalling NOK 2 billion, ending the period with NOK 1001 billion in Assets under Management (AuM), a decline of NOK 96 billion in 2022. This represents a decline of 9% in 2022. Cost has been NOK 322 million in the quarter.
“We observe that in this turbulent, less predictable market, clients are attracted to our ability to offer clients a diversified range of long-term investment strategies driven by sustainability." - Jan Erik Saugestad, CEO Storebrand Asset Management
Strengthened position across the Nordics
Across the Nordic markets, the company's experienced many solid market results and positive client feedback.
In Norway, we have experienced significant customer activity despite the challenging market and were able to expand our client service resources with the recruitment of two new senior client advisors.
In Sweden, our second largest market, Storebrand Fonder continued to have positive flows, with SEK 9.4 billion accumulated through the third quarter, bucking the market trend of negative flows. Our strength in ESG has been a positive factor to the inflows and was reflected in client interest across all asset classes. The high interest rate environment has also spurred client interest in fixed income products.
In Denmark, we also experienced positive flows, with AuM growing in Storebrand Funds and at our Skagen subsidiary, despite the negative sentiment in the equity market. Client feedback is positive, reflected in the annual Prospera client survey of investment fund distributors in Denmark, where in its first time being assessed, Storebrand Asset Management was ranked first in sustainable investments and second place overall. Storebrand Asset Management also ranks as the company that the managers surveyed would most recommend to others.
Storebrand's entry into the Icelandic market has so far resulted in mandates from several new clients, based on the strength of our investment process and sustainability credentials, with our ESG Plus and Solutions strategies particularly attractive.
Gateway to the Nordics
We are progressing steady in expanding the reach and quality of the multi-asset-class platform we offer providing clients ready access to, and local expertise in, Nordic markets.
Cubera Private Equity's diversified offerings are proving robust in current market condition. Cubera's upcoming secondary fund, the tenth so far, has attracted very strong interest. During the third quarter, Cubera has made several fund commitments in our Impact, Nordic and International funds, and has committed capital to 41 investments over the past twelve months. Both management and client resources have also been strengthened during the quarter, with Reidun Tysseland appointed as Managing Partner and Nick Palairet joining as Head of Fundraising, to spearhead Cubera's expansion beyond the Nordics.
Storebrand's Real Estate units, SPP Fastigheter AB of Sweden and Storebrand Eiendomsfond Norge KS in Norway, have been ranked Global Sector Leader 2022 in sustainability in their respective categories by GRESB (Global ESG Benchmark for real assets). Despite intensified competition in the sector, Storebrand continues to score well each year, maintaining its strong position.
Continued sustainability leadership
Storebrand's commitment to leadership in sustainable investment continues. During the quarter, we launched an innovative emerging markets ESG for the UK market, with the Lewisham Pension Fund providing seed capital.
We have been honoured with a wide range of positive feedback on sustainability. In our first participation in the annual Prospera client survey of investment fund distributors in Denmark, we were ranked first in sustainable investment.
With sustainable investment dependent on a positive policy environment, we have especially been active during this quarter in rallying collaborative voices of the investment community, to help ensure that the COP27 and COP15 conferences result in climate and nature-positive policies.
We continue to focus on our prioritised engagement themes for the 2021-23 period, with positive steps emerging from some engagements on emissions reduction and solid groundwork laid towards long-term living wage initiatives.
The latest instalment of our Sustainable Investment Review is also published today. Learn more in this edition and previous ones, on our website>>
Topics
Storebrand is a Nordic financial group, delivering increased security and financial wellness for people and companies. We offer sustainable solutions and encourage our customers to make good economic decisions for the future. Our purpose is clear: we create a brighter future.
Storebrand has about 40.000 corporate customers, 2 million individual customers and manages NOK 1 008 billion. The Group has its headquarters at Lysaker outside of Oslo, Norway. Storebrand (STB) is listed on Oslo Stock Exchange.
Visit us at www.storebrand.no
