Norway’s Storebrand Group has seen the AUM share of its fossil free fund range take 8.5% of AUM in the space of two years – a rate of growth that Jan Erik Saugestad, CEO of Storebrand Asset Management has called unprecedented.
“I have never seen a group of funds grow at this rate before. From initially being a niche product, it has become an obvious building block in many sustainable investment portfolios,” he said.
The AUM is equivalent to some $7.6bn (€6.54bn) out of total assets around $89bn (€76.6bn), and represents both growing customer demand as well as a strategy for Storebrand to shift its own assets towards lower carbon exposure.
“At Storebrand, the house has a view,” adds Saugestad.
“We invest in these funds to diversify our client’s climate risk through lowering their CO2 exposure. We also see an increased amount of clients with a specific low carbon investment strategy. The development is a clear signal that a true shift in sustainable investments is on its way and that our clients wish to further act upon their growing concern for climate change.”