New strategic partnerships and stronger focus in our internal asset management. These are some of the key components of our new Danske Bank Asset Management growth strategy that was unveiled today. The strategy focuses sharply on generating growth in AUM by further strengthening our product offering for clients and accelerating distribution.
The overall target is an increase in AUM from around DKK 770 billion (EUR 103 billion) at end-2023 to around DKK 1,100 billion (EUR 148 billion) by 2028.
It is a very ambitious goal, but also a realistic one. Thanks to a number of best-in-class investment products, we have an extremely strong platform in the Nordic region when it comes to product quality, including performance and sustainability. Christian Heiberg, Head of Danske Bank Asset Management.
Increased focus on our positions of strength
As part of our new strategy, we will concentrate our internal asset management on the areas where we enjoy a prominent Nordic or international position of strength and can create most value for our clients.
“First and foremost, we will focus intensively on portfolio solutions, alternative investments and our flagship strategies. This is where we see the greatest potential for growth in AUM over the coming years,” says Danske Bank Asset Management CIO Thomas Otbo.
He further elaborates on the core areas of our future internal asset management:
“We will maintain a strong focus on active management in our home markets – that is, our Nordic equities and fixed income flagship franchises – as well as our more sophisticated investment products, such as portfolio solutions, liquid and illiquid alternative investments, quantitative equity strategies and tailored index solutions for clients with specific sustainability preferences. To this should be added other selected equity and fixed income flagship strategies where we are best in class,” says Thomas Otbo.
New strategic collaborations
As another significant part of our new growth strategy, we have just partnered with two of the largest and most competent asset managers in the world – Goldman Sachs Asset Management and BlackRock. Going forward, they will be entrusted with the management of a number of equity and fixed income strategies outside the future focus areas of our internal asset management.
The purpose of the partnering is to strengthen the strategies further and create even more value for our clients – not least when it comes to our portfolio solutions of which many of the strategies are important components.
We regard Goldman Sachs Asset Management and BlackRock as some of the best asset managers in the world in respect of the strategies that they will be managing for us in future, and we expect that the collaborations will allow us to cement and expand our unique position in the Nordic region measured in terms of product quality.Thomas Otbo, CIO of Danske Bank Asset Management.
As part of the strategy, we will also strengthen our internal manager selection to ensure that the external management is always of the utmost quality for the benefit of our clients.
Implications of new partnerships for our clients
Our new strategic partnering with Goldman Sachs Asset Management and BlackRock will have no effect on prices, terms or conditions for the clients of our investment products. Furthermore, the products will continue to be subject to the same strong framework in relation to ESG and sustainability. The objective of the partnering is exclusively to ensure even higher future product quality.
This material has been prepared for information purposes only and does not constitute investment advice. Note that historical return and forecasts on future developments are not a reliable indicator of future return, which may be negative. Always consult with professional advisors on legal, tax, financial and other matters that may be relevant to assessing the suitability and appropriateness of an investment.
