NBIM Merge Real Estate and Equity Investment Divisions
Norges Bank Investment Management (NBIM), which manages Norway’s $1.6 trillion sovereign wealth fund (SWF) Government Pension Fund Global, has announced integration of its business areas responsible for real assets and equity investments.
The adjustment aims to strengthen the management of both asset classes by bringing together people with complementary expertise.
“It will not affect the fund’s investment strategy across any of the asset classes. We will remain an active real estate investor and continue to buy assets when they are attractively priced and in-line with our strategy,” NBIM said.
The organisation adjustment will also bring NBIM’s energy investors together into a more complete team that covers both listed and unlisted renewable infrastructure opportunities in this sector. The ambition for this combined unit is to enable the bank to become a global leader in energy investing.
NBIM also said that Chief Investment Officer Real Assets, Mie Caroline Holstad, has decided to leave the fund. Holstad has been a vital part of building up NBIM’s real assets management for more than a decade.
Real assets were consolidated in one area under Holstad’s leadership in 2020, consisting of unlisted and listed real estate and unlisted infrastructure for renewable energy. Over the past four years, NBIM has increased its exposure to real estate and diversified the real estate portfolio. It has also we have built up a strong renewables team and have to date committed $4.48 billion in unlisted renewable infrastructure.
Strengthens Both Asset Classes
Holstad said that during this period, they had continuous dialogue regarding how to best organise real assets and how to best utilise the competence within real assets and the wider organisation. This adjustment will integrate real assets in a way that strengthens our management of both asset classes, she said.
According to her, as the fund further cements its energy expertise and ambition, pulling on all areas of active management under one umbrella will also benefit the other parts of real assets.
“I therefore firmly believe that the optimal platform for real assets going forward is in close partnership with the fund’s other active investment strategies. Hence, I have decided that my time here has come to an end. While not an easy decision, it is the right one,” she added.
NBIM CEO Nicolai Tangen said that Holstad did a tremendous job for the organisation. She started out as a young advisor 14 years ago and has proven her value all the way up to being a Chief in the fund’s leader group.
“The last four years she has managed one of the largest real estate portfolios in the world,” Tangen added.
The change will be effective as of 1 January 2025. The new unit will be renamed Active Strategies and will be led by the Co-Chief Investment Officers Equities, Daniel Balthasar and Pedro Furtado Reis, who are both London based. They will be responsible for all active investment in equities, credit and real assets.
In addition, the Asset Strategies area will be renamed Market Strategies to make a clearer distinction between our fundamental active and index enhancement strategies. This area will continue to be led by Malin Norberg.
