Norges Bank Investment Management (NBIM) has announced plans to merge its real assets and equities units to create a new Active Strategies division.

The plans will come into effect from 1 January 2025 and will see the exit of NBIM CIO real assets, Mie Caroline Holstad, who said that although the decision was not easy, it is “the right one”.

The decision aims to strengthen the management of both asset classes by bringing together people with complementary expertise, NBIM said. It will not affect the fund’s investment strategy across any of the asset classes and the fund will remain an active real estate investor.

In addition, the integration of the two units will bring NBIM’s energy investors together into a team that covers both listed and unlisted renewable infrastructure opportunities in this sector. NBIM hopes this will enable to become a global leader in energy investing.

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 its real estate portfolio. In addition, it has built up a strong renewables team and has to date committed NOK 49.5bn in unlisted renewable infrastructure.

“During this period, we have 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,” Holstad said.

“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. I will miss my wonderful colleagues and most of all the people in real assets.”

NBIM CEO, Nicolai Tangen, said he respected Holstad’s decision to leave and said she has done a “tremendous job for the organisation”.

Its Active Strategies unit 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 investments 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.

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