Norges Bank Investment Management, which manages the Government Pension Fund Global, the world’s largest sovereign wealth fund with roughly $1.74 trillion in assets under management, announced Monday that it will combine the units that manage the fund’s real assets and equity investments. According to the state-run management company, the move will strengthen the management of both asset classes by “bringing together people with complementary expertise.”
The consolidation of the two units and Holstad’s departure are both effective on January 1, 2025. The combined unit will be renamed active strategies and will be led by Daniel Balthasar and Pedro Furtado Reis, co-CIOs of equities, based in London.
The move does not affect the manager’s investment strategies, according to the announcement.
“We will remain an active real estate investor and continue to buy assets when they are attractively priced and in-line with our strategy,” a press release stated.
In addition, Mie Caroline Holstad, CIO of real assets, will leave NBIM after 14 years at the firm, the last four spent as CIO of real assets. Previously, Holstad’s titles included global head of real estate operations and chief administrative officer of real estate.
“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,” Holstad said in a statement. “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.”
Under Holstad’s leadership, real assets were consolidated into one area, which includes unlisted and listed real estate and unlisted infrastructure and renewable energy investments, according to NBIM’s announcement.
“Mie has done a tremendous job for the organization. She started out as a young adviser 14 years ago and has proven her value all the way up to being a chief in the fund’s leader group,” said Nicolai Tangen, NBIM’s CEO, in a statement. “The last four years, she has managed one of the largest real estate portfolios in the world. She is a leader that is loved by people, especially her colleagues. I respect her decision to leave, but we sure will miss her and know that she has a great career ahead of her.”
The manager allocates 72% of the fund’s portfolio—about $1.16 trillion—to equities. NBIM’s real estate exposure is 1.7% of the total portfolio, or $27.94 billion. Renewable energy infrastructure, which includes the fund’s handful of offshore wind investments, equal to 0.1% of the fund, or $1.8 billion. Fixed income accounts for 26.1% of the fund, or $421.87 billion.
NBIM has no allocation to private equity. While the manager has consistently requested permission to expand its investments in the private markets, it needs permission from the government to do so, and it has declined NBIM’s request multiple times.
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Tags: Mie Caroline Holstad, NBIM, Nicolai Tangen, Norges Bank Investment Management