Norges Bank Investment Management (NBIM), which manages the Government Pension Fund Global, is integrating its active ownership function with its active management teams, as part of a wider reorganisation of its governance and compliance area.

NBIM previously announced that its head of ownership and compliance, Carine Smith Ihenacho, is stepping down, and a review of the division has resulted in a new organisational structure.

The division currently comprises active ownership, compliance, operational risk and control, and legal and tax.

Active ownership, led by NBIM global head, Caroline Eriksen, will be incorporated into active strategies, which are managed by NBIM investment director, Daniel Balthasar. Active ownership includes NBIM’s teams working on shareholder engagement, voting and sustainability.

According to NBIM, bringing active ownership and active management together within a single department will enable closer coordination between its ownership activities and the portfolio managers, and more comprehensive monitoring of the companies in which the fund holds stakes.

The fund’s strategic ambition in this area to contribute to the investment objective through world-leading responsible management and to further strengthen shareholder engagement and voting remains unchanged.

Commenting on the change, NBIM CEO, Nicolai Tangen, said: “By bringing active ownership and active management together, we will have shorter decision-making lines and a more comprehensive approach to monitoring the companies we own.

"This will strengthen our ability to safeguard the fund’s long-term financial interests and to further develop our engagement with companies and our voting practices.”

Additionally, NBIM confirmed that policy work, including the fund’s positions and dialogue with standard setters, will become part of the communications and external relations department, led by NBIM director of communications and external relations, Marthe Skaar.

It said this change ensures a clear and consistent voice in dealings with external stakeholders.

Furthermore, the fund’s compliance and operational risk and control departments will be integrated under NBIM chief risk officer, Patrick du Plessis.

This brings together the functions responsible for monitoring and controlling risk within a single specialist unit and strengthens independent risk monitoring.

Meanwhile, legal and tax will be moved to the corporate affairs division under NBIM deputy CEO and chief of staff, Trond Grande.

The changes will come into effect on 1 January 2027.

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