Collaborative Fund Conversations Carine Smith Ihenacho: Managing $2 trillion for Norway
8 snips
May 28, 2025 Carine Smith Ihenacho serves as the Chief Governance and Compliance Officer at Norges Bank Investment Management, overseeing nearly $2 trillion for Norway's sovereign wealth fund. In their conversation, she delves into the balance between long-term investment strategies and the pressures of short-term performance. Carine highlights the critical importance of sustainability in investment decisions and discusses the challenges of influencing corporate behavior towards net zero emissions. She also examines the evolving dynamics of ESG investment, advocating for a financial perspective on sustainability.
AI Snips
Chapters
Transcript
Episode notes
Multi-Generational Investment Horizon
- Norges Bank Investment Management invests with a multi-generational horizon, aiming to fund Norway's welfare state long-term.
- Their strategy includes broad investments and active engagement to improve companies for sustainable value creation.
Align Incentives for Long-Term
- Patiently accept short-term underperformance if backed by confident long-term strategies.
- Extend evaluation periods for portfolio managers to align incentives with long-term investment goals.
Balancing Passive and Active Management
- The fund balances index investing with active management to create alpha despite its vast size.
- It invests across four asset classes, cautiously evaluating private equity due to political and transparency concerns.