The pension fund of Norwegian hydro-electric power generation company, Hafflund, has brought the management of its equity portfolio in-house following dissatisfaction with the management by its insurer Storebrand.

We have established a financial de-partment within our own company and have transferred the funds from Storebrand to ourselves," says Oslo-based Esben Hanssen, who is managing the equity portfolio and who oversaw the move in conjunction with consultants Norske Liv Pensjonskasser.

The fund overall is worth Nkr200m ($26.2m) while the equity portfolio stands at the legal limit of 20% or Nkr40m.

Explaining the reasons for the move, Hanssen says: "We felt we were paying too much and we didn't think that Storebrand had the capacity to manage the fund in a better way than we would. Over time it is the investment in stocks that gives the greater value, so we have kept the stock management within the company and given the bond management to Storebrand."