Iceland: Pensions and Investment News and Analysis
Iceland’s small but well-formed pension sector is one of the top scoring systems internationally, regularly taking the top slots in the Mercer CFA Institute Global Pension Index study. The country’s DC pension funds invest just under 40% of assets abroad. The current foreign holdings limit of 50% is set to be raised to 65% by 2036. The system is not without controversy – a recent contentious issue has been the liquidation of the government’s Housing Finance Fund without compensation for bondholders, which were mainly pension funds. A green paper on pensions was expected towards the end of 2024 – this should set the terms for a discussion on the future of the system.
Pension Funds in the Nordic region - Country Report
Nordic Region Report 2024: Denmark’s government urges pension funds to support defence
Danish schemes embrace defence – as long as ESG criteria and international conventions are adhered to
TOP ICELANDIC PENSION FUNDS 2024
Pension fund/entity | Assets (€’000)
- Lífeyrissjóður starfsmanna ríkisins | 9,339,640
- Lífeyrissjóður verslunarmanna | 8,557,521
- Gildi lífeyrissjóður | 6,592,618
- Birta lífeyrissjóður | 4,145,973
- Frjálsi lífeyrissjóðurinn | 3,020,898
©IPE Research; View the Top 1000 European Pensions Funds 2024 for a comprehensive market overview
Iceland’s LV hails Supreme Court ruling liability increase was legal
Almenni Pension Fund calls the ruling ‘a precedent-setting decision for other pension funds’
Key benefit of Iceland’s additional pension extended ahead of election
Almenni board member says government would need to provide clear legislation in order for auto-enrolment of additional pension to work
Iceland’s pension funds reject idea of subjecting them to bank rules
Central bank says given expected growth of pension funds, they should have rich opportunities for investing in diverse assets at home and abroad
Icelandic pension funds call for auto-enrolment of additional pension
Leaders at Frjalsi and Almenni pension funds argue participation in the 25-year-old scheme should be boosted by employers signing staff up as the default
Nordic FSA chiefs urge EU regulators to simplify financial rulebook
Simpler rules should be enforced by ‘risk-based supervision with strong discretionary tools’, Nordic watchdogs tell EIOPA, ESMA, EBA heads
TOP MANAGERS: NORDIC REGION INSTITUTIONAL ASSETS
Company | Assets (€m)
- SEB | 65,000*
- BlackRock | 61,541
- DNB Asset Management | 53,712**
- Nordea Asset Management | 52,442
- Storebrand Asset Management | 35,386***
- State Street Global Advisors | 29,768
- Nykredit Asset Management | 26,163
- Northern Trust Asset Management | 22,607
- Morgan Stanley Investment Management | 8,936*
- Amundi | 8,344
As at 30.9.3.23, *30.16.23, **15.11.23, ***10.6.22
©IPE Research; Sign up to IPE Profesional to see all the data in the latest country report
IPE BEST PENSION FUND IN THE NORDIC REGION AWARD WINNERS
Nordic Region
- 2023 - The Swedish Fund Selection Agency
Denmark
- 2022 - Industriens Pension
- 2021 - PensionDanmark
- 2020 - PensionDanmark
- 2019 - ATP | PensionDanmark
Norway
- 2022 - KLP
Sweden
- 2022 - Alecta pension insurance, mutual
- 2021 - Fjärde AP-fonden (AP4)
- 2020 - Fjärde AP-fonden (AP4)
- 2019 - Swedish Pensions Agency
IPE Nordic Briefing: Norway’s SWF calls for lift of general freeze on Russian assets
Plus: Clarity for Icelandic pension funds on legal situation around provisions for changed life expectancy; Sweden’s financial watchdog on increased pension transfers
Iceland’s LV hails Supreme Court ruling liability increase was legal
Almenni Pension Fund calls the ruling ‘a precedent-setting decision for other pension funds’
Key benefit of Iceland’s additional pension extended ahead of election
Almenni board member says government would need to provide clear legislation in order for auto-enrolment of additional pension to work
IPE Nordic Briefing: Iceland preps review of national pensions sytem
Plus: Iceland schemes reject banking rules; Sweden’s watchdog warns of risks for consumers on pension transfers
Iceland’s pension funds reject idea of subjecting them to bank rules
Central bank says given expected growth of pension funds, they should have rich opportunities for investing in diverse assets at home and abroad
Icelandic pension funds call for auto-enrolment of additional pension
Leaders at Frjalsi and Almenni pension funds argue participation in the 25-year-old scheme should be boosted by employers signing staff up as the default
Nordic FSA chiefs urge EU regulators to simplify financial rulebook
Simpler rules should be enforced by ‘risk-based supervision with strong discretionary tools’, Nordic watchdogs tell EIOPA, ESMA, EBA heads
Netherlands retains top spot in Mercer pension ranking
Top three countries retain places despite slightly lower ranking compared with 2023 figures
Iceland pensions lobby calls uncertainty over actuarial opinions ‘intolerable’
At LL’s AGM, pension funds discuss issues facing the sector, including prospect that reform plans will get going this year, after delay
Iceland’s Almenni sees Q1 global equity returns boosted by krona weakness
Pension fund reports local currency slide almost doubled foreign equity returns, while most domestic stock prices fell in first quarter
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