Gildi, the Icelandic pension fund, reported an investment income of almost ISK 120bn last year.

The annual report revealed that the nominal return on the fund's mutual insurance division amounted to 11.8 per cent for the year, which meant that the real return, considering inflation, was around 6.7 per cent.

The positive result comes after two years with poorer real returns, although the three years before were unusually high.

The report noted considerable fluctuations in the results from year to year, in parallel with fluctuations in the economy and financial markets, both in Iceland and abroad.

Gildi paid around ISK 34bn in pensions to fund members during 2024, but received around ISK 50bn in pension contributions.

Therefore, the fund's assets for pension payments increased from around ISK 992bn at the end of 2023 to around ISK 1,127bn at the end of 2024.

Meanwhile, the report highlighted that it was a year of structural change, including Davíður Rúdólfsson's first full year as CEO.

In parallel with the need to address special external projects affecting the fund's operations, such as Grindavík issues, ÍL Fund issues and others, various improvement projects were launched internally.

The CEO prepared an organisational change in operations, which ended with the board approving a new organisational chart last fall.

The main organisational change was the merger of the pension and private equity departments into a single pension department.

A new operations department was also created, which manages the fund's general operations and various support services, such as the loan and premium departments, communications and marketing, and quality and process issues.

The fund also initiated reforms in information technology, human resources, and risk management.

This was the first time the annual report had been published separately from the fund's annual accounts, allowing it to publish its yearly accounts about three weeks in advance.

The full annual report will be presented at Gildi's annual meeting, which will occur next Thursday, 10 April, at 5:00 PM, at Hotel Reykjavík Natura.

The meeting is open to all, and fund members are encouraged to attend and participate in discussions on fund matters.

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