Gildi, Iceland's largest pension fund, has reported a positive investment performance for 2025, despite a volatile market environment, with all of its investment options delivering gains over the year.

According to its latest financial results, the fund posted a net nominal return of 7.1 per cent in its mutual insurance division, with a real return of 3.3 per cent.

The fund’s net assets increased to ISK 1,225,144m at the end of 2025, up by ISK 98,491m year-on-year, while total investment income reached ISK 81,413m.

Premiums totalled ISK 56,307m, and pension payments amounted to ISK 37,530m.

Membership also remained strong, with around 286,000 fund members.

Over the longer term, the mutual insurance division delivered a 10-year average real return of 3.8 per cent and a 30-year real return of 4.0 per cent.

Within the fund, net assets in the mutual insurance division stood at ISK 1,213,632m, increasing by ISK 97,076m over the year.

However, its actuarial position weakened slightly to -1.8 per cent at the end of 2025, compared to -1.2 per cent a year earlier.

Meanwhile, the private equity division reported net assets of ISK 9,721m, while the specified private equity division held ISK 1,790m.

The fund said 2025 was a volatile year for financial markets, with returns significantly affected by global political unrest.

Indeed, net investment income fell from ISK 119,873m in 2024 to ISK 81,413m in 2025.

It also noted that the strengthening of the Icelandic króna against the US dollar weighed on returns from foreign assets, although most asset classes performed well in local currency terms.

Domestic and foreign bonds were the strongest performers, followed by listed domestic equities.

Overall, Gildi Pension Fund remained the largest pension fund in Iceland, with more than 285,000 members.

During 2025, over 8,600 employers paid contributions on behalf of more than 59,000 members.

Pension payments increased to ISK 37,180m, up from ISK 34,536m in the previous year, while operating expenses rose slightly to ISK 1,700m.

The fund’s expense ratio improved to 0.14 per cent, down from 0.15 per cent in 2024.

The fund’s annual meeting is scheduled for 21 April 2026 at the Reykjavík Grand Hotel, where its 2025 performance will be reviewed.

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