The board of the Icelandic General Pension Fund has approved the investment strategy of the pension fund for 2025, including increased investment in foreign equities and bonds.

Allocations to foreign specialised equity funds will be increased from 7 per cent to 8 per cent in the ‘Samtyggragsjóðir’ fund, from 4 per cent to 4.5 per cent in the ‘Ævisafn III’ fund, and from 9 per cent to 10 per cent in the ‘Ævisafn I’ fund.

The pension fund stated that this change was made with volatility stablilisation and higher expected returns in mind, with risk diversification considerations also accounted for amid increased consolidation in the listed foreign stock market.

Meanwhile, allocations to foreign bonds rose from 5 per cent to 6 per cent in the pension scheme’s Mutual Insurance Fund and Ævisafn II fund, and from 3.5 per cent to 4 per cent in Ævisafn I.

The General Pension Fund has been increasing its investments in foreign bonds in recent quarters, which the pension fund said was due to market conditions.

Its board has also approved ‘small changes’ to the investment strategy of mixed return methods, the Ævisafn I – III funds, and the mutual insurance fund, between years.

Furthermore, the proportions of individual asset classes in the collections’ policy have been changed and slight alterations to have been made to the criteria for the average life of bonds.

Changes are also being made to the Húsnædissafn's investment policy that aims to invest in a diversified portfolio of domestic bonds, both government bonds, covered bonds, municipal bonds, corporate bonds, and mortgage bonds, instead of aiming for investments mostly in mortgage bonds and government bonds.

In accordance with the changed policy, the name of the collection has been changed to Skuldabrefasafn.

“The General Pension Fund's policy on responsible investments and ownership policy are confirmed separately by the board and are accompanying documents with the investment policy,” the pension fund added.

“Insignificant changes are made to the policies between years.”

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