26. March 2023
Gildi's assets at the end of 2022 amounted to ISK 913 billion
The net assets of Gildi Pension Fund at the end of 2022 totalled ISK 913 billion, down ISK 2.8 billion year on year. The net nominal return of the Mutual Insurance Division was negative by 2.2%, meaning that the net real return was -10.6%, according to the fund's annual accounts. This is among the details set out in Gildi's announcement on the fund's performance, published in Morgunblaðið and Fréttablaðið yesterday.
Net nominal and real return of Gildi's Mutual Insurance Division and private pension paths:
| Net nominal return | Net real return | |
|---|---|---|
| Mutual Insurance Division | -2.2% | -10.6% |
| Framtíðarsýn 1 | -5.8% | -13.9% |
| Framtíðarsýn 2 | -4.4% | -12.6% |
| Framtíðarsýn 3 | 9.1% | -0.2% |
Like other pension funds, Gildi is a long-term investor that focuses on returns over a longer horizon. Viewed this way, the Mutual Insurance Division's average real return over the last five years is 4.8%, the ten-year net real return is 5.1%, and the net real return over the last twenty years averages 4.3%.
A difficult year Market conditions were difficult in 2022 and few asset classes delivered a positive return. Foreign and domestic equities overall produced a negative return, with the exception of unlisted investments in equities, private equity funds, real estate funds and infrastructure funds. The fund's bond returns, meanwhile, suffered from the negative effects of rising interest rates and increased inflation. The strengthening of foreign currencies against the króna reduced the year's negative return.
About the fund Gildi is the largest pension fund in Iceland, with close to 264,000 fund members holding rights at the end of 2022. More than 7,500 employers paid premiums to Gildi on behalf of close to 57,600 fund members last year. The fund's pension payments in 2022 amounted to just over ISK 23.7 billion, up from ISK 21.0 billion in 2021. The fund's operating costs amounted to just over ISK 1.3 billion in 2022, up from close to ISK 1.2 billion the previous year.
Annual General Meeting on 27 April Gildi's performance will be reviewed in detail at the fund's annual meeting, to be held at 17:00 on Thursday 27 April at Hótel Natura in Reykjavík. The meeting will also be streamed on the fund's website. Further information on the agenda and arrangements for the meeting will be announced later.