7. March 2025
Good returns for Gildi in 2024
- Net assets: ISK 1,126,653 million
- Investment income: ISK 119,873 million
- Premiums: ISK 51,073 million
- Pension payments: ISK 34,536 million
- Number of members: 279,000
Results for Gildi Pension Fund for 2024 are now available, showing that the year's performance was highly favourable for members. The mutual insurance division's net nominal return was 11.8%, and the real return was 6.7%. Furthermore, the return on all of the fund's investment paths was positive, as shown in the table below:
Net nominal and real return
| Net nominal return | Net real return | |
|---|---|---|
| Mutual insurance division | 11.8% | 6.7% |
| Framtíðarsýn 1 | 10.9% | 5.9% |
| Framtíðarsýn 2 | 9.4% | 4.5% |
| Framtíðarsýn 3 | 6.0% | 1.2% |
Gildi Pension Fund's net assets at the end of 2024 totalled ISK 1,126,653 million, an increase of ISK 134,761 million year on year. The fund's returns over a longer period are also favourable, with the mutual insurance division's ten-year average real return at 4.3% and its net real return over the last twenty years averaging 3.1%. This is among the information featured in Gildi's advertisement on the fund's performance in 2024, which is appearing in newspapers around the country these days; the advertisement can be found below.
Mutual insurance division
Net assets of the mutual insurance division available for pension payments amounted to ISK 1,116,556 million at the end of 2024, an increase of ISK 133,372 million during the year. The fund's actuarial position, which shows the mutual insurance division's ability to meet its obligations, strengthened considerably during the year. It stood at -1.2% at the end of 2024, compared with -4.3% the year before.
Private pension division
Net assets of the private pension division amounted to ISK 8,787 million at the end of 2024, and of the designated private pension division ISK 1,311 million. Within the fund's private pension division and designated private pension division there are three investment paths, Framtíðarsýn 1, Framtíðarsýn 2 and Framtíðarsýn 3. Looking at the return on the fund's investment paths over a longer period shows that it is very favourable:
Average nominal return
| Framtíðarsýn 1 | Framtíðarsýn 2 | Framtíðarsýn3 | |
|---|---|---|---|
| 5-year return | 7.9% | 6.5% | 6.4% |
| 10-year return | 7.6% | 7.0% | 5.3% |
| 20-year return | 8.3% | 7.4% | 7.6% |
A favourable year in the financial markets
The fund's net investment income in 2024 was ISK 119,873 million, compared with ISK 63,090 million the year before. 2024 was generally a good year in the asset markets, with all of the fund's asset classes delivering a positive real return, with the exception of foreign bonds. Within the fund's portfolio, listed domestic equities delivered the best return, with listed foreign equities close behind.
Inflation, interest rate conditions and exchange rate developments, as always, had a major impact on the fund's performance. Inflation eased considerably during the year, and the Central Bank of Iceland began a rate-cutting cycle at the end of the year, after a four-year period of inflation and high interest rates. At the end of the year, inflation stood at 4.8% and the policy rate at 8.5%.
The króna strengthened during the year by almost 4% on the exchange rate index. The króna's movements were, however, somewhat uneven against major trading currencies, weakening by 1.5% against the US dollar. The effect of currency movements on the fund's assets was therefore slightly positive, as a large share of its foreign assets are held in US dollars.
About the fund
Gildi is the largest pension fund in the country by membership, with just under 279,000 members holding rights at the end of 2024. More than 8,300 employers paid premiums to Gildi on behalf of more than 59,000 members last year. The fund's pension payments in 2024 totalled ISK 34,536 million, compared with ISK 30,765 million in 2023. The fund's operating costs amounted to ISK 1,648 million in 2024, compared with ISK 1,410 million the year before.
Annual general meeting on 10 April
Gildi's annual general meeting will be held at 17:00 on Thursday 10 April at Hótel Reykjavík Natura, where, among other things, the fund's performance in 2024 will be reviewed. The meeting will be streamed on the fund's website. The agenda and further arrangements for the meeting will be announced later.
Gildi's performance in 2024 (advertisement)