Year-end assets of ISK 561 billion

Gildi Pension Fund's net nominal return in 2018 was 5.8%, and net real return was 2.4%, according to the fund's now-published annual accounts. The fund's return for the year was driven mainly by the return on domestic bonds. Unlisted equities, both domestic and foreign, also delivered a good return for the fund, while the return on other asset classes was weaker. The fund's net assets at year-end 2018 were ISK 561.2 billion, an increase of ISK 43.9 billion year on year. Of this, the fund's net investment income amounted to just over ISK 31 billion. The fund's actuarial position was unchanged year on year, standing at -1.5%. "The results are, in my view, acceptable, although market conditions were in many respects difficult in 2018," says Árni Guðmundsson, CEO of Gildi. "Pension funds are, however, long-term investors, and in this context it is worth noting that the net real return over the last 10 years is 3.9%, and over the last 20 years 3.7%."

Increased lending

In 2018, a total of 6,090 employers paid premiums to Gildi on behalf of just over 56,000 fund members, while close to 235,000 individuals hold rights with the fund in total. Direct lending to fund members makes up an ever-larger share of Gildi's operations, and last year the fund granted a total of 1,359 fund member loans amounting to around ISK 22 billion. The year before, 878 loans were granted amounting to ISK 12.8 billion, and these figures show how substantial the year-on-year growth has been. The fund's operating costs rose slightly year on year, from ISK 806 million to ISK 873 million.

Further information and an overview of the fund's operations can be found here.

Annual General Meeting

The fund's results will be reviewed in detail at its Annual General Meeting, to be held at 17:00 on Thursday 11 April at Grand Hótel Reykjavík.

Agenda:

1. Ordinary Annual General Meeting business
2. Proposals for amendments to the Articles of Association
3. Other matters, duly raised