Iceland’s Almenni-Lífsverk (AL) Pension Fund has reported positive returns across its portfolios in the first nine months of 2026, despite market volatility.

The fund’s mixed return portfolios, which invest in bonds, stocks and deposits, returned between 3.8 per cent and 4.3 per cent between January and September.

Its foreign securities portfolio, which invests exclusively in foreign securities, posted the lowest return, although it was still positive at 2.7 per cent.

AL’s domestic bond portfolios also saw positive returns, with its bond portfolio rising by 6.2 per cent and its government portfolio by 4.8 per cent.

Its deposit portfolio, which invests exclusively in deposits, posted the strongest result of all return portfolios, increasing by 6.9 per cent over the first nine months of the year.

AL noted that the first nine months of 2026 were characterised by “considerable volatility” in equity markets.

“Foreign stock markets rose overall, driven by relatively strong corporate earnings and continued investments by technology companies in infrastructure and equipment related to artificial intelligence,” the pension fund stated.

“At the same time, domestic stock markets were under pressure due to high interest rates and uncertainty about the economic growth outlook.

“The Icelandic króna strengthened against major currencies, especially in the third quarter, which reduced the return on foreign assets measured in krónur.”

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