Iceland’s Pension Fund of Commerce returned 14.7% in 2020

Iceland’s Pension Fund of Commerce (LV) made a return of 14.7 per cent in 2020, it has revealed.

Publishing its full-year results, the fund said its operations were successful during the year, with its 14.7 per cent return corresponds to a net real return of 10.8 per cent and investment income of ISK 130bn.

At the end of 2020, total assets amounted to ISK 1,013bn, increasing by ISK 145bn during the year from ISK868bn in 2019.

The weight of foreign assets in the fund’s portfolio increased and at the end of the year accounted for 43 per cent of its investments. About 17 per cent of the assets are in domestic equities and17 per cent in government bonds. Fund member loans amounted to ISK 95.8bn, or about 9.5 per cent of total assets, compared to ISK 120.7bn (14 per cent) of assets in the previous year.

Pension fund members continued to increase in 2020, reaching 20,000 at the end of the year, compared with 19,000 in 2019. Pension payments increased by 12.5 per cent and amounted to a total of ISK 18bn. A total of 48,000 members paid contributions to the fund.

The fund's long-term return remains good, the five-year average return is 6.2 per cent, the 10-year average return is 6.7 per cent and the 20-year average return is 4.5 per cent.

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