Milestones Reached in a Strong Operational Year for LSR

In 2024, LSR’s assets surpassed ISK 1,500 billion for the first time. However, this was not the only milestone: total pension payments reached ISK 103.6 billion, marking the first time that annual payments to fund members exceeded ISK 100 billion. The average number of pension recipients was just under 26,000, an increase of nearly 1,300 year-over-year. Meanwhile, active fund members increased by more than 600, averaging around 32,000 throughout 2024.

The strong performance also resulted in a positive actuarial status for LSR’s Division A, ending the year 1.2% in surplus, the best position for the division since 2016.

These figures are among the highlights of LSR’s 2024 annual financial statements, which were approved by the fund’s board at its meeting yesterday, April 9. The statements also show the following net real returns:

• Division A: 6.9%
• Division B: 8.3%
• Private Pension (Séreign):
  • Plan I: 8.5%
  • Plan II: 6.7%
  • Plan III: 2.1%
  • Defined Private Pension: 6.1%

The fund’s 5-year average net real return is 2.8%, and the 10-year average is 4.2%.

Equities Drive Strong Returns

Markets were fairly volatile during the year, but in the end, returns were strong, especially from domestic and foreign equities. Domestic equities rose most sharply in the final months of the year, while foreign equities increased steadily throughout the year. Bonds delivered good, but lower returns.

At year-end, the fund's asset allocation was as follows:

• Bonds: ISK 620.8 billion
• Equities and equity certificates: ISK 880 billion
• Deposits: ISK 55.8 billion

The proportion of securities in foreign currencies was 47.2%, and the proportion of indexed assets was approximately 31.7% of the fund's total portfolio at the end of 2024.