Almenni Lífeyrissjóðurinn (Almenni Pension Fund) recently published its ‘Fjárfestingarstefna 2026’ (Investment Policy 2026) document, outlining key changes to its investment strategy and asset allocation for the upcoming fiscal year. These adjustments are primarily driven by the merger with Lífsverk lífeyrissjóðs, approved in November 2025, with the combined fund expected to commence operations on January 1, 2026 (page 3).
Allocation Adjustments
For the fiscal year 2026, Almenni Lífeyrissjóðurinn has made several adjustments to its asset allocation and investment management approaches:
Almenni Lífeyrissjóðurinn has adjusted the weighting of individual asset classes within the tolerance limits for its mixed investment options (Ævisafn I, II, III) and the defined benefit fund (Samtryggingarsjóður). The fund has also modified the tolerance limits for asset management methods in foreign equities. The minimum allocation to passively managed foreign equities has been increased from 50% to 60% (page 3).
For the foreign securities portfolio (Erlent verðbréfasafn), which was established at the beginning of 2025, the weighting of individual asset classes within the tolerance limits has been adjusted. Similarly, the weighting of individual asset classes within the tolerance limits for the bond portfolio (Skuldabréfasafn) has also been adjusted (page 3).
The maximum weighting for individual issuers has been increased from 5% to 7.5% (page 3).
New Asset Class Considerations
Almenni Lífeyrissjóðurinn’s investment policy for 2026 indicates a strategic exploration of various specialized funds. The fund aims to invest in specialized funds that align with its investment strategy and risk diversification goals. These include:
Specialized Equity Funds (Private Equity): The fund considers investments in unlisted companies through specialized equity funds (private equity) for purposes such as financing company changes (buyout, mezzanine, special situations, venture capital). These funds may specialize in specific asset classes or diversify across them (page 42).
Loan Funds: The fund considers investments in loan funds that specialize in loan markets, often investing in unlisted assets such as corporate bonds and loan agreements (page 42).
Infrastructure Funds: The fund considers investments in infrastructure funds, which invest in various infrastructure assets like energy and utility companies, transportation, and telecommunications. These often involve tangible underlying assets (page 42).
Real Estate Funds: The fund considers investments in real estate funds, specializing in properties such as commercial real estate for rent (page 42).
The rationale for considering these specialized funds is to enhance diversification and potentially achieve higher returns. The fund emphasizes that such funds require clear investment policies, defined investment horizons, and well-defined terms regarding fund closure and asset sales. The fund also evaluates the expertise of the fund managers and their access to investment opportunities, as well as the cost structure of these funds (page 42).
Manager Appointments
Almenni Lífeyrissjóðurinn plans to allocate approximately 18% of its foreign equity holdings to specialized funds that invest in unlisted companies (private equity) and infrastructure. Additionally, there is an authorization to invest 0-5% of foreign assets in other specialized funds (page 33).
For foreign listed equities, the fund generally acquires them through UCITS funds. Private equity investments are typically made through specialized funds (page 32).
For foreign bond investments, the fund primarily invests in bonds with an investment-grade credit rating that are listed on the market, as well as unlisted bonds. Listed bonds are generally acquired through UCITS funds, while investments in unlisted bonds/loan agreements of foreign companies are typically made through specialized funds (page 34).
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