AUM of the LSR in Iceland 2022, by fund division

The lífeyrissjóður starfsmanna ríkisins (LSR) pension fund is the largest pension fund in Iceland by assets under management (AUM). The LSR is split into three divisions. Division A manages the largest portion of assets, totaling over one trillion ISK. Division B was the second-largest sector of the LSR pension fund in 2022, accounting for roughly 248 billion ISK in assets. The private property division ranked third, managing 882 million ISK in assets. Foreign shares accounted for the largest portion of portfolio allocation across the LSR pension fund.

How these divisions were formed.

Division B is LSR's previous rights system, which was closed to new fund members at the end of 1996. Members who choose to go to Division A will maintain their benefits in Division B. Division B is now largely a pass-through fund, but it also relies on fundraising. Division A was established at the beginning of 1997 due to the introduction of a new law. It accepts all members of Iceland's population who are over the age of 16 and employed full-time. The LSR's private property division has been operational since the beginning of 1999, and it collects and grows the additional pension savings of fund members.

Pension funds in the Nordics

Iceland's LSR pension fund is impressive, considering the limited population of Iceland. However, this fund does not break into the top 10 listed pension funds in the Nordics. Sweden's AMF Pensionsförsäkring AB ranked in tenth place, managing assets exceeding 49 billion euros. Finland claimed the next three spots, with their largest pension fund, Keva, managing assets totaling over 60 billion euros. The top spot was taken by Norway, which also ranks among the top pension funds worldwide.