GLOBAL - Pension funds reported strong returns last year, with Icelandic funds recovering all losses made during 2008, according to a report by the Organisation for Economic Co-operation and Development (OECD).

According to the July edition of Pension Markets in Focus, returns in 2009 saw Iceland's pension funds with 3.5% more assets than at the end of 2007.

Norway and Poland also saw their funds increase over 9% and 28.3%, respectively, above pre-crisis levels.

In Iceland, this return was particularly noteworthy, as pension funds' total assets dwarf the country's GDP, being almost 20% higher.

Despite the positive news for some countries, OECD states have still only recovered around 40% of all losses made in 2008, with $2trn (€1.6trn) still to be regained.

Overall, Hungary saw the healthiest returns of all European countries with 22%, followed by the Netherlands with 18% and Turkey with 17.1%.