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Two regional Icelandic schemes in €312m merger

ICELAND - Two regional Icelandic pensions funds, Sudurnes and Sudurland, plan a merger.

The union will be put to a vote of the funds’ members in March/April, said Sudurnes managing director Fridjon Einarsson.

Sudurnes covers employees at Keflavik Airport and the surrounding area and Sudurland workers in the south coast of the country. “It unites the southern part of Iceland,” Einarsson said.

The merged fund will have assets under management of ISK25bn (€312m), Einarsson added. Sudurnes is the larger of the two, with AUM of ISK16bn.

Einarsson will be the managing director of the merged fund.

The move is the latest in a round of consolidation among Icelandic pension funds.

Negotiations for a proposed merger of unskilled workers’ fund Framsyn and seamen’s fund Sjomanna are nearing completion, in April a general meeting of Almenni Pension Fund and Laekna will be asked to endorse a union and a proposal to merge Lifidn and Samvinnu will be put to a vote of their members in late May.

IPE also understands that a far larger merger, between Lifeyrissjodur verslunarmanna, Iceland’s largest private sector pension fund, and Sameinadi lifeyrissjodurinn, itself the result of the merger of eight pension funds, is being discussed.

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