Markets


As in previous years, the business volume of asset management by Landsbankinn increased. At year-end 2017, total assets under management by the Group amounted to ISK 416 bn.

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Leader in exchange trade

Landsbankinn had the largest market share on the bond market in the Stock Exchange in 2017, or 17.9%. The Bank had the second largest share in equities, or 20.3%. Competition is fierce, with nine market members, and the Bank's leadership is clear-cut.

Landsbankinn's Markets continuously work to increase its services. Three new funds were created in 2017; Eignadreifing Virði, Eignadreifing Vöxtur and Eignadreifing Langtíma. All funds are investment funds under active management. They are suited to customers who wish to invest in the well diversified and mixed portfolios of funds that consist of deposits, bonds and equities.

The FX market

The FX market underwent a great deal of change with the lifting of capital controls. Companies gained better access to hedges and the Central Bank of Iceland ceased making regular transactions in the market. Turnover on the interbank market contracted between years, as the CBI had been a significant presence. Increased freedom has led to a spike in FX transactions by both private individuals and companies and increased volatility will lead to more challenges. Landsbankinn is a leader on the FX market and as a consultant on hedging.

Access to all main global markets

Following the abolition of capital controls, interest in overseas investment has grown. Landsbankinn offers a wide range of products in investments abroad and has access to all main global markets. The Bank collaborates with well-known investment firms, such as AllianceBernstein, BlackRock, Carnegie Funds, T. Rowe Price Funds, UBS and Axa Investment, and Landsbréf hf., the Bank's subsidiary, manages funds that invest abroad.

Landsbankinn offers a wide range of products in investments abroad and has access to all main global markets.

Pension savings with Landsbankinn

129ISK billion

Assets under management by the Group

417ISK billion

Market share in the Stock Exchange

18.8%of total turnover

Landsbankinn offers a wide selection of pension programmes and, with a 23% market share in supplementary pension savings, is a leader in the market.

23% market share in pension savings

Landsbankinn offers a wide selection of pension programmes and, with a 23% market share in supplementary pension savings, is a leader in the market. Landsbankinn manages Íslenski lífeyrissjóðurinn pension fund and that fund's share in supplementary pension savings has grown fast, despite stiff competition.

In addition to the four investment options offered by Íslenski lífeyrissjóðurinn, Landsbankinn offers several other pension options; Lífeyrisbók, indexed and non-indexed deposit accounts, Fjárvörslureikningur, a portfolio of non-Icelandic securities, and manages the Pension Fund of the Icelandic Dental Association. The number of customers who entrust their pension premiums to pension funds under management by Landsbankinn or to Lífeyrisbók accounts increased by 53% between 2013 and 2017, or from 19.300 to 29.600 customers.

The returns of Íslenski lífeyrissjóðurinn have been good in recent years. Average annual nominal returns on the Líf 1 investment option of Íslenski lífeyrissjóðurinn was 7.8% over the past 5-year period and 8.5% over the past 15 years.

Landsbankinn's employees handle consultancy and sales in pension matters and emphasise good service and quality advice.

Emphasis on responsible finances

In 2017, Landsbankinn initiated the creation of an association on responsible investment, IcelandSIF. The aim of IcelandSIF is to promote awareness and debate about the methods of sustainable and responsible investment. Landsbankinn and 22 other companies are founding members of IcelandSIF. The founding members are financial undertakings, pension funds and insurance companies that invest on own account or on behalf of third parties that operate in Iceland.