# Frjalsi Pension Fund

Frjalsi Pension Fund is a Pension Fund based in Reykjavik, Iceland.

## Overview

- **Organization type:** Pension Fund
- **Headquarters:** Reykjavik, Iceland
- **Region:** Europe
- **Founded:** 1978
- **Assets under management:** Undisclosed
- **Website:** frjalsi.is
- **LinkedIn:** https://www.linkedin.com/company/frj%c3%a1lsi-l%c3%adfeyrissj%c3%b3%c3%b0urinn

## Regulatory record

- **Reports private funds:** No

## About

Frjalsi Pension Fund was formed to serve Icelandic workers seeking inheritable pension rights. Arnaldur Loftsson has served as Managing Director for multiple years. The fund merged with Lífeyrissjóður tannlækna and the Farmers' Pension Fund in 2025. The portfolio mixes public equities, direct real estate, mortgage lending, and private equity commitments. Confirmed holdings include a minority stake in Reitir fasteignafélag hf, limited partnership interests in Stefnir SRE III and Vintage Real Estate Partners III, and equity positions in Arion Bank hf and Brim hf. Investments concentrate in Iceland with additional exposure to global real estate and international equity funds. Assets under management reached 4.2 billion USD according to internal records. The firm maintains a single headquarters in Reykjavik and participates in the Icelandic Pension Funds Association and the Principles for Responsible Investment. In December 2024 Frjalsi spoke at the IPE Conference on pension strategy in small economies. It also supports the Fjármálavit financial literacy program for Icelandic primary schools. Frjalsi operates with an explicit member-directed mandate that routes the bulk of contributions into inheritable accounts rather than pooled occupational schemes. This architecture creates a direct link between individual savings choices and long-term payout options including disability and spousal benefits.

## Sectors

- Real Estate
- Private Equity
- Financials
- Energy

## People

- Arnaldur Loftsson — Managing Director
- Elín Þórðardóttir — Board Member

## Questions

### Who runs investment decisions at Frjalsi Pension Fund?

Arnaldur Loftsson serves as Managing Director. The board includes Elín Þórðardóttir. Investment execution occurs through external managers such as Stefnir hf and Arion Bank hf.

### Does Frjalsi participate in fund commitments or only direct deals?

The fund holds both limited partnership interests in vehicles such as Stefnir SRE III and direct positions including mortgage loans to members and equity stakes in listed Icelandic companies.

### What investment stages does Frjalsi typically target?

Frjalsi allocates across public equities, existing commercial and residential real estate, and private equity funds. No early-stage venture commitments appear in disclosed holdings.

### How is Frjalsi related to Arion Bank hf?

Arion Bank hf acts as investment advisor, custodian, and administrator. Frjalsi also holds a 4.06 percent equity stake in the bank.

### What is Frjalsi's known posture on co-investments alongside external GPs?

Frjalsi takes limited partnership positions in real estate and private equity funds managed by third parties such as Stefnir hf.

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Last updated: 2026-06-03T20:00:00.000Z

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