IS Asset Allocation Fund
What is it?
The IS Asset Allocation Fund is a new type of savings product for investors. The Fund focuses on active asset management, which has previously been offered only to larger investors. The savings are managed by a team of fund managers focused on adjusting the Fund’s investments in line with market changes. The Fund invests mainly in other mutual funds.
Fund's Objective
The objective of the Fund is long-term capital growth by investing mainly in other mutual funds that invest in both domestic and foreign bonds and equities. The Fund may also invest in single securities as well as bank deposits.
Main Advantages
- You will not miss out on good investment opportunities
- A team of fund managers managing your portfolio
- High level of service and information
- Simple and good way to build up your regular savings
- Tax advantages
Who Should Invest?
The Fund is suitable for investors seeking to invest for two years or longer. Its risk is highly diversified because it invests in bond as well as equity funds. The Fund can therefore be used both as a stand-alone investment and as part of a larger portfolio.
Investment Policy
The Fund aims to invest 55% in government bonds, 15% in bank deposits, 5% in domestic equities and 25% in foreign equities. The proportion of government bonds in the portfolio may be increased to 100% and the proportion of bank deposits may be increased to 50%. The Fund is not allowed to invest more than 30% in non-UCITS funds and may invest only up to 20% in one fund (UCITS and non-UCITS). It is not permitted to invest in funds that have invested 10% or more in other funds. Up to 10% of the Fund’s assets may be held in liquid assets to meet redemptions or temporarily due to market conditions, but should usually be fully invested in the units of other mutual funds, bonds, equities or bank deposits. The Fund may invest in derivatives, but no more than 10% of total assets. The IS Asset Allocation Fund is a UCITS fund and its investment authorisations are based on Act No. 128/2011.
General disclaimer
This summary is intended for informative purposes only and should not be interpreted as a recommendation to take, or not to take, any particular investment action. The summary does not represent an offer or an invitation to buy, sell or subscribe to any particular financial instruments.
Taxation
The taxation of fund units is governed by the Act on Income and Net Worth Tax No. 90/2003 and the Act on Withholding Tax on Capital Gains No. 94/1996. Further taxation can occur. Unit holders not residing in Iceland can apply to the Icelandic tax authorities for an exemption from such taxation. The final taxation of non-resident unit holders depends on the local tax rules in the jurisdiction where they reside for tax purposes.
Investment in derivatives
In accordance with its Investment policy, the Fund is permitted to use derivatives to lock in profits, to minimize risk or to lock in prices in Fixed Income instruments because of forseeable redemptions or to act on market changes. A detailed description of use of derivatives can be found in the Funds Prospectus.
Risks
Various financial risks are always associated with investment activities, such as the risk of no yield or the risk of losing the capital invested. It should further be noted that international investing includes risks related to political and economic uncertainties as well as currency risk. Past performance does not indicate nor guarantee future performance of an investment. Each investor's investment objectives and financial situation is different. Before making an investment decision, it is important to seek expert advice and familiarise oneself with the investment market and different investment alternatives. Investors are encouraged to familiarise themselves with each fund´s Prospectus, especially regarding risk.
Information
| Fact Sheet | |
|---|---|
| Fact Sheet | |
| Summary of Fund Returns | |
| Interest Rates & Tariff of Charges for Investment Services | |
| Inception Year | 2009 |
| Base Currency | ISK |
| Minimum Purchase | ISK 10,000 |
| Minimum Purchase at Subscription | ISK 5,000 |
| Management Company | IS Funds Ltd |
| Custodian | Íslandsbanki |
| Investment Team | Aldís Stefánsdóttir, Fund Manager |
| Loftur Ólafsson, Analyst | |
| Mogens G. Mogensen, Fund Manager | |
| Sigurður Guðjón Gíslason, Portfolio Manager | |
| Fees | |
| Initial Fee | 1.50% |
| Annual Management Fee | 0.50% |
| Service Charge | Varies between distributers |
| Transaction Orders | |
| Settlement Cycle | 2 Business Day (T+2) |
| 10:00-15:00 GMT | |