Fund 1

Fund 1 is being liquidated. All cash and deposits have been paid into deposit accounts of the respective unit holders in proportion to their holdings. Other assets will be paid in the same manner as soon as their value is realized until no assets remain in the Fund. It should be kept in mind that the average maturity of the Fund's bond portfolio is over 3 years, so a significant period may elapse until all the bonds are paid in full.

The Objective

The objective is to realise the value of all assets of the Fund as quickly and efficiently as possible and pay to unit holders in regular payments. The Fund will not reinvest the cash received from bond instalments received but collect it for regular payments to unit holders.

Payments from Funds 1A and 1B

A total of ISK 23,638 million has been paid to unit holders of Funds 1A and 1B.

Payments Fund 1A* Fund 1B*
Payment 28.01.2009 0 1,161
Payment 01.07.2009 0 123
Payment 01.09.2009 0 4,184
Payment 07.12.2009 0 2,091
Payment 08.02.2010 5,769 0
Payment 12.05.2010 316 1,445
Payment 03.12.2010 316 491
Payment 04.05.2011 846 1.310
Payment 15.12.2011 415 642
Payment 15.06.2012 157 243
Payment 21.11.2012 585 906
Payment 27.06.2013 264 170
Payment 11.04.2014 242 374
Payment 05.11.2015
622 963 
*Amounts are in ISK million

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.