IS Government Bond Fund

Suitable for investing for 2 years or longer

What is it?

IS Government Bond Fund is a mutual fund that invests in domestic government bonds only. The average maturity of the fund's portfolio is 4-7 years.

Fund's Objective

The Fund's objective is long-term capital growth by investing in Icelandic government bonds or other financial instruments linked to bonds.

Main Advantages

  • Invests exclusively in domestic government bonds
  • Active asset management
  • Low costs

Invest in Fund Fact Sheet

Who Should Invest?

The Fund suits all investors who wish to invest funds for two years or longer. The average maturity of the Fund's assets may be from 4 to 7 years, which means that its price is sensitive to changes in yields and may drop temporarily. This Fund offers a prudent alternative because it invests exclusively in domestic government bonds. In addition, the average maturity of these assets is fairly short, as compared with other government bond funds, so the risk of changes in yields is not as high.

Investment Policy

The Fund's assets will be invested in bonds issued by the Icelandic Treasury, including Treasury bonds, savings bonds, Treasury bills or bonds issued by government institutions, such as housing bonds issued by the Housing Financing Fund, as this Fund's units are exempt from net worth tax as provided for in Article 77 of Act No. 90/2003. Up to 10% of the Fund’s assets may be held in liquid assets in order to meet redemptions or temporarily due to market conditions. The Fund may also invest in derivatives, but no more than 10% of its total assets. The Fund's investment authorisations are based on Article 38 of 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.

NAV

12.646,44
-3,71 (-0,03%)
Nav dated 19.8.2019

Change in NAV & fund returns

Nominal return

Change in NAV 1 year



Funds

Information

Fact Sheet
Fact Sheet
Summary of Fund Returns
Tariff of Charges for Investment Services

Fund Type UCITS 
Inception Year 1990
Base Currency ISK
Minimum Purchase ISK 10,000
Minimum Purchase at Subscription ISK 5,000
Management Company Iceland Funds Ltd
Custodian Íslandsbanki
Fund Managers Ingólfur S. Kristjánsson
  Helga Óskarsdóttir
Fees
Initial Fee/Subscription 1.00%/0.50%
Annual Management Fee 0.90%
Service Charge Varies between Distributers
Transaction Orders
Settlement Cycle 2 Business Days (T+2)
Cut-off Time 15:00 GMT