IS Government Fund

Suitable for investing for 1 year or longer

What is it?

The IS Government Fund is a mutual fund that invests exclusively in Treasury-guaranteed bonds and deposits with financial institutions. Its purpose is to meet the currently high demand for low-risk investment options.

All bonds in the Fund's portfolio are guaranteed by the Icelandic government, thereby minimising credit risk. The Fund's deposits with financial institutions are also fully government-backed.

The average maturity of the fund's portfolio is 1-3 years, A short average maturity results in the bonds' relatively limited price fluctuations in response to changes in their market yields. The Fund's active management also makes use of market fluctuations to earn higher long-term returns than when investing in deposits only.

Fund's Objective

The Fund's objective is long-term capital growth through investment in government bonds or government-bond-related financial instruments and deposits with financial institutions.

Main Advantages

  • Secure and sound investment in Treasury-backed bonds and government-guaranteed deposits with financial institutions
  • Active asset management
  • Low costs

Invest in Fund Fact Sheet

Who Should Invest?

The Fund is suitable for those wishing to invest for one year or longer whilst minimising credit risk. It has a prudent asset mix of government-backed bonds and deposits with financial institutions, thereby securing a low-risk portfolio.

Investment Policy

The Fund aims to invest 70% in Treasury-backed bonds and 30% in deposits with financial institutions. The proportion of government bonds in the portfolio may be increased to 100% and the proportion of deposits to 50%.

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

1.872,41
-0,69 (-0,04%)
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 2008
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 0.5%/0.25%
Annual Management Fee* 0.70%
Service Charge Varies between Distributers
Transaction Orders
Settlement Cycle 2 Business Days (T+2)
Cut-off Time 15:00 GMT