IS Green Bonds

Suitable for investing for 2 years or longer

What is it?

IS Green Bonds is an investment fund with a focus on investing in domestic issuances listed on ICE Sustainable Bonds or First North ICE Sustainable Bonds at Nasdaq Iceland. The fund may also invest in bonds and bills issued by the Icelandic Treasury and/or by government institutions.

Green bonds (also called Social or Sustainable bonds depending on the purpose of the project being financed) are bonds issued to finance projects that promote sustainability and/or positive development in environmental and social issues. Issuers can be, for example, governments, municipalities, financial institutions or corporations. Nasdaq Iceland has published a list specifying what issues issuers or projects need to fulfill in order for the bonds to be listed on ICE Sustainable Bonds or First North ICE Sustainable Bonds.

Invest in Fund Fact Sheet

Funds Objective

The Fund's objective is long-term capital growth through investment in bonds issued to finance projects that promote sustainability and/or positive development in environmental and social issues. As of yet, there are no securities listed on these markets at Nasdaq Iceland, and until the market with green bonds reaches a sufficient size, IS Green Bonds will invest in Icelandic Treasury bonds and bills.

Who Should Invest?

The Fund is suitable for those wishing to invest in projects with a focus on environmental and social issues without compromising competitive long-term returns with an investment target of two years or longer. The average duration of the underlying assets is 0-14 years, which means that its price is sensitive to changes in yields. For further details see the Fund prospectus (Icelandic only).

 

The Fund is an option for investors who focus on environmental and social issues without compromising the requirements for competitive long-term returns. The Fund is suitable for those who want to invest for two years or longer.

Investment Policy

The Fund's assets will be invested in bonds listed on ICE Sustainable Bonds or First North ICE Sustainable Bonds at Nasdaq Iceland. The Fund may also invest in Icelandic Treasury bonds and bills as well as deposits at financial institutions.

The provisions of paragraph 4 of Article 59 of Act No. 128/2011 shall apply to the Fund.  The Fund will also invest in accordance with Article 38 of Act No. 128/2011 regarding secure securities. 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 as provided for in Article 31 of Act No. 128/2011. The liquid assets are not part of the Fund’s investment policy. The fund is also authorized under paragraph 2 of Article 41 of Act No. 128/2011 to take short-term loans. Such loans may not exceed 10% of the total assets of the Fund. The Fund may also invest in derivatives, but no more than 10% of its total assets.

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

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 non-UCITS 
Inception Year 2009
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 1.00%
Annual Management Fee 1.00%
Service Charge Varies between Distributers
Transaction Orders
Settlement Cycle 2 Business Days (T+2)
Cut-off Time 15:00 GMT