IS Long-Term Government Bond Fund

Suitable for investing for 3 years or longer

What is it?

The IS Long-Term Government Bond Fund is a mutual fund that invests only in domestic bonds with high average maturity. The estimated duration of the fund is 6-12 years.

Fund's Objective

The Fund's objective is long-term asset growth by investing in housing bonds, other government-guaranteed 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 is suitable for investors who wish to invest their money for three years or longer and is recommended as part of a diversified portfolio. The average maturity of the Fund's assets may be from 6 to 12 years, which means that its price is sensitive to changes in yields. As a result, there can be considerable fluctuations in the Fund's price, which even out in the long term. This Fund offers a prudent alternative since it invests exclusively in government bonds and is exempt from net worth tax.

Investment Policy

The Fund's assets will be invested in housing bonds issued by the Housing Financing Fund (HFF). The Fund may, however, invest temporarily up to 10% of its assets in other bonds issued by the Icelandic Treasury, such as Treasury bills, Treasury bonds and savings bonds, as units in this Fund are exempt from net worth tax in accordance with Article 77 of Act No. 90/2003. Up to 10% of the Fund’s assets may be held in liquid assets to meet redemptions or temporarily due to market conditions. It may also invest in derivatives for up to a maximum of 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

6.643,23
+7,93 (0,12%)
Nav dated 19.6.2019

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 1997
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