Suitable for investing for 5 years or longer
IS Equity Fund is an investment fund that invests in domestic equities or other equity-linked financial instruments.
The Fund's objective is long-term capital growth. It aims to outperform the OMXIGI index.
This Fund is suitable for investors who wish to invest in funds for five years or more and can tolerate significant fluctuations. The Fund restricts the number of holdings in its portfolio with an aim to enhance performance. The relatively low number of companies included in the portfolio can mean that high returns of individual companies lead to sizeable price increases.
The Fund invests in Icelandic equities. It seeks to invest in quality companies expected to outperform the market. To increase the expected return, the Fund invests in 6-12 companies at a time. Such a limited number of holdings means less diversification of risk than when investing in a more diversified portfolio or an index fund.
As a rule the Fund will invest exclusively in equities, but it may invest as much as 10% in other securities or hold liquid assets to meet redemptions or react to market conditions. The Fund may invest in derivatives for up to a maximum of 10% of its total assets but cannot borrow to invest in equities or short sell financial instruments.
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.
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.
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.
|Summary of Fund Returns|
|Tariff of Charges for Investment Services|
|Minimum Purchase||ISK 10,000|
|Minimum Purchase at Subscription||ISK 5,000|
|Management Company||Iceland Funds Ltd|
|Fund Managers||Mogens G. Mogensen
|Annual Management Fee||1.70%|
|Service Charge||Varies between Distributers|
|Settlement Cycle||2 Business Days (T+2)|
|Cut-off Time||15:00 GMT|