Icelandic bonds and deposits
Stefnir – Savings Fund

Investment policy

Stefnir – Savings Fund invests in deposits, bills, bonds and other short-term financial instruments. The fund’s asset portfolio may not have an average duration of more than 365 days. The fund is suitable for both individuals and companies who want to make short-term investments. The fund solely invests in deposits and financial instruments issued by domestic entities in Icelandic krónur.

Asset allocation

nominal rate of return

Performance

Investment authorisation

<table border="1" cellpadding="1" cellspacing="1" style="height:160px; width:721px"> <tbody> <tr> <td>Deposits of financial institutions</td> <td>40-100%</td> </tr> <tr> <td>Bills, bonds and other debt instruments issued by financial institutions</td> <td>0-50%</td> </tr> <tr> <td>Bonds and other debt instruments issued by financial institutions under the Covered Bonds Act No. 11/2008</td> <td>0-60%</td> </tr> <tr> <td>Bills, bonds and other debt instruments issued by or guaranteed by the Icelandic government</td> <td>0-60%</td> </tr> <tr> <td>Money market instruments and bonds issued by local authorities</td> <td>0-50%</td> </tr> <tr> <td>Bills, bonds and other corporate debt instruments</td> <td>0-20%</td> </tr> </tbody> </table> <p>&nbsp;</p>

Disclaimer

The information provided here has not been independently reviewed.

The fund is an investment fund (non – UCITS) as defined in Act No. 128/2011 on Undertakings for Collective Investment in Transferable Securities (UCITS), Investment Funds and Institutional Investor Funds. The fund is managed by Stefnir hf.

Please note that investing in unit shares involves a certain amount of risk. Investments can fall in value or lose all of their value. An investment fund is generally considered to represent a higher risk investment than a UCITS. The greater risk associated with investment funds is a result of its broader investment limits which could result in less risk distribution than in a UCITS.

Stefnir hf. has divided its funds into seven different categories depending on the standard deviation in weekly returns over the past 5 years. Category 1 is the least volatile, while category 7 is the most volatile. A fund can be moved into a different category if the volatility of the underlying financial instruments changes. The categorization is based on guidelines issued by the European Securities and Markets Authority. Previous returns on investments in funds are no indication of future returns on investments. Categorizing funds according to the volatility of returns does not reflect all risks involved in the funds' investments. For example, the categorization does not take into account possible defaults by the issuers of financial instruments in which the fund has invested, or other risk factors. The categorization of the funds is subject to the above provisos.

Deposits of funds for collective investment are not insured under Act No. 98/1999 on Deposit Guarantees and Investor Compensation Schemes.

Further information on the fund, including more detailed information on the risk inherent in investing in unit shares, can be found in the fund’s prospectus or key investor information document which can be obtained from branches of Arion Bank or viewed here: www.stefnir.is/sjodir.

Disclaimer

The information provided here has not been independently reviewed.

The fund is an undertaking for collective investments in transferable securities as defined in Act no. 128/2011 on Undertakings for Collective Investment in Transferable Securities (UCITS), Investment Funds and Institutional Investor Funds. The fund is managed by Stefnir hf.

Please note that investing in unit shares involves a certain amount of risk. Investments can fall in value or lose all of their value.

Stefnir hf. has divided its funds into seven different categories depending on the standard deviation in weekly returns over the past 5 years. Category 1 is the least volatile, while category 7 is the most volatile. A fund can be moved into a different category if the volatility of the underlying financial instruments changes. The categorization is based on guidelines issued by the European Securities and Markets Authority. Previous returns on investments in funds are no indication of future returns on investments. Categorizing funds according to the volatility of returns does not reflect all risks involved in the funds' investments. For example, the categorization does not take into account possible defaults by the issuers of financial instruments in which the fund has invested, or other risk factors. The categorization of the funds is subject to the above provisos.

Deposits of funds for collective investment are not insured under Act No. 98/1999 on Deposit Guarantees and Investor Compensation Schemes.

Further information on the fund, including more detailed information on the risk inherent in investing in unit shares, can be found in the fund’s prospectus or key investor information document which can be obtained from branches of Arion Bank or viewed here: www.stefnir.is/sjodir.