Governments bonds
Stefnir – Government Bonds Long

Investment policy

The investment portfolio of Stefnir - Government Bonds Long only contains bonds and bills guaranteed by the Icelandic government. The aim is for the average duration of the fund to be a minimum of 7 years. An average duration of this length means significant volatility in the price of the fund depending on changes in yields on the market. The majority of the fund’s assets are inflation-linked. The fund is well suited to investors who are prepared to accept considerable volatility in returns and wish to invest in the long term.

Asset allocation

nominal rate of return

Performance

Investment authorisation

<table border="1" cellpadding="1" cellspacing="1" style="height:64px; width:592px"> <tbody> <tr> <td>Listed bonds and bills issued by or guaranteed by the Icelandic government</td> <td>50-100%</td> </tr> <tr> <td>Deposits of financial institutions and money market instruments</td> <td>0-20%</td> </tr> <tr> <td>Other financial instruments than those listed above</td> <td>0-10%</td> </tr> </tbody> </table>

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.