Icelandic bonds and deposits
Stefnir - Fixed Income Opportunities Fund

Investment policy

The fund is authorized to invest in bonds issued by a varied group of issuers, such as public authorities, companies and financial institutions. The fund is suitable for individuals, companies and institutional investors who wish to invest in a diverse portfolio of bonds for two years or longer and are willing to accept some volatility in returns.

Asset allocation

nominal rate of return

Performance

Stefnir hf.
Borgartún 19
444 7000
www.stefnir.is

Investment authorisation

<table border="1" cellpadding="1" cellspacing="1" style="width:500px"> <tbody> <tr> <td>Covered bonds issued by financial institutions</td> <td>0-80%</td> </tr> <tr> <td>Asset-backed bonds</td> <td>0-50%</td> </tr> <tr> <td>Bonds guaranteed by companies</td> <td>0-50%</td> </tr> <tr> <td>Bonds and bills guaranteed by the Icelandic government</td> <td>0-50%</td> </tr> <tr> <td>LSS (Municipal Loan Fund)</td> <td>0-35%</td> </tr> <tr> <td>Deposits of financial institutions</td> <td>0-50%</td> </tr> <tr> <td>Corporate bonds</td> <td>0-25%</td> </tr> <tr> <td>Other bonds and bills</td> <td>0-15%</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.