Private banking funds
Asset Allocation International Equities Fund

Investment policy

Asset Allocation International Equities Fund is an investment fund which mainly invests in international equities. The fund’s objective is to generate good returns and to spread risk by investing in a mixed portfolio of international equities. The minimum amount invested in international equities is 30%. Asset Allocation International Equities Fund is well suited to a mix of portfolios of domestic bonds and equities. The fund chiefly invests in other funds to enhance risk distribution but can also invest directly in international securities. The fund is also authorized to invest in bonds, deposits and up to 10% in other financial instruments, such as real estate funds and private equity. The fund is aimed at clients of Arion Bank - Private Banking.

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="height:271px; width:580px"> <tbody> <tr> <td>Equities and equities funds</td> <td>30-100%</td> </tr> <tr> <td>&nbsp;<em>-</em> UCITS which invests in international equities</td> <td>30-100%</td> </tr> <tr> <td>&nbsp;- Investment funds which invest in international equities</td> <td>30-100%</td> </tr> <tr> <td>&nbsp;- International equities, listed</td> <td>0-50%</td> </tr> <tr> <td>&nbsp;- Exchange-traded funds, cf. Article 30 (1.3)</td> <td>0-50%</td> </tr> <tr> <td>&nbsp;- Exchange-traded funds, cf. Article 54 (1.1)</td> <td>0-20%</td> </tr> <tr> <td>Deposits of financial institutions, domestic and international</td> <td>0-50%</td> </tr> <tr> <td>UCITS which invest in deposits, domestic and international</td> <td>0-50%</td> </tr> <tr> <td>Investment funds which invest in deposits, domestic and international</td> <td>0-50%</td> </tr> <tr> <td>UCITS which invests in listed international government and corporate bonds</td> <td>0-70%</td> </tr> <tr> <td>Investment funds which invest in listed international government and corporate bonds</td> <td>0-70%</td> </tr> <tr> <td>Listed international government and corporate bonds</td> <td>0-10%</td> </tr> <tr> <td>Other financial instruments than those listed abobve</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.