Private banking funds
Asset Allocation Equities Fund

Investment policy

Private Banking Equity Fund is an investment fund which primarily invests in equities. The fund aims to invest 80% of its assets in equities, either directly or through other funds. The fund’s objective is to generate good returns and to spread risk by investing in a mixed portfolio of equities. The fund is also authorized to invest in bonds and deposits, domestic and international. Private Banking Equity Fund is ideal as an addition to portfolios with bonds and bond funds. The fund is authorized to invest the funds it uses for investments in other funds for investments in funds owned by Stefnir hf. up to a maximum of 50%. The fund is authorized to invest 20% of its assets in institutional investor funds and 10% in private equity which is intended to be listed on a stock exchange. The fund is aimed at clients of Arion Bank - Private Banking.

Asset allocation

nominal rate of return

Performance

Investment authorisation

<table border="1" cellpadding="1" cellspacing="1" style="height:419px; width:593px"> <tbody> <tr> <td>Equities and equities funds</td> <td>30-100%</td> </tr> <tr> <td>&nbsp;- Equities listed on Nasdaq Iceland and First North</td> <td>0-70%</td> </tr> <tr> <td>&nbsp;- UCITS which invest exclusively in domestic and international equities</td> <td>0-60%</td> </tr> <tr> <td>&nbsp;- Investment funds which invest exclusively in domestic and international equities</td> <td>0-60%</td> </tr> <tr> <td>&nbsp;- Other funds for collective investments which invest exclusively in domestic and international equities</td> <td>0-20%</td> </tr> <tr> <td>&nbsp;- Listed international equities</td> <td>0-50%</td> </tr> <tr> <td>Deposits</td> <td>0-50%</td> </tr> <tr> <td> <p>&nbsp;- Deposits of financial institutions, domestic and international</p> </td> <td>0-50%</td> </tr> <tr> <td>&nbsp;- Investment funds which mainly invest in domestic deposits</td> <td>0-50%</td> </tr> <tr> <td>&nbsp;- UCITS which mainly invest in international deposits</td> <td>0-50%</td> </tr> <tr> <td>Bonds and bills denominated in ISK and issued and guaranteed by the Icelandic government</td> <td>0-50%</td> </tr> <tr> <td>UCITS which mainly invest in bonds and bills denominated in ISK and issued and guaranteed by the Icelandic government</td> <td>0-40%</td> </tr> <tr> <td>Investment funds which mainly invest in bonds and bills denominated in ISK and issued and guaranteed by the Icelandic government</td> <td>0-30%</td> </tr> <tr> <td>Other funds for collective investments than UCITS and investment funds &ndash; alternative investments</td> <td>0-10%</td> </tr> <tr> <td>In private equity and limited partnerships</td> <td>0-10%</td> </tr> <tr> <td>Other bonds and bills</td> <td>0-5%</td> </tr> <tr> <td>Investment funds which invest in other bonds and bills</td> <td>0-5%</td> </tr> <tr> <td>Listed international bonds and bills</td> <td>0-5%</td> </tr> <tr> <td>UCITS which invest in listed international bonds and bills</td> <td>0-5%</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.