Asset Allocation Fund A
Private banking funds
Investing in funds

Investment policy

Asset Allocation Fund A is an Alternative Investment Fund marketed towards the public which invests exclusively in bonds, bond funds and deposits. The Fund can invest in bonds and deposits in foreign currency. The focus is on investing in funds rather than shares in individual companies in order to further diversify risk. The fund is authorized to invest the financial resources it uses for investments in other funds for investments in funds owned by Stefnir hf. The fund is aimed at clients of Arion Bank - Private Banking.

Asset allocation

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Nominal rate of return

Performance

Private banking funds
Asset Allocation Fund A
Stefnir hf.
Borgartún 19
444 7000
www.stefnir.is

Investment authorisation

<table border="1" cellpadding="1" cellspacing="1" style="height:230px; width:763px"> <tbody> <tr> <td><strong>Deposits</strong></td> <td>&nbsp;</td> </tr> <tr> <td>&nbsp;- Deposits of financial institutions, domestic and international</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><strong>Bonds</strong></td> <td>&nbsp;</td> </tr> <tr> <td>&nbsp;- Bonds and bills denominated in ISK and issued and guaranteed by the Icelandic government</td> <td>0-50%</td> </tr> <tr> <td>&nbsp;- UCITS which invest exclusively in bonds and bills denominated in ISK and issued and guaranteed by the Icelandic government</td> <td>20-80%</td> </tr> <tr> <td>&nbsp;- Investment funds which invest exclusively in bonds and bills denominated in ISK and issued and guaranteed by the Icelandic government</td> <td>0-40%</td> </tr> <tr> <td>&nbsp;- Listed domestic bonds and bills issued by companies, local authorities and financial institutions (e.g. covered bonds)</td> <td>0-40%</td> </tr> <tr> <td>&nbsp;- UCITS which mainly invest in listed domestic bonds and bills issued by companies, local authorities and financial institutions (e.g. covered bonds)</td> <td>0-20%</td> </tr> <tr> <td><strong>Other bonds, bills and loan agreements</strong></td> <td>&nbsp;</td> </tr> <tr> <td>&nbsp;- Direct investment in other bonds, bills and loan agreements</td> <td>0-20%</td> </tr> <tr> <td>&nbsp;- Investment funds which invest in other bonds and bills</td> <td>0-60%</td> </tr> <tr> <td>&nbsp;- Institutional investment funds which invest in other bonds, bills and debt instruments</td> <td>0-20%</td> </tr> <tr> <td>&nbsp;- UCITS which invest in international government and corporate bonds</td> <td>0-15%</td> </tr> </tbody> </table>

Disclaimer

The information provided here has not been independently reviewed.

Stefnir hf. operates as an alternative investment fund manager pursuant to Act No. 45/2020 on Alternative Investment Fund Managers, and UCITS pursuant to Act No. 116/2021 on Undertakings for Collective Investment in Transferable Securities (UCITS).

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 alternative investment fund is generally considered to represent a higher risk investment than a UCITS. The greater risk associated with alternative investment funds is a result of its broader investment limits which could result in less risk distribution than in a UCITS.

Funds' investment returns are generally presented as nominal returns. Investment returns on Stefnir's website and promotional material connected to the funds show nominal returns, unless otherwise stated. All returns are calculated in Icelandic krónur.

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 KID which can be obtained from branches of Arion Bank or viewed here: www.stefnir.is/english/funds/.