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Iceland Funds – interim earnings report for H1/2021

The profit generated by Iceland Funds’ mutual and investment funds in H1/2021 was stable between years, at ISK 8.2bn, which will be distributed to the company’s 11,000 customers as returns on their investment.

Iceland Funds’ operations were successful in H1/2021, and the company’s funds delivered solid returns averaging about 16% on an annualised basis. Its domestic mutual funds performed best, with returns of 24-35% for the period.

Iceland Funds hf.’s operating profit for the half was ISK 466m, up from ISK 169m for the same period in 2020. The company employs 21 asset management specialists, 10 female and 11 male, who observe responsible investment practices in all asset management. Assets under management by Iceland Funds totalled ISK 377bn at the end of June. Iceland Funds manages the largest green bond fund in the country, which has invested some ISK 3bn in bonds listed on the Nasdaq Iceland exchange’s ICE Sustainable Bonds market.

Iceland Funds operating performance in H1/2021

  • Profits to be distributed to customers as returns totalled ISK 8,216m, as compared with ISK 8,233m in H1/2020.
  • The company’s after-tax profit was ISK 466m, up from ISK 169m for the same period in 2020.
  • Commission income totalled ISK 1,028m, as compared with ISK 798m a year earlier, an increase of 29%.
  • Operating expense totalled ISK 657m, an increase of 4.5% relative to the H1/2020 total of ISK 629m.
  • The company’s equity totalled ISK 1,963m as of 30 June 2021, and its equity ratio as calculated according to the Act on Financial Undertakings was 50.5%, well above the required minimum of 8%.
  • At the end of June, Iceland Funds operated 22 mutual and investment funds whose combined net assets totalled ISK 216bn, up from ISK 200bn at the end of 2020.

Kjartan Smári Höskuldsson, Managing Director of Iceland Funds:

“The first half of the year brought excellent gains in the domestic stock market, and indexed bonds generated solid returns as well. Low deposit interest rates have prompted depositors to invest in other assets, and mixed funds with broadly diversified assets have performed particularly well. It is gratifying to see Icelanders’ savings grow steadily, which can be seen, for instance, in widespread participation in recent initial public offerings. There is a steadily growing emphasis on responsible investment, and all of our funds and asset portfolios are managed in accordance with responsible investment methodology.”

Iceland Funds hf., the oldest fund management company in Iceland, was founded in 1994 and is a subsidiary of Íslandsbanki.