A good start for the Government Portfolio


Íslandssjóðir's Government Portfolio has been excellently received since the fund's inception in December. It invests exclusively in government-backed bonds with a short maturity as well as deposits with financial institutions. Around one thousand individuals and institutional investors have invested a total of ISK 6 billion in the fund.

The Government Portfolio's investment strategy is to invest 70% in Treasury bonds and 30% in deposits with financial institutions. The proportion of government bonds in the portfolio may be increased to 100% and that of deposits to 50%. The fund has a prudent asset mix of government-backed bonds and deposits, thereby securing a low-risk portfolio. A short average maturity results in less price fluctuations for the bonds in response to changes in their market yields. The fund is actively managed and has delivered good returns since its launch.

The Government Portfolio is managed by Íslandssjóðir, a subsidiary of Íslandsbanki and a leader in the management of government bond funds in the Icelandic market. Íslandssjóðir has extensive experience in the management of government bond funds, having operated under the name Glitnir Funds before Íslandsbanki's rebranding.

Older news

Islandsbanki hf.: Íslandsbanki successfully issues innovative EUR 300m callable 6-year bond (6NC5)

12.01.2018 - IR Releases
Íslandsbanki has today issued a EUR 300m 6NC5 1.125% fixed rate senior unsecured bond, at a spread of 75 basis points over 5-year mid-swaps.More

IS Funds’ Treasury bond fund with the highest returns in 2017

IS Funds’ Treasury bond fund, IS Treasury bonds – long, generated the highest returns of all domestic mutual funds in 2017,More

6.47% stake in Jarðböðin for sale

Skútustaðahreppur district and smaller shareholders have decided to offer their holding in Jarðböðin hf. for sale. More

Íslandsbanki hf.: Fitch affirms BBB rating with stable outlook

15.12.2017 - IR Releases
Today, Fitch Ratings has affirmed Íslandsbanki's ratings of BBB/F3 with a stable outlook. According to Fitch, the ratings for Íslandsbanki reflect...More

Íslandsbanki named Bank of the Year by The Banker

Íslandsbanki has been selected as Bank of the Year in Iceland for 2017 by The Banker, a magazine published by Financial Times. This is the third time...More

Islandsbanki hf.: Íslandsbanki issues 10NC5 Tier 2 bond of SEK 750 million

16.11.2017 - IR Releases
Íslandsbanki has today issued a SEK 750m 10NC5 Tier 2 transaction. The bond pays a quarterly coupon of 3 month STIBOR +200bps.More

New Íslandsbanki housing market report

If Íslandsbanki Research’s forecasts are borne out, house prices will rise by just over 20% year-on-year in 2017 and just under 12% in 2018. More