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.