News and Notifications - Friday, July 02, 2010 10:23 AM
Special offer extended - no buy-sell price difference until 1 August 2010
Landsbankinn has decided to extend its offer of no buy-sell price difference in Landsvaki's UCITS and equity funds until 1 August 2010.
Landsvaki's bond funds
Landsvaki offers a variety of bond funds suitable for regular savings. Buying and selling is simple and the difference between the buying and selling price is cancelled if units are purchased by subscription. Over the last few months, the funds have yielded better returns than normal deposit accounts.
Bond funds mainly invest in bonds issued by parties who finance own activities through the issuance (i.e. government, municipality, institutions and companies). The aim of the funds is to provide interest income for fund members and diversify risk. Bonds are purchased in accordance with a previously defined investment policy and the funds collect instalments and interest on acquired bonds. The current value of the funds is also determined by fluctuations in bond prices as they are bought and sold on the market. The strength of each fund is determined by underlying assets, i.e. the financial standing of the issuer of the bonds the fund has invested in.
Landsvaki offers six bond funds that invest solely in government-backed bonds and deposits, Security Fund Long-term, Security Fund Medium-term, Security Fund Short-term, Security Fund Indexed, Security Fund Non-Indexed and Fixed Income Short-term, government-backed. While the same investment policy applies to all funds, their average duration varies.
Landsvaki also manages three mixed bond funds, Long-term, Medium-term and Short-term Fixed Income Funds (Markaðsbréf). These are funds that invest a minimum of 60% in bonds issued by the National Treasury but also in bonds issued by municipalities, financial institutions and other corporations. While the same investment policy applies to all funds, their average duration varies.
Landsvaki's equity funds
Equity funds invest primarily in listed equities, in accordance with a previously determined investment policy, and receive dividends as they accrue. A fund's returns are determined by dividend payments and price developments of its assets. The value of each fund depends on the underlying assets, the financial strength of the issuer of the assets in which the fund has invested and the large number of factors that may affect equity prices.
Landsvaki manages three equity funds. The Index fund Nordic 40 is linked to the equity index Nordic 40, allowing investors to achieve the average return of the equities that comprise the index, less costs.
Two actively managed equity funds are based on the fund manager selecting assets into the fund, within the parameters set by each fund's investment policy. Such funds aim to achieve better returns than set benchmarks. Landsvaki's actively managed funds are the Selected Equities Fund (Úrvalsbréf), investing in equities listed on the Iceland Stock Exchange, and the Global Equity Fund, investing primarily in foreign equity funds and Exchange Traded Funds (ETFs).
No buy-sell price difference until 01 August 2010
Landsvaki
Landsvaki is an independent financial undertaking that manages UCITS funds, investment funds and institutional funds. The company is a licensed to operate as a management company by the Financial Supervisory Authority, Iceland. Landsvaki hf. is a subsidiary of Landsbankinn (NBI hf.) and the bank also serves as custodian of the funds. More information on Landsvaki is available on http://www.landsvaki.is/ (the website is in Icelandic).
Landsbankinn handles all sales of units in Landsvaki's funds. For further information on the funds, please consult their prospectuses or Landsbankinn's Corporate Finance, tel: +354 410 4040. Customers are advised to acquaint themselves with fund prospectuses before investing in them. A prospectus contains detailed information on the risks involved in investments in units shares in UCITS.
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