Introduction
At Almenni Pension Fund, you can choose between six pre-designed portfolios, one of which might be a key ingredient in ensuring the pension you deserve. A pension you can look forward to. The portfolios are Life Portfolios I, II, III, Index-linked Savings Account, Short-Term Government Bond Portfolio and Long-Term Government Bond Portfolio.
You can choose a portfolio according to your age or the risk you are willing to take. Furthermore, you can select The Lifetime Track in which the holdings are transferred between the Life Portfolios in accordance with your age.
Data as at 31st January 2011.
Domestic & Foreign Asset Portfolios
Life Portfolio I is designed for those who are willing to take risk. The objective of Life Portfolio I is to ensure that fund members receive a high net return over a long period of time. The portfolio is well diversified across a various number of countries and industry groups consisting of both equities and bonds. The market risk is high due to the investment strategy.
- Investment strategy: 70% equities, 30% bonds
- Current asset allocation: 35% equities 65% bonds
- We recommend the portfolio: For fund members age 16 to 44.
Life Portfolio II is designed for those who are willing to take medium risk. The objective of Life Portfolio II is to ensure that fund members receive a high net return over a long period of time. The portfolio is well diversified across a various number of countries and industry groups consisting of both equities and bonds. The market risk is medium due to the investment strategy.
- Investment strategy: 50% equities, 50% bonds.
- Current asset allocation: 22% equities 78% bonds
- We recommend the portfolio: For fund members age 45 to 56.
Life Portfolio III is designed for those who are seeking less risk. The objective of Life Portfolio III is to ensure that fund members receive a stable net return over the remaining holding time through a well balanced portfolio, mainly consisting of Icelandic bonds and a small part of equities. The market risk is less than in Life Portfolio I and II due to the investment strategy.
- Investment strategy: 20% equities, 80% bonds.
- Current asset allocation: 9% equities 91% bonds
- We recommend the portfolio: For fund members age 60 or older.
Domestic Savings Account
The Index-linked Savings Account is suitable for all ages having relative low price fluctuations and a low market risk. The main objective is even and continuous growth through bank deposits in at least four banks. The main emphasis is on index-linked deposits, but a relative small portion of the deposits are non-index-linked.Bank deposits in retail banks are fully guaranteed by the Icelandic government according to a statement from February 3rd, 2009.
- Investment strategy: 100% bank deposits
- Current asset allocation: 100% bank deposits
- We recommend the portfolio: For fund members seeking low market risk and/or wishing to invest only in bank deposits.
Domestic Government Bond Portfolios
Long-Term Government Bond Portfolio invests in bonds guaranteed by the Icelandic government with a long duration time (8 – 12 years). The portfolio is suitable for fund members who wish to own a long duration government bonds that are mainly indexed linked. The market risk is quite high due to the long duration of the bonds which will result in considerable price fluctuations.
- Investment strategy: 100% government bonds.
- Current asset allocation: 94% government bonds, 6% bank deposits.
- We recommend the portfolio: For fund members who wish to invest in government bonds for a period of one year or longer.
Short-Term Government Bond Portfolio invests in Treasury-guaranteed bonds/bills and bank deposits. The average duration is relatively low (1 – 3 years). The portfolio is suitable for fund members who wish to own non-indexed-linked government guaranteed bonds/bills and bank deposits. The market risk is low due to the short duration of the bonds which will result in relatively low price fluctuations.
- Investment strategy: 80% Treasury-guaranteed bonds/bills, 20% bank deposits
- Current asset allocation: 81% Treasury-guaranteed bonds/bills, 19% bank deposits.
- We recommend the portfolio: For fund members who wish to invest in government bonds for a period of one year or less.
