Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698061158381.pdf (Liberia)
Klapparstígur 29, 101 Rvk.

28.6.2013 NAV 139,49 Bid/Ask spread Annual mgmt.

fee Duration [years] 0,60% 5,4 0% Size [ISK] 8,7 billion GAMMA: GOV GAMMA: Iceland Government Bond Fund (GAMMA: GOV, Bloomberg ticker GAMICGA IR <Equity>) is an open end individual mutual fund that invests only in high quality Icelandic bonds issued by The Icelandic Government or government backed entities such as the Housing Financing Fund.
The fund is suitable for investors who wish to invest in high quality bonds with active management but at minimum cost.

GAMMA: GOV uses active management with the same discipline as GAMMA has developed and used for managing other bond funds.

It offers great possibility to outperform the bond market as measured by GAMMA: Government Bond Index (Bloomberg ticker GAMMA <Index>) as well as outperforming comparable bond funds.
General Information Type of fund: Currency: Orders: NAV: Settlement: Intial fee: Inflation-linked: 90 day vol.

: Range of duration: ISIN: Manager: Open end mutual fund ISK Business days before 14:00 Daily, end of day Euroclear and Clearstream 0 kr.

79% 3,9% 1-10 year IS0000019511 GAM Management hf.

Risk and Investment Criteria Asset Allocation The main risk factors of investments in mutual funds are interest rate risk, liquidity risk and counterparty risks.
GAMMA: GOV counterparty risk is limited since all the underlying assets are issued by the Icelandic Government or government backed entities such as the Housing Finance Fund.

Due to these investment criteria the liquidity risk is fairly low as these kinds of assets are actively exchanged on an open market.

In the act of trying to outperform the bond market as measured by GAMMA: Government Bond Index the interest rate risk is quite noticeable.
More information about risk regarding GAMMA´s funds can be found on our website, www.gamma.is.
Investment criteria Government guaranteed bonds Derivitives 90-100% 0-10% Governme nt Guarantee d Bonds 4% Treasury Bonds 12% Inflation- linked Treasury Bonds 7% Cash 9% Housing Finance Fund Bonds (IL) 68% Manager Commentary Historical Performance The ISK strengthened in February-March due to both interventions by the Central Bank as well as improvements in the balance of payments caused by a contraction in domestic demand in both Q4 in 2012 and Q1 in 2013.
Pass-through effects have subsequently dampened inflation.

It seems that some optimism has followed the accession of a new government at the end of May; investment is nevertheless expected to decline somewhat this year.

Although the output growth outlook for 2014 and 2015 has been revised downwards by the Central Bank, growth is still expected to measure about 3-3½% per year.

Therefore, the economic recovery that began in 2011 is still advancing, albeit more slowly than previously hoped.
145 140 135 130 125 120 115 110 105 100 The long end of the nominal yield curve has been in a flattening bias while the shorter end is upward sloping from very low levels and hence 1-3 years break-even inflation rates are only 1½ -2½% compared to 3,3% YoY inflation.

Longer term break-even inflation is higher than YoY inflation or around 4% reflecting higher inflation expectations due to recovery in GDP growth over the next two years.

About GAMMA and the Fund Manager GAM Management hf.
[GAMMA] is a registered Asset Management Company in the accordance with reg.

161/2002 and is under supervision of The Financial Supervisory Authority in Iceland.

GAMMA was established in June 2008 and is currently managing around $150 million for pension funds, insurance companies, firms and individuals.

GAMMA is also an agent for PIMCO in Iceland.

Fund Manager is Agnar Tomas Moller.

Agnar has worked in the Icelandic financial markets for 9 years.
He started in research and risk management at Kaupthing until 2006, where he was responsible for quantitative engineering and software development work.

From 2006 until starting GAMMA he worked in fixed income sales and trading.
2010 2011 2012 2013 Total return Yearly rate of return Real yearly rate of return 1y 5,4% 5,4% 2,0% 2y 19,0% 9,1% 4,5% 3y 28,0% 8,6% 4,1% Past performance is not an indicator of future returns GAMMA Fixed Income Team Agnar T. Möller tel: 519 3302 agnar@gamma.is Fund´s manager Gísli Hauksson tel: 519 3301 gisli@gamma.is Guðmundur Björnsson tel: 519 3303 mummi@gamma.is Valdimar Ármann tel: 519 3304 valdimar@gamma.is Disclaimer: The information presented herein (the Information) is based on sources which GAM Management hf.
regards as dependable.

GAM Management hf.

has given due care and attention to the preparation of the information, but can nevertheless not guarantee the accuracy or completeness of the information.

GAM Management hf.

is not obliged to make amendments or changes to this publication should errors be discovered or opinions or information change.
Special attention should be given to the fact that projections can vary in both positive and negative ways and are subject to uncertainty and contingencies, many of which are outside of the control of GAM Management hf.

The Information shall not be interpreted as advice to customers on the purchase or sale of specific financial instruments.

GAM Management hf.

bears no responsibility in any instance for loss which may result from reliance on the Information.

Neither GAM Management hf.


nor its personnel can be held responsible for transactions based on the information and opinions expressed in this presentatio.

Transactions with financial instruments by their very nature involve high risk.

Historical price changes are not necessarily an indication of future price trends.

Investors are encouraged to acquire general information from expert advisors on the nature of securities trading, investment issues, taxation, etc.

in connection with