Investment options

The fund offers three investment options for personal pension savings: Ævileið 1, Ævileið 2 and Ævileið 3. There is also the Ævilína option, which automatically transfers savers to the next investment option once they reach a prescribed age.

Ævileið I option

  • Suitable for an investment period of over 7 years.

Ævileið I is well suited for persons who will be investing their personal pension savings for a longer period, and is intended for fund members younger than 55 years of age. Of the three options offered, the share of equities and foreign securities is highest in Ævileið 1. Its investment strategy is to have half of the portfolio invested in equities and the other half in bonds. The objective is to have the portfolio deliver a good long-term return with effective diversification of assets.

Ævileið II option

  • Suitable for an investment period of over 5 years.

 Ævileið II is well suited for persons who will be investing their personal pension savings for a medium-length period, and is intended for fund members older than 54 years of age. Ævileið II is a less risky portfolio than Ævileið I. The strategy is to have around 75% of the portfolio invested in bonds and around 25% in equities, with foreign equities outweighing domestic equities. The objective is to have the portfolio deliver a steady long-term return with limited risk.

Ævileið III option

  • Suitable e.g. for the investment period after withdrawals begin.

Ævileið III is well suited for persons who will be investing their personal pension savings for a short- or medium-term period, and is intended, for example, for fund members who have begun withdrawing their pension savings. Ævileið III involves limited risk by combining bond investments with deposits. Its strategy is to have around 80% of the portfolio invested in bonds and around 20% in deposits. Equities are not part of the investment portfolio of Ævileið III. The objective is to preserve the accumulated assets while delivering a positive real return.

Ævilína option, automatic transfer between portfolios with increasing age

Members are offered automatic transfers between the investment options as they grow older. Assets are transferred at the following age limits:

  • Members younger than 55 years of age: Ævileið I.
  • Members older than 54 years of age: Ævileið II.
  • Ævileið III option: Once withdrawals begin.

 If a fund member has not chosen automatic transfer between investment options, however, it is possible to do so later.