Hrafn Magnusson, the Association’s managing director said that, while the country’s funds had few complaints with the existing regime of fixed ceilings for each asset class, the sector would welcome the added flexibility a prudent man regime would offer.

He said: “Two years ago we successfully lobbied the Finance Ministry to get the equity ceiling raised from 50 per cent to 60 per cent. Now we would like to see the prudent man rule introduced in place of fixed investment ceilings.” This approach would be preferable in the longer run, he believed.

Iceland's funds have enjoyed several years of very strong performance. Last year, fund's delivered 10.2 per cent above inflation, though even this looks poor compared to 2005's bumper returns of 13.2 per cent above inflation.

Printer friendly version

Email this article to a friend