Handelsbanken Euro Corporate Bond Fund (A1 EUR)

Legal name: Handelsbanken Euro Corporate Bond Fund (A1 EUR)

Registered in Sweden (UCITS) Bid

About risk

Historical yields are not a guarantee of future returns. A fund can both increase and decrease in value and it is not guaranteed that you will recover the entire invested amount. Note that a fund with risk level 5-7, as stated in the fund's fact sheet (KID), can vary greatly in value due to the fund's composition and management methodology. The prospectus, fund rules and KID are available under each fund. Summary of investors' rights.

The fund is actively managed and may invest in interest-bearing financial instruments in EUR, SEK, DKK and NOK, issued by companies, housing institutions and states. A maximum of 2% of the fund's value may have exposure to currency risk in SEK, NOK or DKK. The average residual duration of the fund's investments may amount to 0 to 7 years. Fund assets may be invested in interest-bearing financial instruments with a minimum rating of BBB- from S&P or a minimum rating of Baa3 from Moody's, or an equivalent internal rating. In addition, a maximum of 30% of the fund's value may be invested in interest-bearing financial instruments that hold a rating lower than BBB- from S&P or Baa3 from Moody's or an equivalent internal rating.

The fund is reported as an Article 8 fund pursuant to EU regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR).

Fund manager

Karin Göransson Experience in the fund industry 2006. Portfolio Manager since 1 January 2019.

Risk 2/7

The risk indicator provides guidance on the risk level for this product relative to other financial products. It shows the likelihood that the product will decrease in value due to market performance. Risk level 1 represents a low risk and risk level 7 is a high risk.

About risk

The risk/return indicator illustrates the link between risk and potential returns from an investment in the fund. The indicator is based on the change in the fund’s value over the past 5 years.

This shareclass belongs to category 2, which means there is a low risk for up- and downturns in the net asset value. Category 1 does not mean that the fund is risk-free. The fund's risk indicator can change both upwards and downwards on the scale over time, as the indicator is based on historical data that does not guarantee future risk/returns.

The risk in a fixed income fund is due in part to the average fixed interest duration on the fund’s holdings, i.e., the fund’s interest rate risk. The fund normally consists of holdings with a longer fixed interest duration, which results in a higher interest rate risk.

The indicator primarily reflects the upturns and downturns in the value of the fund’s holdings in interest-bearing securities.

The indicator reflects the most important risks in the fund but excludes the following material risks:

Given that the fund’s investments are concentrated to one region, the fund normally has a higher risk relative to investments that are allocated with a larger geographical distribution and across several regions or countries.

The fund has exposure to credit risk, i.e., the risk that an issuer is unable to meet its commitments. The credit risk is derived from the issuer’s credit worthiness. The fund’s investments include assets with low credit worthiness, so-called high yield.

The fund invests in corporate bonds for which liquidity is frequently lower, and the variation in liquidity is considered to be higher relative to the fixed income market in general. This can impact the fund's ability to manage significant outflows at a relatively low cost.

This product does not provide any protection from future market performance. You could therefore lose some or all of your investment.

Additional information about the risks may be found in the prospectus available at www.handelsbanken.se/funds.

Total Rating™

30.04.2024

The rating shows which funds have historically posted the strongest performance in relation to risk. Ratings are denoted by a scale of one to five stars, with five as the highest rating. A fund must have a performance history of at least three years to receive a rating.
Read more about the fund's rating

SFDR

This fund promotes environmental and social characteristics through its investments but does not have sustainable investments as its objective. As a result, the fund takes into consideration the environment and climate, as well as human rights, employees’ rights and corruption.
The fund is reported as an Article 8 fund pursuant to EU regulation on sustainability-related disclosures in the financial services sector (SFDR).

29.02.2024

Sustainability-
rating

The sustainability rating is developed by the fund information company Morningstar. The rating measures how well the fund's investee companies manage sustainability risks relative to other funds within the same global Morningstar category. If the fund has invested in government bonds issued by sovereign states, the respective country's sustainability risk is included in the calculation. The analyzed funds can receive a sustainability rating between 1 and 5 globes, with 5 as the highest rating.

About Sustainabilty rating

The fund complies with the UN Principles for Responsible Investments.

Graph

Performance

Monthly savings

In percent including distribution in EUR

2024

1 year

3 years

5 years

10 years

Handelsbanken Euro Corporate Bond Fund (A1 EUR) (EUR)

Note that benchmark returns, unlike fund returns, do not take distributions into account. As a result, fund returns are higher than they would otherwise be relative to benchmark.

Compare funds

Historical rates

Performance

Rate 08.05.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
98.40 EUR	0.61%	0.01%	0.84%	0.19%	5.17%	-6.96%	-

Portfolio 26.04.2024

As with the close of 2023, Q1 2024 was a strong period for risky assets. The financial markets have been tainted by expectations for a soft landing in the economy and equities have in general performed strongly. Economic data was unexpectedly on the upside and affected more risky assets such as narrower credit spreads and rising oil prices.

The journey for the fixed income markets was not as positive and returns were held back by persistent inflation and the belief of fewer rate cuts, which resulted in higher interest rates during the quarter. The demand for corporate bonds was high with good levels of activity in new issues and oversubscribed books. There were occasionally some concerns during the quarter about commercial real estate and its impact on the balance sheets of US banks, although these concerns have waned for the time being.

The credit spreads for real estate companies in the Nordics continued to narrow and companies such as Sato, Castellum and Sagax contributed positively to returns in the fund. The fund was negatively affected by the significant rate movements in the middle of the quarter as the fund had a slight overweight position in duration. However, the selection of credits in the fund contributed positively. We were active in several new issues, which included BBVA, Tennet, Telefonica and United Utilities.

Portfolio distribution 30.04.2024

Geographic breakdown 30.04.2024

Svenska Handelsbanken AB (PLC)

Historical yields are not a guarantee of future returns. The money you invest in a fund can both increase and decrease in value and it is not guaranteed that you will recover the entire invested amount.
Handelsbanken does not assume liability for any errors in the information.

Handelsbanken's funds are classified in seven risk classes, 1 for the lowest risk and 7 for the highest risk.