Handelsbanken Företagsobligation Investment Grade (NOK) A11

Handelsbanken Företagsobligation Investment Grade (NOK) (A11 NOK)

Legal name: Handelsbanken Företagsobligation Investment Grade (NOK) A11

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 invests in interest-bearing financial instruments issued by companies, housing institutions and states. These must have the Investment Grade credit rating, ie the lowest BBB- according to Standard & Poor's or the lowest Baa3 according to Moody's, or the corresponding internal rating. The average remaining maturity of the Fund's investments is a maximum of 5 years. The Fund's value development varies over time and is mainly affected by the credit market. The holdings are currency hedged in NOK.

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

Erik Gunnarsson Experience in the fund industry 2006. Portfolio Manager since 3 May 2018.

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 made in one country or a limited number of countries, the fund normally has a higher risk relative to investments that are allocated with a broader geographical distribution 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 only include assets with high credit worthiness, so-called investment grade.

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™

Given that the fund has less than three years of performance history, it is not rated.
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 NOK

2024

1 year

3 years

5 years

10 years

Handelsbanken Företagsobligation Investment Grade (NOK) (A11 NOK) (NOK)

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
113.69 NOK	0.50%	0.91%	1.48%	1.45%	6.75%	9.22%	-

Portfolio 26.04.2024

Fund performance was positive during Q1 2024, which was marked by rising interest rates as well as narrowing credit spreads and a good risk appetite. The market’s initial pricing for several rapid rate cuts was gradually priced out during the quarter when inflation admittedly declined, although not at the same rate as forecast.

Despite rising interest rates, Nordic credits posted strength and were primarily driven by stronger than expected company reports and improvement to key figures in general in the sectors that were most affected by rising interest expenses, such as real estate, as well as by a higher demand for issues, which secured financing and liquidity for many companies.

The fund’s longer spread duration benefitted from the market performance and contributed significantly to both active and absolute returns. Senior Nordic bank bonds and real estate companies such as Humlegården, Castellum and Fabege were major contributors, together with the holding in subordinated bank bonds.

We are retaining a slightly shorter interest rate duration in total but with an overweight in the shorter durations, while we are retaining a longer spread duration than the benchmark index with an overweight in AAA mortgage futures. Our assessment is that the central banks will begin to cut rates in May/June and that the cuts will benefit the risk appetite in the credit market.

The fund participated in several new issues at attractive levels primarily in green bonds from Ellevio, Jotun, Lantmännen, Husqvarna, Nibe, Tomra and Castellum, as well as senior banks and a number of subordinated bonds from Gjensidige, Aktia Bank and DNB.

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.