Handelsbanken Euro Obligation (A10 EUR)

Legal name: Handelsbanken Euro Obligation (A10 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 invests in fixed income securities denominated in EUR. The fund's assets shall be invested in fixed income securities issued or guaranteed by a state, municipality or by a government or municipal authority or by some intergovernmental agency in which one or several states are members, as well as in covered bonds. The average residual maturity for fund investments is between 2 and 10 years. The investment focus of the fund does not permit investments in corporate credits, which means that by definition controversial sectors are excluded. For further information, please refer to the fund's prospectus.

The fund is reported as an Article 6 fund pursuant to EU regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR).

Fund manager

Joakim Buddgård Experience in the fund industry 2006. Portfolio Manager since 1 March 2024.

Risk 3/7

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 3, which means there is a medium-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 and currency fluctuations.

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 a limited number of regions or issuers, the fund normally has a higher risk relative to investments that are allocated with a broader geographical distribution and across a larger number of issuers.

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.

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

Sustainability risks are integrated into investment decisions, but the fund does not promote environmental or social characteristics or have sustainable investments as its objective. Sustainability risks are managed primarily through engagement in the form of dialogues and active corporate governance. The fund also takes into account principal adverse impacts on sustainability factors.
The fund is reported as an Article 6 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 Obligation (A10 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
367.92 EUR	0.78%	0.01%	0.26%	-1.57%	3.32%	-8.23%	-

Portfolio 26.04.2024

Fund performance was positive during the quarter and the fund rose 2.73% in SEK. The central banks’ reversal on rate cuts at the end of 2023 eased the financial environment. Q1 2024 was thereby marked by an increased risk appetite and positive performance in the equity and credit markets. As a result, European rates declined in countries that are considered to be more risky, such as Italy, in comparison to countries deemed to be less risky, such as Germany.

The fund’s overweight in Italy during a large portion of the quarter was positive for returns. Interest rate spreads at the end of the quarter were traded at historically low levels, which led us to close this overweight and take profits from this position at the end of March. The timing of this was good, given that the trend has turned.

Portugal’s credit rating was also upgraded during the quarter from BBB to A. The journey has been long for the country since it was hit hard during the euro crisis and is already being traded at relatively low rate levels. Consequently, these levels have not moved significantly. The fund held a neutral position in Portugal during the quarter.

Inflation data in the US was higher than forecast and it is not difficult to identify unsettling upside risks. The fund has been positioned for lower short- to medium term rates, which had a negative impact on returns. We also believe that long-term rates, despite cuts to key rates, will hold up as a result of an increased supply and higher risk premiums. The fund is therefore retaining the positions for steeper rate curves, although the positioning has been moved from two relative five years to two relative ten years, as this better reflects this outlook. This position had a negative impact on returns in the period.

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.