Handelsbanken Tillväxtmarknad Obligation (A1 EUR)

Legal name: Handelsbanken Tillväxtmarknad Obligation (A1 EUR)

Bond Fund 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 invests in interest-bearing securities that are issued or guaranteed by states in emerging markets, municipalities, governmental or municipal authorities in such markets or by some intergovernmental agency in which one or several states are members. Emerging markets refers primarily to Latin America, Asia, Africa and Eastern Europe, including the Balkans and Baltics. Investments are mainly made in local currency, which results in a currency risk as well as a higher potential for returns.

The investment focus of the fund does not permit investments in corporate credits, which means that by definition controversial sectors are excluded.

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 Spotlight

The fund will be liquidated on March 20, 2025. The last day for trading before the fund is liquidated is March 14.
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Fund manager

Joakim Buddgård Experience in the fund industry 2006. Portfolio Manager since 1 March 2025.

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 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's investment focus entails exposure to markets that frequently have lower liquidity, and the variation in liquidity is considered to be higher relative to more developed markets. This can impact the fund's ability to manage significant outflows at a relatively low cost.

Risks that have not been captured by the risk indicator include: Operational risk - the risk for loss due to unforeseen policy decisions or weaknesses in a country’s securities regulations. 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™

28.02.2025

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).

31.12.2024

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

2025

1 year

3 years

5 years

10 years

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.

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Historical rates

Performance

Rate 19.03.2025	1 week	1 month	3 months	2025	1 year	5 years	10 years
11.27 EUR	0.99%	-0.62%	2.45%	2.08%	5.72%	16.07%	0.63%

Portfolio 15.01.2025

Portfolio manager comments — Q4 2024

Fund performance was positive during the quarter and the fund rose just over 1% in SEK. The positive returns were driven primarily by stronger currencies in the emerging markets against the SEK, while global rates rose in most areas. However, the coupon rates in the emerging markets led to relatively neutral returns in the fixed income segment. The USD strengthened considerably during the quarter, driven by expectations in the market of fewer rate cuts from the US central bank (FED) in 2025, as well as rising US rates. The US continued to see strong economic data and inflation was slightly higher than expected. This, together with Donald Trump’s victory in the US presidential election, affected the performance of both interest rates and the USD. Several of the central banks became more cautious in their guidance for rate cuts going forward, but we are still in a cycle of interest rate cuts in most countries. Mexico, Turkey and China were among those countries that cut rates during the quarter. However, Brazil went against the trend and raised its key rate due to a deteriorating confidence in the government finances and rising inflation expectations. The Brazilian currency weakened significantly during the quarter, which had a negative impact on the absolute returns. Despite this, the relative returns were positive as the fund had an underweight in Brazilian exposure. The overweight in Turkish supranational bonds contributed positively to both active and relative returns, particularly after the Turkish central bank cut rates by 250 bps and the Turkish lire strengthened against the SEK. China continued with its stimulus to support the economy, which included interest rate cuts and the launch of a support program that contributed to the decline in interest rates. The fund’s underweight in China therefore had a negative impact on returns, although this was compensated by a stronger Indian rupee where the fund has exposure through supranational bonds. The position for a stronger USD delivered good returns. The fund is underweight in duration and has a slightly defensive positioning for 2025.

Portfolio distribution 28.02.2025

Geographic breakdown 28.02.2025

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.