Handelsbanken Global Impact (A10 EUR)

The fund delivered negative performance during the third quarter of the year, a period marked by an earnings season characterized by high volatility. Companies that reported results below expectations were penalized sharply, while even several strong reports were met with muted or, in some cases, negative market reactions. Sectors linked to artificial intelligence, nuclear energy, cryptocurrencies, and higher risk areas such as unprofitable technology and biotechnology performed well. This was driven by a more stable macroeconomic environment in the U.S. following the Federal Reserve’s meeting in Jackson Hole, which boosted risk appetite. Cyclical companies in the materials and commodities sectors also showed robust performance, with cement and metal producers benefiting from strong order intake and price increases. This development reflects continued solid demand in areas such as electrification, data center construction, and the energy transition — an improvement clearly visible in corporate earnings reports. The fund’s exposure to AI proved beneficial.

The top contributor to performance was TSMC, which continues to maintain its market leading position as the world’s foremost chip manufacturer, supplying technology giants such as Nvidia, Microsoft, and Apple — the latter also being one of the fund’s strongest contributors during the quarter. The fund’s positions in data centers and electrification, notably through companies like nVent and Antofagasta, whose copper production plays a key role in the green transition, also supported performance.

On the other side of the AI theme, the software sector experienced negative sentiment over the quarter. The market has expressed uncertainty about how much traditional software will be needed if AI takes over certain functions. One example is Intuit, which was among the strongest contributors in the previous quarter but weakened this period. The weakest performer was Palomar, as its latest report raised concerns about future profitability, despite continued strong growth and solid underlying risk management. During the quarter, the fund added three new holdings: two U.S. companies active within environmental technology and waste management — Enviri, which provides innovative solutions for industrial and specialized waste, and Waste Management, a leading North American player offering comprehensive services in collection, recycling, and environmentally responsible disposal. The fund’s third new holding is Arcadis, a global engineering and consulting firm specializing in sustainable solutions. At the same time, the fund exited its positions in Etsy, Becton Dickinson, and Chugai Pharmaceutical.