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 invests in interest-bearing financial instruments, denominated in EUR, SEK, DKK and NOK, that are issued by companies, mortgage institutions and states. A maximum of 2% of the fund's value may have exposure to currency risk in SEK, NOK or DKK. Investments are made primarily in companies with high credit worthiness, so-called Investment Grade. In addition, the fund may invest a maximum of 30% in High Yield companies, i.e., below Investment Grade, alternatively an equivalent internal rating. The average residual duration of the fund's investments is between 0 and 7 years.

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™

30.06.2024

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).

31.05.2024

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.

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Historical rates

Performance

Rate 19.07.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
99.39 EUR	0.17%	0.64%	1.58%	1.20%	5.91%	-7.70%	-

Portfolio 11.07.2024

Q2 was an eventful quarter. Global interest rates have fluctuated and several central banks began their phase of rate cuts. Inflation and the measures taken by the central banks have had an impact on the financial markets.

In April, the focus of discussions was on whether or not the US central bank, the Fed, would cut its key rate in 2024, given that the US inflation rate is being more persistent than expected. This led to upturns in interest rates and weak stock markets. At the same time, geopolitical tensions continued in the Middle East.

However, the situation quickly changed and risk sentiment improved at the beginning of May. Fed chief Powell indicated that it is unlikely that the next policy rate move for the Fed will be a rate hike, which increased market expectations for a soft landing in the economy. The Riksbank chose to be one of the first central banks within G10 to cut its key rate, which was the first cut since 2016. The European Central Bank, ECB, followed with a cut in June. The credit markets have been functioning well and the market for new issues has been very active throughout the entire quarter.

Fund duration has been neutral to long during these significant rate movements. The fund’s selection of bonds was the strongest contributor to returns relative to its benchmark index. Companies such as Castellum, Telefonica and Kojamo were the strongest contributors. We also chose to sell a number of holdings, such as the Spanish bank Banco Credito Social, that have tightened to a great extent and instead made new investments in YIT and EDP.

Portfolio distribution 30.06.2024

Geographic breakdown 30.06.2024

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.