Handelsbanken Företagsobligation (A1 SEK)

Legal name: Handelsbanken Företagsobligation (A1 SEK)

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 fixed income securities and corporate bonds issued in SEK and EUR. At least 50% of the fund’s value should be invested in corporate bonds. Majority of the investments have high credit worthiness, so-called Investment Grade. A maximum of 30% of the fund's value may be made in investments below Investment Grade. The average remaining duration for the fund's investment total a maximum of seven years. The fund's value growth varies over time and is impacted primarily by the credit market. A maximum of 2% of the fund’s value may have exposure to currency risk in EUR.

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 1 November 2017.

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 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 SEK

2024

1 year

3 years

5 years

10 years

Handelsbanken Företagsobligation (A1 SEK) (SEK)

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 22.07.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
137.64 SEK	0.17%	0.96%	2.42%	3.05%	7.95%	4.49%	13.03%

Portfolio 11.07.2024

Portfolio manager comments — Q2 2024

Fund performance was positive in Q2 and the fund rose 1.6% in SEK. Q2 was relatively volatile with an initial period of rising interest rates that then declined, which resulted in a fixed income performance that was largely sideways. The period was marked by rising geopolitical uncertainty due to Iran’s increased involvement in the conflict between Palestine and Israel. This caused credit spreads to initially widen, while declining interest rates in the wake of clearer signs of a slowdown to inflation in the US and Europe led to a decline in interest rates.

Overall, this resulted in a strong performance, where the fund’s positions with an overweight in 2 years – 5 years’ duration and the longer spread durations contributed significantly. Our overweight in the Nordic bank and financial sector was the strongest contributor, together with positions in government and mortgage futures as well as holdings in subordinated bank bonds.

The fund’s exposure to real estate companies continued to contribute positively, as these companies could issue new bonds with lower credit spreads during the period. Despite our underweight in the real estate sector, we slightly increased our exposure in the quarter due to improved rating outlooks, and we are focusing primarily on issuers with high or very high creditworthiness.

In addition, the fund is retaining a position for rising long-term rates but is also positioned for declining shorter-term rates and a longer spread duration. The fund participated in a a number of new issues at attractive levels, such as Sveaskog, Vacse, ICA, Diös, Swedish Orphan Biovitrum, Latour, Bonnier, Danske Bank and Klarna Bank.

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.