Handelsbanken Europa Selektiv (A9 SEK)

Legal name: Handelsbanken Europa Selektiv (A9 SEK)

Equity 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 is actively managed and invests in 16-35 equities over the long term that are issued by European companies and thereby has a currency exposure to these markets. Our focus is to construct a portfolio of high-quality companies with a variety of drivers and good outlooks and a reasonable valuation.

For this fund, the fund company's Enhanced exclusion level applies. For information about sectors that the fund excludes, see the Detailed information tab.

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

David Cederberg Experience in the fund industry 2000. Portfolio Manager since 1 June 2023.

Risk 4/7

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. Given that the fund does not have five years of historical performance, the risk indicator has been estimated based on the fund’s benchmark index (see above under the heading, Objectives and Investment Focus).

This shareclass belongs to category 4, which means there is a medium 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.

An investment in an equity fund is generally characterized by high risk as the value of the equities can fluctuate significantly over time but also has the potential for high returns.

The indicator primarily reflects the upturns and downturns in the value of the fund’s equity investments and fluctuations in exchange rates.

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's investment focus means that the fund may have significant exposure to a limited number of equities, which can result in lower liquidity than if the fund had a greater number of holdings. 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™

31.10.2024

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).

30.09.2024

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 Europa Selektiv (A9 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 20.11.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
136.94 SEK	-0.63%	-3.51%	-3.78%	5.18%	8.73%	41.20%	109.78%

Portfolio 16.10.2024

Portfolio manager comments — Q3 2024

Fund performance was negative during Q3. The key contributor to returns was DSV, which was largely affected by its successful bid on DB/Schenker. Positive contributors also included defensive holdings in Compass Group and Deutsche Börse, as well as companies with focus on Western markets, such as JD Sports, Ashtead and Experian. In addition, companies with construction exposure were valued upwards ahead of brighter prospects, where we have exposure through Sika and have recently added Legrand to the portfolio. We saw significant declines in valuations at the start of the quarter for major growth companies such as ASML, Infineon and Novo Nordisk, as well as within the luxury segment where the competition’s weakness overshadowed the stable results from Richemont and L'Oréal. The political uncertainty that continues to weigh on the stock market in France has left a deep negative imprint on Edenred, despite earnings trends and outlooks that indicate stable growth. Returns at the end of the quarter were weighed down by Rentokil’s announcement that improvements in the acquired Terminix were not proceeding as anticipated.

The changes in the risk factors in the European market have led to an adjustment to the portfolio risk. For example, we sold JD Sports, which is showing higher volatility and additional acquisition risk, and instead added Inditex to the portfolio. We also took a position in Autoliv, where we believe that the current valuation does not reflect the company’s underlying stability and cash generation even though the short-term market outlooks are uncertain. We expect the solid earnings trends in the holdings to generate higher returns ahead and the convergence of the covariance we saw in Q3 to normalize and return to a financial performance that will drive valuations upward.

Portfolio distribution 31.10.2024

Geographic breakdown 31.10.2024

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.