Objectives and Investment Policy
The fund is an exchange-traded index fund with the objective to track the performance of the Handelsbanken Sweden All Bond Tradable Index as closely as possible.
Fund returns are determined by how the fund's investments in interest-bearing instruments increase or decrease in value. The index will be replicated through physical replication. The method selected for replication means that the fund will invest directly in those equities included in the index. Tracking error is expected to be less than 0.2% under normal market conditions. The management fee, as well as customer flows, index rebalancing and corporate events all result in transaction costs for the fund, which are not present in the index. These are the main factors that impact the fund’s ability to replicate the index.
The index mirrors the performance of a basket of bonds which represent the Swedish market for covered mortgage bonds as well as bonds issued by states and municipalities with benchmark status. Additional information about the index, such as the composition of the index as well as the weighting method and rebalancing is available at www.handelsbanken.se/index.
The fund can invest in OTC derivatives (such as swaps and futures) to adhere as close as possible to the index.
The fund is not permitted to invest in corporate bonds due to its investment focus, which by definition means that controversial sectors are excluded.
The fund can invest in derivative instruments as part of the fund’s investment focus. However, the use of derivative instruments is of such a nature that it only has a marginal impact on the fund’s risk level.
The fund does not distribute dividends. All income is reinvested in the fund. Normally, you can purchase and sell fund units on the stock market, the so-called secondary market, on all banking days. You can also create and redeem units directly with the management company on the so-called primary market.
Additional information about the sustainability work and the funds index, may be found in the prospectus.
Recommendation: This fund may not be suitable for investors who plan to withdraw their money within 3 years.