Handelsbanken Tillväxtmarknad Obligation (A9 SEK)

Legal name: Handelsbanken Tillväxtmarknad Obligation (A9 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 interest-bearing securities that are issued or guaranteed by states in emerging markets, municipalities, governmental or municipal authorities in such markets or by some intergovernmental agency in which one or several states are members. Emerging markets refers primarily to Latin America, Asia, Africa and Eastern Europe, including the Balkans and Baltics. Investments are mainly made in local currency, which results in a currency risk as well as a higher potential for returns.

The investment focus of the fund does not permit investments in corporate credits, which means that by definition controversial sectors are excluded.

The fund is reported as an Article 6 fund pursuant to EU regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR).

Fund manager

Alexander Gullnäs Experience in the fund industry 2012. Portfolio Manager since 7 December 2018.

Risk 3/7

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 3, which means there is a medium-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 and currency fluctuations.

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's investment focus entails exposure to markets that frequently have lower liquidity, and the variation in liquidity is considered to be higher relative to more developed markets. This can impact the fund's ability to manage significant outflows at a relatively low cost.

Risks that have not been captured by the risk indicator include: Operational risk - the risk for loss due to unforeseen policy decisions or weaknesses in a country’s securities regulations. 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

Sustainability risks are integrated into investment decisions, but the fund does not promote environmental or social characteristics or have sustainable investments as its objective. Sustainability risks are managed primarily through engagement in the form of dialogues and active corporate governance. The fund also takes into account principal adverse impacts on sustainability factors.
The fund is reported as an Article 6 fund pursuant to EU regulation on sustainability-related disclosures in the financial services sector (SFDR).

31.07.2024

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 Tillväxtmarknad Obligation (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
134.19 SEK	0.91%	2.30%	3.60%	7.45%	6.73%	11.66%	34.41%

Portfolio 17.10.2024

Portfolio manager comments — Q3 2024

Fund performance was positive during Q3 and the fund rose 2.7% in SEK. The positive returns were driven by declining rates in the emerging markets. The SEK strengthened slightly, which led to a slightly negative contribution from emerging market currencies. Additional rate cuts from central banks worldwide, including a cut of 50 bps from the US central bank, played a key role, together with downside risks in inflation data. The US 10-year rate fell from approximately 4.40% to below 4% in the period, while the USD weakened, which normally benefits the emerging market and was also the case in the period.

China presented a massive stimulus package at the end of the quarter which included support for the real estate market and the stock market, interest rate cuts, and fiscal measures that target low and middle-income families. This benefited countries such as South Africa, which has significant exposure to exports to China, particularly metals, as well as nearby countries such as Malaysia. The fund has an underweight in Malaysia, which had a negative impact on relative returns. The overweight in South Africa contributed positively and was the strongest contributor in Q3.

However, the overweight in supranational bonds denominated in Turkish lira had a negative impact, driven by a weaker currency following slightly higher than expected inflation data. The central bank continues to hold the interest rate at a contractionary level to counteract the high inflation and we are retaining the overweight. The fund has a slightly shorter duration, driven entirely by an underweight in China.

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.