Handelsbanken Tillväxtmarknad Obligation (A10 NOK)

Legal name: Handelsbanken Tillväxtmarknad Obligation (A10 NOK)

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™

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

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).

31.05.2024

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 NOK

2024

1 year

3 years

5 years

10 years

Handelsbanken Tillväxtmarknad Obligation (A10 NOK) (NOK)

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 19.07.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
135.28 NOK	0.86%	5.04%	3.27%	6.34%	10.13%	25.06%	-

Portfolio 11.07.2024

Portfolio manager comments — Q2 2024

The first half of Q2 was marked by further strong economic data in the US as well as an improvement to incoming data in Europe. Despite this, the core inflation remained more sluggish than expected in relation to the central banks’ inflation targets. This led to rising global interest rates, including rates in emerging markets.

However, we saw a turnaround during the second half of the quarter when economic data was slightly weaker in the US. This led to the positive contribution of fixed income returns in the quarter, while the strong SEK had a negative impact.

Elections were also held in several countries (South Africa, India and Mexico), which resulted in high volatility in the markets. The Mexican peso declined sharply after the sitting Morena party performed strongly in the election, which created concerns about constitutional changes. The fund was overweight in Mexico prior to the election, which had a negative impact on returns.

The fund increased the overweight in Turkey during the period, which proved to be one of the strongest markets together with South Africa, and contributed positively to returns. We decreased the exposure to both Mexico and Brazil due to political and government fiscal uncertainty, in favor of an increased exposure to South Africa and Turkey. The fund has a neutral duration.

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.