Handelsbanken Brasilien Tema (A9 SEK)

Legal name: Handelsbanken Brasilien Tema (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 an actively managed fund and invests mainly in equities in small and mid-sized companies in Brazil, that have the majority of their business operations in Brazil and that benefits from growth in the country. As a result, the fund has a currency exposure to these markets. The business operations of the companies shall target domestic demand.

The thematic investment strategy provides for investments that occur in a limited area in which development is deemed to result in a structural change to the economy and society. This change provides favorable conditions for companies active within the area to create profitable growth over time.

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

Elias Kayal Experience in the fund industry 2018. Portfolio Manager since 1 November 2023.

Risk 6/7

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 6, which means there is a high 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 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'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

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 Brasilien Tema (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 22.11.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
60.82 SEK	-1.89%	-1.09%	-6.59%	-15.33%	-13.91%	-	-

Portfolio 16.10.2024

Portfolio manager comments — Q3 2024

Fund performance was positive in Q3 and the SEK was largely unchanged relative to the Brazilian real. The central bank in Brazil hiked the interest rate by 0.25% during the period in an effort to anchor inflation expectations, which was viewed positively by the equity market. The action of the central bank has restored the confidence in its independence, which had previously been in question. The market is expecting additional rate hikes during the year, followed by a cycle of rate cuts in 2025. Going forward we continue to expect a rebound of the Brazilian consumer and thereby good opportunities within the consumer sector, which posted weak performance at the outset of the year. We could see signs of this recovery in Q3, where the clothing chain, Lojas Renner, was the fund’s most notable contributor to returns. The company’s results for Q2 exceeded expectations, which was rewarded by the market. On the downside, the fintech company Pagbank was the fund’s weakest contributor after reporting lower than expected results. The report also showed increased competition and price pressures, which reduced margins. As a result, we decreased our position in the company.

During the quarter the fund added a new company, Banco Inter, which is a digital platform for financial services. The company’s platform has reached high penetration levels within the country and good growth in the number of users. The company now has plans to monetize this customer base, which we find appealing.

The fund has a thematic investment process with Demographics, Productivity, Environment and Lifestyles as the main themes.

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.