Handelsbanken Långränta (A9 SEK)

Legal name: Handelsbanken Långränta (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 is actively managed and invests in fixed income securities issued in SEK by states and companies. The average residual duration for the fund's investments fluctuates between 2 and 7 years. If we believe market rates will be falling, we may choose a longer fixed interest period and conversely, we may choose a shorter fixed interest period if we believe market rates are rising.

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

Mikael Rosell Experience in the fund industry 1997. Portfolio Manager since 15 October 2018.

Risk 2/7

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 2, which means there is a 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.

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 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 only include assets with high credit worthiness, so-called investment grade.

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 Långränta (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.

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Historical rates

Performance

Rate 25.11.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
98.14 SEK	0.62%	0.25%	0.32%	3.35%	7.22%	-	-

Portfolio 17.10.2024

Portfolio manager comments — Q3 2024

Fund performance was positive and rose almost 3% in SEK during Q3, which was characterized by declining interest rates. Several central banks lowered their key rates and signaled that further cuts would be likely in the coming months. The concern that inflation would become entrenched at levels that were too high has been replaced by a growing concern for weakening growth outlooks and rising unemployment. The US central bank (FED) lowered its rate by 50 bps, while the European Central Bank cut its rate by 25 bps. The Riksbank, which began its cycle of rate cuts already in Q2, followed this up with two additional cuts at 25 bps.

We believe that a broad downturn in economic activity, declining profit margins and higher unemployment will be necessary to return inflation to target levels. The economy has slowed somewhat, although the monetary policy has a clear time lag. We expect the effects of previous rate cuts will continue to have a negative impact on the economy in the upcoming quarters. Despite the recent rate cuts, we believe that the risk for a recession remains high and that the labor market may weaken further.

The fund remains positioned for a steeper yield curve, which was favorable during the quarter. We believe that the position provides good protection against clear economic headwinds, a high risk for a recession and a vulnerable market sentiment. The weaker outlooks for public finances and the Riksbank’s active sale of government bonds (QT) will continue to increase the supply of these bonds. As a result, we are maintaining an overweight in other AAA-rated bonds, such as covered mortgage bonds and bonds issued by Swedish municipalities. In an effort to further increase the fund’s resilience, we increased the fund’s duration in short-term bonds and continued to reduce the exposure in less liquid bonds that are more reliant on a positive risk appetite.

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.