Handelsbanken Europa Småbolag (A9 EUR)

Legal name: Handelsbanken Europa Småbolag (A9 EUR)

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 actively managed and invests in equities issued by small and mid-sized companies that is headquartered in Europe or are traded in the Europe and thereby have a currency exposure in these markets. 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.

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

Staffan Lindfeldt Experience in the fund industry 1998. Portfolio Manager since 1 January 2020.

Risk 4/7

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 4, which means there is a medium 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 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's investment focus entails exposure to smaller companies that frequently have lower liquidity. In general, the variation in liquidity is considered to be higher relative to the equity market overall. This can impact the fund's ability to manage significant outflows at a relatively low cost.

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

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).

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 EUR

2024

1 year

3 years

5 years

10 years

Handelsbanken Europa Småbolag (A9 EUR) (EUR)

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 22.07.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
46.56 EUR	-1.13%	-0.04%	6.40%	5.75%	8.15%	-	-

Portfolio 11.07.2024

Portfolio manager comments — Q2 2024

Fund performance was positive in Q2 after an optimism in May that then weakened in June. Small caps as a group had a significantly greater impact than large caps, both in Europe and the US, when investors preferred to invest their assets in “mega caps”, i.e., the largest companies.

TIG, Alpha FMC, Do & Co, Calliditas, Future and Atalaya Mining were the strongest contributors during the period, while YouGov, Bakkafrost, Indivior, Demant and Allfunds lagged. The fund added companies such as Camurus, Comet Holding, BE Semiconductor, Intercos, Medcap and Raspberry Pi. We also increased in Fortnox, Embla and Trainline. The purchases were financed by holdings in TIG, Marlowe, Allfunds, Mowi, Prysmian, Securitas, Dometic, Next 15, Azimut and Atalaya Mining.

After several green shoots within small caps with an increased risk appetite in May and slight improvements to flows in certain regions, optimism weakened in June. Investors’ interest then returned to the larger caps, particularly in the US, fueled significantly by AI. European small caps continue to show more attractive valuations relative to large caps, which is unusual from a historical perspective given that small caps have normally had stronger performance than large caps over a longer period. Given this, it is would not be unexpected to see a continuation of the high acquisition activity into the approaching quarters.

The fund has gradually increased its exposure to larger equities in our investment universe that have the drivers we have identified, as well as in equities that take advantage of lower interest rates and an expected strong growth. The thematic drivers that we have identified remain relevant and we are beginning to see an increasing number of concrete examples from companies using AI to increase sales and efficiencies, which is extremely exciting.

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.