Handelsbanken Europa Småbolag (B1 SEK)

Legal name: Handelsbanken Europa Småbolag (B1 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 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.

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

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™

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 Europa Småbolag (B1 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 20.11.2024	1 week	1 month	3 months	2024	1 year	5 years	10 years
109.89 SEK	-1.56%	-3.31%	-1.41%	6.01%	9.90%	-	-

Portfolio 16.10.2024

Portfolio manager comments — Q3 2024

The fund rose just over 3% in SEK during Q3, despite a short-lived concern at the beginning of August that was primarily due to the measures taken by the Japanese central bank that created turbulence in the global stock markets. This concern proved to be temporary and the market rebounded quickly. Small caps performed relatively well in light of the previous preference for “mega caps”. Biomerieux, Marlowe, Embracer, Hellofresh, Castellum, Erste Bank and Beazley were the strongest contributors to returns in the quarter, while Indivior, Do & Co, Aixtron, Next 15, Strix and Demant had a negative impact. During the quarter the fund added equities such as Aixtron, Atoss Software, Cairn Homes, Carel, Corbion, CTS Eventim, Dynavox, Nexans, Pullup, Sandoz and SUSS Microtec. The purchases were financed by sales in Bawag, Calliditas, Exclusive Networks, Genmab, Keywords Studios, Nivika, NTG, Stora Enso and YouGov. After a number of profit warnings in September, particularly within the automotive industry, we expect a slight downside risk for the market’s estimates when we approach the reporting season. Earnings growth among large caps appears to be declining in comparison to small caps, which can partly explain why small caps have not recently been underperforming relative to large caps, unlike in previous years.

In contrast, European small caps have been showing more attractive relative valuations compared to large caps from a historical perspective. Declining interest rates also tend to benefit small caps and we would not be surprised to see additional bids on attractive, undervalued companies. Stimulus measures worldwide aim to spur the economies and although many funds have a defensive positioning, we believe that it is still too early to commit to an upturn. The fund’s tentative outlook on the economy is supported by the thematic drivers within our holdings, which contribute to advancing the likelihood of earnings growth in the portfolio, even though the economy also remains weak.

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.