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.
This document provides an review of the fund's sustainability-related disclosures. More information can be found in the fund's prospectus and also under the respective sections below.
This fund promotes environmental and social characteristics but does not have sustainable investments as its objective. In promoting environmental and social characteristics, the fund takes into account the environment and climate, as well as human rights, employee rights and equal opportunity.
The fund is an exchange-traded index fund that is managed with the purpose of generating returns over time that correspond as closely as possible to the returns of the index. The index tracked by the fund includes sustainability requirements, which means that those companies that do not meet the exclusion criteria of the fund and its index will be excluded from the index. What applies in this regard is indicated below. The sustainability requirements with regard to exclusions as a result of the index are mandatory for the Management Company in the fund's asset management. The fund applies the following investment strategy to attain the environmental and social characteristics promoted by the fund:
The fund is an exchange-traded index fund that invests in the securities included in the fund's index. However, indirect investments in the form of index-based financial instruments (such as futures) may be used in the fund's management of liquidity and risk.
The Management Company's risk control function monitors the environmental/social characteristics promoted by the fund on a daily basis to ensure compliance. This occurs through the control of the minimum proportion stated in the Appendix for sustainability-related disclosures in the fund's prospectus regarding the share aligned to environmental or social characteristics as well as the minimum proportion of sustainable investments, for example. The Management Company's risk control function also follows up to ensure that the fund abides by its provisions for the exclusion of companies. The control relates to sectors we exclude and those we consider risk counteracting a sustainable development. The Management Company's risk control function also follows up to ensure that the investee companies are not in violation of international norms and conventions. For additional information, refer to the Methodologies" section below.
The Management Company applies regular follow up at the holdings level to ensure that companies with activities in the sectors excluded by the fund and/or companies that violate international norms and conventions are not included in the fund. All of the fund's exclusion requirements are built into the fund's index methodology. Consequently, companies with activities in the sectors excluded by the fund and/or companies that violate international norms and conventions are not included in the index and are thereby not included in the fund. The assessment is conducted by the ESG service provider stated in the index methodology and the results cannot be overruled by the fund management. Changes made to the assessment of a company occur at the time of exit or entry into the index and the fund at the next rebalancing of the index. The fund applies the following monitoring safeguards:
Information about the companies' exposure to excluded activities and incidents resulting in violations of international norms and conventions is obtained for funds that track sustainability-adapted indexes of index providers from external data providers in accordance with the index methodology for each fund. Corresponding information is also obtained directly from the Management Company. The external data providers gather information about the companies' exposure to excluded activities from public presentations made by the companies and/or through direct contact with the companies. The contributions to the EU Taxonomy are obtained from Sustainalytics and SDG contributions are obtained from ISS ESG. In addition, the Management Company conducts its own analysis with regard to contributions to environmental or social objectives, with the assessment based primarily on data obtained from the companies' annual reports.
Information about the companies' exposure to excluded activities is limited to the information made available from companies themselves. Consequently, it is not always possible to ensure the exact exposure to these activities. The limitations are most prominent for companies with a smaller portion of the business involved in the excluded activities, such as a grocery store that also sells alcohol. This is an acceptable limitation since the principal impact of the fund's strategy is attained by the exclusion of companies with significant exposure to the excluded activities.
The Management Company has established routines for due diligence to ensure that sustainability risks and the sustainability requirements specified for each fund are taken into account in the investment decisions. These routines differ depending on the focus of the asset management.
As a significant investor, the Management Company has a responsibility and an opportunity to engage with companies to act responsibly and conduct their business activities in a sustainable manner, in addition to promoting the development of the sustainability efforts in the asset management industry. The Management Company engages through company dialogues, corporate governance work and investor networks. Our engagement efforts are based on Handelsbanken's core values, our commitments, as well as the international norms and conventions supported by the Management Company. The company dialogues include overall strategic sustainability issues, as well as specific dimensions of a company's risks, opportunities and impact on sustainable development.
The fund has the following index as its reference value: OMXS30ESGT