Objectives and Investment Policy
The fund is an exchange-traded index fund with the objective to track the performance of the Handelsbanken Nordic ESG Index as closely as possible. The fund is passively managed.
Fund returns are determined by how the fund's investments in equities increase or decrease in value. The index will be replicated through physical replication. The method selected for replication means that the fund will invest directly in those equities included in the index, i.e., full replication. Tracking error is expected to be less than 0.3% under normal market conditions. The management fee, as well as customer flows, index rebalancing and corporate events result in transaction costs for the fund, which are not present in the index. These are the main factors that impact the fund’s ability to replicate the index. The index is reinvested, i.e., distributions paid for equities included in the index are reinvested in the index after tax adjustments. The index consists of a selection of about 30 of the most-traded companies on the Nordic stock exchanges that meet the sustainability requirements of the index.
The index that the fund tracks includes sustainability requirements. The sustainability requirements mean that the index excludes companies involved in verified violations of international norms as well as companies operating within controversial sectors such as forbidden weapons, nuclear weapons, military equipment, tobacco, cannabís, alcohol, commercial gaming and pornography. The sustainability requirements also mean that the index includes companies with high sustainability ratings. As a minimum, 75% of the index companies, as measured in the total market value of the index, must have a strong sustainability rating.
The fund can invest in derivative instruments as part of the fund’s investment focus. However, the use of derivative instruments is of such a nature that it only has a marginal impact on the fund’s risk level.
The fund does not distribute dividends. All income is reinvested in the fund.
Normally, you can purchase and sell fund units on the stock market, the so-called secondary market, on all banking days. You can also create and redeem units directly with the management company on the so-called primary market.
Additional information about the sustainability work and the funds index, may be found in the prospectus.
Recommendation: This fund may not be suitable for investors who plan to withdraw their money within 5 years.