Objectives and Investment Policy
The fund is an exchange-traded index fund with the objective to track the performance of the SHB Nordic High Div Low Vol 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 optimized (sample-based) physical replication, which means that the fund invests directly in most of the equities included in the index. Tracking error is expected to be less than 0.2% under normal market conditions. The management fee, customer flows, index rebalancing and corporate events all 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.
Handelsbanken Nordic High Dividend Low Volatility Criteria Index (SEK) consists of equities in Nordic companies that are selected based on dividend yields as well as the risk and liquidity of the equities. The index followed by the fund includes sustainability requirements. Companies that do not fulfil the defined requirements with regard to sustainability are excluded from the index.
The fund follows an index that includes sustainability requirements. Companies that do not meet the defined requirements for sustainability are excluded from the index. The sustainability requirements include international standards and guidelines for the environment, social responsibility and corporate governance. The requirements also include the fund’s exclusion of companies involved in the production or distribution of fossil fuels, military equipment, tobacco, alcohol, gambling, cannabis and pornography.
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 share class normally distributes dividends in March, May, September and November each year. The objective is to annually distribute 4,5% of the value of the units at the time of the Management Company’s decision about distributions. However, distributions can be both higher and lower.
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.