Handelsbanken Funds
Total Page：16
File Type：pdf, Size：1020Kb
HANDELSBANKEN FUNDS SOCIETE D’INVESTISSEMENT A CAPITAL VARIABLE (SICAV) ANNUAL REPORT For the year ended 31 December 2015 Handelsbanken Funds 15, rue Bender L-1229 Luxembourg Grand Duchy of Luxembourg R.C.S. Luxembourg B 22175 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) Table of Contents Page SHAREHOLDERS' INFORMATION 3 ADMINISTRATION AND SERVICE PROVIDERS 4 THE INVESTMENT MANAGER'S REPORT 6 REPORT OF THE RÉVISEUR D'ENTREPRISES AGRÉÉ 8 STATEMENT OF NET ASSETS 10 STATEMENT OF OPERATIONS 14 STATEMENT OF CHANGES IN NET ASSETS 19 STATEMENT OF CHANGES IN NUMBER OF SHARES OUTSTANDING 24 STATISTICAL INFORMATION 29 STATEMENT OF INVESTMENTS, CASH AT BANK AND OTHER NET ASSETS OR OTHER NET LIABILITIES 42 Swedish Bonds Shares Criteria (formerly Swedish Bonds Shares) 42 Swedish Short Term Assets Shares 43 Russia Shares 45 Global Criteria 46 America Small Cap 67 Commodity 68 Brazil 69 Global Dynamic Allocation Preserve 90 70 Multi Asset (L) 72 Multi Asset (M) 73 Multi Asset (H) 74 Global Selective 75 Pension 40 76 Pension 50 77 Pension 60 78 Pension 70 79 Pension 80 80 Pension 90 81 MSCI Emerging Markets Index 82 Emerging Markets Bond Fund 92 Global Selective Criteria 93 STATEMENT OF INVESTMENTS 94 Swedish Bonds Shares Criteria (formerly Swedish Bonds Shares) 94 Swedish Short Term Assets Shares 94 Russia Shares 95 Global Criteria 95 America Small Cap 96 Commodity 97 Brazil 97 Global Dynamic Allocation Preserve 90 98 Multi Asset (L) 98 Multi Asset (M) 99 Multi Asset (H) 99 Global Selective 100 Pension 40 100 Pension 50 101 Pension 60 101 Pension 70 102 Pension 80 102 Pension 90 103 1 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) Table of Contents MSCI Emerging Markets Index 103 Emerging Markets Bond Fund 104 Global Selective Criteria 105 NOTES TO THE FINANCIAL STATEMENTS 106 2 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) Shareholders' Information Information to Shareholders of HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable, SICAV) hereafter called “Handelsbanken Funds” or “the Fund”: Audited annual and unaudited semi-annual reports are available at the office of the domiciliary, registrar and transfer agent – paying agent. The certified Articles of Incorporation were lodged at the office of the Registrar “Registre de Commerce et des Sociétés” of Luxembourg where they are available for inspection and where copies may be obtained upon request. The sale and repurchase prices of the shares may be obtained at the registered office of the Fund. Copies of portfolio changes are available at the office of the domiciliary, registrar and transfer agent – paying agent. No subscription can be accepted on the basis of financial reports alone. Subscriptions are only valid if made on the basis of the current Prospectus accompanied by the latest available annual report and the latest available semi-annual report if published thereafter. 3 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) Administration and Service Providers Directors Christian DAHL Head of Handelsbanken Asset Management, Norway Pär SJÖGEMARK Head of HMH International, Handelsbanken Fonder AB, Stockholm Peter CARLBERG Head of Business Development, Svenska Handelsbanken AB (Publ.), Stockholm (appointed 19 June 2015) Pär NURNBERG Head of Business Development Handelsbanken Fonder AB, Stockholm (end of mandate 7 April 2015) Rudy HOYLAERTS (resigned 19 June 2015) Registered Office Handelsbanken Funds 15, rue Bender L-1229 Luxembourg Grand Duchy of Luxembourg R.C.S. Luxembourg N° B 22175 Investment Manager Handelsbanken Fonder AB Blasieholmstorg 12 S-106 70 Stockholm Sweden Domiciliary, Svenska Handelsbanken AB, Luxembourg Branch Registrar and 15, rue Bender Transfer agent – L-1229 Luxembourg Paying agent, Grand Duchy of Luxembourg Administration agent Custodian J.P. Morgan Bank Luxembourg S.A. 6, route de Trèves L-2633 Senningerberg Grand Duchy of Luxembourg 4 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) Administration and Service Providers (continued) Cabinet de KPMG Luxembourg, Société coopérative Révision agréé 39, avenue John F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Legal Adviser Elvinger, Hoss & Prussen 2, Place Winston Churchill L-1340 Luxembourg Grand Duchy of Luxembourg Conducting Officers Birgitta RÖSTLUND, Head of Handelsbanken Asset Management, Luxembourg (appointed 19 June 2015) Oliver O’ROURKE Handelsbanken Asset Management, Luxembourg Rudy HOYLAERTS (resigned 19 June 2015) 5 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) The Investment Manager's Report Global markets in brief The stock market was dominated by volatility in the markets during 2015, with an upturn of 5.15% (measured in SEK) in the World Index. The global equity markets rose sharply during the spring months and both the U.S. and Swedish stock markets hit record highs. The Chinese stock market rose over 30% during the first five months of 2015. The positive market sentiment could be largely explained by the European Central Bank’s launching of a major bond-buying programme at the beginning of 2015 to boost the economy and inflation. Markets became even more volatile in the early summer. Bond rates rose sharply, which resulted in turbulent stock markets as the markets began to prepare for a hike in interest rates during the summer by the U.S. central bank, the Federal Reserve, after seven years of zero interest rates. However, this did not transpire, as weak data from China and renewed concerns about developments in Greece caused the Federal Reserve to hold off using its interest rate weapon. However, the summer was dominated by renewed speculation about the retreat of Greece from the Eurozone after the left-wing party Syriza, which came to power at the beginning of 2015, refused to submit to the expenditure cuts and reforms required by creditors. However, a referendum and a new election finally ended the drama in Greece and the country received new monetary aid in exchange for austerity measures. Stock markets fell sharply again in mid- August and the entire year’s market upturn in Sweden was wiped out. This time, China caused the markets to decline after an unexpected devaluation of its currency. The devaluation was interpreted as a panic reaction and market participants began to question the Chinese leadership’s ability to successfully deliver a soft landing of the world’s second largest economy. Concerns about China and volatile financial markets led a delay in the rate hike by the U.S. Federal Reserve until mid-December when rates were increased by 0.25 percent. The rate hike was well- communicated and was received with a sigh of relief, as this was seen as a sign that the economy is heading in the right direction. Stock markets rose after the Fed’s rate announcement. Regionally, emerging market equities continued to struggle. In addition to concerns about the slowdown in China, many countries are negatively affected by a sharp decline in commodity prices. Countries such as Brazil, Russia and South Africa are highly dependent on commodities. Moreover, many of these countries have failed to implement structural reforms, which creates problems when there is a downturn in commodity revenues. Swedish investors benefitted from the strong performance of Japanese and U.S. equities, which was largely explained by a weaker SEK against these currencies. The fixed income market also experienced volatility in 2015. Major focus was placed on the world’s central banks, with the Federal Reserve hiking rates at the end of 2015, as mentioned previously. Central banks on this side of the Atlantic have headed in the opposite direction. The European Central Bank has been purchasing bonds for 60 bn EUR per month and announced in December that this will continue until at least the spring of 2017. The Swedish Riksbank cut key rates to a record low of -0.35 percent and also launched a massive bond-buying programme. Bond rates have fluctuated significantly, with the Swedish 10-year bond rate falling to a low of 0.23 percent in the spring of 2015. Bond rates rose to 0.9 percent at year-end, which was the same level as at the outset of 2015. We expect the global economy to slowly head in the right direction, with the U.S. and Europe leading the way. Consumption benefits from low energy prices, an improved labour market and a monetary policy that is no longer contractionary. We expect industrials to continue to struggle in the wake of weak growth for commodity prices, as a significant amount of the global investments are made in the commodity sector and China is switching from an investment-driven economy to one that is consumption-driven. A continuation of low rates and a tentatively rising growth leads us to expect markets to edge higher. However, we also expect continued volatility in the financial markets during 2016 due to concerns about China and rate hikes in the U.S. 6 HANDELSBANKEN FUNDS (Société d’Investissement à Capital Variable) The Investment Manager's Report (continued) Risk Disclosures The SICAV uses a risk management process that allows monitoring the risk of the portfolio positions and their share of the overall risk profile of the portfolios at any time. The SICAV reports to the CSSF on a regular basis on the risk management process, in accordance with the Law of 17 December 2010 and the applicable regulatory requirements of the Commission de Surveillance du Secteur Financier ("CSSF"). The SICAV assures, at the basis of appropriate and reasonable methods, that the overall risk, associated with derivatives, does not exceed the net asset value of the portfolio. The SICAV's global exposure is calculated on a daily basis. The SICAV does not consider that the investment strategies motivate a more frequent calculation. The Commitment approach is used to calculate global exposure for all sub-funds of the SICAV. This process, in relation to financial instruments on the basis of the commitment approach, is implemented in accordance with the steps provided for in point 2 of Box 2, of ESMA Guidelines 10-788.