Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – HOW WE WORK Our management
strategies We have three primary management strategies – active management, passive management and multi manager solutions. The same values underpin the different strategies, but the approaches differ. Active Management Active Management Company analyses are essential for our active management. They aim to identify and invest in the right companies and help us to identify risks and opportunities in companies’ business models. In various ways, we seek to invest in companies that provide solutions to sustainability challenges and those that are at the forefront of the transition to sustainable development. In active management, managers make independent investment decisions based on a common global analysis. Each company is carefully analysed based on relevant issues concerning strategy, financial and non-financial results and risks, capital structure, social and environmental impact, and corporate governance. The analysis is based on information from the companies, external sources and our own analysis. Companies can be included or excluded based on their approach to sustainability and the types of products and services they offer. In our active management, we engage with our portfolio companies to take further steps in their sustainability efforts through direct dialogue with the companies themselves and with other investors as well as through alliances, industry initiatives and participation in investor networks. We also engage through voting at AGMs and participation in nomination committees. We use four investment processes within active management: Thematic: In our Thematic funds, we have identified four main themes that we use to guide our investment choices: demographics, productivity, lifestyles and environment. Thematic funds aim to generate returns based on trends and structural changes that are expected to drive growth and profitability over time. Selective: In our Selective funds, we invest in a limited number of quality companies that advocate a long-term approach and sustainable value creation. The companies must offer something unique in terms of their business model, market position or something else that is difficult for competitors to copy. Small Cap In our Small Cap funds, we select the small-cap companies that show potential for profitable growth. As a significant owner in these companies, we can then help strengthen their sustainability and corporate governance efforts through management dialogue, as a representative on the companies’ nomination committees and at the AGMs. Fixed Income In our Fixed Income funds, controlled risk-taking is in focus – we know what we own and why. Taking into account an issuer’s sustainability risks and opportunities is just as important a step as the creditworthiness assessment in our investment process. Information about risk Past performance does not predict future returns. The value of the money invested in the fund can increase or decrease and there is no guarantee that all of your invested capital can be redeemed. The fund’s prospectus (“Informations broschyr”), fund rules and KIID are available at handelsbanken.se/funds. 14