Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – HOW WE WANT TO HELP RAISE
LIVING STANDARDS Sustainable economic growth includes everyone Greater financial inclusion can significantly raise the standard of living for many people in a country, even for those not in direct need of financial services. Access to a bank account and the possibility to obtain credit give people the chance to develop a business that can enable them to make a living. This benefits the economy as a whole. So, by expanding the availability of financial services more people can get a job, health care and an improved quality of life. A valuable tool in the fight against poverty is the inclusion of more people in the formal economic system. By investing in well-managed finance companies that promote financial inclusion and microfinancing, we can lay the foundation for returns while offering more people the chance of living a dignified, secure life. As one example, we have chosen to invest in HDCF Bank, a market-leading Indian bank which in recent years has made significant efforts to reach out to people who previously struggled to gain access to the banking system. Among other actions, the bank has worked on rolling out mini-branches to rural Indian villages that previously had no banking presence. HDCF has also placed great focus on digitising its business, thus increasing the availability of the bank’s services to more Indian citizens. More than 92 per cent of transactions currently take place online via a computer or mobile phone, compared with 29 per cent ten years ago. Within our actively managed thematic fund Tillväxtmarknad Tema, we have holdings in a major bank in Indonesia that specialises in small-scale financing, providing the opportunity for people to start up new businesses to support themselves and their local communities. In Indonesia, accessibility can take the form of mobile bank branches such as boats that travel to customers on the various islands. Impact investing Impact investing is an investment strategy that unites returns with societal benefits. In portfolios we are responsible for, both fund and discretionary management portfolios, we have made major investments in this area. Examples are financial inclusion and microfinancing that can help reduce poverty in the world and increase access to financial services. One leading impact investment manager is Blue Orchard. Our multi manager solutions have invested significant sums in recent years in two of their funds, including in a targeted microfinance investment. The fund’s investments provide an opportunity for microfinance institutions to lend money to people especially in developing countries. “Our evaluation process shows that their funds take a solid approach, where customers get good returns at well-balanced risk,” says Johann Guggi, Head of Multi Manager Solutions. 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. 42