Information regarding Russian holdings in our mutual funds

Our thoughts go out to all those affected by the situation in Ukraine. The chain of events in Ukraine has been swift and unpredictable. A situation such as this involves a level of human suffering that is difficult to fully comprehend, as well as having consequences for both the global economy and society as a whole. Handelsbanken Fonder is monitoring the situation closely and keeping up-to-date on sanctions and other factors that could influence the chain of events.

The central bank in Russia has taken the decision not to allow foreign investors to sell Russian shares and the stock exchange has been closed until further notice. This means that we are currently not in a position to establish an accurate valuation for Russian shares. We have therefore chosen to suspend trading in the Handelsbanken EMEA Tema fund until such time as the trading and valuation of Russian shares is once again possible. All purchases and sales of fund units registered after the cut-off point of 25 February 2022 will be completed once trading in the fund can recommence and a price can be fixed.

“Our aim now is to reduce the proportion of Russian holdings in the fund,” says Christopher Sundman, fund manager for Handelsbanken EMEA Tema. “From an emotional perspective, no-one wants to own Russian shares, but at the same time, the fund management company has a duty to protect the funds of the unit holders, and it is therefore necessary to do so in a controlled manner,” he says.

Other mutual funds with investments in Russian shares – Emerging Markets Index, Global Index Criteria and Tillväxtmarknad Tema – have holdings corresponding to less than 1 per cent. The fund management company intends to exit these as soon as possible, giving due consideration to the appropriate legal provisions and fund regulations. Since last week, all holdings in Russian bonds have been divested.