Handelsbanken’s sustainable energy fund has a managed capital of over 16.3 billion SEK and is the most popular sustainability fund on both Avanza and Nordnet, with over 97,000 owners. The fund’s largest holdings include Faroese fish farmer Bakkafrost and Danish wind turbine manufacturer Vestas Wind Systems. It has the highest exposure to the US, followed by China and Denmark.
This actively managed fund focuses on companies working to reduce global warming, with 80 companies in its portfolio. Interestingly, there is not a single Swedish stock in the fund, reflecting the preferences of fund manager Patric Lindqvist. ABB is the only semi-Swedish holding, with shares dual-listed in Sweden and Switzerland.
Lindqvist emphasizes that the fund’s focus is on what companies do rather than where they are located. While Swedish companies like Volvo Cars are considered strong, the fund prioritizes profitability and growth potential, leading to investments in companies like BYD, a Chinese electric vehicle manufacturer.
Despite a strong performance in 2020, with returns exceeding 100%, the fund has faced challenges recently, with a 36% decline over the past three years. This downturn has led to a decrease in the number of Avanza customers investing in the fund.
Looking ahead, Lindqvist hints at potential portfolio adjustments, particularly in response to changing political landscapes. The fund has performed well in the US, and with the Biden administration’s focus on renewable energy, there may be opportunities for growth in the sector.
Overall, Handelsbanken’s sustainable energy fund remains committed to its mission of investing in companies that are driving positive environmental change, even as it navigates market fluctuations and changing economic conditions. With a focus on profitability, growth, and sustainability, the fund continues to seek opportunities for long-term success in the ever-evolving energy sector.