In March 2024, the Trustees of the Scheme implemented a new investment strategy designed to enhance returns, reduce costs and promote sustainable investing. Since its inception, the changes have produced positive outcomes for our members, reflecting our commitment to creating value and contributing to sustainability:
- Fee reductions across blended growth funds – member charges were reduced for all of the growth blends within the default strategy following the implementation of the new investment strategy. This reduction aligns with the Trustee’s core commitment to offering cost-effective retirement solutions, allowing more of your money to work for you.
- Emphasis on sustainable investing - Sustainability has become increasingly crucial in investment decisions. Recognising this, we have intensified the focus on sustainable investing within the blended funds used in our default investment strategy. This approach ensures that our investments not only aim for financial returns but also consider environmental, social and governance (ESG) factors, adhering to Handelsbanken's Sustainable Investment Policy.
We are pleased to report strong performance since the implementation of the new investment strategy. The strategy has benefitted from a period of positive equity market returns, resulting in double digit returns for all four blended funds within the Default Strategy over the year to 31 December 2024. All four funds also outperformed their respective long-term targets set by the Trustees over this period.
Fund Performance - Year to 31 December 2024
|
Fund
|
Benchmark
|
1-year Returns (%)
|
|
Fund
|
Benchmark
|
Relative
|
|
Handelsbanken Employee Long Term Strategy
|
CPI + 4% p.a.
|
18.8
|
6.6
|
+12.2
|
|
Handelsbanken Employee Balanced Strategy
|
CPI + 3% p.a.
|
13.2
|
5.6
|
+7.6
|
|
Handelsbanken Employee Cautious Strategy
|
CPI + 2% p.a.
|
9.1
|
4.6
|
+4.5
|
|
Handelsbanken Employee Retirement Focus (Default)
|
75% CPI +2%
25% SONIA
|
6.6
|
4.7
|
+1.9
|
|
Fund
|
Benchmark
|
1-year Returns (%)
|
|
Fund
|
Benchmark
|
Relative
|
|
Handelsbanken Employee Retirement Focus (Annuity)
|
75% CPI +2%
25% SONIA
|
-2.0
|
1.2
|
-3.2
|
|
Handelsbanken Employee Retirement Focus (Cash)
|
SONIA
|
5.2
|
5.2
|
0.0
|
|
Handelsbanken Employee Retirement Focus (Invest into Retirement)
|
75% CPI +2%
25% SONIA
|
8.2
|
4.8
|
+3.4
|
|
Handelsbanken Employee Inflation-linked Annuity Focus
|
Inflation Linked Annuity Aware Composite
|
-7.7
|
-7.8
|
+0.1
|
|
Handelsbanken Employee Fixed Annuity Focus
|
FTSE Annuities Index
|
-4.4
|
-0.2
|
-4.2
|
|
Handelsbanken Employee Commercial Property
|
MSCI/AREF UK Quarterly All Balanced Property Fund Index (UK PFI)
|
4.8
|
5.4
|
-0.6
|
|
Handelsbanken Employee Cash
|
SONIA
|
5.2
|
5.2
|
0.0
|
|
Handelsbanken Employee Global Equity
|
FTSE World Index (50% GBP Hedged)
|
20.3
|
20.5
|
-0.2
|
|
Handelsbanken Global Equity ESG
|
MSCI World ESG Focus Low Carb. Screened Index (50% GBP Hedged)
|
18.4
|
18.3
|
+0.1
|
|
Handelsbanken Employee Emerging Markets Equity
|
MSCI Emerging Index
|
10.2
|
9.5
|
+0.7
|
|
Handelsbanken Islamic Global Equity
|
Dow Jones Islamic Market Titans 100 Index
|
30.1
|
29.4
|
+0.7
|
|
Fund
|
Benchmark
|
1-year Returns (%)
|
|
Fund
|
Benchmark
|
Relative
|
|
Handelsbanken Growth Multi-Asset
|
CPI + 4% p.a.
|
12.7
|
6.6
|
+6.2
|
|
Handelsbanken Balanced Multi-Asset
|
CPI + 3% p.a.
|
9.5
|
5.6
|
+4.0
|
|
Handelsbanken Cautious Multi-Asset
|
CPI + 2% p.a.
|
5.4
|
4.6
|
+0.8
|
|
Handelsbanken Defensive Multi-Asset
|
CPI + 1% p.a.
|
3.7
|
3.6
|
+0.2
|
|
Handelsbanken Growth Responsible Multi-Asset Fund
|
CPI + 4% p.a.
|
4.0
|
6.6
|
-2.6
|
|
Handelsbanken Balanced Responsible Multi-Asset Fund
|
CPI + 3% p.a.
|
2.4
|
5.6
|
-3.1
|
|
Handelsbanken Cautious Responsible Multi-Asset Fund
|
CPI + 2% p.a.
|
-0.3
|
4.6
|
-4.8
|
|
Handelsbanken Defensive Responsible Multi-Asset
|
CPI + 1% p.a.
|
0.3
|
3.6
|
-3.3
|
Performance is shown net of fees.
Past performance is not a guide to future performance.
Source: Schroders
Transition to HWAM Sustainable Funds
As part of our commitment to sustainability, the Handelsbanken Wealth and Asset Management (HWAM) core funds will be removed in March 2025. The sustainable funds maintain the same return targets and continue to invest globally across a diverse range of assets, including equities, bonds, property, commodities, hedge funds, and cash.
The significant change lies in the sustainable funds' emphasis on positive ESG factors. They systematically exclude investments that do not align with our sustainable investment criteria.
You should review your investment choices regularly to ensure that the funds you have chosen continue to meet your specific needs, in particular after any change in your personal circumstances or retirement plans.
As you may be aware, neither the Trustees nor Capita are able to provide you with investment or financial advice. If you have any questions of this nature, you are advised to consult an Independent Financial Adviser (IFA). You can obtain details of a local IFA by visiting the MoneyHelper website at www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/find-a-retirement-adviser or calling them on 0800 011 3797.
If you have any questions about the Scheme, please contact Capita on 01227 773902 or by email to handelsbanken@capita.co.uk.