Handelsbanken Hållbar Energi

Portfolio manager comments — Q4 2025 During the fourth quarter, the positive trend from the previous quarter continued, and the fund rose by 7.3% in SEK, clearly outperforming the benchmark index* and global equity markets overall. After regulatory uncertainty declined significantly during the third quarter, it was both important and encouraging to see clear signs during the fourth quarter that more stable regulations had translated into accelerating business activity. Reports from the fund’s companies were, overall, the strongest seen in some time. Underlying demand, driven by rapidly growing electricity needs, remained central. Signs of instability in power grids have contributed to accelerated investment plans in both electricity infrastructure and large scale energy storage. Wind power, solar energy, and energy efficiency within industry were the segments contributing most positively, while other segments remained broadly stable. The fund’s geographic allocation showed that increased investments in the US continued to generate strong positive contributions, while Europe also performed well. China was broadly stable. At the company level, contributions were broad based: Vestas, First Solar, NextPower, and Nordex delivered the largest positive contributions, while Solaredge, Orient, CATL, and Xinyi Energy had some negative impact. Despite significant negative headlines surrounding climate policy during 2025, investments and capacity continued to grow, driven by real economy decisions even as policy support declined. According to Reuters, solar generated electricity in the US increased by 29% through November, while grid connected energy storage rose by 43%. In China, renewable electricity production increased by approximately 15%, and 2025 marked the first year in which fossil based electricity generation declined. The underlying strong growth in electricity demand is expected to persist, providing a stable foundation for demand and return opportunities. Strained power grids globally create additional investment opportunities both through network expansion and across the entire energy storage value chain. The fund has increased its investments within energy storage and has, since the summer, once again increased exposure further up the value chain. Strong earnings reports have also led to generally positive earnings revision trends during the period. Valuations within the sector remain historically low, particularly relative to global equity markets. * S&P Global Clean Energy Net TR Show moreShow less