HMEF.L - Risk

Risk & Diversification Scores

Transparent evaluation of price volatility (SRI) and 4-dimensional portfolio diversification.

Volatility Risk Score

6/7 High

6 / 7 SRI PRIIPs Risk Class

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors.

Volatility (5Y)

24.9% p.a.

5-Year Horizon

Max Drawdown (5Y)

-27.6%

Deepest Drawdown

Sharpe Ratio

0.16

Moderate (0.0 - 0.5)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

Focused (35% – 50%)

48 / 100 Portfolio Diversification

4 Dimensions: Holdings (30%) • Sectors (25%) • Industries (25%) • Regions (20%)

Focused weighting: Top holdings drive a major share of fund returns.

Top 10 Holdings

38%

Focused

Effective Holdings

~68

of 1199 holdings

Top Sector

43.2%

Technology

Top Region / Country

28.0%

Taiwan

Elevated concentration in top individual holdings, leading sectors, or key regions.

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Volatility Expansion (3Y > 5Y)

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+24.5%
3 Years	28.9%	-27.6%	0.55	+18.2%
5 Years	24.9%	-27.6%	0.16	+6.4%
10 Years	22.3%	-30.6%	0.13	+5.4%

Notes & Warnings

🟢 Favorable / fair valuation: Avg P/E of 16.5

🟢 Established large fund (> 500M € AUM)

🟢 High institutional analyst coverage (20.6 analysts)

⚠️ Elevated emerging markets risk: 95% Emerging Markets.

⚠️ Sector concentration: 43% in "Technology".

ℹ️ Tech-Capex Exposure: 44% in semiconductors & hardware – dependent on hyperscaler capex cycles.

⚠️ Elevated Regulatory & Policy Risk: 37% in heavily regulated industries (defense, regulated utilities, healthcare policy).

⚠️ Elevated Short-Term Volatility: 3Y volatility (28.9%) is noticeably higher than the 5Y average (24.9%).