HNCT.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 (3Y)

21.9% p.a.

Fallback

Max Drawdown (3Y)

-22.5%

Fallback

Sharpe Ratio

0.66

Good (0.5 - 1.0)

Rec. Holding Period

10+ Years

Investment Horizon

Speculative / High Risk: Score Basis:

Diversification Score

Focused (35% – 50%)

70 / 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

46.3%

Focused

Effective Holdings

~42

of 132 holdings

Top Sector

57.9%

Industrials

Top Region / Country

41.7%

United States

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.

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+13.5%
3 Years	21.9%	-22.5%	0.66	+16.9%
5 Years	—	—	—	—
10 Years	—	—	—	—

Notes & Warnings

⚠️ Elevated valuation: Avg P/E of 33.4

🟢 Deep market liquidity & capital coverage (Tier 1)

Solid fund volume

🟡 Moderate analyst coverage (19.7 analysts)

⚠️ Elevated top 10 holdings concentration: 46% of fund in top 10 positions.

🔴 Severe sector concentration risk: 58% in "Industrials".

⚠️ Growth estimates are concentrated: Top 3 growth drivers account for 50% of forward growth.

🔴 Dominant Cyclicality: 74% in cyclical industries – higher drawdown risk in recessions.

⚠️ Elevated Interest Rate Sensitivity: 37% in rate-sensitive or leverage-heavy industries (real estate, banks, utilities).

ℹ️ Tech-Capex Exposure: 38% in semiconductors & hardware – dependent on hyperscaler capex cycles.