OP-Bond Fund Prima is a long-term fixed-income fund that invests its assets primarily in euro-denominated fixed-income instruments issued by a member state of the European Economic Area or the OECD. Their rating must be at least AAA or comparable. The proportion of these investments may vary between 75–100% of the fund’s NAV. Key investments for the fund comprise bonds issued by, in addition to EEA member states, the United States, Canada, Australia, New Zealand and Switzerland.
The fund’s investments in other currencies than euro are hedged for currency risk as fully as possible. The modified duration of the fund, a measure of its interest rate sensitivity, is typically 6–10. This indicates the negative NAV impact on the fund in terms of percentages, if the interest rate level rises by one percentage point. As the level of interest rates decreases, the NAV of the fund increases accordingly.
The fund's investments are primarily made through direct bond investments. The fund may use derivatives instruments in its investment activities to hedge against market fluctuations, to replace direct investments and to otherwise promote efficient portfolio management.
The Fund’s benchmark index is a combination of several indexes. The composition of the benchmark index is described in the fund prospectus. With active investing, the Fund seeks to outperform its benchmark index in the long term. The Fund mainly takes notable active risk and it may differ significantly from the composition, weights and risk level of the benchmark index.
