OP-Bond Prima Fund

Countries with the highest credit ratings provide a safe haven in difficult market conditions. Their government bonds have attracted increased investor interest due to the subdued outlook of the world economy and market disruptions caused by the financial crisis and the European debt crisis. OP-Bond Prima offers an easy way to make a diversified investment in these markets.

Bond funds specialising in government bonds are suitable for investors who want to use fixed-income investments for lowering their portfolios' total risk. Among the three government bond funds offered by OP Asset Management, OP-Bond Prima has the lowest risk level. Operating similarly to a corporate bond fund, it carries a much more moderate risk level. The fund's interest rate risk level corresponds to that of long-term bond investments. Interest rate rises form the major risk factor associated with this fund. Usually OP-Bond Prima generates the best yields during a weak market situation and, since the fund's credit risk is small, it offers excellent diversification benefits vis-à-vis equities. OP-Bond Prima is primarily recommended to an investor who intends to redeem his/her units after two years at the earliest.

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.

The Fund promotes environmental and social characteristics and, to ensure it, uses environmental, social and governance (ESG) analysis and excludes certain investments. 

Negative screening: the Fund excludes countries with significant adverse impacts on society from its investments. The Fund does not invest in excluded countries, and if an investment product of the Fund later falls within the scope of the exclusion, the aim is to terminate the investment within a reasonable time period.

Use of ESG data in the analysis of investments: The average values of the sustainability indicators of the Fund’s investments are regularly monitored. The values of the indicators are considered when making investment decisions, and the average values of the portfolio and their development in relation to the benchmark index are monitored.

The investment process of the Fund includes analysing the creditworthiness of the investment products. In analysing creditworthiness, environmental and social characteristics as well as good governance are considered, among other factors.

• Sustainability-related disclosures >

As our owner-customer, saving and investing is especially worthwhile thanks to the excellent benefits you receive.

Your benefits when investing in funds:

• Buy and sell almost all OP mutual funds with no fees.*
• You earn 0.35% OP bonuses from mutual fund and insurance assets.** 

Your benefits when investing through insurance: 

• Begin saving through insurance free of charge. 
• You will earn 0.35% of OP bonuses from funds linked to insurance assets.***
• Switch between investments, invest additional funds and change your payment and investment plan for OP Unit-linked Insurance and OP Capital Redemption Contract free of charge in our digital services.  

**OP bonuses are used to pay the bank’s service charges and insurance premiums.

***You earn OP bonuses from unit-linked insurance policies, excluding individual unit-linked insurance policies and Individual Capital Redemption Contracts. The principles of contribution towards OP bonuses from funds linked to insurance assets will be harmonised with direct investments. As of 1 January 2025, the following funds linked to insurance assets will no longer contribute towards OP bonuses: third-party funds such as JP Morgan funds, structured loans and institutional class funds such as OP-World III A.

Your benefits in equity and ETF investing:

• Open an equity savings account or book-entry account free of charge.
• You get a discount on equity trading and a 1% fee ceiling when trading in Finnish listed companies through a book-entry account The discounts apply in digital services.
• Get access to free stock picks and analysis.
• Get a discount on the service packages for savers and investors:
  Equity savings account: 
  Saver: €0/month (normally €2.99/month)
  Investor: €9.99/month (normally €14.99/month)
  Book-entry account: 
  Saver: €0/month (normally €2.99/month)
  Investor: €0/month (normally €5.39/month)

Other benefits:

• Only owner-customers can invest in Profit Shares.

Remember to make use of all benefits:

Income unit generating annual cash flow, suitable for foundations

The fund’s unit class III A with a minimum subscription of 1 000,000 euros