OP-China
Huge dimensions, huge potentialChina – the world’s largest export economy and a growing domestic market
Accessing China’s market easily through a single investment
OP-China invests its assets broadly in equities of various companies with a focus on the Chinese, Hong Kong and Taiwanese equity markets. Assets are typically invested in equities of about 40–60 companies, but this number may vary, depending on the portfolio manager’s view. The fund is an interesting option for investors seeking high returns from emerging markets, and who are ready to withstand the value fluctuation of investments.
Why does it pay to invest in OP-China?
The portfolio manager knows the Chinese market
The fund mainly invests in the Chinese equity market, from which investors tend to seek higher-than-average returns. The fund’s value can fluctuate significantly, depending on the market situation. As a rule, it is more risky than funds investing in developed markets. The fund’s portfolio manager has access to extensive local resources in China, which is a significant advantage in ensuring good performance. The fund is managed by JP Morgan Asset Management.
| Subscription fee | Annual management fee | Redemption fee |
|---|---|---|
| 0,75 % | 2,50 % | 0,75 % |
Agreements under a systematic investment plan are not subject to subscription fees. Fund units generate OP bonuses.
Equity funds investing in fast-growing emerging markets serve the needs of investors seeking high returns. Operating on the stock markets of an emerging nation, the fund's value may fluctuate significantly depending on the market situation, and the risk level is as a rule higher than that of funds investing in advanced markets. The fund is also exposed to a notable currency risk since the fund's investments in China are made in yuans and those in Hong Kong and Taiwan are made in US dollars. OP-China is, therefore, a prime choice for a return-oriented investor believing in China's growth. This fund is mainly recommended to an investor who intends to redeem his/her units after nine years at the earliest.
The Chinese market rose again in June, with newsflow dominated by the relaxation of COVID restrictions. While “dynamic zero COVID” remains the ultimate policy, there was some easing of travel constraints, for example via a shortening of quarantine times. Central and local governments rolled out supportive policies for specific industries, with autos benefiting most directly. Within the internet space, year-long cybersecurity reviews were completed for a number of companies, and various local governments fine-tuned programmes to support property demand. All of these steps contributed to return PMI to positive territory.
Over the month the portfolio outperformed the broader market. Staples benefited from restaurant reopening (eg Foshan Haitian) and materials from a real estate-related boost (SKSHU Paint). Carbon transition names placed amongst both contributors and detractors. Solar company Tongwei gained as polysilicon prices continued to exceed expectations due to tight supply, and electric vehicle (EV) battery player CATL saw margin recovery in the second quarter as it passed cost inflation through to customers. However not owning EV OEMs such as Nio, Xpeng and BYD detracted. We narrowed our underweight in Alibaba, both because of its cheap valuation and as part of a wider addition to internet names given the easing regulatory environment. We also added to Tencent and Meituan, funded partly from outperformer Netease. Within consumer names we added to staples names which should benefit from a combination of margin recovery and service industry reopening. This was funded in part from exiting a solar stock with a relatively low expected return from this point.
OP-China (Fund) is an equity fund which mainly invests its assets in the Chinese, Hong Kong and Taiwanese equity markets. Its investments are mainly made in local currencies, which is why the Fund involves a major currency risk.
The Fund mainly invests directly in equities. In its investment operations, the Fund may use derivative instruments in order to hedge against the risk of adverse market and currency movements, to replace direct investments and to promote otherwise effective portfolio management.
The Fund’s equity market exposure may vary between 75% and 105% of the Fund’s value. The equity exposure typically varies between 90% and 100%.
The Fund invests broadly across various companies. The Fund typically invests in equities of about 40–60 companies but this number may vary depending on the investment manager’s view.
The Fund’s benchmark index is MSCI China 10/40 TR. With active investing, the Fund seeks to outperform its benchmark index in the long term. The Fund mainly takes high active risk and may differ very 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.
Exclusion: The Fund excludes from its active direct investments controversial weapon manufacturers, mining companies producing thermal coal, power companies using thermal coal, tobacco companies, and companies that have breached international standards and where engagement has been unsuccessful. The list of exclusions is public. In addition to general exclusion rules, the Fund does not invest in companies whose principal business is in unconventional oil and gas extraction.
Use of ESG data in the investment analysis: ESG factors are considered in the investment process with the help of data by an external ESG service provider and the ESG tool developed internally by OP Asset Management. Considering ESG factors in the investment process means, for example, that the risks and opportunities related to the environment, society and governance are made transparent using selected indicators from each area.
Violations of international standards: The Fund is screened regularly for non-compliances with international standards. In the event that a non-compliance is detected, an influencing process is begun with the company in question. The aim is to make non-compliant companies change their practices and begin to comply with international standards in their operations. If influencing proves fruitless, the company may be removed from the Fund portfolio and placed on the exclusion list.
Minimum share of sustainable investments: In accordance with the minimum amount stated below, the Fund allocates investments into companies whose business promotes one or more UN Sustainable Development Goals (SDG) without harming other sustainability factors or objectives. Sustainable investments are determined using OP Asset Management’s analysis model which is based on an external service provider’s SDG and sustainability data.
Shareholders’ meetings: The Fund votes in shareholders’ meetings through a service provider in line with OP Fund Management Company Ltd’s shareholder engagement principles that take responsibility aspects into account.
Assessing good governance practices: Analysing the target company’s governance is an important part of the investment process. To us, good governance is a key foundation for any company’s financial success, regardless of sector. When assessing governance, some of the areas considered include the appropriateness of the target company’s administrative organisation, the target company’s actions in relation to its personnel, and the target company’s rewarding and taxation practices. In assessing good governance, we use an external service provider’s analysis and our own qualitative analysis if no external data is available. We screen the funds regularly to check them against the criteria of good governance. Minimum limits apply for these criteria.
Basic data
- Fund manager
- JPMORGAN ASSET MANAGEMENT (UK) LIMITED
- Benchmark index
- MSCI China 10/40
- Start date
- 10.06.2002
- ISIN
- FI0008805965
- fund serie
- Accumulation unit
- Fund size
- 115,8 Meur
- Serie value (11.12.)
- 379,65 EUR
- Monthly review
- Download
- Key Information Document
- Download
- Rules
- Download
Accumulated profit (10.12)
| 1mth | 3mth | 6mth | 1 y | 3 y p.a. | 5 y p.a. | |
|---|---|---|---|---|---|---|
| OP-China A | −1,17 % | +28,27 % | +9,46 % | +15,40 % | −14,85 % | −1,01 % |
| Benchmark | −0,52 % | +28,09 % | +15,00 % | +27,52 % | −4,35 % | −0,06 % |
Yearly performance
| 2019 | 2020 | 2021 | 2022 | 2023 | YTD | |
|---|---|---|---|---|---|---|
| OP-China A | +43,61 % | +58,12 % | −10,61 % | −23,40 % | −26,82 % | +15,00 % |
| Benchmark | +24,43 % | +19,95 % | −14,08 % | −16,39 % | −13,99 % | +26,48 % |
Key figures
| Volatility 12 m | vola 12m | Sharpe 12 m | Duration | |
|---|---|---|---|---|
| OP-China A | 26,31 % | - | - | |
| Benchmark index | - | - | - |
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:
*Standard fees are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity.
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
This is an advertisement. The funds are managed by OP Fund Management Company Ltd. The portfolio manager is the portfolio management company specified in the fund prospectus for OP funds. Investments always involve risks. The value of investments can rise and fall, and the investor may lose part of or all the invested funds. Past performance is no guarantee of potential future yield. The larger the fund’s expenses, the greater the impact on the expected return on the investment. Any yield also depends on taxation, which in turn varies depending on the investor’s personal circumstances and is subject to future changes. If the fund is marketed outside Finland, OP Fund Management Company Ltd may decide to end such marketing. The information presented on this page does not fully describe all the fund’s characteristics.
Before making an investment decision, take all the characteristics or objectives of the fund into consideration, as described in the fund prospectus for OP funds and other documents related to the fund. Only make your final investment decision after reading the fund prospectus for OP funds and the key investor information document and rules of the fund. These documents can be found on the web page of the respective fund. The fund prospectus and the summary of investors’ rights in mutual funds are available at op.fi in Finnish, Swedish and English.