OP-Emerging Markets Debt Fund

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Bond markets in emerging economies have increased in popularity among investors because, in addition to broad diversification, they offer good expected returns with moderate risk. The OP-Emerging Markets Debt fund offers the ability to invest in government bonds, particularly in Latin America, Asia and the Middle East. The fund is suitable for return-oriented investors who are interested in the potential offered by emerging economies.

The fund's assets are invested in long-term bonds issued or guaranteed by governments, other public-sector entities and supranational entities in tens of emerging economies. Most of the bonds are issued in US dollars, which avoids potential risks associated with local currencies. Investing in the fund does not require experience with bond investments, as the fund's investments are selected by a portfolio manager specialising in bond markets.

To counterbalance risks associated with emerging economies, the OP-Emerging Markets Debt fund offers good return potential and an effortless way to diversify beyond typical investments in Western markets.

Why invest in the OP-Emerging Markets Debt fund

  • Emerging economies offer an attractive ratio of return and risk
  • Bonds issued in US dollars or euros protect against risks associated with local currencies
  • Bond investments outside Western economies offer an effective way to increase a portfolio's diversification

OP-Emergin Market Debt Fund

+5,89 %

year

(3)

Risk level
3

morningstar™
-

ESG
Online fees and charges
Subscription fee Annual management fee Redemption fee
0,75 % 1,05 % 0,75 %

Agreements under a systematic investment plan are not subject to subscription fees. Fund units generate OP bonuses.

More information on the fund

OP-Emerging Markets Debt Fund mostly invests in fixed-income instruments issued or backed by governments, other public-sector entities or supranational organisations in emerging markets. The investments are broadly diversified across the emerging markets. The main target markets include Latin America, Asia and the Middle East. Those considering this fund should also note that changes in emerging countries' economic developments also have an impact on the fund's value through credit risk premiums. In addition, the economic situation, indebtedness and debt service capacity of the target market countries have a major effect on the fund's credit risk exposure.

OP-Emerging Markets Debt Fund is a fund for a yield-oriented investor interested in global opportunities. The emerging fixed-income market is an asset class which can be used to conveniently diversify one's investment portfolio. It offers nice interest income potential with a relatively low volatility risk. This fund is mainly recommended to an investor who intends to redeem his/her units after four years at the earliest.

Investment policy

OP-Emerging Markets Debt Fund (Fund) is a bond fund that mainly invests its assets in fixed-income instruments issued or guaranteed by governments, government-owned entities, government-controlled entities, other public-sector entities or supranational organisations in emerging markets. The Fund may use derivative instruments in its investment operations. The underlying assets of such derivative contracts may be interest rates, currencies or credit risks.

The modified duration of the Fund, a measure of the price sensitivity of a fixed-income investment to interest rate movements, is typically 5.0–8.0, which means that the Fund value will decrease by 5.0–8.0 percent if interest rates increase by one percentage point. If interest rates fall, the Fund’s value increases correspondingly. The main target markets are Latin America, Asia, Eastern Europe,Africa and the Middle East.

The emphasis of the investments is typically on long-term fixedincome products, so in terms of interest rate risk the Fund is on a par with long-term bond funds. The Fund usually aims to favour fixed-income instruments issued in the currencies of developed economies (so-called hard currency), particularly the U.S. dollar, and aims to hedge the currency risk against the euro.

The Fund’s benchmark index is the JPMorgan EMBI Global Diversified EUR Hedged. 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.

Responsibility of the fund

Read more about fund’s responsibility on the fund’s Finnish pages.

The portfolio manager's review is available on the fund's Finnish pages.

Basic data, performance and fact figures

Basic data

Fund manager
Rego Ostonen
Benchmark index
JP Morgan EMBI Global Diversified Hedged Index
Start date
15.02.2005
ISIN
FI0008808415
fund serie
Accumulation unit
Fund size
416 Meur
Serie value (13.03.)
184,23 EUR
Monthly review
Download
Key Information Document
Download
Rules
Download

Accumulated profit (13.03)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-Emergin Market Debt Fund A +0,35 % +0,30 % +0,66 % +5,89 % +1,62 % +0,94 %
Benchmark +0,59 % +0,60 % +0,39 % +6,09 % +1,60 % +0,51 %

Yearly performance

2020 2021 2022 2023 2024 YTD
OP-Emergin Market Debt Fund A +1,42 % −3,20 % −18,71 % +8,82 % +5,02 % +1,81 %
Benchmark +3,50 % −2,82 % −20,14 % +8,43 % +4,68 % +2,13 %

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP-Emergin Market Debt Fund A 4,63 % - -
Benchmark index - - -
Owner-customers’ saving and investing benefits

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.

The fund's other unit classes

Income unit generating annual cash flow, suitable for foundations

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.