Bond markets in emerging economies have increased in popularity among investors because, in addition to broad diversification, they offer fair expected returns at a 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 and willing to tolerate risks associated with them.
The fund is actively managed. Its 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 helps to avoid risks associated with local currencies. Investing in the fund does not require in-depth knowledge of bond markets, as the fund's investment decisions are made by a seasoned portfolio management team.
To counterbalance risks associated with emerging economies, the OP-Emerging Markets Debt fund offers good return potential with moderate risk and a straightforward way to diversify beyond typical investments in Western markets.
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
