OP-Emerging Markets Equity

OP-Emerging Market Equity invests in emerging market stocks in Asia, Latin America ,Eastern Europe and Africa.

Equity funds investing in emerging markets are designed for investors seeking high returns from strongly growing markets.. Countering the promising prospects, an investor needs to note that stock prices are typically much more volatile in the emerging markets than in the Western markets and that operating environments may be subject to various political risks. Investments are also exposed to exchange rate risks. The wide diversification around the world offered by OP-Emerging Market Equity helps avoid uncertainties related to individual markets and the fund's value movements remain more moderate compared to funds focusing on a specific market.

Suitable for return-seeking long-term investors and for those making monthly investments, the fund is also a great element in one's equity or balanced portfolio.   This fund is mainly recommended to an investor who intends to redeem his/her units after seven years at the earliest.

OP-Emerging Markets Equity (Fund) is an equity fund which has the objective of achieving long-term capital appreciation by investing assets in emerging equity markets on a global basis. The Fund invests its assets in equity funds, equity and ETF products, equity-index derivatives and direct equity investments in emerging markets. The Fund seeks to outperform its benchmark index by utilising three sources of added value in the Fund's investment process. Allocation decision-making: the Fund implements tactical views of asset allocation by overweighting or underweighting countries, regions or themes in a manner that leads a return above the benchmark index over time.

Portfolio manager selection: we aim to find the best portfolio manager to represent each tactical view in the Fund while spreading the so-called portfolio manager risk by managing the fund portfolio's parts through various investment processes independent of each other.

Equity selection of investee funds: the aim is that each underlying investee fund selected for the Fund's portfolio can add value in relation to its own benchmark index.

The Fund may use derivative instruments in order to hedge against adverse market movements, to replace direct investments and to otherwise promote effective portfolio management.

The Fund's benchmark index is MSCI Emerging Markets Total Return Net. 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. 

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.

• 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