OP-High Yield Fund
The OP-High Yield fund is a long-term bond fund that invests in high-yield corporate bonds mainly in the European Economic Area. The fund is suitable for investors that seek attractive bond yields at a moderate risk.
OP-High Yield focuses on companies with a long-term rating grade of at least BB+ or its equivalent. Bonds issued by these types of companies offer plenty of opportunities for excess returns. This requires expertise, however, as minimising credit risk plays a key role in investing in bonds with a lower rating grade. That is why the OP-High Yield fund bases its bond selection on an in-depth risk analysis. The fund is actively managed, and as its unitholder you benefit from the expertise and experience of portfolio managers who specialise in international bond markets. Risks are also managed through extensive diversification: the fund's assets are normally invested in bonds by 70 to 100 different issuers.
OP-High Yield takes sustainability into account in its investment decisions. Companies deemed harmful to the environment and society, for example producers of thermal coal or controversial weapons, are excluded from investments. We also screen our target companies regularly to ensure compliance with good governance, such as international norms related to taxation and remuneration.
Why invest in the OP-High Yield fund
- Bonds of companies with lower credit ratings offer attractive return expectations with moderate interest rate risk
- Portfolio managers make bond selections based on comprehensive risk analysis
- The fund avoids companies deemed harmful to the environment and society
