The OP-World Index fund offers access to global stock markets and is an affordable way to complement actively managed stock and fixed income funds. Due to its long-term profit potential and low costs, the fund is a suitable option for long-term and pension investors, for example.
In an index fund, the fund's assets are invested to track the performance of a given group of stocks, or market index. OP-World Index tracks the MSCI World Screened Net Return Index and invests in stock markets in developed economies. Index funds are a form of passive investment, which means that the portfolio manager does not select stocks independently but instead tracks the movements of the selected index. Dividends from stocks are automatically reinvested into the fund. Since the fund's assets are invested in the stocks of the largest companies by market capitalization, its investments may significantly concentrate on certain sectors, such as information technology, finance, and energy.
Our view is that companies that act sustainably hold a competitive edge in the long term. For this reason, the fund tracks an index that is committed to maintaining a 30 per cent lower carbon intensity compared to the parent index. Additionally, the index excludes companies whose revenue depends on the production of coal, tobacco, or controversial weapons, among others.
