OP-Tactical Portfolio (Fund) is a balanced fund which mainly invests its assets in international equity and bond markets.
In the basic allocation, the Fund invests 75% of its assets in equity markets and 25% in bond markets. The share of equity-linked instruments of the Fund's value may vary between 50% and 80% in the basic allocation. According to the portfolio management's view, the Fund may lower its equity weight to 20–50% for a short or intermediate-term in order to hedge against falling equity prices.
The Fund makes investments mainly through other mutual funds. 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.
Derivatives are chiefly used to manage equity and interest rate risks.
The Fund also invests in non-euro-area markets involving currency risks. In the basic allocation, the Fund does not hedge against currency risk but may, according to the portfolio manager's view, take temporary hedging measures.
The Fund’s benchmark index is a combination of several indexes. The composition of the benchmark index is described in the fund prospectus. 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.