OP-EMD Local Currency

Taking global paths to yield

The sluggish economic growth outlook of the Western world, the central banks’ zero-interest policies and the uncertainty caused by the debt crisis have depressed interest rates in the Western world’s most solvent nations to historic lows. The OP-EMD Local Currency bond fund offers an opportunity for an experienced investor to benefit from the strengthening emerging-market currencies and high interest income.

  • The main target markets include Latin America, Asia and the Middle East.
  • The fund invests in bonds issued in local currencies.
Subscription fee Annual management fee Redemption fee
0,50 % 0,65 % 0,50 %

Agreements under a systematic investment plan are not subject to subscription fees. Fund units generate OP bonuses. The fund pays the management and custody fees of the underlying fund unit investments.

As a long-term fixed-income fund, OP-EMD Local Currency aims at high interest income in the long term. The fund's investments focus on fixed-income instruments issued or guaranteed by emerging market countries, companies or organisations particularly in Latin America, Asia and the Middle East. As indicated by the name, OP-EMD Local Currency mainly invests in bonds issued in local currencies and the currency risk is carried by the investor. The fund can also use fixed-income investments issued in hard currencies (in USD, EUR or JPY) and, in this case, the issuer carries the currency risk related to local currency.

OP-EMD Local Currency is suitable for an experienced investor seeking high long-term interest income and who understands the characteristics of the emerging fixed-income markets. The investor needs to understand that the prices of fixed-income instruments are typically more volatile in emerging markets than in the Western markets, which has a strong impact on bond price performance and, thus, the value of a fund unit may vary markedly depending on the market situation.  Since currency risks are not hedged, the fund’s performance and risk are significantly affected not only by interest rate fluctuations but also by changes in the exchange rates of the emerging economies’ currencies in relation to the euro. The emerging fixed-income market is an asset class which can be used to conveniently diversify one's investment portfolio. For a Finnish investment portfolio, the diversification benefit is particularly high. The average duration of a fixed-income investment varies between 3 and 6 years.

OP-EMD Local Currency (Fund) is a bond fund that invests all of its assets, with the exception of cash assets, in the mutual fund Ninety One Emerging Markets Local Currency Dynamic Debt Fund. This underlying investee fund is registered in Luxembourg.

The Fund is a non-UCITS fund, since its rules allow it to invest all of its assets in a single mutual fund or undertaking for collective investment (CIU) that fulfils the EC Directive on Undertakings for Collective Investment in Transferable Securities (UCITS Directive). The Fund mainly invests its assets through the Underlying Investee Fund in fixed-income instruments issued or guaranteed by governments, other public-sector entities, supranational organisations and corporations in emerging markets.

In its investment operations, the Fund may use derivative instruments in its cash management and investments in other funds. The underlying asset of such derivative contracts may be a currency or a foreign exchange rate. The fund's modified duration, a measure of the price sensitivity of a bond to interest rate movements, typically ranges between 4 and 6.

The Underlying Investee Fund may make extensive use of various asset classes in emerging bond markets. The main target markets are Latin America, Asia, Eastern Europe,Africa and the Middle East. The emphasis of the Underlying Investee Fund’s investments is typically on long-term fixed-income products, so in terms of interest rate risk the Fund is on a par with long-term bond funds. The Underlying Investee Fund aims to focus its investments on fixed-income instruments issued and denominated in the local currency of emerging economies (so called local currency). It may also utilise fixed-income instruments issued and denominated in the currency of developed economies (so called hard currency).

The Fund’s benchmark index is JPM GBI-EM Global Diversified. 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. 

Negative screening: the Fund excludes countries with significant adverse impacts on society from its investments. The Fund does not invest in excluded countries, and if an investment product of the Fund later falls within the scope of the exclusion, the aim is to terminate the investment within a reasonable time period.

Use of ESG data in the analysis of investments: The average values of the sustainability indicators of the Fund’s investments are regularly monitored. The values of the indicators are considered when making investment decisions, and the average values of the portfolio and their development in relation to the benchmark index are monitored.

The investment process of the Fund includes analysing the creditworthiness of the investment products. In analysing creditworthiness, environmental and social characteristics as well as good governance are considered, among other factors.

More details Basic data, performance and fact figures

Basic data

Fund manager
Benchmark index
JPM GBI-EM Global Diversified
Start date
fund serie
Accumulation unit
Fund size
76 Meur
Serie value (23.04.)
140,11 EUR
Monthly review
Key Information Document

Accumulated profit (22.04)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-EMD Local Currency A −0,88 % −0,27 % +3,81 % +4,43 % +0,74 % +0,59 %
Benchmark −0,87 % −0,32 % +4,25 % +5,20 % +0,77 % +0,47 %

Yearly performance

2019 2020 2021 2022 2023 YTD
OP-EMD Local Currency A +16,14 % −4,94 % −1,13 % −5,51 % +7,09 % −0,84 %
Benchmark +15,56 % −5,79 % −1,82 % −5,90 % +8,89 % −0,94 %

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP-EMD Local Currency A 6,95 % - -
Benchmark index - - -

As our owner-customer, saving and investing is especially worthwhile thanks to the excellent benefits you receive.

Your benefits when investing in funds or through insurance:

  • Buy and sell almost all OP mutual funds with no fees.*
  • You earn 0.35% OP bonuses from mutual fund and insurance assets.** 
  • Begin saving through insurance free of charge. 
  • Switch between investments, invest additional funds and change your payment and investment plan for OP Unit-linked Insurance and OP Savings Agreement free of charge in our digital services.  

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:

*Standard fees are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity.

**OP bonuses are automatically used to pay the bank’s service charges and insurance premiums. No OP bonuses are accrued from the R2 Crystal special common fund or institutional classes of funds. The following investment products linked to insurance assets do not accrue OP bonuses: JPM Russia A, JPM Emerging Europe Equity Fund, and BlackRock GF Emerging Europe Fund A. OP bonuses are accrued from unit-linked insurance policies, excluding Individual Unit-linked Insurance and Individual Capital Redemption Contracts.  

This is an advertisement. Remember that investment always involves risks. The value of investments can rise and fall, and an investor can lose part or all of the money they invest. OP funds are managed by OP Fund Management Company Ltd, with OP cooperative bank acting as its agent. Normal transaction costs are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity special common funds.