OP-Emerging Middle Class is an equity fund which invests its assets in emerging equity markets on a global scale in companies that are expected to benefit from growth in consumer demand in emerging economies. The Fund’s investments are allocated to sectors where consumer goods and services they produce are likely to see structural growth in demand in the long term.
The Fund’s investments are mainly based on direct equity investments. In its investment operations, the Fund may use derivative instruments in order to hedge against the risk of adverse market movements and exchange rate changes, to replace direct investments and to promote otherwise effective portfolio management.
The Fund’s market exposure may vary in such a way that the Fund invests a minimum of 75% and a maximum of 100% of its value in equity markets. The equity exposure typically varies between 90 and 100%.
The Fund invests its assets broadly among various companies. The Fund typically invests its assets in equities of around 40–60 companies but this number may vary depending on the investment manager’s view.
The portfolio manager makes investment decisions based his prevailing view on the market. Key issues in the context of the fund’s investment decisions include the portfolio management’s views on individual companies.
The Fund’s benchmark index is MSCI Emerging Markets TR 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.