OP-Finland Micro Cap Fund a non-UCITS fund which invests its assets mainly in the equities of listed companies in the Finnish equity market whose market capitalisation is less than 500 million euros. A maximum of 20 per cent of the Fund's value may also be invested in unlisted equities.
The Fund may invest a maximum of 25 per cent of its assets in European companies.
The Fund diversifies its investments in equities of various companies whose market capitalisation on the date of investment is less than 200 million euros.
The Fund's investments are mainly based on direct equity investments and direct fixed-income investments, but investments may also be made in funds that invest in unlisted companies, as well as in portfolio companies’ bonds to replace direct equity investments.
The size of investments in unlisted companies depends on the Fund’s size and liquidity. The target weight for unlisted investments is 10–15%.
The Fund typically invests in equities of 30–50 companies but this number may vary depending on the portfolio manager’s view.
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.
The Fund's benchmark index is OMX Helsinki Small Cap Total Return Index (EUR). With active investing, the Fund seeks to outperform its benchmark index in the long term. The Fund mainly takes high active risk and may differ very significantly from the composition, weights and risk level of the benchmark index.