OP-High Yield

Converting low confidence levels to sizeable yields

Higher risk is followed by higher yield. This is the underlying idea of the OP-High Yield bond fund which aims to turn lower grade corporate bonds into returns for the investor's portfolio.

  • The fund invests in bonds issued by companies with low credit ratings.
Subscription fee Annual management fee Redemption fee
0,00 % 0,80 % 0,00 %

Agreements under a systematic investment plan are not subject to subscription fees. Fund units generate OP bonuses.

OP-High Yield primarily invests in bonds issued by companies with low credit ratings in the European Economic Area. Since the fund invests in bonds of companies with low credit ratings, repayment is estimated to be subject to above-average risks. To counter this uncertainty, these bonds’ yield potential is significantly higher than that of government bonds or loans issued by companies with high credit ratings.

Fixed-income investments are considered a valid method to lower a portfolio's total risk. OP-High Yield offers appealing interest income potential to a risk-tolerant investor. Although the repayment of high yield bonds involves risk, as an investment vehicle they carry lower risk than the equity market. Since the fund hedges its non-euro investments against currency risks as fully as possible, the fund unit holder does not have to bear the currency risk. OP-High Yield is mainly recommended to an investor who intends to redeem his/her units after four years at the earliest.

Read the portfolio manager's review on the fund's Finnish pages.

OP-High Yield (Fund) is a long-term bond fund which mainly invests its assets in bonds issued by companies whose credit rating for long-term debt is BB+ at the most, or similar. Investments are primarily made in bonds issued in the European Economic Area. The share of these investments typically varies between 75 and 100%. The Fund hedges its non-euro investments against currency risks as fully as possible. The modified duration of the Fund, a measure of the price sensitivity of a fixed-income investment to interest rate movements, is typically 2.5–5.0, which means that the Fund value will decrease by 2.5–5.0 percent if interest rates increase by one percentage point. If interest rates fall, the Fund’s value increases correspondingly.

The Fund's investments are mainly direct fixed-income investments. 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 may also invest in derivative contracts intended for credit risk transfer. Derivatives are chiefly used to manage interest rate and credit risks.

The Fund diversifies its investments broadly across various issuers' bonds. The Fund normally invests in some 70–100 issuers' fixed-income instruments but this number may vary depending on the portfolio manager's view.

The Fund’s benchmark is Barclays Pan European High Yield Index (3% constrained, Euro hedged). 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.

Read more about fund’s responsibility on the fund’s Finnish pages.
More details Basic data, performance and fact figures

Basic data

Fund manager
Tommi Kokkarinen, Ville Vuonokari
Benchmark index
Barclays Pan European High Yield Index (3 % constrained, Euro hedged)
Start date
01.11.2004
ISIN
FI0008807615
fund serie
Accumulation unit
Fund size
763 Meur
Serie value (06.05.)
216,15 EUR
Monthly review
Download
Rules
Download
Brochure
Download

Accumulated profit (06.05)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-High Yield A +0,27 % +0,92 % +5,30 % +14,35 % +2,50 % +3,71 %
Benchmark +0,32 % +1,13 % +5,89 % +16,54 % +3,95 % +4,83 %

Yearly performance

2016 2017 2018 2019 2020 YTD
OP-High Yield A +8,24 % +5,98 % −3,63 % +9,35 % −0,64 % +2,10 %
Benchmark +9,02 % +6,77 % −3,59 % +11,32 % +2,32 % +2,33 %

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP-High Yield A 3,33 % 4,47 -
Benchmark index - - -

Owner-customer benefits as of 1 January 2021

  • Book-entry account and custody €0: Custody of Finnish and foreign shares and ETFs without monthly charges. 
  • Buy and sell fund units €0: Buy, sell and switch nearly all of our funds without costs and earn OP bonuses by investing in mutual funds.*
  • Discount on share trading: Brokerage fee 0.17% (at least €7), maximum trading fee for Finnish shares and ETF products 1% until August 2021.
  • New benefit: Equity analyses €0: Free equity and market analysis.
  • Benefits of saving through insurance: Take out an insurance policy, switch between investment instruments and transfer funds free of charge. Earn OP bonuses from unit-linked insurance assets.

*No OP bonuses will accrue from the R2 Crystal Fund nor from institutional series of funds.

OP bonuses

In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from

  • loans
  • funds in accounts
  • purchases you have paid with the OP-Visa credit
  • insurance premiums for home, family and motor vehicle policies.

From 1 November 2020, OP bonuses will accrue from:

  • home loans, secured bank loans, student loans
  • savings and investment accounts
  • mutual fund units and unit-linked insurance
  • non-life insurance bills

The change on 1 November 2020 means that no OP bonuses will accrue from:

  • deposits in current accounts
  • unsecured consumer loans (Flexible Consumer Credit, Special Consumer Credit, One-off Credit and Overdraft Facility)
  • OP hire purchase
  • Purchases paid using OP Visa as a credit card, the balance of credit with interest of OP-Visa and OP-Mastercard cards

OP bonuses are used for the bank’s service charges and insurance premiums.

 

OP Fund Management Company Ltd manages OP mutual funds.