OP-Low-carbon WorldEquity market returns and a clearly lower carbon footprint
Carbon neutral goals becoming more common – dependence on fossil fuels may be a risk
To curb climate change, global climate goals have been set to minimise the use of fossil fuels and to decrease greenhouse gas emissions by changing legislation and taxation. These changes mean that investing in companies whose activities result in high greenhouse gas emissions or that own fossil fuel reserves may become financially unattractive.
OP-Low-carbon World avoids investing in companies whose production-related emissions are high in proportion to their net sales or whose fossil fuel reserves are large in proportion to their market value. This fund seeks diversified equity market returns while keeping the carbon footprint at less than half that of a widely diversified global equity index.**
Why does it pay to invest in OP-Low-carbon World?
- You ensure competitive returns even if regulation of carbon dioxide emissions were to be tightened.
- This fund invests in global equity markets, so it is suited to investors seeking high returns.
- The goal of OP-Low-carbon World is a carbon footprint less than half the size of that of a widely diversified global equity index. So, by investing in this fund you choose a low carbon footprint investment product that is well diversified and covers all sectors.
We recommend the OP-Low-carbon World fund primarily to investors who intend to redeem their units after six years at the earliest. As our owner-customer, you can buy, sell and switch OP-Low-carbon World fund units at no charge.
|Subscription fee||Annual management fee||Redemption fee|
|0,00 %||1,80 %||0,75 %|
Fund units generate OP bonuses.
*Portfolio’s carbon footprint: This portfolio’s carbon footprint is calculated as the weighted average of carbon intensity of the included companies. The carbon footprint takes into account the companies’ scope 1 and scope 2 greenhouse gas emissions (tonnes) in proportion to the companies’ net sales (USD million). Scope 1 emissions include direct emissions resulting from the company’s own activities. Scope 2 emissions include emissions resulting from the generation of electricity and heat purchased by the company.
**Widely diversified global equity index: MSCI All World index.
OP-Low-carbon World is an equity fund which invests its assets broadly in the global equity market. In its investments, the fund pays special attention to sustainable development from the perspective of greenhouse gases and fossil reserves.
The fund may invest in emerging and developed equity markets, and in all sectors of the economy without any sector restriction. Within sectors, however, the fund does not invest in companies that rank low in sector comparison from the perspective of climate change, judged by the company's greenhouse gas emissions relative to its sales, or the size of its fossil reserves.
The fund therefore selects companies that are more attractively positioned when legislation or market mechanisms encourage reducing greenhouse gas emissions.
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, to replace direct investments and to promote otherwise effective portfolio management.
The Fund's market exposure may vary between a minimum of 75% and a maximum of 100% of the Fund’s value being invested in equity markets. The equity weighting typically varies between 90 and100%.
The Fund’s benchmark index is MSCI ACWI Low Carbon Leaders Net USD. 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.
- Fund manager
- Jukka Ukkonen, Tero Halme
- Benchmark index
- MSCI Acwi Low Carbon Leaders Net USD
- Start date
- fund serie
- Accumulation unit
- Fund size
- 136 Meur
- Serie value (17.05.)
- 136,32 EUR
- Monthly review
Accumulated profit (14.05)
|1mth||3mth||6mth||1 y||3 y p.a.||5 y p.a.|
|OP-Low-carbon World A||+0,08 %||+6,14 %||+14,17 %||+32,00 %||+7,83 %||+9,28 %|
|OP-Low-carbon World A||+7,00 %||+7,54 %||−9,22 %||+24,02 %||+1,80 %||+11,90 %|
|Volatility 12 m||vola 12m||Sharpe 12 m||Duration|
|OP-Low-carbon World A||14,26 %||2,28||-|
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.
In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from
- 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.