OP-Russia
Russia is an excellent investment opportunity
Russia is home to the world’s largest deposits of natural gas, the second-largest deposits of coal and the eight-largest reserves of oil. Changes in demand for raw materials thus play a crucial role in the Russian economy. It is useful for investors to examine the Russian market from other points of view too, as yield potential can also be discovered in other sectors. Growth and increased wealth of the middle class spur domestic market-driven investment options, such as companies in the financial and retail sectors.
Attractiveness of the Russian stock market has significantly improved in recent years. Despite geopolitical challenges, Russian listed companies have notably improved their business operations, which has shown as both rising earnings and increased profit distribution. The number of investment-worthy companies has grown markedly as also state-owned companies that play an important role have started to pay an increasing amount of attention to operational efficiency and dividend payout. Dividend payout ratio has steadily increased in Russia in recent years, and the trend appears to continue. Despite the robust share price performance of 2019, the average dividend yield of Moscow Exchange is still over twice the average of emerging markets. Furthermore, a weak rouble supports export companies, which make up the majority of the fund’s portfolio.
Why does it pay to invest in OP-Russia?
- OP-Russia is an excellent option for investors seeking high returns from strongly growing emerging markets.
- This fund is suitable for investors who believe in the price hike of raw materials – important to Russia's economic growth – in the long term.
- The fund focuses on companies that have the desire and ability to pay high and increasing dividends.
The fund’s performance may fluctuate significantly depending on the market, and, in principle, its risk level is higher than that of funds investing in developed markets. This fund is mainly recommended to investors who intend to redeem their units after nine years at the earliest.
As our owner-customer, you can buy, sell and switch OP-Russia fund units at no charge. Our selection of emerging market funds also includes six other funds. See all our funds investing in emerging markets.
The fund's other unit classes
OP Fund Management Company Ltd manages OP mutual funds.