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.

Subscription fee

Annual management fee

Redemption fee

0,75 % 2,50 % 0,75 %

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

Since raw materials and politics are closely intertwined in Russia, investing in raw materials is subject to heightened political risk. Therefore it is wise for investors to approach the Russian market also from other perspectives. Growth and increased wealth of the middle class spurs domestic market-oriented investments such as companies in the finance or retail sectors. OP-Russia offers the opportunity to gain broad-based access to the Russian market's growth with a single investment. The fund may also invest in non-Russian companies for which Russia represents a key market area, according to the portfolio manager's estimate. A maximum of a quarter of the fund’s value may also be invested in the equity markets of the other former Soviet countries.

Funds investing in the emerging markets are designed for investors seeking high returns from steeply growing emerging markets. OP-Russia is suitable for a long-term and risk-tolerant investor who believes that the price of raw materials supporting Russian economic growth will rise in the long term. The investor needs to understand that the fund value may fluctuate significantly depending on the market, and the risk level is as a rule higher than that of funds investing in advanced markets. This fund is mainly recommended to an investor who intends to redeem his/her units after nine years at the earliest.

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

OP-Russia (Fund) is an equity fund which mainly invests its assets in the Russian equity market. The Fund may also invest in non-Russian companies for which Russia represents a key market area, according to the Fund Management Company's assessment. A maximum of a quarter of the Fund’s value may be invested in equity markets of other former Soviet countries.

The Fund mainly invests directly in equities. 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 diversifies its equity investments across various companies. The Fund typically invests in equities of about 30–50 companies but this number may vary depending on the portfolio manager’s view.

The Fund's portfolio manager makes investment decisions on the basis of the prevailing market view at the time. The investment decisions particularly emphasise weightings between different sectors and the portfolio manager’s view of individual companies.

The Fund’s benchmark is MSCI Russia 10-40 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.

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

Basic data

Fund manager
Jouni Nissinen
Benchmark index
MSCI Russia 10-40 Net TR EUR
Start date
16.02.2004
ISIN
FI0008807094
fund serie
Accumulation unit
Fund size
166 Meur
Serie value (14.05.)
343,58 EUR
Monthly review
Download
Rules
Download
Brochure
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Accumulated profit (12.05)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-Russia A +6,54 % +8,22 % +21,52 % +28,03 % +11,98 % +16,34 %
Benchmark +7,10 % +7,05 % +20,37 % +23,10 % +12,51 % +13,22 %

Yearly performance

2016 2017 2018 2019 2020 YTD
OP-Russia A +61,47 % −0,75 % +0,34 % +45,05 % −11,52 % +12,02 %
Benchmark +58,19 % −11,56 % +4,08 % +45,51 % −9,73 % +10,18 %

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP-Russia A 20,03 % 1,43 -
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.