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OP-Sustainable World

Diversify and invest in the most responsible businesses
1

Selecting an investment vehicle can be an ethical decision, too

OP-Sustainable World provides an investment vehicle for your savings that emphasises sustainable development, social welfare and ethical perspectives. 

2

Many sectors excluded from the fund’s investment universe

The fund does not invest in businesses whose operations may have a harmful societal impact in the long run. The excluded sectors include production of alcohol and tobacco.

3

Only the most responsible businesses in their respective sectors will be selected in the fund

OP-Sustainable World invests in businesses that are among the best in their sector in terms of corporate responsibility.

4

A well-balanced fund for long-term investment

The fund invests globally in stocks and fixed-income markets. Fixed-income investments even out stock market fluctuations, so the fund is suited for investors seeking moderate returns. 

The fund invests in ethical investment vehicles

In accordance with the principles of sustainable investment, only such businesses will be selected in OP-Sustainable World that take into account the environment, social responsibility and good governance in their operations. Harmful and controversial sectors have been excluded from the fund. These include alcohol, tobacco, gambling, weapons, adult entertainment, animal testing and nuclear energy. Neither does the fund invest in businesses that have to do with, say, child labour, corruption or aggressive tax planning. 

Out of the remaining sectors, only such businesses will be selected in the fund that are among the best in their sector in terms of corporate responsibility. Various metrics are used to evaluate corporate responsibility. They relate to, say, sustainable use of natural resources, decreasing waste and pollution, combatting climate change, maintaining nature’s biodiversity, as well as employee wellbeing and safety at work. 

Why does it pay to invest in OP-Sustainable World?

  • By investing in the fund, you will avoid supporting harmful and controversial sectors, and ensure that the fund has taken into account global risks concerning the environment and social responsibility.
  • The fund’s investments are diversified in both stocks and fixed-income investments, which ensures a more stable performance. Consequently, the fund is suited for moderate investors.
  • OP-Sustainable World is an easy, effortless and responsible investment vehicle.

In investment, risks and returns are linked. OP-Sustainable World takes the middle road in both. Strict compliance with ethical practices combined with thorough sustainability assessment gives investors peace of mind while portfolio management experts ensure that risks associated with the stock market remain in control.

The fund suits investors who intend to redeem their units after four years at the earliest. As our owner-customer, you can buy, sell and switch OP-Sustainable World fund units with no charges.

Subscription fee Annual management fee Redemption fee
0,00 % 1,25 % 0,50 %

Owner-customers can buy and sell fund units with no charges. Systematic investment is possible for all without subscription fees. Fund units generate OP bonuses.

Negative screening means that certain sectors and functions are excluded from the fund's investment options as described below. We update our criteria for exclusion whenever required as a result of developments in the operating environment. Positive screening means analysing companies' operating policies from the perspective of responsibility and only the top companies can be admitted to the fund.

NEGATIVE SCREENING

Products and services hazardous to health or causing addiction

The fund does not invest in products or services that are hazardous to health or cause addiction. This category includes alcohol and tobacco producers and gambling companies. The assessments are based on information available to the portfolio manager.

Social and societal topics

From the social and societal perspective too, harmful and doubtful practices, products and services count among those in which the fund does not invest. This category includes the manufacture of weapons other than sporting and hunting weapons, activities contrary to the UN Global Compact initiative, such as child labour and corruption, production of adult entertainment, animal tests for non-medical purposes and aggressive tax planning. The definition of aggressive tax planning will be specified thanks to international principles and improving reporting. We are currently paying attention, for example, to aggressive arrangements by country that have come to our notice.

Environment

The fund does not invest in nuclear power producers either.

POSITIVE SCREENING

Of the companies in industries remaining after positive screening, only those can be admitted to the fund that rank among the best ones in their sectors in responsibility assessment. The responsibility analysis comprises three components which relate to the environment, society and corporate governance. In selecting responsible companies, we make use of data collected by MSCI as one of our sources, where corporate responsibility is assessed by means of hundreds of various metrics. The metrics pertain, for example, to employee treatment, safety at work, supply chain responsibility, greenhouse gas emissions and pollutants, use of water, carbon footprint of products, biodiversity, composition of the board of directors and corruption.

The portfolio manager's review is available on the fund's Finnish pages.

OP-Sustainable World is a balanced fund which invests its assets in global equity and bond markets. In its investments, the fund applies unusual weightings and restrictions. It does not invest in certain products, services or functions that can be considered
hazardous to health or addictive. Investment in certain functions regarded as socially, societally or environmentally harmful has also been restricted. We update our criteria for exclusion whenever required as a result of developments in the operating environment.

We analyse companies' practices from the CSR perspective as well. Only companies which rank among the best ones in their sectors in terms of environmental, social and governance aspects on the whole can be admitted to the fund.

The Fund’s investments in fixed income instruments may account for 30–70% of the Fund’s value and those in equity-linked instruments for 30–70%.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. Derivatives are chiefly used to manage equity and interest rate risks.

The focus is on fixed income instruments issued by public institutions and companies with a good credit rating. Moody´s Baa3 or S&P BBB- represents the minimum rating for issuers. The Fund may also to a limited extent invest its assets in fixed income instruments issued by issuers with a lower credit rating or by non-rated issuers. The Fund makes its fixed income investments mainly in fixed income instruments issued by public sector entities and companies in the European and OECD bond markets.

The Fund’s benchmark index is a combination of several indexes. The composition of the benchmark index is described in the fund prospectus. 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
Juha Asikainen, Martti Saarinen
Benchmark index
Barclays Euro Aggregate: Corporate -Index 50 %, MSCI AC World Daily TR Net 50 %
Start date
20.09.2016
ISIN
FI4000210539
fund serie
Accumulation unit
Fund size
67 Meur
Serie value (29.09.)
107,80 EUR
Monthly review
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Rules
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Brochure
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Accumulated profit (28.09)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-Sustainable World A -0,43 % +1,57 % +10,66 % -1,71 % +1,18 % -
Benchmark - - - - - -

Yearly performance

2015 2016 2017 2018 2019 YTD
OP-Sustainable World A - +1,55 % +3,96 % -6,67 % +15,95 % -5,65 %
Benchmark - - - - - -

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP-Sustainable World A 13,75 % -0,09 -
Benchmark index - - -

Owner-customer benefits

  • As an owner-customer you can sell, buy and trade nearly all our mutual funds (savers’ funds, socially responsible funds, and equity and bond funds) without fees.
  • As an owner-customer, you can also invest in funds by saving through insurance. OP Unit-linked Insurance and OP Savings Agreement are insurance savings products intended for owner-customers that offer an effortless and flexible means for long-term saving. Switching between investment instruments and transferring funds to insurance savings is free of charge.
  • Owner-customers have automatic access to the second fee level on the stock brokerage fee list, in which the brokerage fee is 0.17% (min. 7 euros), while the fee at the first fee level is 0.2% (min. 9 euros).

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.