OP-Emergin Markets Debt Fund B
Interest income from farther awayWith Western government bonds barely covering inflation, yield seekers start to look farther away. Emerging market government bonds (i.e. sovereign bonds) provide interesting opportunities. The OP-Emergin Markets Debt Fund bond fund gives you easy access to bonds issued by emerging market countries and other public-sector entities.
- The main target markets include Latin America, Asia, and the Middle East.
- The fund invests in USD-denominated emerging market government bonds.
| Subscription fee | Annual management fee | Redemption fee |
|---|---|---|
| 0,75 % | 1,05 % | 0,75 % |
Agreements under a systematic investment plan are not subject to subscription fees. Fund units generate OP bonuses.
The weak economic growth outlook of the Western world, the central banks’ zero-interest policies and the uncertainty caused by the debt crisis have depressed interest rates in the Western world’s most solvent nations to historic lows. The modest interest income potential of the home markets has increased the appeal of emerging fixed-income markets among investors. Compared to Europe and the US, high interest income potential is offered by emerging countries' government bonds whose good yield performance and diversification benefits further support growth of this asset class.
OP-Emerging Markets Debt Fund mostly invests in fixed-income instruments issued or backed by governments, other public-sector entities or supranational organisations in emerging markets. The investments are broadly diversified across the emerging markets. The main target markets include Latin America, Asia, Eastern Europe,Africa and the Middle East. Those considering this fund should also note that changes in emerging countries' economic developments also have an impact on the fund's value through credit risk premiums. In addition, the economic situation, indebtedness and debt service capacity of the target market countries have a major effect on the fund's credit risk exposure.
OP-Emerging Markets Debt Fund is a fund for a yield-oriented investor interested in global opportunities. The emerging fixed-income market is an asset class which can be used to conveniently diversify one's investment portfolio. It offers nice interest income potential with a relatively low volatility risk. This fund is mainly recommended to an investor who intends to redeem his/her units after four years at the earliest.
OP-Emerging Markets Debt Fund (Fund) is a bond fund that mainly invests its assets in fixed-income instruments issued or guaranteed by governments, government-owned entities, government-controlled entities, other public-sector entities or supranational organisations in emerging markets. The Fund may use derivative instruments in its investment operations. The underlying assets of such derivative contracts may be interest rates, currencies or credit risks.
The modified duration of the Fund, a measure of the price sensitivity of a fixed-income investment to interest rate movements, is typically 5.0–8.0, which means that the Fund value will decrease by 5.0–8.0 percent if interest rates increase by one percentage point. If interest rates fall, the Fund’s value increases correspondingly. The main target markets are Latin America, Asia, Eastern Europe,Africa and the Middle East.
The emphasis of the investments is typically on long-term fixedincome products, so in terms of interest rate risk the Fund is on a par with long-term bond funds. The Fund usually aims to favour fixed-income instruments issued in the currencies of developed economies (so-called hard currency), particularly the U.S. dollar, and aims to hedge the currency risk against the euro.
The Fund’s benchmark index is the JPMorgan EMBI Global Diversified EUR 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.
The Fund promotes environmental and social characteristics and, to ensure it, uses environmental, social and governance (ESG) analysis and excludes certain investments.
Negative screening: the Fund excludes countries with significant adverse impacts on society from its investments. The Fund does not invest in excluded countries, and if an investment product of the Fund later falls within the scope of the exclusion, the aim is to terminate the investment within a reasonable time period.
Use of ESG data in the analysis of investments: The average values of the sustainability indicators of the Fund’s investments are regularly monitored. The values of the indicators are considered when making investment decisions, and the average values of the portfolio and their development in relation to the benchmark index are monitored.
The investment process of the Fund includes analysing the creditworthiness of the investment products. In analysing creditworthiness, environmental and social characteristics as well as good governance are considered, among other factors.
Basic data
- Fund manager
- Rego Ostonen
- Benchmark index
- JP Morgan EMBI Global Diversified Hedged Index
- Start date
- 15.02.2005
- ISIN
- FI0008810734
- fund serie
- Income unit
- Fund size
- 410 Meur
- Serie value (20.11.)
- 104,09 EUR
- Monthly review
- Download
- Key Information Document
- Download
- Rules
- Download
Accumulated profit (19.11)
| 1mth | 3mth | 6mth | 1 y | 3 y p.a. | 5 y p.a. | |
|---|---|---|---|---|---|---|
| OP-Emergin Market Debt Fund B | −0,94 % | +0,38 % | +2,96 % | +12,91 % | −2,58 % | −1,38 % |
| Benchmark | −1,43 % | +0,03 % | +3,23 % | +11,92 % | −3,28 % | −1,36 % |
Yearly performance
| 2019 | 2020 | 2021 | 2022 | 2023 | YTD | |
|---|---|---|---|---|---|---|
| OP-Emergin Market Debt Fund B | +10,41 % | +1,33 % | −3,21 % | −18,70 % | +8,81 % | +5,23 % |
| Benchmark | +11,66 % | +3,50 % | −2,82 % | −20,14 % | +8,43 % | +5,06 % |
Key figures
| Volatility 12 m | vola 12m | Sharpe 12 m | Duration | |
|---|---|---|---|---|
| OP-Emergin Market Debt Fund B | 5,24 % | - | - | |
| Benchmark index | - | - | - |
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***You earn OP bonuses from unit-linked insurance policies, excluding individual unit-linked insurance policies and Individual Capital Redemption Contracts. The principles of contribution towards OP bonuses from funds linked to insurance assets will be harmonised with direct investments. As of 1 January 2025, the following funds linked to insurance assets will no longer contribute towards OP bonuses: third-party funds such as JP Morgan funds, structured loans and institutional class funds such as OP-World III A.
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The fund's other unit classes
This is an advertisement. The funds are managed by OP Fund Management Company Ltd. The portfolio manager is the portfolio management company specified in the fund prospectus for OP funds. Investments always involve risks. The value of investments can rise and fall, and the investor may lose part of or all the invested funds. Past performance is no guarantee of potential future yield. The larger the fund’s expenses, the greater the impact on the expected return on the investment. Any yield also depends on taxation, which in turn varies depending on the investor’s personal circumstances and is subject to future changes. If the fund is marketed outside Finland, OP Fund Management Company Ltd may decide to end such marketing. The information presented on this page does not fully describe all the fund’s characteristics.
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