OP-Low-carbon World Fund

While fossil fuels will not be phased out tomorrow, companies that base their business on them take great risks as emissions reduction targets become more common. OP-Low-carbon World is an equity fund that seeks a 50% lower carbon footprint from investments compared to conventional globally investing equity funds. The fund is especially suited for return-oriented investors who want to reduce their portfolio's dependence on non-renewable energy sources.

The fund's investment decisions are made by OP Asset Management's experienced portfolio management team based on extensive company-specific analyses. The fund's investment universe is extremely wide and encompasses companies of different sizes and sectors from all over the world. However, the fund excludes companies with large greenhouse gas emissions in proportion to revenue when compared to other companies in the same sector. This way, your portfolio will include an effectively diversified group of companies that stand to benefit from legislation or market mechanisms that promote low-carbon business.

OP-Low-carbon World does not invest in companies that derive revenue from fossil fuels. Industries that are harmful to the environment and society, such as controversial weapons and tobacco, are also excluded from the fund. We also look at how the target companies are governed. We regularly screen the fund's investments to ensure compliance with international norms related to taxation and anti-corruption, for example.

Why invest in the OP-Low-carbon World fund

Easy way to build your portfolio around companies that are not dependent on fossil fuels
Global diversification in companies of different sizes and sectors provides balance to your portfolio
Benefit from OP Asset Management’s extensive data resources and the expertise of an experienced portfolio management team

OP-Low-carbon World

morningstar™

Online fees and charges

Subscription fee	Annual management fee	Redemption fee
0,00 %	1,80 %	0,75 %

Fund units generate OP bonuses.

More information on the fund*

*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.

Investment policy

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.

Responsibility of the fund

The Fund promotes environmental and social characteristics and, to ensure it, uses environmental, social and governance (ESG) analysis and excludes certain investments.

Exclusion: The Fund excludes from its active direct investments controversial weapon manufacturers, mining companies producing thermal coal, power companies using thermal coal, tobacco companies, and companies that have breached international standards and where engagement has been unsuccessful. The list of exclusions is public. In addition to general negative screening rules, the Fund does not invest in fossil energy production or use.

Use of ESG data in the investment analysis: the Fund uses the best-in-class method based on the carbon intensity of investee companies. The Fund invests in companies with a lower carbon intensity than peer companies in the same sector.

Violations of international standards: The Fund is screened regularly for non-compliances with international standards. In the event that a non-compliance is detected, an influencing process is begun with the company in question. The aim is to make non-compliant companies change their practices and begin to comply with international standards in their operations. If influencing proves fruitless, the company may be removed from the Fund portfolio and placed on the exclusion list.

Minimum share of sustainable investments: In accordance with the minimum amount stated below, the Fund allocates investments into companies whose business promotes one or more UN Sustainable Development Goals (SDG) without harming other sustainability factors or objectives. Sustainable investments are determined using OP Asset Management’s analysis model which is based on an external service provider’s SDG and sustainability data.

Shareholders’ meetings: The Fund votes in shareholders’ meetings through a service provider in line with OP Fund Management Company Ltd’s shareholder engagement principles that take responsibility aspects into account.

Methods for assessing good governance practices: Analysing the target company’s governance is an important part of the investment process. To us, good governance is a key foundation for any company’s financial success, regardless of sector. When assessing governance, some of the areas considered include the appropriateness of the target company’s administrative organisation, the target company’s actions in relation to its personnel, and the target company’s rewarding and taxation practices. In assessing good governance, we use an external service provider’s analysis and our own qualitative analysis if no external data is available. We screen the funds regularly to check them against the criteria of good governance. Minimum limits apply for these criteria.

Sustainability-related disclosures

Portfolio manager's review

More details Basic data, performance and fact figures

Basic data

Fund manager: Jukka Ukkonen ja Kristiina Vares-Wartiovaara
Benchmark index: MSCI Acwi Low Carbon Leaders Net USD
Start date: 22.04.2015
ISIN: FI4000148226
fund serie: Accumulation unit
Fund size: 134 Meur
Serie value (17.03.): 178,10 EUR
Monthly review: Download
Key Information Document: Download
Rules: Download
Sustainability data: Download

Accumulated profit (14.03)

	1mth	3mth	6mth	1 y	3 y p.a.	5 y p.a.
OP-Low-carbon World A	−8,75 %	−8,39 %	−0,02 %	+1,41 %	+7,81 %	+13,37 %
Benchmark	−8,63 %	−6,86 %	+3,49 %	+10,11 %	+10,40 %	+15,37 %

Yearly performance

	2020	2021	2022	2023	2024	YTD
OP-Low-carbon World A	+1,80 %	+29,43 %	−13,07 %	+20,07 %	+16,16 %	−6,84 %
Benchmark	+6,86 %	+27,71 %	−13,00 %	+17,62 %	+25,74 %	−4,95 %

Key figures

	Volatility 12 m	vola 12m	Sharpe 12 m	Duration
OP-Low-carbon World A	12,48 %	-	-
Benchmark index	-	-	-

Owner-customers’ saving and investing benefits

As our owner-customer, saving and investing is especially worthwhile thanks to the excellent benefits you receive.

Your benefits when investing in funds:

Buy and sell almost all OP mutual funds with no fees.*
You earn 0.35% OP bonuses from mutual fund and insurance assets.**

Your benefits when investing through insurance:

Begin saving through insurance free of charge.
You will earn 0.35% of OP bonuses from funds linked to insurance assets.***
Switch between investments, invest additional funds and change your payment and investment plan for OP Unit-linked Insurance and OP Capital Redemption Contract free of charge in our digital services.

**OP bonuses are used to pay the bank’s service charges and insurance premiums.

***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.

Your benefits in equity and ETF investing:

Open an equity savings account or book-entry account free of charge.
You get a discount on equity trading and a 1% fee ceiling when trading in Finnish listed companies through a book-entry account The discounts apply in digital services.
Get access to free stock picks and analysis.
Get a discount on the service packages for savers and investors:
Equity savings account:
Saver: €0/month (normally €2.99/month)
Investor: €9.99/month (normally €14.99/month)
Book-entry account:
Saver: €0/month (normally €2.99/month)
Investor: €0/month (normally €5.39/month)

Other benefits:

Only owner-customers can invest in Profit Shares.

Remember to make use of all benefits:

Check the status of your owner-customer membership or become an owner-customer

*Standard fees are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity.

The fund's other unit classes

Income unit generating annual cash flow, suitable for foundations

The fund’s unit class III A with a minimum subscription of 1 000,000 euros

The fund’s unit class IV A with a minimum subscription of 10,000,000 euros

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.

Before making an investment decision, take all the characteristics or objectives of the fund into consideration, as described in the fund prospectus for OP funds and other documents related to the fund. Only make your final investment decision after reading the fund prospectus for OP funds and the key investor information document and rules of the fund. These documents can be found on the web page of the respective fund. The fund prospectus and the summary of investors’ rights in mutual funds are available at op.fi in Finnish, Swedish and English.