OP-Climate

OP-Climate is an equity fund which invests its assets broadly in the global stock market. Investments may be made in both developed and emerging equity markets, but the investments are typically somewhat tilted towards Europe and the United States.

In the Fund’s investment activities, the principles of sustainable development are taken into account with a particular emphasis on environmental issues. The fund’s assets are primarily invested in sectors where climate change and preparation for it are expected to have the largest positive impact. The fund’s portfolio companies are typically businesswise positioned for combating global warming, and their business is related to for example energy efficiency and technology, recycling, water and waste management and related infrastructure.

The fund's investments are primarily made through direct equity investments. The fund may use derivatives instruments in its investment activities to hedge against market fluctuations, to replace direct investments and to otherwise promote efficient portfolio management.

The fund’s assets are diversified in the shares of many companies. Typically the fund invests its assets in the shares of about 50-80 companies, but this number may vary reflecting the views taken by the portfolio manager.

The Fund’s equity exposure may vary so that a minimum of 75% and a maximum of 100% of the Fund’s NAV is invested in the equity markets. Typically the equity weight ranges between 90–100 %.

The Fund's benchmark is the MSCI World Climate Paris Aligned 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.

OP-Climate is an equity fund which invests its assets broadly in the global stock market. It may invest both in developed and emerging equity markets with the typical focus on Europe and the USA.

The Fund’s goal is to make sustainable investments. The Fund mainly invests its assets in sectors which have positive impact on climate change mitigation and adaptation The Fund typically invests in companies commercially well-positioned to fight global warming and whose business has to do with, for example, energy efficiency and technology, recycling, water and waste management and the related infrastructure. Investee companies are screened using OP Asset Management’s analysis model, which is based on an external service provider’s SDG and sustainability data. Companies whose business promotes one or more UN Sustainable Development Goals (SDG) without harming other sustainable factors or goals are considered sustainable 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 exclusion rules, the Fund does not invest in companies whose principal business is in unconventional oil and gas extraction or other fossil fuels (50% of revenue or more).

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.

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.

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:

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