OP-Emerging Markets Equity Fund

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Asian technology giants. Growth companies in Africa and Latin America. While emerging markets offer plenty of opportunities for returns, they may seem unpredictable and hard to approach for the ordinary investor. The OP-Emerging Markets Equity fund is an effortless choice for investors who want to benefit from growth expectations in emerging economies but prefer to leave the task of tracking markets to experienced professionals.

Beating the market is never easy, but it may be more likely in emerging markets that, in addition to creating success stories, suffer from inefficiencies. Our experienced portfolio managers seek out undervalued companies in emerging economies. Investment decisions are made using large amounts of data and advanced analysis methods that help assess how companies perform.

The fund takes sustainability factors into consideration. Industries that are harmful to the environment and society, such as thermal coal, gas, and controversial weapons, are excluded from investments. We also pay attention to the governance of target companies. This means that we regularly screen the fund's investments to ensure compliance with good governance, such as international norms related to anti-corruption and remuneration practices.

Why invest in the OP-Emerging Markets Equity fund

The fund invests in the most interesting companies in the emerging markets
Emerging markets offer an attractive addition to a professionally diversified portfolio
The fund is managed by an experienced portfolio management team

OP-Emerging Markets Equity

morningstar™

Online fees and charges

Subscription fee	Annual management fee	Redemption fee
0,75 %	1,60 %	0,75 %

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

More information on the fund

OP-Emerging Market Equity invests in emerging market stocks in Asia, Latin America ,Eastern Europe and Africa.

Equity funds investing in emerging markets are designed for investors seeking high returns from strongly growing markets.. Countering the promising prospects, an investor needs to note that stock prices are typically much more volatile in the emerging markets than in the Western markets and that operating environments may be subject to various political risks. Investments are also exposed to exchange rate risks. The wide diversification around the world offered by OP-Emerging Market Equity helps avoid uncertainties related to individual markets and the fund's value movements remain more moderate compared to funds focusing on a specific market.

Suitable for return-seeking long-term investors and for those making monthly investments, the fund is also a great element in one's equity or balanced portfolio. This fund is mainly recommended to an investor who intends to redeem his/her units after seven years at the earliest.

Investment policy

OP-Emerging Markets Equity (Fund) is an equity fund which has the objective of achieving long-term capital appreciation by investing assets in emerging equity markets on a global basis. The Fund invests its assets in equity funds, equity and ETF products, equity-index derivatives and direct equity investments in emerging markets. The Fund seeks to outperform its benchmark index by utilising three sources of added value in the Fund's investment process. Allocation decision-making: the Fund implements tactical views of asset allocation by overweighting or underweighting countries, regions or themes in a manner that leads a return above the benchmark index over time.

Portfolio manager selection: we aim to find the best portfolio manager to represent each tactical view in the Fund while spreading the so-called portfolio manager risk by managing the fund portfolio's parts through various investment processes independent of each other.

Equity selection of investee funds: the aim is that each underlying investee fund selected for the Fund's portfolio can add value in relation to its own benchmark index.

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's benchmark index is MSCI Emerging Markets Total Return 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.

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 exclusion rules, the Fund does not invest in companies whose principal business is in unconventional oil and gas extraction.

Use of ESG data in the investment analysis: ESG factors are considered in the investment process with the help of data by an external ESG service provider and the ESG tool developed internally by OP Asset Management. Considering ESG factors in the investment process means, for example, that the risks and opportunities related to the environment, society and governance are made transparent using selected indicators from each area.

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.

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 >

Supplementary sustainability data

Portfolio manager's review

More details Basic data, performance and fact figures

Basic data

Fund manager: Tero Halme, Juha Asikainen
Benchmark index: MSCI Emerging Markets Total Return Net
Start date: 17.11.2009
ISIN: FI4000006028
fund serie: Accumulation unit
Fund size: 234 Meur
Serie value (14.03.): 170,75 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-Emerging Markets Equity A	−4,18 %	−2,56 %	+2,69 %	+3,82 %	+5,08 %	+5,57 %
Benchmark	−3,66 %	−2,02 %	+6,11 %	+9,46 %	+5,06 %	+7,63 %

Yearly performance

	2020	2021	2022	2023	2024	YTD
OP-Emerging Markets Equity A	+0,79 %	+4,24 %	−15,45 %	+11,15 %	+11,51 %	−0,86 %
Benchmark	+8,54 %	+4,86 %	−14,85 %	+6,11 %	+14,68 %	−0,52 %

Key figures

	Volatility 12 m	vola 12m	Sharpe 12 m	Duration
OP-Emerging Markets Equity A	14,14 %	-	-
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.