OP-India

Equity funds investing in fast-growing emerging markets serve the needs of investors seeking high returns. OP-India is thus a prime choice for a return-oriented investor believing in India's growth. While many elements are attractive, a person investing in OP-India also needs to be aware of the special characteristics and risks related to emerging markets. A rule of thumb is that the risk level in emerging markets is always higher than in advanced markets. The fund's value may vary significantly depending on the market situation and the fund's value performance may differ from that of other comparable funds. This fund is mainly recommended to an investor who intends to redeem his/her units after nine years at the earliest.

The portfolio outperformed due to the underweight in the materials sector, and on the back of stock selection in consumer discretionary and financials. Conversely the underweight in utilities was the biggest detractor. At a stock level the overweights in Maruti Suzuki and Shriram Transport were key contributors. Reports of strong local passenger vehicle June sales buoyed the former. The latter extended the pilot on cross-selling products with its proposed merger partner, Shriram City Union Finance. Other positives included the underweights in Bajaj Finance and in metals (Hindalco, Vedanta, and Tata Steel).

On the negative side, the underweight in the Adani Group once again was a detractor, along with overweights in Kotak Mahindra Bank, IndusInd Bank, and Godrej Properties. It was also negative to be underweight Mahindra & Mahindra (a conglomerate classified under consumer discretionary). The company has several different business lines with negative implications for the efficient allocation of capital. We will continue to monitor progress made in the restructuring plans. We exited certain names in the industrials and energy sectors in order to fund better opportunities elsewhere, such as an increased position in an attractively valued pharmaceutical stock which also offers some defensive qualities in the current uncertain environment.

OP-India (Fund) is an equity fund which mainly invests its assets in the Indian equity market.

Its investments are mainly made in local currencies, which is why the Fund involves a major currency risk.

The Fund mainly invests directly in equities. In its investment operations, the Fund may use derivative instruments in order to hedge against the risk of adverse market and currency movements, to replace direct investments and to promote otherwise effective portfolio management.

The Fund's equity market exposure may vary between 75% and 105% of the Fund’s value. The equity weighting typically varies between 90% and 100%.

The Fund invests broadly across various companies. The Fund typically invests in equities of about 30–50 companies but this number may vary depending on the investment manager’s view.

The Fund’s benchmark index is MSCI India 10/40 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.

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 >

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