Below is the chart of historical OPR rate over the years.
In general, a reduction in interest rate will have a positive impact to bond price (and therefore, the bond funds as well), and vice-versa. OPR and bond price are having an inverse relationship to each other.
This is because most of the bonds are paying fixed interest rate. When the general financial interest rates fall, the bond's fixed interest rate will become more attractive to investors; when the general financial interest rates rise, the bond's fixed interest rate will, in turn, become less attractive.
The Opus Income Plus Fund (IPF) has been performing pretty well recently (refer to the chart below). The reduction in OPR is expected to further boost up its performance.
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