Alternative investments include, for example, real estate, such as properties, infrastructure, forest and agricultural land, unlisted equities, direct lending and various hedge fund strategies. Alternative investments enhance the portfolio’s diversification and decrease fluctuations in its value. In a period of low returns, funds like OP-Alternative Portfolio offer investors new sources of return.
OP-Alternative Portfolio offers investors the opportunity to invest in asset classes which have been traditionally available only to institutional investors.
- Alternative investments are of particular interest at the moment. Above all, investors seek alternatives to the traditional equity and fixed-income markets. The success of OP-Alternative Portfolio, which was launched in the autumn for private customers, among others, indicates that our customers are interested in expected returns that are higher than interest rates and volatility that is lower than offered by equities. The fund affords these, explains Tuomas Virtala, OP Corporate Bank’s Head of Asset Management for Corporate and Institutional Customers.
OP Financial Group’s portfolio managers have built extensive and long-term networks with international funds and other market participants. Investments are selected through a systematic investment process, and decisions on selections are made after close and careful consideration. Only such international funds that are best in terms of expected return, risk exposure and diversification and that also fulfil our criteria for responsible investment are selected for the fund.
- OP-Alternative Portfolio’s remarkably increased subscriptions enable the acquisition of new and interesting investments. Along with the new subscriptions, we have continued to build the fund portfolio by focusing on investing especially in infrastructure, unlisted equities and lending globally and in real estate in Europe, elaborates Portfolio Manager Petri Venäläinen.