OP-Alternative Portfolio special common fund

Alternative investments with a single package

Buy the fund

Alternative investments increasingly popular with investors

The OP-Alternative Portfolio special common fund offers attractive alternative investments for long-term investors. The fund invests in assets such as private equity, real estate, infrastructure projects, farmland and forest estates and hegde-fund. Through these asset classes, the investor's portfolio gains access to investments that provide stable returns and grow in value. OP-Alternative Portfolio invests diversely in all alternative asset classes through carefully selected, international funds. These include:

commercial and residential properties
solar power plants and optical fibre networks
wineries and farmland

For years, institutional investors have increased the share of alternative investments in their portfolios. Right now, alternative investments constitute the largest asset class in the portfolios of major investors. The reason for their popularity is an attractive expected return on investment and the fact that their returns do not always follow the trends of traditional asset classes.

Alternative investments offer a competitive alternative to traditional markets in terms of expected return on investment. They are a good addition to any portfolio when seeking returns with a moderate risk level. Combining traditional and alternative investment reduces fluctuations in the portfolio’s total value.In normal market conditions, the fund aims to provide high returns that are independent of traditional asset classes, at a moderate level of risk.

OP-Alternative Portfolio – a single fund for all alternative asset classes

How to buy the fund

Fund subscriptions and redemptions are confirmed four times a year: on 31 March, 30 June, 30 September and 31 December. The minimum subscription is 1,000 euros.

Investments are made in funds that are illiquid and therefore have a long investment horizon. For this reason, OP-Alternative Portfolio is suitable for investors who plan to hold their investment in the fund for at least five years.

OP-Alternative Portfolio

ESG

Buying and selling units in real asset funds

The fund’s buy and sell orders are executed four times a year on the last weekday of each quarter.

In other words, you can place buy and sell orders anytime but they will be executed on 31 March, 30 June, 30 September and 31 December If that day is not a weekday, they will be executed on the preceding weekday. After this, the fund is valued. Valuation generally takes 20 days, after which you can view your executed buy and sell transactions in your portfolio*.

Buying units in a fund

When you place a buy order, it will be executed on the last weekday of the same quarter at that day’s value. For example, if you place a buy order by 4 pm on 31 March, it will be executed on 31 March.

Buy order	Execution date
1 January–31 March	31 March
1 April–30 June	30 June
1 July–30 September	30 September
1 October–31 December	31 December

Selling units in a fund

When you place a sell order, it will be executed on the last weekday of the following quarter. For example, if you place a sell order by 4 pm on 31 March, it will be executed on 30 June.

*Valuation may take longer if the fund’s assets need to be realised to pay for redemptions. Valuation of OP-Alternative Portfolio takes 45 days.

Sell order	Execution date
1 January–31 March	30 June
1 April–30 June	30 September
1 July–30 September	31 December
1 October–31 December	31 March

Online fees and charges

Subscription fee	Annual management fee	Redemption fee
1,0 %	0,9 %	1,0 %

If the investment is held less than four years, the redemption fee is 3%. For investments held less than two years, the redemption fee is 5%. Subscription and redemption fees are refunded to the fund. The fund's value is calculated four times a year, and the fund units generate OP bonuses for those private customers who are also our owner-customers. The minimum subscription is 1,000 euros.

A performance-based management fee may also be charged from the Fund as follows: the Fund Management Company may receive no more than twenty (20) per cent of the amount with which the Fund exceeds the Reference return (= JPM Cash Index Euro Currency 3 Months -index + 5 %) during the Fund’s financial year.

Portfolio manager's review

The portfolio manager's review is available on the fund's Finnish pages.

Investment policy

OP-Alternative Portfolio is a fund the objective of which is to achieve a high yield in the long term relative to the risks taken by the Fund, by investing assets in compliance with the Fund’s rules. The Fund has no official benchmark index. It is an AIF fund within
the meaning of the Finnish Act on Alternative Investment Funds Managers, which means that it is not bound by the rules applicable to normal mutual funds in respect of, for example, its investment activities, borrowing and time limits for orders.

The Fund invests its assets mainly in alternative investments. These include, for example, real property, such as real estate, infrastructure, forest and agricultural land as well as private equity investments, such as unlisted equities and secured and unsecured loans to companies. It is typical of these investment vehicles that they lack a liquid secondary market, and so the investments are illiquid in nature. In addition, the Fund may invest in other alternative investment vehicles that most often are also liquid, such as hedge funds.
The Fund’s investments are mainly made through other mutual funds, but it may also invest directly in alternative investment vehicles in so far as the Fund’s rules allow. Additionally, the Fund invests some of its assets in liquid fixed-income investments. In normal market conditions, the Fund’s target is to provide high returns that are independent of traditional asset classes, at a moderate level of risk.The Fund’s investments are chosen so as to incorporate as wide a range of different alternative investment strategies as possible. The investment universe is global, and the
Fund may decide to hedge some or all of the currency risk. The Fund’s investment portfolio may be partially funded through borrowing. Similarly to normal portfolio management policies, the Fund may rely primarily on standardised derivatives to manage
its equity, interest rate and currency risks.

Responsible investing

OP Asset Management actively reviews the external asset managers’ responsible investment practices prior to making any investment decisions, and monitors them thereafter on a regular basis. The review takes into account responsible investment policy and statements and issues related to the resources and courses of conduct in responsible investing, as well as exclusionary screening, owner engagement and reporting. Based on the review, we assess the quality of the external asset managers’ responsible investing. We have defined a set of minimum criteria for active new external asset managers. The principles and practices described above also apply to alternative investment funds managed by external asset managers.

More details Basic data, performance and fact figures

Basic data

Fund manager: Petri Lehtola, Riku Karkkulainen
Benchmark index: No benchmark index
Start date: 27.08.2020
ISIN: FI4000439971
fund serie: Accumulation unit
Fund size: 599 Meur
Serie value (29.12.): 114,86 EUR
Monthly review: Download
Key Information Document: Download
Rules: Download

Accumulated profit (29.12)

	1mth	3mth	6mth	1 y	3 y p.a.	5 y p.a.
OP-Alternative Portfolio A	-	−0,10 %	+1,24 %	+1,83 %	+3,42 %	-
Benchmark	-	-	-	-	-	-

Yearly performance

	2019	2020	2021	2022	2023	YTD
OP-Alternative Portfolio A	-	+3,83 %	+6,31 %	+2,19 %	+1,83 %	0,00 %
Benchmark	-	-	-	-	-	-

Key figures

	Volatility 12 m	vola 12m	Sharpe 12 m	Duration
OP-Alternative Portfolio A	-	-	-
Benchmark index	-	-	-

The fund's other unit classes

Income unit generating annual cash flow, suitable for foundations

Accumulation unit suitable for institutional investors

Income unit suitable for institutional investors

OP-Public Services Real Estate Fund

The fund spreads its investments widely across real estate utilised in education, social services, physical culture, sports and healthcare services provided by society. Such real estate can host, for example, nursing homes, day-care centres, schools, multipurpose arenas or sheltered accommodations.

OP-Rental Yield

The residential property fund owns rental apartments and commercial premises in Finland. Fund also rents out the apartments and commercial premises in its portfolio, and is engaged in construction contracting.

OP-Forest Owner

By investing in OP-Forest Owner you can enjoy the potential of forest with a smaller amount than in regular direct forest purchase and, furthermore, experienced professionals take care of all forest management solutions for you.

Other real asset investment funds

Through our special common funds investing in real assets, you can invest in real estate and forest easily and conveniently without a large initial capital outlay. Learn more!

This is an advertisement. Remember that investment always involves risks. The value of investments can rise and fall, and an investor can lose part or all of the money they invest. OP funds are managed by OP Fund Management Company Ltd, with OP cooperative bank acting as its agent. Normal transaction costs 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 special common funds.