Varho

OP-Alternative Portfolio special common fund

Alternative investments with a single package

Alternative investments increasingly popular with investors

Traditionally, equity and fixed income investments have enjoyed the greatest popularity with investors. Now, a third asset class with growing popularity among investors has risen alongside them: alternative investments. Alternative investments refer to markets outside conventional listed companies and fixed income markets, including real estate, infrastructure, agriculture, forestry and unlisted companies.

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. Moreover, low interest rates in recent years have helped make alternative investments more appealing to investors.

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.

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

OP-Alternative Portfolio offers attractive investment products for long-term investors. The fund invests in assets such as real estate, infrastructure projects, farmland and forest estates, and private equity. Through these asset classes, the investor’s portfolio gains access to investments that provide stable returns and increase in value. These include: 

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

OP-Alternative Portfolio invests diversely in all alternative asset classes through carefully selected, international funds. The fund’s largest asset classes include real estate, infrastructure and private equity. In normal market conditions, the fund aims to provide high returns that are independent of traditional asset classes, at a moderate level of risk.

How to buy the fund

The fund is open to subscriptions four times during the year, and the minimum subscription is 1,000 euros. The next subscription date is 30 June 2021.

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.

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.

The fund’s performance based fee is 20.00% of any income above the reference return (3-month Euribor + 5%). The fee is calculated quarterly, based on the returns of the previous twelve (12) months.

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

OP-Alternative Portfolio is a special common fund that invests in alternative asset classes. The fund’s investments include real property such as real estate, infrastructure, forest estates and farmland. The fund also invests in equities in the form of private equity and venture capital funds, as well as in alternative fixed income investments such as secured and unsecured corporate loans and various hedge fund strategies.

In normal market conditions, the fund’s investment 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; the fund’s investments may be quoted in various currencies, and the fund may decide to hedge some or all of the currency risk. The aim is to keep the fund’s outstanding loans at 0% and 50% of the fund’s value on average. 

The fund is a special common fund as referred to in the Act on Common Funds, since it may invest in investment vehicles not allowed for mutual funds.

The fund has no official benchmark index.

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 Venäläinen, Riku Karkkulainen, Tero Pesonen
Benchmark index
No benchmark index
Start date
27.08.2020
ISIN
FI4000439971
fund serie
Accumulation unit
Fund size
198 Meur
Serie value (31.12.)
103,83 EUR
Monthly review
Download
Rules
Download
Brochure
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Accumulated profit (31.12)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-Alternative Portfolio A - +4,33 % - - - -
Benchmark - - - - - -

Yearly performance

2016 2017 2018 2019 2020 YTD
OP-Alternative Portfolio A - - - - 0,00 % 0,00 %
Benchmark - - - - - -

Key figures

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

Income unit generating annual cash flow, suitable for foundations

Accumulation unit suitable for institutional investors

 

OP Fund Management Company Ltd manages OP mutual funds.