OP-Alternative Portfolio special common fund

Alternative investments with a single package

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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

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

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.

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 real asset 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.

Selling units in a real asset 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.

Investment policy

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.

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: 547 Meur
Serie value (30.12.): 112,80 EUR
Monthly review: Download
Key Information Document: Download
Rules: Download

Accumulated profit (30.12)

	1mth	3mth	6mth	1 y	3 y p.a.	5 y p.a.
OP-Alternative Portfolio A	-	−0,85 %	−0,18 %	+2,19 %	-	-
Benchmark	-	-	-	-	-	-

Yearly performance

	2018	2019	2020	2021	2022	YTD
OP-Alternative Portfolio A	-	-	+3,83 %	+6,31 %	+2,19 %	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!

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 and OP-Alternative Portfolio special common funds.