OP-Forest Owner FundA Finnish forest fund. Professional forest management in a convenient package.
The easiest way to own Finnish forest
OP-Forest Owner provides a cost-effective and easy professional ownership of Finnish forest.
Steady return from forest
The forest fund's steady return comes from growth of trees and the value change of tree resources. As its primary earnings generating method, the fund sells timber from the forest estates it owns.
Great fund for moderate investors for investment diversification
OP-Forest Owner Fund provides a low-risk investment option for asset diversification with return expectations lower than in bond markets and with lower risk than in equity markets.
Choose forest fund to invest in real trees
Instead of securities, the portfolio of OP-Forest Owner includes real forest. A tree grows even when the economy does not. By investing in the forest fund, you will become an owner of a large forest estate portfolio benefitting from the economies of scale of a large-scale investor.
OP-Forest Owner offers cost-effective and professional forest management in an easy and convenient form. You can enjoy the potential of forest with a smaller investment amount than in regular direct forest purchase and, furthermore, experienced professionals take care of all forest management. The forest fund distributes at least 75% of its annual net earnings to its unitholders.
Annual dividend has been paid as follows: €1.82 (2016), €3.28 (2017), €1.92 (2018), €2.60 (2019), €2.29 (2020).
Steady return from growing trees
The steady return offered by OP-Forest Owner comes from growth of trees and the value change of tree resources. As its primary earnings generating method, the forest fund sells timber from the forest estates it owns. The fund also aims to achieve earnings by developing, parcelling out or zoning the forest estates it owns or by utilising the soil or any leisure-time values.
Why to invest in the forest fund?
OP-Forest Owner is an excellent alternative to diversify assets outside conventional asset classes such as stocks and fixed-income investments.
- Enables a steady return at low risk that is not dependent on stock markets.
- Does not require previous experience in investing in forests.
The forest fund is ideal for a long-term investor who wishes to diversify some of their investments into Finnish forest but who is not willing to spend time on forest management and timber sales. It is also easy to invest previous timber sale proceeds back in forest through the forest fund. We recommend OP-Forest Owner Fund primarily to investors who intend to redeem their units after six years at the earliest.
How to buy a mutual fund
Now you can invest in forest even with a small amount - OP-Forest Owner Fund has no minimum subscription.
OP-Forest Owner will be closed for subscriptions from 1 Oct to 31 Dec 2020. On 1 January 2021, subscribing for units will be possible again. The next subscriptions will be confirmed on 31 March 2021.
|Subscription fee||Annual management fee||Redemption fee|
|4,00 %||1,50 %||1,00 %|
In the case the investment period remains under 6 years, at the moment of redemption we will charge a 3% fee and, for investments held under 3 years, a 5% fee. Subscription and redemption fees are refunded to the fund. The fund's value is calculated four times a year. The fund generates OP bonuses.
OP-Forest Owner Fund is a non-UCITS fund with target of increasing its value in the long term by investing the funds directly into Finnish forest estate. The Fund may also invest in forest estates in the European Economic Area. It may also make
indirect investments into forest estates. The Fund aims to make most of its earnings from the sale of timber growing on its forest estates. The Fund may also try to achieve earnings by developing, parcelling out or zoning the forest estates it owns or by utilising the soil or any leisure-time values. The Fund may also invest in fixed-income securities for the purpose of cash management and temporary asset investments.
The Fund may invest its assets in derivative contracts and OTC derivatives in order to hedge against the risk of adverse market movements, to replace direct investments and to otherwise promote effective portfolio management.
The Fund may invest in fixed income securities either directly or through mutual funds or special common funds, or by making deposits with credit institutions.
All costs arising from maintaining, owning and trading buildings and expert services used in property trading, which may have a substantial effect on the Fund’s return, will be paid using the Fund’s assets.
As a non-UCITS fund, the Fund may deviate from the provisions of the Act on Common Funds with respect to investment assets, their diversification, the Fund’s NAV calculation, the Fund’s opening hours and borrowing.
Corporate responsibilities of the OP-Forest Owner Fund:
- The forest property we manage served as a carbon sink in 2019. A forest can serve as a carbon sink when the losses caused by logging do not eclipse annual growth. Our wood resources grew and became more effective as carbon sinks, as their annual growth was greater than the losses caused by logging.
- Whenever we conduct new logging activities, we cultivate the area with the appropriate tree species, and we tend to our sapling stands in the manner required by the standards of good forestry management. From the perspective of carbon sink activities, correctly timed logging and management operations are crucial for the growth of tree stands.
- The responsibility of our forestry management activities is also evident in the certificates that have been awarded to our forests. All of our forests have been issued with a PEFC certificate and around 40% with the FSC certificate. FSC certification requires, for example, that 5% of a forest covered by the certificate is voluntarily excluded from any commercial use. Around 1600 hectares of forest included in the OP-Forest Owner Fund are protected.
Renewable energy production
- Increasing the forms of renewable energy production is a vitally important factor for society. The OP-Forest Owner Fund is part of several wind power projects, and, in 2019, four project were initiated for the construction of wind farms on the lands owned by the Fund, and new sites are constantly being surveyed.
- The OP-Forest Owner Fund is also a responsible social actor. Hunting remains an important recreational activity in sparsely populated areas that helps foster communal bonding. We want to do our part in supporting these efforts, and we have signed hunting lease agreements with various hunting associations so that they can hunt in the forests owned by the Fund. In 2019, a total of 112 new agreements were signed.
- Fund manager
- OP Real Estate Asset Management Ltd
- Benchmark index
- No benchmark index
- Start date
- fund serie
- Income unit
- Fund size
- 286 Meur
- Serie value (30.09.)
- 131,77 EUR
- Monthly review
Accumulated profit (30.09)
|1mth||3mth||6mth||1 y||3 y p.a.||5 y p.a.|
|OP-Forest Owner B||-||+2,80 %||+3,64 %||+8,63 %||-||-|
|OP-Forest Owner B||+6,83 %||+4,16 %||+5,61 %||+7,44 %||+3,85 %||0,00 %|
|Volatility 12 m||vola 12m||Sharpe 12 m||Duration|
|OP-Forest Owner B||6,76 %||1,36||-|
Owner-customer benefits as of 1 January 2021
- Book-entry account and custody €0: Custody of Finnish and foreign shares and ETFs without monthly charges.
- Buy and sell fund units €0: Buy, sell and switch funds without costs and earn OP bonuses by investing in mutual funds.*
- Discount on share trading: Brokerage fee 0.17% (at least €7), maximum trading fee for Finnish shares and ETF products 1% until August 2021.
- New benefit: Equity analyses €0: Free equity and market analysis.
- Benefits of saving through insurance
- Take out an insurance policy, switch between investment instruments and transfer funds free of charge. Earn OP bonuses from unit-linked insurance assets.
In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from
- funds in accounts
- purchases you have paid with the OP-Visa credit
- insurance premiums for home, family and motor vehicle policies.
From 1 November 2020, OP bonuses will accrue from:
- home loans, secured bank loans, student loans
- savings and investment accounts
- mutual fund units and unit-linked insurance
- non-life insurance bills
The change on 1 November 2020 means that no OP bonuses will accrue from:
- deposits in current accounts
- unsecured consumer loans (Flexible Consumer Credit, Special Consumer Credit, One-off Credit and Overdraft Facility)
- OP hire purchase
- Purchases paid using OP Visa as a credit card, the balance of credit with interest of OP-Visa and OP-Mastercard cards
OP bonuses are used for the bank’s service charges and insurance premiums.
OP Fund Management Company Ltd manages OP mutual funds.