OP-Forest Owner Fund

A 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.

Buy fund units

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: €1.82/1,6% (2016), €3.28/2,8% (2017), €1.92/1,6% (2018), €2.60/2,1% (2019), €2.29/1,77% (2020), €2.61/1,97% (2021), 2,19 e/1,53% (2022), €2,62/1,6 % (2023).

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.

Fund subscriptions and redemptions are confirmed four times a year: on 31 March, 30 June, 30 September and 31 December.

The fund’s rules will change as of 1 July in such a way that redemption orders will be confirmed twice a year in June and December.

OP-Forest Owner Income unit

Online fees and charges

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.

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.

Portfolio manager's review

Read the portfolio manager's review on the fund's Finnish pages.

Investment policy

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.

Responsibility of the fund

The Fund aims to make only sustainable investments. OP-Forest Owner is a special common fund that invests in forests and targets long-term capital appreciation, by investing sustainably and in compliance with the Fund’s rules. Forest investments and forestry companies are considered sustainable if they enable either directly or through business operations the increase of the carbon sink and promote biodiversity and recreational use of forests in the long term (10 years).

With sustainable investment, it is possible to achieve positive impacts on climate change, biodiversity and human wellbeing. The forest that is invested in acts as a carbon sink, binding greenhouse gas emissions from the atmosphere. The wood raw material sourced from forests replaces fossil products, which in turn reduces the use of fossil raw materials that cause greenhouse gas emissions. In a sustainable investment, in the long term, the tree stand grows quicker than the felling of forests, which increases the forest carbon sink. A sustainable investment promotes the construction of fossil-free electricity production, and forests are leased for wind and solar power generation. When forests are felled, preserving biodiversity is taken into account.

In a sustainable investment, forestry operations are restricted in valuable habitats, endangered species are taken into account, water conservation is ensured, and structural features promoting biodiversity in forests are increased. In a sustainable investment, forest areas are excluded from commercial use and forest conservation areas are established. Operations comply with current legislation, PEFC and FSC certification systems, and the Fund’s own sustainability procedures.

n a sustainable investment, it is ensured that others are allowed to access the forest. The public right of access is promoted, and it is ensured that trails and structures can be created in forests as agreed.

The quantity of carbon sinks, the number of certified forest areas, the number of forest areas outside the scope of commercial use, and the number of wind farm lease agreements are used as sustainability indicators.

More details Basic data, performance and fact figures

Basic data

Fund manager: OP Real Estate Asset Management Ltd
Benchmark index: No benchmark index
Start date: 08.12.2014
ISIN: FI4000108436
fund serie: Income unit
Fund size: 459 Meur
Serie value (31.03.): 164,36 EUR
Monthly review: Download
Key Information Document: Download
Rules: Download
Sustainability data: Download

Accumulated profit (31.03)

	1mth	3mth	6mth	1 y	3 y p.a.	5 y p.a.
OP-Forest Owner B	-	+2,15 %	+11,56 %	+15,84 %	+10,82 %	-
Benchmark	-	-	-	-	-	-

Yearly performance

	2018	2019	2020	2021	2022	YTD
OP-Forest Owner B	+5,61 %	+7,44 %	+4,55 %	+10,19 %	+15,89 %	+2,15 %
Benchmark	-	-	-	-	-	-

Key figures

	Volatility 12 m	vola 12m	Sharpe 12 m	Duration
OP-Forest Owner B	11,89 %	-	-
Benchmark index	-	-	-

Portfolio manager

The portfolio manager of the funds is OP Property Management. We manage several real estate funds investing in residential and commercial properties, plots and forest land.

More about OP Real Estate Asset Management Ltd

Owner-customers’ saving and investing benefits

As our owner-customer, saving and investing is especially worthwhile thanks to the excellent benefits you receive.

Your benefits when investing in funds or through insurance:

Buy and sell almost all OP mutual funds with no fees.*
You earn 0.325% OP bonuses from mutual fund and insurance assets.**
Begin saving through insurance free of charge.
Switch between investments, invest additional funds and change your payment and investment plan for OP Unit-linked Insurance and OP Savings Agreement free of charge in our digital services.

Your benefits in equity and ETF investing:

Open an equity savings account or book-entry account free of charge.
You get a discount on equity trading and a 1% fee ceiling when trading in Finnish listed companies through a book-entry account The discounts apply in digital services.
Get access to free stock picks and analysis.
Get a discount on the service packages for savers and investors:
Equity savings account:
Saver: €0/month (normally €2.99/month)
Investor: €9.99/month (normally €14.99/month)
Book-entry account:
Saver: €0/month (normally €2.99/month)
Investor: €0/month (normally €5.39/month)

Other benefits:

Only owner-customers can invest in Profit Shares.

Remember to make use of all benefits:

Check the status of your owner-customer membership or become an owner-customer

*Standard fees 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.

**OP bonuses are automatically used to pay the bank’s service charges and insurance premiums. No OP bonuses are accrued from the R2 Crystal special common fund or institutional classes of funds. The following investment products linked to insurance assets do not accrue OP bonuses: JPM Russia A, JPM Emerging Europe Equity Fund, and BlackRock GF Emerging Europe Fund A. OP bonuses are accrued from unit-linked insurance policies, excluding Individual Unit-linked Insurance and Individual Capital Redemption Contracts.

The fund's other unit classes

Income unit generating annual cash flow, suitable for foundations

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-Alternative Portfolio

OP-Alternative Portfolio invests in various alternative investment products, such as real estate, infrastructure projects, farmland and forest estates, and private equity.

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.

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, OP-Alternative Portfolio and OP-Private Equity special common funds.