OP-Forest Owner II B Fund

A Finnish forest fund. Professional forest management in a convenient package.
1

The easiest way to own Finnish forest

OP-Forest Owner provides a cost-effective and easy professional ownership of Finnish forest.

2

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.

3

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.

Subscription fee Annual management fee Redemption fee
4,00 % 1,20 % 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. OP-Forest Owner Fund II b series minimum subscription amount is 1,000,000 euros. This amount generates no OP bonuses.

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

The objective of the fund is to make sustainable investments and achieve measurable positive impacts on climate change, biodiversity and human well-being. The fund increases the carbon sequestration and biodiversity of forests and expands the recreational use of forests.  Because growth of the fund’s forests exceeds timber extraction, they serve as carbon sinks.

Growth is improved by means of effective and timely forest management. Growth is also improved, for example, by fertilising forests with wood ash that has no negative impacts on biodiversity. The forest also creates new carbon sinks by reforesting waste land. Bogs are restored using discretion in order to improve biodiversity and water protection.

All of the fund’s forests are PEFC certified, and some are also FSC certified. The forest certificates ensure sustainable forest management and the preservation of biodiversity. FSC certification also requires that 5% of a forest covered by the certificate is voluntarily excluded from any commercial use.

The fund participates in climate action more broadly by leasing forest estates to wind farms. The fund offers its forests for recreational use with expanded freedom to roam by, for example, leasing hunting rights to local hunting societies and by enabling opportunities for the construction of hiking routes on land owned by the fund.

The fund reports annually on the following factors: number of carbon sinks, number of certified forests, number of forests excluded from commercial use, number of leases for hunting rights, number of leases for wind farms.

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.

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
28.06.2019
ISIN
FI4000387477
fund serie
Fund size
449 Meur
Serie value (30.12.)
165,25 EUR
Monthly review
Download
Key Information Document
Download
Rules
Download
Sustainability data
Download

Accumulated profit (30.12)

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP-Forest Owner B - +9,29 % +11,29 % - - -
Benchmark - - - - - -

Yearly performance

2018 2019 2020 2021 2022 YTD
OP-Forest Owner B - +5,55 % +4,86 % +10,52 % +16,22 % 0,00 %
Benchmark - - - - - -

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP-Forest Owner B - - -
Benchmark index - - -

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 nearly all of our funds without costs and earn OP bonuses by investing in mutual funds.*
  • Benefits from equity trading: 
    • A 1% brokerage fee cap on Finnish and Swedish shares and securities – shares, warrants and ETFs.
    • Brokerage fee 0.05–0.17, i.e. the more you trade, the lower your trading costs. The benefits mentioned above are available on OP-mobile, OP Business mobile and at op.fi (in Finnish for personal customers).
  • 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.**

*No OP bonuses will accrue from the R2 Crystal Fund nor from institutional series of funds.

OP bonuses

In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from

  • loans
  • funds in accounts
  • 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 Duo cards

OP bonuses are used for the bank’s service charges and insurance premiums.

**The following investment products linked to the insurance assets do not bring OP bonuses from 1 April 2022: OP-Venäjä A, JPM Russia A, JPM Emerging Europe Equity Fund and BlackRock GF Emerging Europe Fund A.

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.