OP-Private Equity special common fund

If the investment is held for 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 monthly, and those personal customers who are also our owner-customers earn OP bonuses on the fund units. The minimum initial subscription to the fund is 10,000 euros.

Buy orders to the fund are executed monthly on the final day of the month. Sell orders are executed four times a year at the value on the last day of the quarter.

If that day is not a weekday, the order is be executed on the previous weekday. After this, the fund is valued. Valuation generally takes 45 days, after which you can view your executed buy and sell transactions in your portfolio.

Buying the fund

When you place a buy order, it will be executed on the last weekday of the same month at that day’s value. For example, if you place a buy order by 16.00 on 31 March, it will be executed on 31 March.

Selling the fund

When you place a sell order, it will be executed on the last weekday of the quarter after the next. For example, if you place a sell order by 16.00 on 31 March, it will be executed on 30 September.

OP Asset Management has built an extensive network of contacts through our previous investments in alternative asset classes.. New fund ideas are gathered from our network of contacts with the aid of previous experiences.

We select investments that meet our quality criteria in terms of investment activities, operations, and sustainable and responsible investing practices.

Each new investment undergoes a thorough analysis. In the analysis phase, we evaluate the investment’s suitability for the fund, with particular attention on liquidity and ESG analysis. We also use third-party experts to assist with the analysis.

Our investment decisions seek to maximise the fund’s overall return on investment while taking into account the risk profile, diversification and liquidity terms of the underlying funds.

We monitor our investments through continuous reporting and regular meetings.

OP-Private Equity aims to achieve a high return in the long term relative to the risks taken by the fund by investing assets in compliance with the fund’s rules. The fund has no official benchmark index.

It is a special common fund within the meaning of the Finnish Act on Alternative Investment Funds Managers, which means that it is not bound by the rules applicable to normal mutual funds in respect of its investment activities, borrowing and time limits for orders, for example.

The fund mainly invests its assets in the equity of unlisted companies by using other funds specialising in this asset class. The funds chosen for the portfolio are mainly open-end funds in which additional investments can be made and which allow the redemption of assets on certain conditions. Investments can also be made directly in unlisted companies within the boundaries set by the fund’s rules. It is typical of these investment vehicles that they lack a liquid secondary market, so the investments are illiquid in nature. The fund invests some of its assets in liquid fixed income instruments, but the amount of cash in the portfolio is minimised.

The fund’s long-term objective is to outperform the return of listed stocks. The investment universe is global. In principle, currency hedging is not performed. Debt financing may be temporarily used in the management of the fund’s cash flows. Similarly to normal portfolio management policies, the fund may rely primarily on standardised derivatives to manage its equity, interest rate and currency risks. The investments included in this fund do not integrate the EU’s criteria for environmentally sustainable economic activities. However, the fund does integrate sustainability risks using the methods specified in the fund prospectus. The fund uses an absolute Value at Risk (VaR) analysis to monitor total risk. The fund’s VaR may not exceed 20 per cent of the fund’s value. More information on VaR calculation can be found in OP Fund Management Company’s fund prospectus.

Investment income is reinvested in the fund.

Recommendation: this fund does not necessarily suit investors who intend to redeem fund units within five years.

OP Asset Management reviews active external asset managers’ responsible investment practices before making an investment decision and monitors them regularly after investment. 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 level of the external asset managers’ responsible investment. 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.

You can read the responsibility analysis of the fund in the monthly fund review.

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 0.35% 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: