OP-Palvelukiinteistöt

OP-Public Services Real Estate Fund

Steady return from Finnish public services real estate
1

The easiest way to invest in Finnish real estates

OP-Public Services Real Estate Fund enables you to become involved in new and growing property investments: nursing homes, sheltered accommodations, hospitals and day-care centres.

2

Long-term leases secure steady rental income

Public services real estates generate steady rental income at low risk. The leases of the fund's property investments are often 10–15 years.

3

Great fund for moderate investors for investment diversification

OP-Public Services Real Estate 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.

Real estate fund invests in public services real estates vital to society

OP-Public Services Real Estate is a non-UCITS fund whose story is based on the provision of services needed by Finnish citizens in the course of their lives and also vital to society.

OP's real estate 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. The fund also acts as a developer in the Helsinki Metropolitan Area growth centres, university towns and provincial centres.

Long-term leases guarantee steady return

The main source of income of OP-Public Services Real Estate is rents. The leases are often 10–15 years.

The fund's total income consists of:

  • rental income from real estates
  • an increase in the market value of investments.

The fund invests directly in property and securities entitling to such property, in shares in limited partnerships engaged in property investment and in shares in housing companies and real estate companies.

OP-Public Services Real Estate also makes use of leverage to improve returns and diversification.

The real estate fund annually distributes at least 75% of its realised proceeds to its unitholders. The remaining share will remain in the fund to increase the funds value. The calculated long-term yield for the fund's net assets is approximately 4.5% after charges.

Choice for moderate investors

OP-Public Services Real Estate suits investors who

  • appreciate good and steady returns in the form of income units
  • appreciate return higher than in bond markets and lower risk than in stock markets
  • invest with a long-term horizon
  • search for alternative investment types and diversify their investments into real estate assets.

OP Public Services Real Estate Income unit
-

year

(3)

Risk level

morningstar™


OP Public Services Real Estate Fund

Online fees and charges

Subscription fee Annual management fee Redemption fee
2,0 % 1,9 % 1 %

If the investment is held under 4 years, at the moment of redemption we will charge a 3% fee and, for investments held under 2 years, a 5% fee. 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.

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

The fund invests its assets in the service infrastructure of education, social services, physical culture and sports, and health care services provided by society and comprising, for example, care services, child day care, education, multipurpose arenas and aided living. The fund also acts as builder of the above-mentioned service infrastructure. The scope of investment includes services needed within the human lifetime.

The fund acts as owner and lessor of the properties and principally does not take part in providing care services. Lessees are both private and public care providers.

The fund employs financial leverage, as is customary in property investment, in order to increase the expected return and diversification. In the base case, leverage is 30% and, in a normal situation, at most 50%. Debt capital is used conservatively and leverage is adjusted actively depending on the market situation and investment needs.

This fund is an income fund. It distributes at least 75% of its realised earnings to unitholders on an annual basis. The share of undistributed earnings remains in the fund, with a view to increasing the fund unit's value. The fund’s realised earnings mainly comprise rental income and possible profits from sales.

The fund's real estate investments are managed by OP Property Management and its liquidity management is ensured by OP Asset Management.

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
01.11.2017
ISIN
FI4000281738
fund serie
Income unit
Fund size
184 Meur
Serie value (28.06.)
101,99 EUR
Monthly review
Download
Rules
Download
Broschure
Download

Accumulated profit

1mth 3mth 6mth 1 y 3 y p.a. 5 y p.a.
OP Public Services Real Estate B - - - - - -
Benchmark - - - - - -

Yearly performance

2014 2015 2016 2017 2018 YTD
OP Public Services Real Estate B - - - 0,00 % +0,59 % +1,83 %
Benchmark - - - - - -

Key figures

Volatility 12 m vola 12m Sharpe 12 m Duration
OP Public Services Real Estate B - - -
Benchmark index - - -

Owner-customer benefits

  • As our owner-customer, you can buy, sell and switch almost all of our mutual funds with no charges.
  • OP Investment Partner is a service package designed for owner-customers who have assets available for investment. You will get a personal contact person and have access to comprehensive and real-time market information to support your investment decisions.
  • Owner-customers have automatic access to the second fee level on the brokerage fee list, in which the brokerage fee is 0.18% (min. 8 euros) while the fee at the first fee level is 0.2% (min. 8 euros).

OP bonuses

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

  • loans
  • funds in accounts
  • purchases you have paid with the OP-Visa credit
  • insurance premiums for home, family and motor vehicle policies.

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

OP Fund Management Company Ltd manages OP mutual funds.