OP-Rental YieldA fund that enables you to easily become a residential property investor
Easy residential property investment
Through the residential property fund, you can be a residential property investor without the trouble and large amount of initial capital that an owner-occupied apartment involves.
Steady return from a residential property fund
Rental apartments offer steady return based on rental income and are therefore less vulnerable to market movements.
Higher return potential and diversification benefits
Renting and construction contracting of apartments and office premises offer higher return potential than what a mere residential property investment offers.
A residential property fund enables you to invest in housing units and real property
OP-Rental Yield is a non-UCITS fund that enables you to diversify your investments in housing units, real property and their construction. The fund's investments focus on growth centres and attractive areas.
By investing in OP-Rental Yield, you will enjoy the benefits of residential property investment without the trouble caused by managing the property or tenancy.
The fund seeks stable and steady return. OP-Rental Yield primarily aims to earn a rental yield on apartments it owns. In addition, the fund may acquire business premises and earn additional income by leasing them.
Why it pays to invest in OP-Rental Yield?
- No previous experience in residential property investment is required.
- Enables a steady return that is not dependent on stock markets.
- Through the residential property fund, your investment is immediately diversified in hundreds of housing units and real property.
- An effortless and easy way to invest in residential property.
OP-Rental Yield is a fund for investors with a long-term approach
OP-Rental Yield suits investors with a long-term approach, who seeks a stable and steady return on their investments. The fund focuses its investments on residential property and real property markets. For this reason, the general value performance in property markets and the performance of rental income have a significant effect on seeking returns and the value of the returns.
The fund annually pays unitholders a dividend that equals 75% of the realised net profit. Annual dividend has been paid as follows: €1.23 (2014), €1.22 (2015), €1.53 (2016), €2.09 (2017), €2.56 (2018), €3.50 (2019), €3.03 (2020) €2.47 (2021), €3.89 (2022).
Considering that investing in residential property is a long-term investment, it therefore pays to engage oneself in the residential property fund for a longer time. OP-Rental Yield suits investors who intend to redeem their units after four years at the earliest. The fund is a splendid choice for those dreaming of residential property investment but not ready to spend a large amount of initial capital on purchasing a buy-to-let home.
How to buy a mutual fund
Now you can become a residential property investor even with a small amount – OP-Rental Yield 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.
|Subscription fee||Annual management fee||Redemption fee|
|2,00 %||1,90 %||1,00 %|
In case 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 4 times a year. The fund generates OP bonuses.
Fund’s available apartments
OP-Rental Yield fund’s portfolio is managed by OP Property Management. The fund’s available apartments are shown on the kodisto.fi/op page. For the properties shown, real estate funds managed by OP Property Management or OP's insurance and pension institutions act as lessors.
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.
Fund subscriptions and redemptions are confirmed four times a year: on 31 March, 30 June, 30 September and 31 December. Valuation of funds generally takes 20 days, after which you can view confirmed subscriptions and redemptions in your portfolio.
When you order a fund subscription, it will be confirmed by 16.00 on the final banking day of the quarter. The subscription will be executed at the unit value quoted on the last banking day of the quarter. For example, if you order a subscription on 1 April, it will be confirmed on 30 June.
If you order a fund redemption by 16.00 on the last banking day of a given quarter, the redemption will be confirmed at the unit value quoted on the last banking day of the following quarter. For example, if you order a redemption by 16.00 on 30 June, it will be confirmed on 30 September.
OP-Rental Yield fund mainly invests its assets in apartments, commercial premises and residential construction contracting. The fund is a AIF fund based on the Alternative Investment Fund Managers Directive.
The fund’s investments are mainly made in rental apartments which typically account for some half of the fund’s portfolio. In addition, the fund invests a maximum of a fifth of its gross assets in residential construction contracting. These investments are made either directly to OP-Rental Yield’s own construction contracting or indirectly in shares in limited partnerships engaged in building and renting homes. The fund also invests in commercial premises, such as business and office premises.
Developments in prices and rental income in the Finnish property market contribute considerably to the fund’s return and value. Fund investments typically focus on real property in growth poles and other regions considered the most attractive by the portfolio management.
The fund management company may, for the account of the fund and for the purpose of the fund’s investment operations and asset management, borrow an amount that accounts for a maximum of half (½) of the fund’s total assets. For a special
reason, the fund management company may borrow an amount accounting for a maximum of one-third (⅓) of the fund’s net assets for a temporary purpose. The fund may pledge its assets in security for its loans.
The fund promotes environmental and social sustainability by supporting sustainable urbanisation in the form of infill development and by favouring energy efficient solutions. The minimum requirement for energy efficiency is C. We always assess the potential for renewable energy and install production capacity if the criteria are met. In selecting investments, we place emphasis on locations that enable access to services on foot or by bicycle or public transport. The fund enables the construction of new, healthy homes and a high-quality alternative to home ownership. By supervising construction, we ensure the quality of construction and that the buildings are long-lived and safe for users.
The fund reports annually on the following factors: average energy category of new constructions, use of renewable energy in properties, number of homes built in the invested properties, accessibility, and conformance with environmental certificates with respect to public transport.
- Fund manager
- OP Real Estate Asset Management Ltd
- Benchmark index
- No benchmark index
- Start date
- fund serie
- Income unit
- Fund size
- 1522 Meur
- Serie value (30.12.)
- 131,68 EUR
- Monthly review
- Key Information Document
- Sustainability data
Accumulated profit (30.12)
|1mth||3mth||6mth||1 y||3 y p.a.||5 y p.a.|
|OP-Rental Yield B||-||−0,49 %||−0,28 %||+1,45 %||+2,92 %||+3,81 %|
|OP-Rental Yield B||+5,97 %||+4,36 %||+2,12 %||+5,22 %||+1,45 %||0,00 %|
|Volatility 12 m||vola 12m||Sharpe 12 m||Duration|
|OP-Rental Yield B||-||-||-|
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.
In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from
- 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.