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).
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.
You can subscribe for and redeem mutual fund units four times a year. The next subscription date is 31 December 2020.
|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.
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.
Corporate responsibilities of OP-Rental Yield:
- During construction, the Fund has its own supervisor at each construction site, and we collaborate actively to minimise our environmental impact. For example, we require that a waste management plan is drafted before a project is initiated, and that waste amount data is submitted after each project has ended.
- The construction and maintenance of real estate units has a significant effect on employment in Finland. OP-Rental Yield’s employment effect in 2019 was 1090 person-years in total.
- OP-Rental Yield is currently constructing a wooden block of flats in Tampere. In addition, the Fund has constructed wooden blocks of flats in Turku and Helsinki. We use wood construction and careful material choices to reduce our carbon footprint and promote the quality of indoor air.
- Our goal is to maintain the condition of our buildings and thus prolong their lifespan.
- Eight OP-Rental Yield buildings have been issued a LEED or BREEAM environmental certificate.
Energy efficiency and investments
- Energy efficiency and the use of renewable energy are among our most important goals. As part of every project, we evaluate the potential of including renewable energy production in a building, and we will implement this plan if the prerequisites are met. OP-Rental Yield is currently planning to implement its first geothermal heat project for a residential building.
- The energy consumption of our real estate units is constantly monitored by an energy manager.
- The central locations of our buildings along key public transport lines, cycling lanes and pedestrian walkways provide our residents with plenty of options when it comes to mobility.
- Several of our buildings feature electric car charging points or at least the option for installing charging points. Some of our buildings are also equipped with car sharing facilities.
- We want to encourage the occupants of our real estate units to become more environmentally conscious by providing them with good recycling options and by encouraging them to monitor their water and electricity use. We will install water-saving taps in our new buildings, and we have tested the use of faucet aerators in two of our residential buildings. We monitor the amount of waste that our buildings generate, and our goal is to increase our recycling rate.
- We will participate in Motiva’s national Energy Awareness Week campaign in October and encourage the occupants of our real estate units to engage in sustainable consumption practices as well as to cycle to work.
- In customer satisfaction surveys, the total satisfaction of our residents as well as their satisfaction with their residential buildings and services are at the highest level in KTI’s reference data. Our residents are also very likely to recommend their lessor to the people they know. Our satisfied tenants and well-honed rental system ensure that the utilisation rate of our facilities remains high.
- The Fund paid a total of 13.4 million euros in taxes in 2019.
- Fund manager
- OP Real Estate Asset Management Ltd
- Benchmark index
- No benchmark index
- Start date
- fund serie
- Income unit
- Fund size
- 1508 Meur
- Serie value (30.09.)
- 128,75 EUR
- Monthly review
Accumulated profit (30.09)
|1mth||3mth||6mth||1 y||3 y p.a.||5 y p.a.|
|OP-Rental Yield B||-||+1,54 %||+1,23 %||+2,76 %||+4,37 %||+4,26 %|
|OP-Rental Yield B||+7,22 %||+3,92 %||+4,18 %||+5,97 %||+4,36 %||+1,51 %|
|Volatility 12 m||vola 12m||Sharpe 12 m||Duration|
|OP-Rental Yield B||2,94 %||1,12||-|
- As an owner-customer you can sell, buy and trade nearly all our mutual funds (savers’ funds, socially responsible funds, and equity and bond funds) without fees.
- As an owner-customer, you can also invest in funds by saving through insurance. OP Unit-linked Insurance and OP Savings Agreement are insurance savings products intended for owner-customers that offer an effortless and flexible means for long-term saving. Switching between investment instruments and transferring funds to insurance savings is free of charge.
- Owner-customers have automatic access to the second fee level on the stock brokerage fee list, in which the brokerage fee is 0.17% (min. 7 euros), while the fee at the first fee level is 0.2% (min. 9 euros).
In addition to OP bonuses earned through saving and investment, owner-customer earn bonuses from
- funds in accounts
- purchases you have paid with the OP-Visa credit
- 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-Mastercard cards
OP bonuses are used for the bank’s service charges and insurance premiums.
OP Fund Management Company Ltd manages OP mutual funds.