OP-Public Services Real Estate Fund

Steady return from Finnish public services real estate

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.

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.

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.

Buy fund units

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. Annual dividend has been paid as follows: €0.43 (2019), €1.66 (2020), €2,03 (2021), €3.14 (2022), 2,67 e (2023).

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.

Now you can invest in real property even with a small amount - OP-Public Services Real Estate Fund has no minimum subscription.

OP-Public Services Real Estate Income unit

Buying and selling units in real asset funds Buy order, sell order

Special common funds OP-Rental Yield, OP-Public Services Real Estate and OP-Forest Owner

You can make buy and sell orders anytime, but buy orders will be executed four times a year and sell orders twice a year.

Buying

When you place a buy order, it will be executed on the last day of the same quarter at that day’s value. Buy orders will be executed on 31 March, 30 June, 30 September and 31 December.

Example: if you place a buy order by 16.00 on 31 March, it will be executed on 31 March.

Buy order	Execution date
1 January–31 March	31 March
1 April–30 June	30 June
1 July–30 September	30 September
1 October–31 December	31 December

Selling

When you place a sell order, it will be executed on the last day of the next six-month period at that day’s value. Sell orders will be executed on 30 June and 31 December.

Example: if you place a sell order by 16.00 on 30 June, it will be executed on 31 December.

If the order execution date is not a weekday, the order will be executed on the previous 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. Valuation may take longer if the fund’s assets need to be realised to pay for redemptions.

Sell order	Execution date
1 January–30 June	31 December
1 July–31 December	30 June

Online fees and charges

Subscription fee	Annual management fee	Redemption fee
1,5 %	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.

Portfolio manager's review

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

Investment policy

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 providers. The fund invests its assets in targets in areas for which long-term demand is expected.

The fund employs financial leverage, as is customary in property investment. In the base case, leverage is 30 per cent on top of the net value and it can no more than 50 per cent in a normal situation.

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.

Responsibility of the fund

OP-Public Services Real Estate Fund is a non-UCITS fund which invests its assets in the service infrastructure of social education, physical culture and sports, social welfare, and health care services, comprising care services, child daycare, education, multipurpose arenas, and service and hotel living. The Fund also acts as builder of the above-mentioned service infrastructure. The Fund promotes environmental and social characteristics and, to ensure it, uses environmental, social and governance (ESG) analysis and excludes certain investments. The Fund mainly invests directly in commercial property and securities entitling to such property, in shares in limited partnerships engaged in property investment, and in shares in housing cooperatives and real estate companies.

The Fund favours low-carbon options and energy-efficient solutions. The Fund strives for construction in existing urban structures to the extent possible. Possibilities for reserving and converting an old building are examined carefully.

This financial product promotes environmental or social characteristics, but sustainable investment is not its objective. To the extent that the Fund makes sustainable investments, those investments aligned with the EU Taxonomy which have set climate change mitigation as their environmental goals are considered sustainable investments. Climate change mitigation is promoted by investing in the options that meet the requirements of the EU Taxonomy.

Insofar as the Fund makes sustainable investments with climate change mitigation as the environmental goal, it is assessed in line with the EU Taxonomy that the investment does not cause significant harm to other goals following the EU Taxonomy.

The sustainability indicators monitored include the average energy class, the share of renewable energy in the energy required by properties, the production of renewable energy in properties, the amount of wood construction and conversion properties, and the number of beds in early childhood education and nursing facilities.

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: 358 Meur
Serie value (30.09.): 110,79 EUR
Monthly review: Download
Key Information Document: Download
Rules: Download
Sustainability data: Download

Accumulated profit (30.09)

	1mth	3mth	6mth	1 y	3 y p.a.	5 y p.a.
OP-Public Services Real Estate B	-	+0,76 %	+0,61 %	−1,17 %	+2,65 %	+3,12 %
Benchmark	-	-	-	-	-	-

Yearly performance

	2019	2020	2021	2022	2023	YTD
OP-Public Services Real Estate B	+7,74 %	+2,70 %	+6,33 %	+5,08 %	+0,18 %	+0,69 %
Benchmark	-	-	-	-	-	-

Key figures

	Volatility 12 m	vola 12m	Sharpe 12 m	Duration
OP-Public Services Real Estate B	3,88 %	-	-
Benchmark index	-	-	-

Portfolio manager

The portfolio manager of the funds is OP Property Management. We manage several real estate funds investing in residential and commercial properties, plots and forest land.

More about OP Real Estate Asset Management Ltd

Owner-customers’ saving and investing benefits

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 Capital Redemption Contract 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:

Check the status of your owner-customer membership or become an owner-customer

*Standard fees are charged for the following special common funds: OP-Public Services Real Estate, OP-Forest Owner, OP-Rental Yield, OP-Alternative Portfolio and OP-Private Equity.

**OP bonuses are automatically used to pay the bank’s service charges and insurance premiums. No OP bonuses are accrued from the R2 Crystal special common fund or institutional classes of funds. The following investment products linked to insurance assets do not accrue OP bonuses: JPM Russia A, JPM Emerging Europe Equity Fund, and BlackRock GF Emerging Europe Fund A. OP bonuses are accrued from unit-linked insurance policies, excluding Individual Unit-linked Insurance and Individual Capital Redemption Contracts.

The fund's other unit classes

Income unit generating annual cash flow, suitable for foundations

OP-Forest Owner

By investing in OP-Forest Owner you can enjoy the potential of forest with a smaller amount than in regular direct forest purchase and, furthermore, experienced professionals take care of all forest management solutions for you.

OP-Alternative Portfolio

OP-Alternative Portfolio invests in various alternative investment products, such as real estate, infrastructure projects, farmland and forest estates, and private equity.

OP-Rental Yield

The residential property fund owns rental apartments and commercial premises in Finland. Fund also rents out the apartments and commercial premises in its portfolio, and is engaged in construction contracting.

Other real asset investment funds

Through our special common funds investing in real assets, you can invest in real estate and forest easily and conveniently without a large initial capital outlay. Learn more!

This is an advertisement. The funds are managed by OP Fund Management Company Ltd. The portfolio manager is the portfolio management company specified in the fund prospectus for OP funds. Investments always involve risks. The value of investments can rise and fall, and the investor may lose part of or all the invested funds. Past performance is no guarantee of potential future yield. The larger the fund’s expenses, the greater the impact on the expected return on the investment. Any yield also depends on taxation, which in turn varies depending on the investor’s personal circumstances and is subject to future changes. If the fund is marketed outside Finland, OP Fund Management Company Ltd may decide to end such marketing. The information presented on this page does not fully describe all the fund’s characteristics.

Before making an investment decision, take all the characteristics or objectives of the fund into consideration, as described in the fund prospectus for OP funds and other documents related to the fund. Only make your final investment decision after reading the fund prospectus for OP funds and the key investor information document and rules of the fund. These documents can be found on the web page of the respective fund. The fund prospectus and the summary of investors’ rights in mutual funds are available at op.fi in Finnish, Swedish and English.