OP-Real Asset Companies

Real assets, or alternative asset classes, have emerged alongside stock and fixed income investments as part of a well-diversified investment portfolio. The OP-Real Asset Companies fund invests in real asset companies whose main business comprises owning and managing real assets. Such companies include property investment and infrastructure companies.

The fund is a sector fund that invests in the equity market, that is, it doesn’t own real property. Compared to other listed companies, real asset companies provide good dividend income, and their share prices fluctuate less than those of other companies.

The fund provides an easy way of investing in stock exchange listed property and infrastructure companies.

The OP-Real Asset Companies fund is an equity fund. It invests its assets mainly in Western European equity markets, in the stocks of companies that invest in real property, infrastructure and forest, or whose business otherwise involves these sectors. The fund mainly focuses its investments on rental apartments, commercial properties and logistics real estate.

The fund mainly invests directly in stocks. The fund may use derivative instruments to hedge against market movements, to replace direct investments and to otherwise promote effective portfolio management.

The fund's equity market exposure may vary between 75% and 100% of the fund’s value. It typically varies between 90% and 100%.

The fund diversifies its equity investments across various companies. The fund typically invests in equities of about 30–50 companies but this number may vary depending on the portfolio manager’s view.

The fund’s benchmark index was GPR General Quoted Europe TOP 75 until 17 January 2022. The OP-Real Asset Companies fund’s (formerly OP-Property) investment policy has changed significantly as of 18 January 2022.

The Fund promotes environmental and social characteristics and, to ensure it, uses environmental, social and governance (ESG) analysis and excludes certain investments. 

Exclusion: The Fund excludes from its active direct investments controversial weapon manufacturers, mining companies producing thermal coal, power companies using thermal coal, tobacco companies, and companies that have breached international standards and where engagement has been unsuccessful.  The list of exclusions is public. In addition to general exclusion rules, the Fund does not invest in companies whose principal business is in unconventional oil and gas extraction.

Use of ESG data in the investment analysis: ESG factors are considered in the investment process with the help of data by an external ESG service provider and the ESG tool developed internally by OP Asset Management. Considering ESG factors in the investment process means, for example, that the risks and opportunities related to the environment, society and governance are made transparent using selected indicators from each area.  

Violations of international standards: The Fund is screened regularly for non-compliances with international standards. In the event that a non-compliance is detected, an influencing process is begun with the company in question. The aim is to make non-compliant companies change their practices and begin to comply with international standards in their operations. If influencing proves fruitless, the company may be removed from the Fund portfolio and placed on the exclusion list.

Minimum share of sustainable investments: In accordance with the minimum amount stated below, the Fund allocates investments into companies whose business promotes one or more UN Sustainable Development Goals (SDG) without harming other sustainability factors or objectives. Sustainable investments are determined using OP Asset Management’s analysis model which is based on an external service provider’s SDG and sustainability data. 

Shareholders’ meetings: The Fund votes in shareholders’ meetings through a service provider in line with OP Fund Management Company Ltd’s shareholder engagement principles that take responsibility aspects into account.

Assessing good governance practices: Analysing the target company’s governance is an important part of the investment process. To us, good governance is a key foundation for any company’s financial success, regardless of sector. When assessing governance, some of the areas considered include the appropriateness of the target company’s administrative organisation, the target company’s actions in relation to its personnel, and the target company’s rewarding and taxation practices. In assessing good governance, we use an external service provider’s analysis and our own qualitative analysis if no external data is available. We screen the funds regularly to check them against the criteria of good governance. Minimum limits apply for these criteria.

• Sustainability-related disclosures >

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.

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