OP ranks among the top wealth management services providers in Finland. Wealth Management responds to the saving and investing needs of private and corporate clients with a client-driven approach and offers the best digital wealth management services and a unique Private Banking experience.
OP provides private clients with an extensive range of savings and investment services. The range of mutual funds covers funds that invest in various asset classes and market areas. Responsibility for the portfolio management of these funds rests partly with OP Financial Group's own investment organisation and partly with its international partners. The product range of life policies consists of pension policies, endowment and unit-linked policies and pure risk policies.
For institutional and corporate clients, OP provides not only discretionary investment management and advisory investment management but also modern risk reporting, portfolio analyses and liquidity management solutions for corporate customers. The service range for institutional investors includes an opportunity to invest in alternative investments alongside OP’s pension and insurance companies.
OP boasts Finland's largest Private Banking network which provides both private individuals and corporate and institutional clients with contractual, personalised and comprehensive investment management services. Private Banking service involves the range of products and services offered by OP and external partners. The service models include discretionary investment management and advisory investment management.
Moreover, an extensive range of securities brokerage, custody and analysis services is available to private, corporate and institutional clients. OP's award-winning equity analyst team tracks over 80 listed Finnish companies, prepares forecasts and recommendations on a company- and sector-specific basis and produces diverse analysis reports on macroeconomics, stock markets and industries.
Read more about Wealth Management products and services at op.fi.
As a services provider owned by its customers, OP promotes the success and prosperity of its customers. In 2017, we extended our product range and improved our services in various ways.
Enhancing our savings and investment services, we adopted an entirely new operating model and tools for investment sales. We also carried out an extensive reform of our saver and investor customers' agreements leading to savings and investments service packages with a transparent structure and clear pricing. The EU-wide MiFID II regulation in force from the beginning of 2018 that improves investor protection was behind making the new agreements. OP has prepared for the changes caused by this regulation through changes in its services and contract terms.
Our passive investment offering was also expanded. We lowered all our index fund management fees to 0.39% and launched the new OP-World Index Fund. Through our set of index fund products, our customers have the opportunity to make cost-efficient investments in various global markets.
We also launched the new OP Public Services Real Estate Fund (non-UCITS) in parallel with the existing OP-Rental Yield. The story behind OP Public Services Real Estate is based on the provision of services vital to society and needed by Finnish citizens in the course of their lives. The fund spreads its investments widely across real estate utilised in education, social services, physical culture and sports, and healthcare services provided by society.
In equity brokerage, in April we adopted Smart Order Routing (SOR) enabling the use of alternative trading facilities for equity orders beside traditional stock exchanges. SOR gives investors the opportunity to always seek the best possible liquidity and price for their equity trades.
Read more about the SOR-service.
Strongly involved as an arranger of initial public offerings of Finnish companies, OP was the only party to take part in all IPOs on the Nasdaq Helsinki main list this year: Kamux, Silmäasema, Rovio and Terveystalo. In Finland, 2017 marks the best IPO year of the millennium so far in terms of euros, as the total value of IPOs attained some 1.7 billion euros.
Morningstar selected OP-Finland Small Cap Fund as the best equity fund in Finland. The selection was based on a comparison of return and risk over the past five calendar years. OP-Finland Small Cap invests in the equities of small and medium-sized enterprises (usually with a market capitalisation below 1.5 billion euros) operating in Finland.
OP aims to talk about investing and asset management with customers in an understandable way and to lower threshold for investment. In 2017, we increased the number of our customer webinars dealing with various types of investments in plain Finnish.
OP aims to lead the way in sustainable investment in the sector on a global basis. OP's responsible investment involves the consideration of environmental, social and governance (ESG) issues in investment decision-making, compliance with international standards, active ownership and engagement, negative screening and positive thematic investment.
OP Wealth Management's investment operations comply with the UN Principles for Responsible Investment. We expect our investment vehicles to conform with international standards such as the Global Compact and the OECD Guidelines for Multinational Enterprises. In keeping up with international standards, we make use of an independent partner (GES Investment Service) which produces continuous analyses of the fulfilment of international standards by investment vehicles, for use by investors. The partner checks all of OP's asset management and fund management companies' investments twice a year for violations. Screening includes direct and active equity and corporate bond investments and all OP funds making the abovementioned investments, but excludes, for example, index-linked products and mutual funds managed by external portfolio managers.
During 2017, we made more ESG information of funds available to our customers. Published quarterly, our fund-specific ESG reports include information about each fund's carbon footprint, its portfolio companies' ESG ratings and positive environmental impacts. We also began attending AGMs of investee companies outside of Finland in 2017. Going forward, OP funds will attend a considerable number of investee company AGMs abroad. To help us in this, we use a service provider which produces AGM analyses to us and is in charge of delivering our voting guidelines to the AGMs.
Read more in the RI Transparency Report.
OP Property Management is also committed to the principles of responsible investment and observes responsible investment principles in its real estate asset management. It manages property investments of the real estate funds it administers and direct property investments made by its customers. In the maintenance of its directly owned properties and in its new investments, the company places an emphasis on energy efficiency, lower consumption and waste management. When it comes to indirect property investments, the company is active in exercising influence on the underlying funds’ and investee companies’ boards of directors and investment committees so that sustainability issues are taken into consideration.
OP Property Management is developing sustainable activities in the real estate sector on an ongoing basis. The company has signed a national energy efficiency agreement and is involved in developing CSR reporting in the real estate sector. Moreover, the company has created its own environmental programme aimed at continuing to reduce environmental impacts caused by operations.
Read more in OP Property Management's environmental report.