Rahapuutarha is not a traditional fund but a limited liability company. As a company Rahapuutarha has much more freedom in utilizing strategies not commonly available in funds marketed for non professional investors. Investing into Rahapuutarha requires you to purchase its shares just like you would if you would invest into an ETF through the stock exchange. The owners of the company will have voting rights on its operation and thus investing is only open for approved investors.
You can contact CEO Otto Pekander or any of the board members directly. Currently we approve only investors we know. After being approved, you will be opened account to Rahapuutarha website and you will be able to transfer funds for stock purchase.
Yes, as an approved investor you are able to also open an account for your children. One of the primary reasons for the fund was to enable advanced investment possibilities also for small savings of children.
Rahapuutarha owns a vast amount of its own shares. Every 23th of the month, approved investors are able to purchase stocks from Rahapuutarha. The stock price is calculated by dividing the net asset value by the number of outstanding shares. Thus the new owners won’t dilute the value of existing owners.
If an investor wants to sell their shares, Rahapuutarha has a share buyback program on every 24th of the month. So during this day investors are able to sell their shares to Rahapuutarha. The stock price is calculated by dividing the net asset value by the number of outstanding shares. Also Finnish taxation has a special transfer tax of 1.6% for privately owned companies which is automatically deducted together with a transaction fee of 0.4%.
Rahapuutarha does not have any management fees. There are some fixed operating costs from accounting, forest management, banking, etc. The cost ratio of the company was below 1% during the first operation year and is expected to go lower when the balance of the company is growing. Also there are non recurring costs during the process of purchasing a forest (taxes, traveling, bank fees, etc.), which are not counted to fixed operating costs but considered as one time costs related to that specific investment.