LHV Pensionifond S
Suitable if
- you have 2–5 years left until retirement age,
- you have low risk tolerance,
- your aim is the preservation and modest growth of your pension savings.
A responsible keeper in S
- We invest the assets of the S fund mainly in bonds. The fund’s assets may also be invested in bonds with a credit rating below investment grade.
- Up to 25% of the fund’s assets may be invested in real estate, items of infrastructure, equity funds and convertible bonds.
- The fund can also be used to grant loans. The fund’s preferred long-term asset class is listed debt instruments.
Romet Enok
Fund Manager at LHV
„Money in seriously large amounts moves in the world in the form of bonds. In truth, a bond is nothing more than a fancy name for a loan contract: parties agree on the time when the money is disbursed, the interest rate, and the repayment.“
Biggest investments
The data is presented as at 31.03.2024
Biggest investments | |
---|---|
Riigi Kinnisvara 1.61% 09/06/27 | 8.59% |
German Treasury Bill 16/10/2024 | 6.29% |
Luminor 7.75% 08/06/2027 | 5.76% |
ZKB Gold ETF | 5.68% |
France Treasury Bill 30/10/2024 | 5.58% |
German Treasury Bill 19/06/24 | 4.95% |
ALTUMG 1.3% 07/03/25 | 4.68% |
Glencore 1.25% 01/03/2033 | 3.72% |
KBC Group NV 0.625% 07/12/2031 | 3.58% |
German Treasury Bill 1% 15/08/2024 | 3.55% |
Biggest investments in Estonia
Biggest investments in Estonia | |
---|---|
Riigi Kinnisvara 1.61% 09/06/27 | 8.59% |
Luminor 7.75% 08/06/2027 | 5.76% |
Coop Pank 5.0% 10/03/2032 | 2.99% |
Asset Classes
Information about the fund
Information about the fund | |
---|---|
Volume of the fund (as of 30.04.2024) | 28,287,637.03 € |
Management company | LHV Varahaldus |
Equity in the fund | 90,000 units |
Rate of the depository’s charge | 0.0451% (paid by LHV) |
Depository | AS SEB Pank |
Entry fee: 0%
Exit fee: 0%
Management fee: 0,6120%
Success fee: no commission
Ongoing charges (inc management fee): 0,68%
Ongoing charges are based on expenses for the last calendar year, ie 2023. Ongoing charges may vary from year to year.
Terms and Conditions
Prospectus
March 2024: Gold made a noticeable contribution to the fund’s performance
Kristo Oidermaa and Romet Enok, Fund Managers
March was a very strong month on the gold market, where the price of this precious metal rose by more than 8% in euros. We acquired gold for the fund in January 2022. A little more than two years later, the price of gold has risen by 20%, significantly contributing to the fund’s performance.
Although the main asset class of the fund is high-rated euro bonds, we are constantly looking for attractive opportunities elsewhere, including in the first quarter of this year. At a time when the European bond market as a whole remained in the red, the fund benefitted from investments such as gold and the rising bonds of both Luminor Bank and the Finnish residential real estate company Kojamo.
February 2024: The fund’s portfolio has defied the fall in bond markets
Kristo Oidermaa and Romet Enok, Fund Manager
All major segments of European bond markets remained in the red in February. Both corporate and government securities fell by around 1% on average, while our portfolio securities showed a slight increase. The situation is the same in the summary of the first two months of the year: the markets were slightly more than 1% in the red, and our fund was marginally positive.
Interestingly, low-risk securities – such as Luminor Bank international bonds and the Finnish rental apartment business Kojamo – have contributed most to our performance. In addition, physical gold, the portfolio’s main non-bond market investment, has performed strongly. The rise in gold prices has continued and even accelerated after the end of the month.
January 2024: Reducing the risk associated with long-term bonds
Kristo Oidermaa and Romet Enok, Fund Manager
We sold one of the fund’s largest investments: our long-term Estonian government bonds, acquired at the government bond auction of October 2022. Over the 15 months that followed, these bonds appreciated by just over 5% and generated an equivalent amount in interest. The total yield of slightly over 10% that these bonds brought to the fund clearly surpasses the yield offered by most other bonds during the same period.
The price of long-term bonds has surged in recent months. In this situation, we once again prefer to decrease risks and opt to increase the share of short-term bonds.
European bond markets saw a slight downturn in January, while our fund saw marginally positive results.
In a complex environment, it pays to spread risks
Andres Viisemann, Head of LHV Pension Funds
Stock prices continued to rise in March. The S&P 500 index, which tracks the value of large US companies, rose 3.1%, and its European equivalent, the Stoxx50 index, rose 4.3%. Markets expect both the US and European central banks to cut interest rates this year – the only question is when and by how much.