LHV logo

LHV Pensionifond Eesti 100

In 2018, the Republic of Estonia will celebrate its 100th anniversary. In order to acknowledge this important milestone, we are planning to supplement our selection of pension funds with a new 2nd pillar pension fund investing only into Estonia – LHV Pensionifond Eesti 100

Why do we create a new fund?

There are plenty of options on the domestic market for the successful allocation of pension assets
In 2017, LHV’s investment team made investment decisions directed towards Estonia in the amount of 170 million euros on the account of actively managed pension funds. Most of the investments were made into OTC bonds in the case of which LHV was the sole investor. Finding investment opportunities in such volume assured us that there are plenty of options on the domestic market for the successful allocation of pension assets to start a pension fund investing only into Estonia whenever possible.

Positive experience of other countries
While a pension fund investing exclusively domestically is something completely new in Estonia, they are common in our neighbouring region. For example, in Sweden there are dozens of funds investing 100% on the domestic market.

Developing the domestic market
On a global scale, Estonia is a small country with a gradually growing economy. To ensure the successful functioning of the fund, LHV as the management company of the pension fund, will be active on the market to ensure the creation of new investment instruments.

We believe that pension assets must be involved in the economy of the state where people are going to spend their retirement later.

Confidence is contagious
The larger the part of the pension assets finding its way to the Estonian economy, the better our economy will perform. Pension fund investing into the domestic economy is also the first indicator of trust for foreign investors. LHV Varahaldus is investing 1.5 million euros into the units of LHV Pensionifond Eesti 100. According to LHV’s assessment, if all the appropriate circumstances align, domestic pension funds could invest up to 2 billion euros into Estonia in the course of 5 years.

Who may be interested in Eesti 100?

To all, whose pension fund is currently not investing into Estonia

We do not recommend investing all of your pension assets into this fund. One of the principles of investing is the diversification of risks. We believe that the pension savings portfolio should be varied. Given the sufficient length of the savings period, it makes sense to keep the pension assets in funds with different strategies and approaches.

To the informed and courageous saver

LHV Eesti 100 invests up to three fourths of their assets to stock markets, as it is a fund with a regional investment strategy, the assets of which are extensively invested into a single country – Estonia. It is advisable to diversify your investments between different regions, which is why we advise you to invest a part of your pension savings in the LHV Eesti 100 fund.

LHV Pensionifond Eesti 100 can rather be classified among alternative pension funds, starting its operation in the category of aggressive funds. This gives the fund manager more freedom, as there are fewer limits on the investments.

I want to receive information about the new fund

The prerequisite for establishing the fund is approval from the Financial Supervision Authority. This is not an investment recommendation or any other investment service, or an ancillary investment service. Before making any investment decision, take the time to thoroughly assess the relevance and suitability of your investment and get acquainted with the terms and conditions of the service or the prospectus and consult with specialists. The performance of the Estonian economy or other events or circumstances that affect the results of issuers having ties to Estonia may have a significant impact on the investment outcomes. The manager of LHV’s pension funds is AS LHV Varahaldus.

* The Principles of Processing Customer Data