II pillar

LHV Pensionifond Eesti
Active Management • Aggressive Strategy
10%
-10%
10%
10 year net yield
3
1
7
Risk level
66.32%
0%
100%
Invests into Estonia
143
Fund investors

Suitable if

  • you have more than 15 years left until retirement,
  • you want to link your pension with the Estonian economy,
  • you also have investments in other regions.
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Strategy
The assets of the Fund shall be invested up to 100% in Estonia and in instruments related to Estonia, if possible and upon finding suitable instruments. At the same time, the proportion of Estonian-related instruments in the Fund is at least 50% of the value of the Fund’s assets. The assets of the Fund may be fully invested in the equity markets. In addition, the Fund is authorized to borrow up to 10%. The Fund’s long-term preferred asset class is investments related to Estonia.


LHV Pension Fund Eesti and LHV Pension Fund L will merge on 2 September 2020.

Performance
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The Fund's return is expressed as the net yield after deduction of all fees.

Biggest investments

The data is presented as at 29.02.2020

Biggest investments
Tallinna Kaubamaja4.48%
EfTEN Kinnisvarafond II4.36%
Birdeye Timber Fund4.36%
Tallink Grupp4.11%
Tallinna Sadam4.09%
Eesti Energia 2.384% 22/09/233.97%
Birdeye Timber Fund 23.96%
Luminor 1.5% 18/10/213.77%
Baltic Horizon Fund 4.25% 08/05/233.73%
HSBC Holdings Plc 04/12/213.71%

Biggest investments in Estonia

Biggest investments in Estonia
Tallinna Kaubamaja4.48%
EfTEN Kinnisvarafond II4.36%
Birdeye Timber Fund4.36%

Asset Classes

The data is presented as at 29.02.2020.

Information about the fund

Information about the fund
Volume of the fund (as of 29.02.2020)2,713,747.80 €
Management companyAS LHV Varahaldus
Equity in the fund2,690,184.87 units
Rate of the depository’s charge0,0564% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0.60%

Success fee: 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.

Ongoing charges (inc management fee): 1.26%

The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.

February 2020 – Even the Baltics could not escape the global stock exchange panic

Kristo Oidermaa and Romet Enok, Fund Managers

Similar to the rest of the world, the pressure to sell also hit the stock markets of the Baltic republics in February. The Vilnius Stock Exchange was hit the hardest, with the index dropping by 6.3% in a month. Also the Tallinn Stock Exchange Index declined notably and ended the month of February with a loss of 5.3%.

At the end of the month, the public company Tallink and its major shareholder Infortar announced the signing of a Memorandum of Understanding with the City of Tallinn for the reconstruction of the Tallinn City Hall. The size of investment is nearly EUR 300 million. According to the vision, the City Hall plot will be developed into a conference centre together with a passenger port, hotel, business centre and recreational facilities. Tallink plans to transfer the vessels operating on the Tallinn-Helsinki route from Tallinn’s Old City Harbour to the new passenger port. The management board for the Port of Tallinn estimates that the works will last from seven to ten years and, therefore, the impact of the plan on the financial results of the Port of Tallinn will be minor in the coming years.

January 2020 – One of the most successful company purchases in Estonia was completed

Kristo Oidermaa and Romet Enok, Fund Managers

2020 began with a rather negative tone on global stock markets, although the stock exchanges of the Baltic Republics did not follow the downward trend. Tallinn Stock Exchange index rose in January by 4.6%, with the Vilnius and Riga Stock Exchanges yielding a rate of return of 3.1% and 0.5%, respectively.

In January, Tallinna Kaubamaja Grupp, which belongs to the LHV Pensionifond Eesti portfolio, announced their economic results for 2019. The company increased its sales revenue compared to 2018 by 5.3%, reaching more than 717 million euros. The company managed to increase its net profit by 2.3% (to more than 31 million euros). In his comments, the company’s CEO highlighted the fact that sales grew steadily throughout the year and that successful campaigns (led by Osturalli) also had a positive impact on sales.

The Port of Tallinn also announced information regarding total cargo volume and the number of passengers in 2019. The ports owned by the Port of Tallinn were visited by 1893 ships and the number of passengers increased to a record of 10.6 million people. In contrast, cargo volume decreased by 3.3% mostly due to the decrease in the volume of liquid bulk.

In January, one of the most successful company purchases in Estonia was finally completed when BaltCap and the management board of the company sold the auto24 environment to the international private capital company Apax. LHV’s pension funds were repaid the loans taken during the transaction to purchase the company: the funds earned 3% a year from the bonds, which were an alternative to a bank loan, and 12% from the capital loan. Prior to the final date of redemption, a premium was added which further increased the total return for pension collectors. Active pension funds offer such financing all over the world and in Estonia we can see the funds playing the same role in the future in terms of promoting the economy and earning income for savers.

December 2019 – Poor start for Coop Pank shares

Kristo Oidermaa and Romet Enok, Fund Managers

In December, the stock markets of the Baltic Republics were left behind when it came to the global stock market rally, with their returns being somewhat more modest. The Tallinn and Vilnius stock exchange indexes rose during the month by 1.2% and 0.4%, respectively, while the Riga stock exchange fell by 0.8%.

During the month, the shares of Coop Pank began trading on the Tallinn Stock Exchange, being offered to investors at the price of 1.15 €. The bank raised 31.3 million euros from new investors, which is slightly less than the 37 million euros it was seeking. Demand was also lower than expected on the stock exchange: the stock closed its first trading day with a share price of 1.095 €. Since then, Coop Pank's share price has fallen even further, settling at a price of 1.07 € on the last trading day of 2019, representing a loss of 7% for investors who took part in the initial public offering. In comparison: Shares of the Port of Tallinn, which were listed on the Tallinn Stock Exchange in the summer of 2018, rose by 14.7% on the first day of trading.

Stock markets sailed into unknown waters
Andres Viisemann, Head of LHV Pension Funds

While 2019 surpassed expectations in terms of corporate profits on stock markets, this year, profit growth may once again be disappointing. International trade was already at a standstill prior to the spread of the coronavirus, and even the global economy was expected to slow down to some extent.