II pillar

LHV Pensionifond Eesti
Active Management • Aggressive Strategy
10%
-10%
10%
10 year net yield
3
1
7
Risk level
71.16%
0%
100%
Invests into Estonia
175
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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Current year
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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 31.05.2020

Biggest investments
Tallinna Sadam5.84%
Tallink Grupp5.54%
EfTEN Kinnisvarafond II4.34%
EfTEN Real Estate Fund III4.30%
Birdeye Timber Fund4.28%
Tallinna Kaubamaja4.22%
Birdeye Timber Fund 23.90%
Merko Ehitus3.81%
Eesti Energia 2.384% 22/09/233.78%
France Government 25/05/213.63%

Biggest investments in Estonia

Biggest investments in Estonia
Tallinna Sadam5.84%
Tallink Grupp5.54%
EfTEN Kinnisvarafond II4.34%

Asset Classes

The data is presented as at 31.05.2020.

Information about the fund

Information about the fund
Volume of the fund (as of 31.05.2020)2,765,363.49 €
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.

May 2020 – Re-opening of economies increased optimism on Baltic stock exchanges

Kristo Oidermaa and Romet Enok, Fund Managers

Baltic stock exchanges continued to recover from early springtime lows in May. Tallinn stock exchange showed the best performance with 5.7% growth. Vilnius stock exchange ended up showing a 3.8% return, followed by Riga stock exchange with 2.4%.

In May, the Port of Tallinn published its financial results for Q1. This revealed that due to the state of emergency declared in March the company suffered a loss in both turnover and profit compared to the Q1 of the previous year: the sales revenue decreased by 2.2% and profit by 9.6% y-o-y. Even though the volume of goods passing through ports grew by 2% over the year, the number of passengers fell by a total of 13.3% due to the suspension of international passenger ship traffic. The company also announced that it is planning to pay its shareholders dividends of 0.115 euros per share, i.e. 30.2 million euros in total. This enables it to keep the promise made at the time of listing and makes the company’s dividend yield a little more than 6%.

April 2020 – Investors began buying again on Baltic stock exchanges

Kristo Oidermaa and Romet Enok, Fund Managers

Baltic stock exchanges recovered rapidly in April from the decline of the last months: The Vilnius stock index even rose 15% during the month and the Tallinn and Riga stock exchanges offered both a return of slightly more than 11%. However; year-to-date, the Baltic stock markets still remain in the red, as is the case with all global markets.

In April, Coop Pank published its 2020 Q1 results. The bank had acquired 5600 new customers during the quarter, which meant that by the end of March it had 69,400 clients. The bank’s loan portfolio increased by 9.5% compared to the end of 2019, reaching EUR 504 million, with the home loan business showing the fastest growth. Deposit volumes also continued to grow; yet, due to the emergency situation, the loan impairment cost increased significantly and the negative impact is expected to continue also in the coming quarters. Therefore, the net profit earned by Coop Pank decreased by 7.7% compared to Q4 2019.

March 2020 – The emergency situation impacted the shares of Tallink and the Port of Tallinn the most

Kristo Oidermaa and Romet Enok, Fund Managers

Similarly to the situation in February, stock exchanges all over the world continued to fall in March due to the corona virus. The value of the Tallinn Stock Exchange Index dropped during the month by 20%. The stock exchanges of Riga and Vilnius did slightly better, and their rates of return were –10.8% and –12.1%, respectively.

The biggest losers on the Tallinn Stock Exchange included the shipping company Tallink, which had to stop almost all of their traffic because of the emergency situation declared by the government. The company’s shares fell by more than 30% in March and, as a result Tallink, decided not to pay any dividends for 2019.

Declaring the emergency situation has also had a notable impact on the Port of Tallinn as well, with shares falling by almost 20% during the month. Tallink is the undertaking’s largest client, and many cruise ships have also already announced that they will not be visiting Tallinn this year. At present it is also difficult to predict when marine traffic will recover.

The share price of Tallinna Kaubamaja has fared much better, mainly backed up by the Selver supermarkets chain.

Cheap credit leads into temptation
Andres Viisemann, Head of LHV Pension Funds

There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.