LHV Pensionifond L

Active Management
10 year net yield
Risk level
Invests into Estonia
Fund investors

Suitable if

  • you have more than 10 years left until retirement,
  • you have average risk tolerance,
  • your aim is the long-term growth of your pension savings.
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The assets of the Fund are invested in various asset classes in both local and foreign markets. The Fund's assets may be invested extensively in unquoted instruments, which are primarily used for investing in securities issued by companies domiciled in the home market. The long-term preferred asset class of the fund is private equity investments.

From beginning
Current year
Current month
The Fund's return is expressed as the net yield after deduction of all fees.

Biggest investments

The data is presented as at 31.01.2023

Biggest investments
German Treasury Bill 22/03/234.16%
France Government 25/03/234.16%
ZKB Gold ETF4.00%
iShares Gold Producers UCITS ETF3.80%
EfTEN Kinnisvarafond3.06%
Riigi Kinnisvara 1.61% 09/06/273.02%
German Treasury Bill 22/02/232.69%
East Capital Baltic Property Fund III2.22%
Investindustrial VII L.P.2.12%
SG Capital Partners Fund 12.05%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond3.06%
Riigi Kinnisvara 1.61% 09/06/273.02%
East Capital Baltic Property Fund III2.22%

Asset Classes

The data is presented as at 31.01.2023.

Information about the fund

Information about the fund
Volume of the fund (as of 28.02.2023)852,805,458.30 €
Management companyLHV Varahaldus
Equity in the fund2 000 000 units
Rate of the depository’s charge0.0420% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0,6240%

Success fee: Performance fee is 20% of the positive difference between the fund's performance and the benchmark, maximum of 2% per annum of the fund's volume. Performance fee for 2021 0,24%.

Ongoing charges (inc management fee): 1,95%

The ongoing charges figure is an estimate based on the current management fee and the 2022 level of all other recognized costs. Ongoing charges may vary from year to year.

February 2023: We do not take high risks in stock markets

Kristo Oidermaa and Romet Enok, Fund Managers

In February, stock markets moved in different directions. The MSCI World Index lost 0.1% of its value in euros, while the leading US stock indices were mostly on the minus side: the S&P 500 index fell 2.6% and Nasdaq fell 1.1% in dollars.

European markets, however, continued the rise that started in January, with the Euro Stoxx 50 index ending the month with an increase of 1.9%. The performance of emerging markets, however, was weaker. The MSCI Emerging Markets Index fell 6.5% over the month, driven by the markets in China and Brazil. The Baltic stock markets ended February in positive territory.

In February, the merger of two real estate funds managed by EfTEN Capital was given final approval by investors and EfTEN Kinnisvarafond merged with the publicly traded EfTEN Real Estate Fund III. LHV pension funds have invested in EfTEN Kinnisvarafond since March 2011 and it has been one of the largest investments in our portfolio for many years. Since its inception in 2008, EfTEN Kinnisvarafond has offered investors an average annual return of 14.4%. Although we have sold about a third of our positions over the past year, we continue to be the largest investor in the merged fund, also after being listed on the Tallinn stock exchange.

In February, the fund’s equity investments were most affected by a 10% fall in equity positions in precious metals. Equity positions in the energy sector moved in different directions and did not have a major impact on returns. Shares of European banks benefiting from interest rate hikes yielded positive results.

We continue to keep the fund’s equity exposure at low levels to avoid potential losses in an environment of rising interest rates and a downturn on the stock market. The fund’s current equity investments focus primarily on sectors related to mineral resources, where we expect long-term undersupply.

January 2023: We expanded the portfolio of over-the-counter investments

Kristo Oidermaa and Romet Enok, Fund Managers

In January, we saw a rising tide in the stock markets. Measured in euros, the global MSCI World index, the US S&P 500 index and the Nasdaq Composite index, which tracks listed companies in the US technology sector, rose by 5.2%, 4.7%, and 9.1%, respectively. Japan’s Nikkei index and Europe’s Euro Stoxx 50 index moved in the same direction, increasing their value in euros by 3.9% and 9.9%, respectively.

The MSCI Emerging Markets index rose by 6.3%, measured in euros. The Baltic markets were no exception: the Tallinn, Riga, and Vilnius stock markets rose by 6.5%, 3.6%, and 3.5%, respectively.

We added two new investments to the fund’s over-the-counter portfolio. The fund manager of these investments is the asset management company Quilvest. Founded in 1972, the firm manages over 5 billion US dollars worth of assets.

The private equity fund Quilvest Buyout Fund III will invest in mid-sized European and US companies operating in the business services, technology, and consumer sectors. The private equity fund of funds Quilvest Global Mid-Market Opportunities II will invest in private equity funds worldwide, aiming to place 50% of the fund’s assets in the US, 25% in Europe and 25% in Asia. Both private equity funds are follow-on funds to Quilvest’s existing funds, in which our pension fund is already an investor, and they are just starting their investment activities.

In January, the fund’s largest equity investments continued to rise. Gold prices were supported by purchases by central banks. For the first time in a long time, China’s central bank has begun to shift its reserves from the dollar to gold. The physical gold-backed investment held by the fund increased by 3%, and shares of gold mining companies increased by 7 to 12%.

The increase in economic activity in China also supported the prices of industrial metals. The shares of copper mining companies acquired by the fund rose by 15–16%, measured in euros. We saw weakness in energy prices, which the fund’s equity investments withstood relatively well.

Generally, equity markets have recovered remarkably well from the downturn over the past six months and, in this environment, we have reduced equity exposure in the fund. We expect equity markets to continue to adjust to a higher interest rate environment, which will bring volatility and good buys to the markets.

In the bond markets, the expectation remains that the European Central Bank will continue raising interest rates, causing the Euribor to rise with them. This is good news for pension investors. For example, the interest on one of our most significant bond investments, the security in Eastnine, a company that focuses on commercial real estate in Vilnius and Riga, has already exceeded the 7% level with the rise of the Euribor. The price of money is likely to continue to go up, causing the expected interest earned by the fund to increase even further.

December 2022: We reduced equity positions in the energy and banking sectors

Kristo Oidermaa and Romet Enok, Fund Managers

In December, world stock markets mostly fell. Measured in euros, the MSCI World index fell by 7.6%, the US S&P 500 index fell by 9.4%, and the Nasdaq Composite index, which tracks the US technology sector, fell as much as 12.1%. The Japanese Nikkei index fell 4.4%, the European Euro Stoxx 50 index 4.3% and the MSCI Emerging Markets index 5.3%, measured in euros. The Baltic stock markets stood out last month: the Tallinn, Riga, and Vilnius stock markets rose by 0.4%, 3.4% and 0.1%, respectively.

In our portfolio of over-the-counter investments, BaltCap’s two funds had news in December. The Adoro company in BaltCap Private Equity Fund III is acquiring the social welfare centre Dzīves Ābece in Latvia. The centre was established in 2018 and currently has 97 beds. The BaltCap Infrastructure Fund announced having reached an agreement to build a new police department worth 21.9 million euros in Šiauliai, Lithuania. The development should be completed in three years, after which the company belonging to the fund will also provide administrative services for the building for a period of 12 years. The approximately 5,200 sq m building will have four floors for 245 employees and a car park for 270 cars.

Our investments in listed stocks depreciated at the end of the year, driven by profit-taking in positions related to the energy sector. Stock investments related to precious metals escaped the general decline of the markets.

At the beginning of the month, we reduced our equity positions in the US energy sector and European banks, which had offered good returns in the short term. With these sales, we increased the buffer that can be used for new investments in the near future.

In the bond portfolio, Coop Pank called its subordinated bonds ahead of schedule, but as planned. The bonds were issued directly to LHV pension funds in 2017 and earned a total return of approximately 35%. LHV funds were the first institutional investor in the new bank. The company has developed rapidly and now involves capital through the stock exchange.

European bond markets remained clearly in the red in December, showing once again the value of financing Estonian companies, both in developing the local economy and in achieving a higher return on pension assets.

The year 2022 was particularly difficult for the public bond markets: for example, the European market offered an average return of –17%, and Estonian government bonds fell as much as 21%. Fearing risks, we have avoided public bonds in recent years, but the new year may start offering new opportunities in this area.

Recession: a likely cost of lower inflation
Andres Viisemann, Head of LHV Pension Funds

The year started powerfully on the securities markets: the MSCI World index rose by 5.2% measured in euros in January. The S&P 500 index, which tracks the shares of 500 large US companies, added 4.7% to its value, and the Nasdaq index, which reflects the US technology sector, rose as much as 9.1% after last year’s big decline. The Japanese Nikkei index and the Euro Stoxx 50 index also increased by 3.9% and 9.9%, respectively.