LHV Pensionifond L

Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
34.29%
0%
100%
Invests into Estonia
62076
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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Strategy

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.

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 31.10.2022

Biggest investments
ZKB Gold ETF4.12%
EfTEN Kinnisvarafond3.76%
Lyxor EURO STOXX Banks DR UCITS3.41%
iShares Gold Producers UCITS ETF3.39%
Riigi Kinnisvara 1.61% 09/06/273.32%
East Capital Baltic Property Fund III2.30%
SG Capital Partners Fund 12.22%
Usaldusfond EfTEN Real Estate Fund 42.16%
Investindustrial VII L.P.2.16%
Partners Group Direct Equity 20192.03%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond3.76%
Riigi Kinnisvara 1.61% 09/06/273.32%
East Capital Baltic Property Fund III2.30%

Asset Classes

The data is presented as at 31.10.2022.

Information about the fund

Information about the fund
Volume of the fund (as of 31.10.2022)778,926,551.32 €
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): 1,62%

The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.

October 2022: We added a new over-the-counter investment to our portfolio

Kristo Oidermaa and Romet Enok, Fund Managers

In October, world markets recovered. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index, and the European Euro Stoxx 50 rose 6.2%, 6.9%, 2.5% and 9.1% in euros, respectively. However, emerging markets moved in the opposite direction: the MSCI Emerging Markets index fell by 4.1% in October. Compared to world stock markets, the Baltic stock exchanges remained relatively neutral: during the month, the Tallinn and Riga stock exchanges fell by 0.6% and 0.4%, respectively, and the Vilnius stock exchange rose by 1%.

We added the new local venture capital fund Superangel Two, led by experienced startup investors Veljo Otsason and Marko Oolo, as a new OTC investment in our pension fund. We have also used the pension fund to invest in Superangel One, the predecessor of Superangel Two. Superangel One’s portfolio includes well-known startups, such as Bolt, Veriff, Montonio, Salv, Starship and Parcelsea. Superangel Two continues to implement the previous fund’s strategy by investing in early-stage start-ups operating mainly in Estonia.

In October, the private equity firm BaltCap announced that its managed fund, BaltCap Private Equity Fund III, will buy Estonia’s largest bookseller Rahva Raamat and merge it with the Lithuanian publishing and trading company Alma Littera, which it acquired in September. Rahva Raamat has a comprehensive e-shop and 12 brick-and-mortar stores in eight Estonian cities.

In the same month, encouraging quarterly results supported the fund’s listed equity investments. Among European investments, bank shares saw the most success, as the financial results of this sector are improved by rising interest income. Among US investments, shares of Valaris and Freeport McMoran, related to mineral resources, rose the most. Most of the fund’s share positions are related to mineral resources and companies that process them, which in many cases are earning record profits in the context of high commodity prices.

At the same time, we signed a bond investment agreement with an Estonian company, as Dimedium Grupp raised money from the funds to buy out some of the company’s previous owners. The loan is for three years, with an annual interest of 10%, to which an additional payment will be added at redemption.

Interest rates have risen sharply, and as a result, international bonds offer increasingly strong competition to domestic transactions. We are actively seeking opportunities in both areas.

September 2022: We invested more in the energy sector

Kristo Oidermaa and Romet Enok, Fund Managers

In September, world markets continued to decline. Both the MSCI World Index and the US S&P 500 fell by 6.9%, while the Japanese Nikkei and the European Euro Stoxx 50 fell by 9.1% 5.6% over the month in euros, respectively. The MSCI Emerging Markets index, which reflects developing markets, lost 9.5% in value measured in euros in September. We also noted pessimism in the local markets, as the Tallinn, Riga, and Vilnius stock markets declined by 7.1%, 2%, and 2.5%, respectively.

During the same month, we added a new venture capital fund, Trind Ventures II, to our portfolio of over-the-counter investments. Trind Ventures is a company founded in Estonia, whose partners include experienced startup investors Joel Aasmäe, Taavi Lepmets, Ivar Siimar, Kimmo Irpola, and Reima Linnanvirta. Our pension fund is already an investor in the first fund managed by them. Trind Ventures Fund II continues with the same strategy: investing in technology sector startups, primarily in Estonia and Finland.

The local private equity company BaltCap announced in September that their BaltCap Private Equity Fund III will acquire Alma Littera Group. This publishing and trading company was founded in Lithuania in 1990, but currently operates throughout the Baltics. BaltCap Private Equity Fund II started investment activities in 2020, and Alma Littera is the fund’s fourth investment.

In September, a large wave of selling on stock exchanges brought down the value of the fund’s stock investments. Among the fund’s key positions, energy sector investments reduced this year’s gains. On the positive side, the loss was offset by gold-related stock investments, which rose in price during the sharp fall in the markets.

We see buying opportunities arising in the general decline of the stock markets. At the end of September, we increased the fund’s investments in the energy sector: we bought shares in US energy companies and the companies supplying these with technology.

The fund’s key positions remain largely in commodities-related stocks, which fluctuate widely in the short term, but have plenty of upside in the long term due to undersupply.

August 2022: We made a new private equity investment

Kristo Oidermaa and Romet Enok, Fund Managers

In August, world markets were predominantly pessimistic. The MSCI World Index, the US S&P 500, and the Japanese Nikkei Index fell 2.8%, 2.9% and 1.5% over the month in euros, respectively. The European stock exchanges went through a steeper decline last month, with the Euro Stoxx 50 index falling by 5.1%. Emerging markets were a contrast to this, as the MSCI Emerging Markets index rose by 1.5% in euros over the last month. The performance of local stock exchanges was mixed: while the Tallinn and Vilnius stock markets grew by 2.4% and 1.9%, respectively, the Riga stock market declined by 4.5%.

We included a new private equity fund, Investindustrial Growth III, in our over-the-counter (OTC) investments. The fund is managed by Investindustrial, a private equity company operating mainly in Southern Europe. This company has been investing in OTC companies since 1990, when it was first founded in Italy. While Investindustrial’s background gives it an edge in southern European markets, the company is also looking for investment opportunities in the rest of Europe. The Growth III fund focuses on fast-growing medium-sized companies operating primarily in Southern Europe and in four sectors: consumer, industrial, healthcare, and technology. The fund is now starting to invest and plans to buy into eight to ten companies.

Domestic venture capital fund Superangel sold its first investment. Nordigen, an open banking company founded in Latvia, was sold to GoCardless, a company established in the United Kingdom. The Superangel fund invested in Nordigen in early 2020, and the fund’s portfolio still includes more than 40 companies.

In equity positions, precious metals investments showed signs of weakness. Investments were strong, however, in the energy sector, which forms the second cornerstone of our equity investments.

The fund’s listed stock investments remain in the commodity sector, with a focus on precious metals, energy, energy metals, renewable materials (wood) and various links in the related value chains. We believe that in an environment of rapid inflation, equity investments in the commodity sector will help us maintain and increase the purchasing power of our capital.

Challenging times offer greater opportunities than usual
Andres Viisemann, Head of LHV Pension Funds

Since the last quarter of 2021, the world’s largest stock and bond indices have been on a downward trend. Yields also remained negative in September, when the S&P 500 index, which tracks the value of the five hundred largest US companies, fell by 6.9% measured in euros. Nikkei, which tracks large Japanese companies, fell by 9.1%, and the EuroStoxx 50 index, which tracks European companies, fell by 5.6%. Since the beginning of the year, large European and US companies have lost 21% and 12.5% of their value measured in euros, respectively.