LHV Pensionifond L

Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
34.63%
0%
100%
Invests into Estonia
62952
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 31.05.2022

Biggest investments
EfTEN Kinnisvarafond5.12%
ZKB Gold ETF4.31%
iShares Gold Producers UCITS ETF4.15%
Riigi Kinnisvara 1.61% 09/06/273.34%
German Government 1.5% 04/09/222.79%
Lyxor EURO STOXX Banks DR UCITS2.52%
East Capital Baltic Property Fund III2.45%
SG Capital Partners Fund 12.23%
KJK Fund II Balkan Discovery A June 20142.17%
Usaldusfond EfTEN Real Estate Fund 42.11%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond5.12%
Riigi Kinnisvara 1.61% 09/06/273.34%
East Capital Baltic Property Fund III2.45%

Asset Classes

The data is presented as at 31.05.2022.

Information about the fund

Information about the fund
Volume of the fund (as of 31.05.2022)775,109,107.01 €
Management companyAS LHV Varahaldus
Equity in the fund2 000 000 units
Rate of the depository’s charge0,0576% (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.

May 2022: Stock markets remained downward

Kristo Oidermaa and Romet Enok, Fund Managers

In May, markets continued to decline for the most part. Measured in euros, the MSCI World index fell by 1.4%; the US S&P 500 index, which tracks 500 of the largest US listed companies fell by 1.7%; and the Nasdaq Composite index, which tracks the US technology sector, fell by 3.7%.

The Japanese and European stock market indices were somewhat exceptional, as the Japanese Nikkei index rose 1.4% in euros and the European Euro Stoxx 50 index rose 0.9% during the month. The MSCI Emerging Markets Index fell 1.6%. The local Baltic markets moved in different directions in May: The value of the Tallinn stock market index decreased by 2.5%, while the Riga and Vilnius stock market indices rose by 11.2% and 0.8%, respectively.

Of the listed equity positions, shares in banks and the energy sector provided positive returns. In other equity positions, the prices fell rather than rose. By the end of the month, the fund’s positions in listed equities did not change significantly.

In an environment of rapid inflation, the fund has invested heavily in commodity sector equities. In May, we slightly increased our equity positions in the copper and energy sectors and sold some of our smaller equity investments outside the commodities sector.

We signed another local investment for our bond portfolio when Bigbank issued bonds directly to our pension funds. The interest payment is 7.5% per annum, and the company has the first option to repay in five years.

Interest rates are currently rising sharply in both domestic and international markets. At the same time, the prospects of earning higher returns on bonds are growing significantly.

April 2022: Stock markets remained under selling pressure

Kristo Oidermaa and Romet Enok, Fund Managers

In April, stock markets mostly fell, and we also saw a significant weakening of the euro exchange rate, which depreciated by 5% against the US dollar over the month. Measured in euros, the month saw the global MSCI World index fall by 3.3%, the US S&P 500 index fall by 4.2% and the Nasdaq Composite index, which reflects listed companies in the US technology sector, fall by 8.9%.

Japan, Europe and emerging markets were no exceptions: in April, measured in euros, the Japanese Nikkei index fell by 5.6%, the European Euro Stoxx 50 index by 2.1% and the MSCI Emerging Markets index by 1%. A slightly different picture emerged in the Baltic markets, where the Riga stock exchange was the only one to fall, by 16.7%. In contrast, the Tallinn and Vilnius stock exchanges grew in April by 0.3% and 2.3%, respectively.

In April, the Baltic private equity firm BaltCap announced that BaltCap Infrastructure Fund, a fund dedicated to infrastructure investments managed by them, would invest in 30 MW solar parks in Latvia. These are planned to be built within three years, and the investment will be made in cooperation with AJ Power and AJP Capital. There is a longer-term plan to expand across the Baltics, thereby increasing the total capacity of the portfolio to 100 MW.

The fund’s listed equity positions declined slightly in April. At the end of the month, some of the fund’s commodity investments fell as China’s radical fight against the coronavirus paralysed an increasingly large part of its economy. This reduced the demand for many raw materials and goods.

In the bigger perspective, however, supply problems in the raw materials sector have not disappeared. The fund’s equity investments remain mostly in companies related to the commodity sector that have offered a positive yield against the background of the general decline in stock exchanges this year. When opportunities arise, we are ready to supplement the positions related to the commodity sector due to the fall in prices.

No significant equity investment transactions were made in the fund in April.

March 2022: Rising commodity prices supported the fund’s equity positions

Kristo Oidermaa and Romet Enok, Fund Managers

In March, world stock exchanges moved in quite mixed directions. Measured in euros, the MSCI World Index rose 3.7%, and the US S&P 500 Index rose 4.7%, while the European Euro Stoxx 50 Index fell slightly (0.5%) and the Japanese Nikkei Index rose slightly (0.4%). The MSCI Emerging Markets Index fell 1.4%. The Baltic stock markets also moved in different directions in March: The value of the Tallinn stock market increased by 1.8% during the month, the value of the Riga stock market decreased by 4.8%, and the Vilnius stock market remained almost at the same level as last month, falling by 0.3%.

Astorg Mid-Cap I was added as a new investment in the fund’s private equity portfolio. This private capital fund seeks investment opportunities in European mid-sized companies, focusing on the industrial, business services, health, and software sectors. Astorg was founded in 1998 in France and manages more than 15 billion euros in assets. The company has offices in France, the UK, Italy, Germany, Luxembourg, and the US.

LHV pension funds acquired an office building at Sõpruse pst 157, Tallinn, one of Estonia’s greenest commercial buildings. The office building in the Kristiine district was completed in 2015. The building has a leasable area of more than 2,500 sq. m and the anchor tenant is the reputable information technology company Proekspert AS.

The Sõpruse pst 157 building differs from the rest of Tallinn’s office buildings in terms of its green solutions: the building has been developed following the principles of the green building concept, which makes it one of the most sustainable commercial buildings in Estonia. The building draws its heating and cooling energy from underground energy piles, and electricity is obtained from the solar park on the roof. To reduce the need for cooling, the windows have sunscreens and sun protection ribs. Rainwater collected from the roof is used for flushing the toilets.

In March, we continued to hold listed equities in the commodities sector, where military action in Ukraine exacerbated current trends and increased the structural shortage of many commodities in global markets. Commodity prices rose by an average of 10% during the month, and the commodity sector companies in the fund benefited significantly from this increase. The biggest contributors to the rise were gold and silver-related equity positions and energy companies. The gold mining companies Agnico Eagle Mines and Barrick Gold contributed the most to the price increase of the individual shares.

In the fund’s bond portfolio, we made the last payment to subscribe for the securities of the Estonian renewable energy company Sunly. The company has now fully utilised the bonds needed to finance its solar parks. The interest rate of the bonds is 8% per annum, and they will be redeemed by the end of 2025 at the latest.

Times of great change require discipline and flexibility
Andres Viisemann, Head of LHV Pension Funds

Since the end of February, the news has been dominated by Russia’s brutal invasion of Ukraine. This is the greatest geopolitical disaster in Europe since World War II, with repercussions around the world. It cannot be ruled out that the conflict may last for a long time and expand considerably before it can be resolved.