LHV Pensionifond M
Active Management
10%
-10%
10%
10 year net yield
2
1
7
Risk level
35.07%
0%
100%
Invests into Estonia
13458
Fund investors

Suitable if

  • you have 3–10 years left until retirement age,
  • you have moderate risk tolerance,
  • your aim is the long-term stable growth of your pension savings.
There is a transaction associated with the fund taking effect on
See pending transactions
In my portfolio
~
Payments deposited here
Number of units
Acquisition price
Unit NAV
Profit/loss %
Profit/loss €
Total value

Strategy

When investing in assets, the fund prefers cash-flow assets and, where possible, the local market, including less liquid private equity and real estate investments. The investments are predominantly in local currency and up to 75% of the fund's assets can be invested directly in equities. The fund's long-term preferred asset class is real estate investments.

Performance
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 31.03.2021

Biggest investments
France Government 2.25% 25/10/226.00%
German Government 2.25% 04/09/214.25%
EfTEN Kinnisvarafond3.38%
ZKB Gold ETF2.97%
Riigi Kinnisvara 1.61% 09/06/272.88%
France Government 3.75% 25/04/212.66%
German Treasury Bill 14/04/20212.42%
Luminor 0.792% 03/12/242.30%
France Government 3.25% 25/05/212.19%
JP Morgan 1.375% 16/09/212.15%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond3.38%
Riigi Kinnisvara 1.61% 09/06/272.88%
Luminor 0.792% 03/12/242.30%

Asset Classes

The data is presented as at 31.03.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 31.03.2021)132,498,117.41 €
Management companyAS LHV Varahaldus
Equity in the fund400 000 units
Rate of the depository’s charge0,054% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0,576%

Success fee: 20% per annum on any increase in the fund's rate of return over the annual increase of Estonian social security pension contribution since the end date of previous calendar year.

Ongoing charges (inc management fee): 0.86%

The ongoing charges figure is an estimate based on the current management fee and the 2020 level of all other recognized costs. Ongoing charges may vary from year to year.

March 2021 – We updated the terms of our Alexela investment

The stock market indices of developed countries continued their strong upward trend in March. The Euro Stoxx 50 index, which tracks large European companies, rose by as much as 7.9% during the month, with the German, French, Italian and Swedish stock markets being among the strongest. For example, the German stock exchange index DAX rose 8.9% in March, and the return on the Stockholm stock market, measured in euros, was 8.5%.

However, the performance of the Japanese Nikkei index remained modest last month: 0.7% in local currency and -0.1% in euros. In the Baltic countries, the Tallinn stock market index rose the most by 3.3%. The Vilnius and Riga stock markets fell by 0.2% and 5.2%, respectively.

In March, the domestic private equity company BaltCap announced that their BaltCap Private Equity Fund II had sold its holdings in Qvalitas Medical Centre and Unimed Group. The buyer is Mehiläinen, a company providing a wide range of private medical services in Finland, founded in 1909 and employing 22,300 people in more than 540 locations.

BaltCap Fund invested in Unimed Group and Qvalitas Medical Centre in 2015 and 2016. Today, Unimed Group’s portfolio includes seven dental clinics and three dental laboratories. In comparison, Qvalitas Medical Centre’s portfolio includes eight private clinics and five mobile health buses with special medical equipment.

In our bonds portfolio, we updated the terms of our Alexela investment. Since our investment in early 2018, the company has grown considerably and improved its results. Therefore, some of the restrictions imposed on the company by our bond were already unnecessary. As part of the amended conditions, the money will be returned to the funds in 2023, as much as five years earlier than initially planned.

Another noteworthy event among our portfolio companies was the public bond issue by Coop Pank, raising long-term capital at 5.5% per annum. Along with the growth of the bank’s balance sheet total and the status of a listed company, the price of capital has fallen as expected. For comparison: LHV Pension Fund M earns 6.75% interest on the investment made in Coop Pank bonds in 2017.

One of the tasks of pension funds is to provide capital to companies at the stage of development where public funds are still unavailable. In addition to higher returns for pension savers, this will boost local emerging businesses.

February 2021: stock market sentiment was positive

Kristo Oidermaa and Romet Enok, Fund Managers

In February, the stock markets of developed countries continued to deliver largely positive returns in anticipation of loose monetary policy and new support measures. The Euro Stoxx 50 index, which tracks large European companies, rose by as much as 4.5% during the month, with France, Italy and Spain being the strongest. The German stock market index DAX returned 2.6%, and the Stockholm market rose 2.7%, measured in euros.

The Helsinki stock market index stood at 0.9% in February, while the Japanese Nikkei stock index rose 4.7% in local currency and 3.2% in euros. Among the Baltic countries, the Tallinn stock market had the best return, with an increase of 1.2%. The return on the Riga stock market index was 0.5%, and the Vilnius stock market fell 1.3% during the month.

In February, several Tallinn stock market companies announced their results for the financial year 2020. For example, Coop Pank continued to grow its customer base and market share at a good pace. The bank’s net interest income increased by 37.1% during the year, and despite the loan write-downs in spring, the net profit also increased by more than 30%. Coop Pank’s stocks rose as much as 36.8% on the stock exchange during the month.

On the other hand, the Port of Tallinn’s revenue decreased by 17.8% compared to 2019, including the revenue of passenger ports by 42.3%. However, the volume of cargo passing through the ports was the highest for the past five years, and the revenue from this service was 2.1% higher. Although last year was very complicated for the Port of Tallinn, the company will continue to pay 30% of its net profit as dividends.

Sunly succeeded in the Polish renewable energy auction and thus fulfilled an important precondition for raising long-term capital from pension funds. Once the rest of the preconditions are met, the bond used to finance the construction of solar parks will become one of our largest investments in the coming quarters. The bond has a maturity term of five years and an interest rate of 8% per annum.

Although national programmes to increase the share of renewable energy are significant in their scope, the private sector often plays a critical role in implementing projects. Pension funds have a clear advantage here as a provider of long-term capital. As assets are extremely highly-priced on stock markets, we will continue to find attractive direct investment projects.

January 2021: BaltCap acquires Piletilevi’s parent company

Kristo Oidermaa and Romet Enok, Fund Managers

January was relatively calm on world stock markets after a strong end to 2020, and the main stock market indices moved slightly and in different directions. The Euro Stoxx 50 index, which tracks large European companies, fell by 1.9% during the month. The German stock exchange, for example, was among the biggest losers with -2.1%, while the Swedish and Finnish stock exchange indexes rose by 4% and 2.1%, respectively.

Measured in euros, the US market index S&P 500 fell by 0.4% during the month and the Japanese Nikkei index rose by 0.7%. The Baltic stock markets were also strong in January. Tallinn stock market yield was 6.9%, the Vilnius stock market index rose by 5.6% and the Riga stock market by 2.6%.

BaltCap, a domestic private equity company in the portfolio of Pension Fund M, announced that it will acquire a majority stake in Baltic Ticket Holdings OÜ, which includes Piletilevi AS, a well-known ticket sales company in Estonia. Baltic Ticket Holdings was founded in 1997 in Estonia and operates now also in other Baltic countries and Belarus. Through digital channels and 700 points of sale, the company sold more than 6 million tickets for more than 36,000 events in 2019.

Bond markets remained largely negative in the first month of the year in Europe, the United States and emerging markets. The decline was not sharp, but the US and especially German markets have been steadily declining since early November, when the results of the Pfizer/BionTech vaccine clinical trial became available. The movement of these two anchors has had a very wide-ranging impact on the markets.

Despite a slight fall in prices (and rising interest rates), sales of new securities continue to grow strongly: in January, for example, European countries borrowed a total of about 40% more than in January 2017. There is currently no alternative to borrowing to compensate for the reduced tax revenue.

We have refrained from acquiring high-risk bonds for the fund. Major local companies in the fund’s portfolio have so far reported expected or even higher-than-expected results.

The economy is starting to grow again
Andres Viisemann, Head of LHV Pension Funds

March was another great month for stock markets. The US stock market rose 7.2% in euros and the stocks of European companies rose 6.1% during the month. Asian stock markets were less optimistic: The Chinese stock market lost 3.7% of its value in euros during the month.