II pillar

LHV Pensionifond S
Active Management • Balanced Strategy
10%
-10%
10%
10 year net yield
2
1
7
Risk level
12.96%
0%
100%
Invests into Estonia
9051
Fund investors

Suitable if

  • you have 2–5 years left until retirement age,
  • you have low risk tolerance,
  • your aim is the preservation and modest growth of your pension savings.
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Strategy

The Fund's assets are mainly invested in bonds. The Fund's assets may be invested in sub-investment grade bonds. Up to 25% of the fund's assets may be invested in real estate, infrastructure, equity funds and convertible bonds. The Fund may also grant a loan. The long-term preferred asset class of the fund is listed debt instruments.

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 30.04.2020

Biggest investments
Temasek 0.5% 01/03/224.86%
Latvenergo 1.9% 10/06/224.79%
Luminor 1.5% 18/10/214.58%
Riigi Kinnisvara 1.61% 09/06/274.42%
German Government 3.25% 04/07/213.93%
German Government 2.25% 04/09/213.86%
Transpordi Varahaldus 2.85% 18/04/253.77%
Investor 4.5% 12/05/233.17%
Romania 2.875% 28/10/242.83%
SANOFI 1.875% 04/09/202.79%

Biggest investments in Estonia

Biggest investments in Estonia
Luminor 1.5% 18/10/214.58%
Riigi Kinnisvara 1.61% 09/06/274.42%
Transpordi Varahaldus 2.85% 18/04/253.77%

Asset Classes

The data is presented as at 30.04.2020.

Information about the fund

Information about the fund
Volume of the fund (as of 30.04.2020)54,542,573.17 €
Management companyAS LHV Varahaldus
Equity in the fund270 000 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: no commission

Ongoing charges (inc management fee): 0.69%

Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.

April 2020 – Central banks extended their supporting hand to the markets

Kristo Oidermaa and Romet Enok, Fund Managers

Bond markets have recovered to varying degrees from their sharp decline in March. While in the United States, the bond prices of companies with stronger as well as weaker solvency have increased sharply as a result of the extremely aggressive measures taken by the Federal Reserve, in Europe price movements have been considerably more modest.

A possibility to raise funds is opening up again for enterprises. The situation facing companies affected most by the crisis, is characterised by Boeing, who had to offer investors an interest rate of 4.5–6% (depending on the maturity) in order to get a loan.

As unemployment is increasing in many parts of the world, and the credit quality of enterprises is deteriorating, we will continue to keep the assets of fund S primarily in short-term bonds with sound solvency in the future.

March 2020 – High-rated bonds protected the fund from an even greater decline

Kristo Oidermaa and Romet Enok, Fund Managers

More things have happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.

Central banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.

Although the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.

As our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March. For the fund, however, this did mean a loss of slightly more than 1% for the month.

As at the end of March, nearly 60% of the fund’s assets were comprised of deposits, European Union governments and state-owned enterprises, and other public sector enterprises with a very high rating. Bond markets are facing a tough time and we are ready to take and advantage of the emerging opportunities.

February 2020 – Investors sought protection against the virus from government bonds

Romet Enok, Fund Manager

Fear concerning the impact of coronavirus on the global economy led to movements last month, which were quite foreseeable given the situation: the prices of government bonds rose, while weaker corporate bonds in particular posted significant losses. In Europe, this movement ranged from +0.5% in the government bond market to −2% for companies with a lower rating.

After the rise in prices we once again sold bonds. The investment in French government bonds with a maturity date in autumn 2022 had been sizeable for the fund, and was now sold at a price, the future annual rate of return on which would have been −0.65%.

A considerable portion of the total assets of the fund have been placed in highly-rated short-term liquid bonds. Firstly, it protects against the current situation and secondly, it enables new investments to be made as soon as attractive possibilities occur.

The importance of saving becomes apparent in times of crisis
Andres Viisemann, Head of LHV Pension Funds

Even though real life and the real economy were in standby mode virtually everywhere in the world in April, stock markets demonstrated impressive growth after the sudden declines of February and March. The MSCI Index, the world’s largest measurer of the value of companies, rose by 11.1%.