LHV Pensionifond S
Active Management
10%
-10%
10%
10 year net yield
2
1
7
Risk level
11.62%
0%
100%
Invests into Estonia
8281
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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The Fund's return is expressed as the net yield after deduction of all fees.

Biggest investments

The data is presented as at 28.02.2021

Biggest investments
Temasek 0.5% 01/03/225.56%
Latvenergo 1.9% 10/06/225.45%
Riigi Kinnisvara 1.61% 09/06/275.03%
France Government 3.25% 25/10/214.44%
German Government 3.25% 04/07/214.44%
France Government 3.75% 25/04/214.13%
Transpordi Varahaldus 2.85% 18/04/254.03%
France Government 25/05/213.77%
Ignitis Grupe 2% 21/05/303.69%
German Government 2.25% 04/09/213.65%

Biggest investments in Estonia

Biggest investments in Estonia
Riigi Kinnisvara 1.61% 09/06/275.03%
Transpordi Varahaldus 2.85% 18/04/254.03%
Luminor 0.792% 03/12/242.34%

Asset Classes

The data is presented as at 31.01.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 28.02.2021)47,805,421.17 €
Management companyAS LHV Varahaldus
Equity in the fund150 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: no commission

Ongoing charges (inc management fee): 0.62%

Ongoing charges are based on expenses for the last calendar year, ie 2020. Ongoing charges may vary from year to year.

February 2021: bond yields rise in anticipation of inflation

Kristo Oidermaa and Romet Enok, Fund Managers

The value of bonds of the countries with the highest credit ratings fell in February. The expectation that the vaccines developed so far will help control the coronavirus is improving the outlook for consumption, investment and economic growth.

All this can also imply a price rise and, with it, higher interest rates, which will lower the prices of long-term bonds particularly sharply. For example, a ten-year German government bond fell by around 2.5% in February.

For some time now, we have been minimising our portfolio’s risk of losing money as interest rates rise. Therefore, the fund does not hold any bonds with a ten-year or longer fixed interest rate.

January 2021: bond markets continued to fall

Kristo Oidermaa and Romet Enok, Fund Managers

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.

As we have refrained from bonds with a higher price risk, the fund ended January slightly on the positive side despite the market decline.

December 2020: little to win but much to lose on bond markets

Kristo Oidermaa and Romet Enok, Fund Managers

The coronavirus in the spring shocked bond markets around the world. In both Europe and the United States, the markets for weaker corporate bonds fell by around 20%. The central banks’ response was as sharp and strong as the market panic in February. As hope for the success of vaccine production rose in the autumn, almost all market segments had clear positive returns by the end of the year.

We have been avoiding increasing risks in the bond portfolio for a long time, because there would be very little to gain, yet much to lose – not least because of the extremely high price level of bonds. In the spring, however, we made a new large investment when the Lithuanian state energy company Ignitis raised money for investments.

As another major investment, we acquired Estonian government bonds when the government decided to replenish state reserves. However, we sold the bonds a few weeks later with a profit of a few percent because their expected future yield was almost non-existent.

At the end of the year, the fund’s portfolio still consists largely of high-rated short-term bonds.

Grow your pension independently or rely on the state?
Andres Viisemann, Head of LHV Pension Funds

February marked another successful month on the international stock markets. Both the S&P 500, which tracks the shares of the largest US companies, and the DAX, which follows the largest companies in Germany, increased their record levels, growing by 3.1% and 2.6%, respectively, measured in euros.