II pillar

LHV Pensionifond S
Active Management • Balanced Strategy
10%
-10%
10%
10 year net yield
2
1
7
Risk level
13.40%
0%
100%
Invests into Estonia
10649
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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Biggest investments

The data is presented as at 30.09.2019

Biggest investments
Temasek 0.5% 01/03/224.83%
Latvenergo 1.9% 10/06/224.71%
Luminor 1.5% 18/10/214.60%
Riigi Kinnisvara 1.61% 09/06/274.33%
Transpordi Varahaldus 2.85% 18/04/254.27%
TOTAL 03/19/203.24%
Investor 4.5% 12/05/233.17%
Romania 2.875% 28/10/243.08%
SANOFI 1.875% 04/09/202.73%
Allianz 07/12/202.71%

Biggest investments in Estonia

Biggest investments in Estonia
Luminor 1.5% 18/10/214.60%
Riigi Kinnisvara 1.61% 09/06/274.33%
Transpordi Varahaldus 2.85% 18/04/254.27%

Asset Classes

The data is presented as at 30.09.2019.

Information about the fund

Information about the fund
Volume of the fund (as of 30.09.2019)55,642,227.76 €
Management companyAS LHV Varahaldus
Equity in the fund270 000 units
Rate of the depository’s charge0,0576% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0.672%

Ongoing charges (inc management fee): 0.7%

Ongoing charges are based on expenses for the last calendar year, ie 2018. Ongoing charges may vary from year to year.

October 2019 – Common sense must be maintained on the bond market

Romet Enok, Fund Manager

The United States Federal Reserve again lowered the interest rate at the end of the month, designating 1.5–1.75% as the new range. Any further steps are hard to decipher both on this and the other side of the Atlantic, since a new President of the European Central Bank took office in November. The prices of German long-term bonds have already been continuously falling since the end of the summer, raising the expected rate of return on the 10-year bond, for example, from –0.7% to –0.25%.

However, bonds are still expensive, and opinions that the whole negative interest policy will one day be declared an unsuccessful experiment, are increasingly being heard. Even if this will not be the case, and the economy should recover, a decrease in price would still lie ahead for bonds, which means that it is not rational to buy them in larger quantities right now. We currently only invest money from repaid bonds into shorter-term bonds with high credit quality.

September 2019 – Investment options require quick actions

Romet Enok, Fund Manager

The main bond markets of Europe were in decline in September. The main factor that the markets focus on is the oncoming departure of the United Kingdom from the European Union while global economic cooling also gets some attention. Nevertheless, the bond markets are exceptionally strong, allowing large international enterprises to keep borrowing money, if they wish, in very large amounts and with almost non-existent interest.

In such a situation, we shall avoid investing money for a long term on at unattractive terms, as seen from the investor’s point of view. In spring, we purchased a significant amount of bonds of the Finnish insurance company Sampo when the company was raising money from the market after a long time. In September, the company did it once again but the interest level was much lower. The Sampo bonds that were purchased for the pension fund S in spring have by now had a rate of return of 15%, while the bonds offered in September pay less than 2% interest annually. Attractive opportunities are rare on such a market which means that quick actions are required.

August 2019 – Investors are willing to lose money in the international bond market

Romet Enok, Fund Manager

The European bond market is looking forward to the meeting of the central bank taking place in the middle of September. Due to the economic slowdown, the investors wish to once again see purchases in the bond market supported by the central bank. In the light of this, interest rates have become so low that banks with a very high rating are able to borrow money for ten years with negative interest. Government bonds reached this point earlier.

In this situation, we once again sold long-term bonds of the Lithuania, Slovakia and Swedish investment company Investor AB. The latter two had also reached such a high price level that the purchaser would suffer a certain loss when holding until maturity. Out of the fund’s existing investments, Sampo's success continues. The bond has, after its purchase at the beginning of May, brought about a 15% rate of return. We are working with multiple local companies and are clearly hoping for investments with a better rate of return from this direction soon.

The euro of today must also serve the needs of tomorrow
Andres Viisemann, Head of LHV Pension Funds

All of the world’s largest stock markets remained slightly on the plus side in September. Measured in euros the S&P500 Index, which includes the largest US enterprises, rose by 2.5% last month, and the value of the Stoxx 600 Index, which reflects the well-being of Europe’s largest enterprises, rose by 3.6%.