LHV Pensionifond XL
Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
20.80%
0%
100%
Invests into Estonia
38484
Fund investors

Suitable if

  • you have more than 15 years left until retirement,
  • you are prepared to take above-average risks,
  • your aim is the long-term growth of your pension savings.
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Strategy

The Fund prefers foreign markets, more liquid and traded instruments on regulated markets when investing assets. The assets of the Fund may be invested in their entirety in equities, equity funds and other equity-like instruments. The Fund is allowed to borrow up to 10% of the Fund's assets value. The long-term preferred asset class of the fund is public equity investments.

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 30.06.2021

Biggest investments
German Treasury Bill 25/08/20217.25%
German Government 2.25% 04/09/215.29%
France Treasury Bill 25/08/20215.06%
German Government 3.25% 04/07/214.89%
German Government 1.5% 04/09/223.56%
France Government 3.25% 25/10/213.49%
TRIGON - New Europe Fund D2.70%
ZKB Gold ETF2.55%
iShares Gold Producers UCITS ETF2.50%
EfTEN Kinnisvarafond2.28%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond2.28%
Riigi Kinnisvara 1.61% 09/06/272.04%
East Capital Baltic Property Fund III1.78%

Asset Classes

The data is presented as at 30.06.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 30.06.2021)265,176,686.87 €
Management companyAS LHV Varahaldus
Equity in the fund530 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): 1.13%

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.

June 2021: New investments in the energy sector

Kristo Oidermaa and Romet Enok, Fund Managers

In June, world stock markets continued to rise in euros, supported to some extent by the 3.1% strengthening of the euro against the US dollar over the month. The MSCI World Index rose 4.6% in euros, and the US S&P 500 index rose 2.9%. The Nasdaq Composite index, which reflects the US technology sector, showed outstanding results, growing by 8.6% in euros.

In Europe, however, the Euro Stoxx 50 performed modestly, rising 0.7%. Japan’s Nikkei index rose 1.5% in euros, and the MSCI Emerging Markets index rose by 3.1%. Of the local Baltic stock markets, Tallinn and Riga remained on the rise, growing by 2.3% and 3.6%, respectively, in June. The Vilnius stock market showed a completely different result, falling by 1.5%.

In June, the fund made several new investments in the energy sector. The more investments in fossil fuels are restricted due to tighter environmental regulations, and the more we move towards more expensive renewable energy alternatives, the more the energy prices will grow. In the long run, the growth of developing countries and the broader trend of electrification will increase the demand for energy products. To benefit from these trends, we acquired investments that are open to the rising prices for various energy products.

In the bond portfolio, the month brought news about our two investments, Sunly and Ekspress Group. The latter plans to sell its printing business and focus on developing digital media. Sunly announced the raising of large amounts of money through the addition of new shareholders. The news from both companies is clearly positive for the bond investor and shows that the companies are developing in the right direction.

As a new investment, we acquired the bonds of Eastnine, a real estate company focused primarily on office buildings in Vilnius. The company issued bonds for the first time, the money was borrowed for three years, and investors are paid 5% interest per annum. We see an opportunity for a further price rise of the bond, which could bring the desired minimum return of 6–7% to the fund.

Bond markets on European stock exchanges were in clear decline in the first half of the year, and we will continue to focus mainly on OTC opportunities.

May 2021 – The rapid rise of stock markets slowed down

Kristo Oidermaa and Romet Enok, Fund Managers

In May, world stock markets moved at a modest pace. The MSCI World index, measured in euros, remained almost at April’s level, falling by 0.1%. The S&P 500 index, which reflects the US stock market, fell 0.9% in euros during the month, the Japanese Nikkei index fell 1.6%, and the MSCI Emerging Markets index rose 0.4%.

The Euro Stoxx 50 performed somewhat better and rose 2.3% in May. The Austrian, Italian and Spanish stock markets stood out in particular, growing by 6.3%, 4.3% and 3.8%, respectively. On the other hand, the Baltic stock markets showed quite mixed results: while the Tallinn stock market index was almost the same as in April, the Vilnius and Riga stock markets grew by 6.2% and 2.7%, respectively, during the month.

The domestic private equity company BaltCap announced that BaltCap Private Equity Fund II sold its shares in the Lithuanian waste management company Ecoservice. The buyer was the Baltic waste management company Eco Baltia Group, which belongs to the private equity fund INVL Baltic Sea Growth Fund. The BaltCap fund acquired Ecoservice in 2014, and currently, the company serves more than 40% of Lithuania’s territory. With this acquisition, the turnover of Eco Baltia Group will increase by more than 50% and exceed 100 million euros.

Concerning our bond portfolio, we sold the bonds in the Lithuanian state energy company Ignitis in May. The company raised funds through the bond issue in May last year, and since then, the price of the bonds had risen by a little more than 10%. In addition, the bonds have an annual interest rate of 2%.

As regards new investments, we moved on with Sunly bonds at the end of the month. The development of the company’s solar parks has reached a stage where the fund subscribed for the next tranche of Sunly bonds. If all the assumptions are met, the bond will become one of the fund’s largest investments in the next stages of development. The bond has an interest rate of 8% per annum, and the maturity term is 2025.

April 2021: Stock markets slowed down

Kristo Oidermaa and Romet Enok, Fund Managers

In April, world stock markets continued to rise, but at a slightly slower pace than in February and March. The MSCI World index rose by 2.2% during the month measured in euros, and the Euro Stoxx 50 index also rose by 1.8%. Among European countries, Finland was a powerful performer with its market index rising by 4.2% in April. The Japanese Nikkei index, on the other hand, fell 1.3% in local currency and 2.4% in euros.

The global emerging market index rose 2.4% in local currency, but due to the strengthening of the euro, remained at 0% in euros. The Baltic stock markets were very strong in April. The Tallinn stock market index rose the most, 7.7%, while the Vilnius and Riga markets rose by 4% and 3.2%, respectively.

In April, the private equity fund Investindustrial VII, which is part of the XL Pension Fund portfolio, announced having sold its June 2020 investment in Knoll. The fund’s stake in Knoll was acquired by the US listed company Herman Miller, which, like Knoll, produces office furniture. The Investindustrial VII fund started investing in 2019 and this was the fund’s first sale of an investment. The private equity fund earned a solid return on the transaction for investors in less than a year.

International bond markets continue to be under pressure if interest rates rise. The prices of very long-term government bonds have already fallen by more than 10% since the beginning of the year. As countries support their economies during recovery from the coronavirus crisis, this may have the side effect of a price rise, which is a great fear for bond markets.

As we have already assured in our monthly reviews, LHV pension funds do not have any such long-term fixed-interest investments. Instead, we continue looking for new investments in local companies, and over the past month we have made significant progress with a few potential deals. However, large price movements in international markets may open up additional opportunities for us to make new investments there as well.

Investors’ risk appetite continues to raise asset prices
Andres Viisemann, Head of LHV Pension Funds

June was another good month that exceeded expectations in the international securities markets: Shares of large US companies rose 5.4% in euros. The rise in European stock markets was somewhat smaller, reaching 1.6%.