II pillar

LHV Pensionifond XL
Active Management • Aggressive Strategy
10%
-10%
10%
10 year net yield
3
1
7
Risk level
30.55%
0%
100%
Invests into Estonia
34376
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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Unit NAV
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Profit/loss €
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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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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 29.02.2020

Biggest investments
Luminor 1.5% 18/10/213.49%
EfTEN Kinnisvarafond3.28%
TRIGON - New Europe Fund D3.22%
Riigi Kinnisvara 1.61% 09/06/272.77%
France Government 2.25% 25/10/222.42%
East Capital Baltic Property Fund III2.40%
East Capital Baltic Property Fund II2.17%
Berkshire Hathaway 0.25% 17/01/212.11%
BNP Paribas 0.75% 11/11/221.99%
JP Morgan 1.375% 16/09/211.92%

Biggest investments in Estonia

Biggest investments in Estonia
Luminor 1.5% 18/10/213.49%
EfTEN Kinnisvarafond3.28%
Riigi Kinnisvara 1.61% 09/06/272.77%

Asset Classes

The data is presented as at 29.02.2020.

Information about the fund

Information about the fund
Volume of the fund (as of 29.02.2020)195,163,670.05 €
Management companyAS LHV Varahaldus
Equity in the fund500 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: 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.

Ongoing charges (inc management fee): 0.98%

The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.

February 2020 – We supplemented the private equity investment portfolio

Kristo Oidermaa, Fund Manager

In February, global stock markets experienced a sharp decline, caused by fears of the spread of the coronavirus and the accompanying slowdown of economic growth. The index, which gathers together the 50 biggest publicly traded companies in the Eurozone, decreased by 8.5% over the month, with France and Germany being among the biggest losers. The Japanese stock exchange index dropped by 8%, measured in euros.

The global index of developing markets dropped by 5.3% in February and Latin-American countries were hit significantly harder than Asian countries. At the same time, the Chinese stock index recovered from a decline in January and remained slightly positive in February. This time even the Baltic stock markets went along with the overall decline: The rate of return of the Vilnius Stock Exchange was −6.3% and the Tallinn Stock Exchange fell by 5.3% over the month. The decline of the Riga Stock Exchange was notably smaller at 2.7%.

We added the Pictet Monte Rosa private equity fund of funds as a new investment to Pension Fund XL’s portfolio. This is a private bank and an asset management company with a very long history, founded in 1805 in Switzerland. Pictet has assets under management worth nearly EUR 519 billion, including EUR 12 billion in private equity investments. The investment focus of the fund of funds is global; however, the fund primarily places money in different types of private equity funds in North America, Europe and Asia.

Bond markets acted as expected in the climate of fear: European government loan markets offered a gain of approx. 0.5%, while the market for weaker companies lost more than 2%. 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.

January 2020 – The first year of operation of rental houses was a success

Kristo Oidermaa, Fund Manager

2020 began with quite a negative tone on global stock markets, with the stock exchanges of both developed and developing countries remaining mainly in negative territory in January. The rate of return of the Euro Stoxx 50 Index, which combines the largest companies of the euro zone, came to –2,7%, while the stock markets of almost all major powers decreased. Only the Finnish Stock Exchange was able to provide a surprise with its 2.2% rise. The stock markets of the Baltic Republics did not go along with the negative mood and the Tallinn Stock Exchange index rose by a total of 4.6%. The rate of return of the Vilnius Stock Exchange was 3.1%, and the Riga Stock Exchange rose by a modest 0.5%.

In January, the results of the first year of operation of LHV pension fund owned rental houses in Northern Tallinn were revealed, which one can definitely be satisfied with. The first residents moved into the apartments on Manufaktuuri Street in May, with all 127 apartments having found tenants by the end of 2019. The real estate valuation performed at the end of the year increased the value of the buildings significantly. Together with the rental income earned during the eight month period, the apartment houses provided unit holders of the pension fund with a decent rate of return. We are currently applying for a construction permit for the next series of rental apartment buildings, with a total of 164 apartments, planned for the Uus Mustamäe Quarter of Tallinn, with completion expected to take place by the end of 2021.

Šiaulių bankas announced that they have concluded a contract in order to purchase a loan portfolio from the Lithuanian branch of Danske Bank. The 125 million euro portfolio, mainly consisting of home loans, is related to private banking clients. In order to finance its growth, Šiaulių issued subordinated bonds for LHV pension funds at the end of December in the amount of 20 million euros and at an interest rate of 6.15%.

December 2019 – We made a new investment in the Trigon share fund

Kristo Oidermaa, Fund Manager

A familiar trend continued on the global stock markets in December, which mainly left the stock markets of developed as well as developing countries in positive territory. The Euro Stoxx 50 stock index, which represents the 50 largest listed companies in the Eurozone, rose by 1.2% in December, with the best performance coming from the Helsinki Stock Exchange, which rose by 4.1%. The Japanese stock index rose during the month by 1.6% when measured in the local currency, but only by 0.3% when measured in euros.

December turned out to be an especially strong month for the stock markets of developing countries, with the MSCI Emerging Markets index rising by 7.2%. In comparison, the results for Baltic stock exchanges were more reserved: The Tallinn and Vilnius stock exchange indexes rose by 1.2% and 0.4%, respectively, while the Riga stock exchange fell by 0.8%.

In December, Pension Fund XL made a new investment in the Trigon New Europe Fund. The Fund invests in shares listed on the stock exchanges of new European Union Member States and candidate countries. The Fund’s portfolio consists of an average of 30-40 shares with an emphasis on the stock exchanges of Poland, the Czech Republic, Hungary, Romania and Slovenia. In terms of sectors, the largest investments are made in the shares of companies operating in the banking, consumer goods and energy sectors.

At the end of December we reached an agreement with Šiaulių Bankas, the fourth largest bank in Lithuania, on the basis of which LHV’s pension funds invested in the company’s long-term bonds. The annual interest rate on the bonds is 6.15%, the final term is in ten years, and the bank reserves the right to repay these prior to the deadline in December 2024.

Šiaulių Bankas has since grown in such a manner that it serves 7-8% of the Lithuanian banking market. The bank’s biggest shareholder remains the European Bank for Reconstruction and Development (EBRD), which holds more than 25% of its shares. Long-term bonds help to fulfil the bank’s capital requirements, thereby allowing them to grow their loan portfolio.

Over the past few years we have made similar investments in the bonds of Coop Pank and Citadele Banka. By doing so we have created a new asset class in the funds; one that generates over 6% in interest annually.

Stock markets sailed into unknown waters
Andres Viisemann, Head of LHV Pension Funds

While 2019 surpassed expectations in terms of corporate profits on stock markets, this year, profit growth may once again be disappointing. International trade was already at a standstill prior to the spread of the coronavirus, and even the global economy was expected to slow down to some extent.