LHV Pensionifond XL
Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
20.65%
0%
100%
Invests into Estonia
28754
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 31.08.2021

Biggest investments
German Treasury Bill 25/08/20216.13%
TRIGON - New Europe Fund D2.81%
ZKB Gold ETF2.56%
iShares Gold Producers UCITS ETF2.38%
EfTEN Kinnisvarafond2.34%
Swedbank2.15%
Riigi Kinnisvara 1.61% 09/06/271.99%
ZKB Gold ETF1.77%
East Capital Baltic Property Fund III1.66%
iShares DAX EX1.53%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond2.34%
Riigi Kinnisvara 1.61% 09/06/271.99%
East Capital Baltic Property Fund III1.77%

Asset Classes

The data is presented as at 31.08.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 31.08.2021)271,470,717.27 €
Management companyAS LHV Varahaldus
Equity in the fund530 000 units
Rate of the depository’s charge0,0576% (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.

September 2021: Risk aversion in stock markets grew

Kristo Oidermaa and Romet Enok, Fund Managers

The euro appreciated against the US dollar in September, although world stock markets mostly fell. Many indices declined: MSCI World decreased by 2.4% in euros, the S&P 500 index that tracks the US stock market went down by 2.8%, European Stoxx 50 declined by 3.4% and the MSCI Emerging Markets index by 2.3% in euros.

As opposed to the others, the Japanese Nikkei index went up by 5.6% during the month. The results of the Baltic stock markets were quite mixed. While the Tallinn and Vilnius stock markets fell by 3.4% and 7%, respectively, the Riga stock market remained almost unchanged during the month, rising by 0.1%.

Those of the funds’ investments that have stronger relations with Asia were on the minus side. These are investments in the materials industry and metal mining companies with most of their demand base in China. However, investments in the energy sector provided protection against a stronger decline, which, together with banks, were the only sectors with a positive return on the stock markets. Investments in the energy sector will remain a critical part of our portfolios in the autumn and early winter.

August 2021: We reduced equity risk

Kristo Oidermaa and Romet Enok, Fund Managers

In August, world stock markets continued to rise. The MSCI World index rose 3% in euros, the S&P 500 index, which tracks the US stock market, rose 3.4% in euros, the Euro Stoxx 50 rose 2.6% and the Japanese Nikkei index rose 3.2% in euros.

Emerging markets moved at a similar pace: The MSCI Emerging Markets Index showed a 2.9% increase in euros during the month. The local Baltic stock markets rose significantly in August, led by the Tallinn stock market with 12.9% growth. The Riga and Vilnius stock markets rose relatively equally by 4.1% and 4%, respectively.

Against the background of good financial results, equity positions in the fund continued to appreciate, while the decline in the share prices of gold mining companies had a negative impact. Among the most significant changes, we sold some of the individual equity positions to reduce the level of equity risk following the sharp rise after the coronavirus crisis. Among larger sales, we profited from shares in Siemens Healthineers, Metsä Board, Stora Enso, Getinge and Coor Service Management Holding. We also reduced our equity positions on the Baltic stock markets.

In August, LHV pension funds acquired a production building in the Lasnamäe district in Tallinn to earn long-term rental income. The production building at 3/5 Taevakivi St. was built in several stages between 2006 and 2012 and has a leasable area of approximately 10,000 m2. The entire building is leased to Plastone OÜ, a company with a Nordic background, which produces plastic accessories for medical, electrical and electronics companies.

In addition to the production building in Lasnamäe, LHV pension funds own the Valge Maja office building in the centre of Tallinn, the Microsoft office building on the TalTech campus, three stock office-type commercial buildings in Jüri and 127 rental apartments called Lumi Kodud in the North Tallinn district. At the end of 2021, another 164 rental apartments will be completed for the pension funds on Mustamäe Road in Tallinn.

In August, a directly acquired stake in Bank North, which is starting operations in the United Kingdom, was added to the fund’s portfolio. The Bank will focus on lending to small- and medium-sized enterprises operating outside London. The founders have long-term banking experience, and the Bank’s investors include local entrepreneurs and companies.

One of our most significant investments ended in August when Transpordi Varahaldus redeemed its bonds before maturity. These offered the fund an attractive return compared to the bond markets. In the future, given the new legal requirements, we will focus on investments with higher expected returns.

July 2021: The fund’s performance was supported by gold-related investments

Kristo Oidermaa and Romet Enok, Fund Managers

In July, the euro weakened against the US dollar by only 0.1%, and as a result, the performance of world stock markets was similar in euros and dollars. The MSCI World, the US S&P 500 and the European Euro Stoxx 50 index rose 1.8%, 2.2% and 0.7% over the month in euros, respectively.

The Japanese Nikkei index showed a very different result among developed markets, falling by 4.2% measured in euros in July. The MSCI Emerging Markets index also moved downward, depreciating by 7.1% in euros.

However, the local Baltic stock markets grew in July, and Tallinn was the strongest performer with a 7% rise. This was followed by the Vilnius and Riga stock markets, rising by 4.4% and 1.4%, respectively.

In July, investments in the precious metals, financial and materials sectors brought the highest returns for the pension fund’s stock portfolio, while investments in the energy sector suffered the most.

In the precious metals sector, investments both in physical gold and gold mining companies gained value. In the materials sector, the forestry companies UPM-Kymmene and Stora Enso brought the highest returns.

We believe that precious metals and the commodities sector are segments that proactively offer good protection against declining investor purchasing power. The latter is due to accelerating inflation.

The domestic private equity firm BaltCap announced that the BaltCap Infrastructure Fund, managed by them, will sell its stake in Energia Verde. This is a biomass-based power plant that mainly supplies the district heating system in Riga. The company is being acquired by Gren, a green energy company based in Northern Europe and held by the international private equity firm Partners Group. BaltCap Infrastructure Fund invested in the Energia Verde power plant in 2018. The fund focuses on infrastructure-related investments, mainly in the Baltics.

In July, one of our largest bond investments ended somewhat unexpectedly. At the beginning of last year, we entered into agreements to finance the newly built Peetri Keskus in Peetri Village near Tallinn with bonds. Although the period since then has been very difficult for the entire service sector due to coronavirus restrictions, Peetri Keskus proved its necessity and viability. The centre is now moving forward with new lenders and redeemed all its liabilities to the fund. The average interest return on several bonds related to the Peetri Keskus was 7% per annum, plus an early redemption fee.

We did not add any new investments to the fund in July. Shorter-term German and French government bonds currently account for a much larger than usual share of the fund’s portfolio. From their sale, we will finance the expected payments to those leaving the pension system at the beginning of September.

In an uncertain environment, it is wise to divide the stakes
Andres Viisemann, Head of LHV Pension Funds

August marked another successful month on the international stock markets. The MSCI World stock market index rose by about 3% during the month, measured in euros, and is 22% higher than at the beginning of the year. The Stoxx 50 index, which tracks large European companies, and the S&P 500, which tracks the largest US companies, rose 2.6% and 3.4% in euros in August and have returned 18.1% and 24.7% in the first eight months of the year, respectively.