II pillar

LHV Pensionifond XL
Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
25.44%
0%
100%
Invests into Estonia
38486
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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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 31.10.2020

Biggest investments
France Government 3.75% 25/04/215.48%
France Government 3.25% 25/10/214.96%
German Government 3.25% 04/07/214.77%
German Government 2.25% 04/09/214.64%
France Government 25/05/213.76%
German Treasury Bill 14/04/20213.63%
iShares Gold Producers UCITS ETF3.27%
EfTEN Kinnisvarafond2.77%
Riigi Kinnisvara 1.61% 09/06/272.42%
Xtrackers DAX UCITS ETF2.18%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond2.77%
Riigi Kinnisvara 1.61% 09/06/272.42%
East Capital Baltic Property Fund III2.13%

Asset Classes

The data is presented as at 31.10.2020.

Information about the fund

Information about the fund
Volume of the fund (as of 30.10.2020)223,948,423.86 €
Management companyAS LHV Varahaldus
Equity in the fund530 000 units
Rate of the depository’s charge0,0552% (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.

October 2020 – New investment in a Swedish medical technology company

Kristo Oidermaa and Romet Enok, Fund Managers

As in September, the performance of the world stock markets was mainly negative in October. Largely due to the escalation of the second wave of the COVID-19 pandemic, the Euro Stoxx 50 index, which tracks large European companies, was hit hard, falling by as much as 7.3% over the month. The largest falls were the German and Swedish stock indexes with –9.4% and –6.1%, respectively. Japan’s Nikkei index dropped by 0.9% in local currency, but with an increase of 0.6% remained positive in euros.

Among emerging markets, predominantly Asian countries, led by China, were able to deliver positive yields, while Eastern Europe was in decline. At the same time, the Warsaw stock market index fell by as much as 14.1%. In the Baltics, the most pronounced change occurred on the Vilnius stock market, whose index fell by 4.3%. The Tallinn stock market rose 0.7% during the month and the value of the Riga market index remained almost unchanged.

In October, Pension Fund XL made a new investment on the Stockholm stock market, acquiring shares in the Swedish medical technology company Getinge. The company manufactures and sells state-of-the-art equipment used by hospitals in operating rooms and intensive care units, such as operating tables, monitoring equipment and breathing apparatus. The sale of the latter has greatly boosted the company’s revenues during the COVID-19 pandemic, and Getinge has made large investments in development.

Although the IPO of the Lithuanian energy company Ignitis did not please investors, LHV’s pension fund clients managed to earn a positive return: the company’s long-term bonds acquired by the funds rose by about 2.5% during the month. Ignitis is now a publicly listed company that has strengthened its capital position and future prospects. As a result, Ignitis bonds have yielded a little over 10% for our pension funds in less than six months.

However, the outlook for public bond markets in general is still poor and LHV funds are therefore focusing on local investments. We expect to add new investments from this area to our portfolio soon.

September 2020 – INVL’s private equity fund acquired a Lithuanian health care company

Kristo Oidermaa and Romet Enok, Fund Managers

After several consecutive months with an upward trend, global stock markets halted in September and most of the market indices fell. The US technology sector index Nasdaq Composite, which had been performing very well, was hit hard and fell 5.2% in dollars over the month. The MSCI World global stock index fell 1.5% in September and the Euro Stoxx 50 index, which covers Europe’s 50 largest listed companies, fell 2.3%.

Among the biggest losers were the Mediterranean countries, while the Stockholm stock market, for example, went up 3.6% in local currency. The Japanese Nikkei stock index rose 0.2% in yen and 2.4% in euros. In the Baltic countries, only the Riga stock market index yielded a positive result, rising by 0.5%. The Vilnius and Tallinn stock markets, on the other hand, fell by 0.9% and 1.4%, respectively, in September.

The private equity fund INVL Baltic Sea Growth Fund, which is part of the Pension Fund XL portfolio, has already made its fourth investment and acquired the Lithuanian health care company Reneso, which mainly provides dental prostheses and related services. In the course of the transaction, Reneso also invested in the Danish company MBL Group, whose main business is the production of medical mobility equipment. This is the INVL Fund’s first investment outside the Baltic states.

Like stock markets, lower-rated bond segments were also on the weak side last month. While the yield on government bonds remained positive in September, the smaller corporate bond market showed a loss of around 1%. Similarly, compared to the beginning of the year, the yield on the European lower-rated corporate bond market was negative by more than 3% by the end of September.

It is unlikely that the negative yield will remain an exception, as many parts of the bond market are extremely highly priced. A much more promising strategy, on the other hand, is to invest in companies whose securities are not traded on a stock exchange. In September, we again sold international bonds, the prices of which have reached such a high level after a long rise that any expected future yield is non-existent or negative. That is why we moved forward by putting together a number of over-the-counter investments.

August 2020 – Stock markets continued to rise led by the US

Kristo Oidermaa and Romet Enok, Fund Managers

August was mostly positive for the world’s stock markets, and the stock market indices of almost all developed countries ended on the positive side.

The leader was again the US stock market, whose S&P 500 index rose by 7% in local currency during the month. The Japanese stock exchange, whose index rose by 6.6% in local currency, was a close second. However, due to the strengthening of the euro, the returns from both these stock markets remained lower when measured in euros (5.6% and 5.2%, respectively). Among European countries, Finland and Germany gained the most with returns of 6.3% and 5.1%, respectively.

However, emerging markets moved in different directions: while Asian countries, led by China, achieved largely positive returns, Latin American stock markets mostly fell. In the Baltics, the Riga stock market index outperformed the others with a 5% rise. The Vilnius stock market index went up by 1%, while the Tallinn stock market was negative by -3.6%.

In August, Siemens Healthineers, which is included in the Pension Fund XL portfolio, announced that it would take over Varian Medical Systems, a cancer treatment company listed on the New York Stock Exchange. The agreed price was 177.5 dollars per share, which is nearly 25% higher than the trading price prior to disclosure. The total transaction is 16.4 billion dollars. The transaction is still pending approval by Varian’s shareholders and the supervisory body. The merged entity will have a very strong market position in the production of medical devices, in particular in the field of cancer treatment.

The Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.

The dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.

Calm before the storm
Andres Viisemann, Head of LHV Pension Funds

The largest international securities markets were relatively calm in September. The North American and Western European stock markets lost a small part of their summer gains during the month, while the value of Japanese listed companies even rose slightly.