II pillar

LHV Pensionifond XS
Active Management • Conservative Strategy
10%
-10%
10%
10 year net yield
2
1
7
Risk level
12.42%
0%
100%
Invests into Estonia
4756
Fund investors

Suitable if

  • you have less than 3 years left until retirement,
  • you have low risk tolerance,
  • your aim is to preserve your savings and avoid losses.
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Strategy

At least 90% of the Fund's assets are invested in investment grade bonds, money market instruments traded on a regulated market, deposits, shares or other assets of other investment funds investing mainly in the above assets and other assets. The money raised for retirement remains stable. The assets of the Fund are invested in compliance with the rating restrictions imposed on the conservative pension fund by law. The long-term preferred asset class of the fund is low-risk debt instruments.

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 25/05/215.33%
German Government 1.5% 04/09/223.84%
Temasek 0.5% 01/03/223.59%
Czech Republic 3.875% 24/05/223.56%
Riigi Kinnisvara 1.61% 09/06/273.29%
Slovakia 3.375% 15/11/243.23%
Ignitis Grupe 2% 21/05/303.10%
Luminor 1.5% 18/10/212.85%
BNP Paribas 2.875% 24/10/222.64%
Bank of America 04/05/232.61%

Biggest investments in Estonia

Biggest investments in Estonia
Riigi Kinnisvara 1.61% 09/06/273.29%
Luminor 1.5% 18/10/212.85%
Transpordi Varahaldus 2.85% 18/04/252.46%

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)24,482,622.86 €
Management companyAS LHV Varahaldus
Equity in the fund80 000 units
Rate of the depository’s charge0,0552% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0.504%

Success fee: no commission

Ongoing charges (inc management fee): 0.61%

Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.

October 2020 – There are only a few attractive investment opportunities on the market

Romet Enok, Fund Manager

Bond markets around the world did not show a clear trend or result in October: The outcome in Europe was rather on the positive side, but negative in the USA and the world as a whole. The non-existent risk premium; that is, low interest rates for companies, is an even higher risk than the low government interest rates.

In such a situation, there are still very few attractive investment opportunities that would promise a price increase at an acceptable level of risk. However, there are some such bonds: during the month, one of our largest investments, the long-term bond for the Lithuanian energy company Ignitis, offered a yield of more than 2.5%. After going public, the company has a larger capital base and investor circle, as well as better future prospects. On this wave, the bonds purchased in May have yielded over 10% for the fund.

At the same time, the broader performance of public bond markets since the beginning of the year is still poor as is the future outlook.

September 2020 – Companies take advantage of open cash taps

Romet Enok, Fund Manager

Bond markets have set new records again, both in terms of how many securities have reached a level where further expected returns are negative, and in terms of how many companies are taking advantage of the situation and borrowing as much money as possible for the long term.

In the world’s most liquid bond market, the United States, the average interest rate that higher-risk companies have to pay when borrowing new money fell to 5.5% in September. While in April this indicator exceeded 7%, last December was the bottom of the cycle so far (5.2%).

As a result, June, August and September 2020 were the three most active new bond sales months ever. It is highly questionable whether the sales boom will generate profits for investors in the long run (or even bring back the money invested). We will continue to maintain a conservative line and will not add any new investments to the fund at this time.

August 2020 – Lithuanian energy company Ignitis plans IPO

Romet Enok, Fund Manager

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.