II pillar

LHV Pensionifond XS
Active Management • Conservative Strategy
10%
-10%
10%
10 year net yield
2
1
7
Risk level
10.69%
0%
100%
Invests into Estonia
4860
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 29.02.2020

Biggest investments
German Government 1.5% 04/09/224.21%
Czech Republic 3.875% 24/05/223.95%
Temasek 0.5% 01/03/223.89%
Riigi Kinnisvara 1.61% 09/06/273.52%
Slovakia 3.375% 15/11/243.44%
Transpordi Varahaldus 2.85% 18/04/253.08%
DT 03/04/202.92%
BNP Paribas 2.875% 24/10/222.91%
Bank of America 04/05/232.80%
ALTUMG 1.3% 07/03/252.54%

Biggest investments in Estonia

Biggest investments in Estonia
Riigi Kinnisvara 1.61% 09/06/273.52%
Transpordi Varahaldus 2.85% 18/04/253.08%
Elering 0.875% 03/05/20232.26%

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)22,795,007.11 €
Management companyAS LHV Varahaldus
Equity in the fund110 000 units
Rate of the depository’s charge0,0564% (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.

February 2020 – Investors sought protection against the virus from government bonds

Romet Enok, Fund Manager

Fear concerning the impact of coronavirus on the global economy led to movements last month, which were quite foreseeable given the situation: the prices of government bonds rose, while weaker corporate bonds in particular posted significant losses. In Europe, this movement ranged from +0.5% in the government bond market to −2% for companies with a lower rating.

In February, we sold one of the fund’s biggest (and most highly-rated) investments: long-term French government bonds. The price paid for the seven-year bonds will result in a −0.4% return for the buyers, if kept to maturity.

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 – Šiaulių bankas financed a purchase transaction with bonds

Romet Enok, Fund Manager

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%.

At the same time, European bond markets showed a positive result in January for the first time since last summer. As this was the reaction of investors to the spreading of the coronavirus in China, the outlook for international bond markets remains unattractive.

December 2019 – We invested in the bonds of Šiaulių Bankas

Romet Enok, Fund Manager

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.

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.