LHV Pensionifond XS
Active Management • Conservative Strategy
10%
-10%
10%
10 year net yield
2
1
7
Risk level
11.81%
0%
100%
Invests into Estonia
4584
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 31.03.2021

Biggest investments
France Government 25/05/216.30%
German Government 1.5% 04/09/226.30%
France Government 2.25% 25/10/224.86%
Temasek 0.5% 01/03/224.23%
Czech Republic 3.875% 24/05/224.19%
Riigi Kinnisvara 1.61% 09/06/273.89%
Ignitis Grupe 2% 21/05/303.74%
BNP Paribas 2.875% 24/10/223.13%
Bank of America 04/05/233.09%
Transpordi Varahaldus 2.85% 18/04/252.96%

Biggest investments in Estonia

Biggest investments in Estonia
Riigi Kinnisvara 1.61% 09/06/273.89%
Transpordi Varahaldus 2.85% 18/04/252.96%
Elering 0.875% 03/05/20232.50%

Asset Classes

The data is presented as at 31.03.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 31.03.2021)20,640,320.29 €
Management companyAS LHV Varahaldus
Equity in the fund80 000 units
Rate of the depository’s charge0,054% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0,486%

Success fee: no commission

Ongoing charges (inc management fee): 0.53%

Ongoing charges are based on expenses for the last calendar year, ie 2020. Ongoing charges may vary from year to year.

March 2021 – The European bond market stabilised at the end of the quarter

Romet Enok, Fund Manager

Following a sharp decline in February, European bond markets stabilised to some extent in March. The main driver of the events continues to be the fall in the price of government bonds in the United States, where additional state budget expenses are planned in addition to an already unprecedented level of expenditure.

The only clear winners in this process among bonds are the companies of the lowest quality so far. It is expected that it will be easier for them to service their liabilities when governments are still pumping more money into the economy.

Despite that, the first quarter of the year saw an approximately 2% decline in the European bond market. We have kept the risk level lower, and so the quarter ended with a near-zero return for the fund.

February 2021: bond yields rise in anticipation of inflation

Romet Enok, Fund Manager

The value of bonds of the countries with the highest credit ratings fell in February. The expectation that the vaccines developed so far will help control the coronavirus is improving the outlook for consumption, investment and economic growth.

All this can also imply a price rise and, with it, higher interest rates, which will lower the prices of long-term bonds particularly sharply. For example, a ten-year German government bond fell by around 2.5% in February.

For some time now, we have been minimising our portfolio’s risk of losing money as interest rates rise. Therefore, the fund does not hold any bonds with a ten-year or longer fixed interest rate.

January 2021: bond markets continued to fall

Romet Enok, Fund Manager

Bond markets remained largely negative in the first month of the year in Europe, the United States and emerging markets. The decline was not sharp, but the US and especially German markets have been steadily declining since early November, when the results of the Pfizer/BionTech vaccine clinical trial became available. The movement of these two anchors has had a very wide-ranging impact on the markets.

Despite a slight fall in prices (and rising interest rates), sales of new securities continue to grow strongly: in January, for example, European countries borrowed a total of about 40% more than in January 2017. There is currently no alternative to borrowing to compensate for the reduced tax revenue.

As we have refrained from bonds with a higher price risk, the fund ended January slightly on the positive side despite the market decline.

The economy is starting to grow again
Andres Viisemann, Head of LHV Pension Funds

March was another great month for stock markets. The US stock market rose 7.2% in euros and the stocks of European companies rose 6.1% during the month. Asian stock markets were less optimistic: The Chinese stock market lost 3.7% of its value in euros during the month.