II pillar

LHV Pensionifond XS
Active Management • Conservative Strategy
10%
-10%
10%
10 year net yield
2
1
7
Risk level
10.06%
0%
100%
Invests into Estonia
4629
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 31.01.2021

Biggest investments
German Government 1.5% 04/09/225.39%
France Government 25/05/215.39%
France Government 2.25% 25/10/224.15%
Temasek 0.5% 01/03/223.62%
Czech Republic 3.875% 24/05/223.58%
Riigi Kinnisvara 1.61% 09/06/273.31%
Ignitis Grupe 2% 21/05/303.24%
Slovakia 3.375% 15/11/243.17%
BNP Paribas 2.875% 24/10/222.68%
Bank of America 04/05/232.64%

Biggest investments in Estonia

Biggest investments in Estonia
Riigi Kinnisvara 1.61% 09/06/273.31%
Transpordi Varahaldus 2.85% 18/04/252.51%
Elering 0.875% 03/05/20232.13%

Asset Classes

The data is presented as at 31.01.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 31.01.2021)24,183,297.03 €
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.

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.

December 2020: little to win but much to lose on bond markets

Romet Enok, Fund Manager

The coronavirus in the spring shocked bond markets around the world. In both Europe and the United States, the markets for weaker corporate bonds fell by around 20%. The central banks’ response was as sharp and strong as the market panic in February. As hope for the success of vaccine production rose in the autumn, almost all market segments had clear positive returns by the end of the year.

We have been avoiding increasing risks in the bond portfolio for a long time, because there would be very little to gain, yet much to lose – not least because of the extremely high price level of bonds. In the spring, however, we made a new large investment when the Lithuanian state energy company Ignitis raised money for investments.

As another major investment, we acquired Estonian government bonds when the government decided to replenish state reserves. However, we sold the bonds a few weeks later with a profit of a few percent because their expected future yield was almost non-existent.

At the end of the year, the fund’s portfolio still consists largely of high-rated short-term bonds.

November 2020: new Luminor bonds replace the old

Romet Enok, Fund Manager

In November, as Luminor redeemed its bonds before maturity and issued new ones, we replaced Luminor’s bonds in our portfolio. Fund XS participated in both the resale of old bonds and the subscription of new ones.

At a time when deposit rates are close to zero, bonds in some cases still offer earning opportunities. Interest on Luminor’s old bonds has been 1.5% per annum for the past two years, and the bank paid a little over 1% for the premature redemption. Even as I write, the price of the new bond has risen by about 0.5%.

Those who accumulate reserves will do better
Andres Viisemann, Head of LHV Pension Funds

A very dramatic, at times even surreal 2020 is finally behind us. Both people and companies were forced to make difficult choices about how to reorganise their lives. Last year taught us that self-sufficiency can be more important than short-term efficiency, and that reserves are needed even if it’s just to be able to wait for help.