{"LXK00":{"heading":"LHV Pensionifond XS","id":"xs","code":"xs","dataMarker":"XSK00","suitability":"**Suitable if**\n- you have less than 3 years left until retirement,\n- you have low risk tolerance,\n- your aim is to preserve your savings and avoid losses.\n","isLhvFund":true,"strategy":"**Strategy**\n\nAt 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.\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":2992},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":88.11,"unit":"%"},{"name":"Equity funds","value":4.68,"unit":"%"},{"name":"Money and deposits","value":7.21,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Luminor 0.792% 03/12/24 | 9.66% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 6.61% |\n| German Treasury Bill 18/01/2023 | 6.19% |\n| Estonia 4.0% 12/10/2032 | 5.63% |\n| ZKB Gold ETF | 4.68% |\n| ALTUMG 1.3% 07/03/25 | 4.38% |\n| Elering 0.875% 03/05/2023 | 4.15% |\n| Bank Gospodarstwa Krajow 1.375% 01/06/25 | 3.88% |\n| France Government 25/02/23 | 3.29% |\n| Kojamo 0.875% 28/05/2029 | 2.99% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 0.792% 03/12/24 | 9.66% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 6.61% |\n| Estonia 4.0% 12/10/2032 | 5.63% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 12,109,985.27 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 50,000 units |\n| Rate of the depository’s charge | 0.0456% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,5130%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0,53%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_tingimused.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2022.pdf)\n- [Analysis of the amendments made to the prospectus (in Estonian)](/assets/files/pension/Prospekti_muudatuste_pohjendus_ja_moju_analyys_052022.pdf)\n- [Key Investor Information (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2022,"month":12,"content":"### December 2022: The most difficult year in the bond market in recent decades\n\nRomet Enok, Fund Manager\n\nEuropean bond markets were again in the red in December. The entirety of 2022 was one of the most difficult years in recent decades. The sudden raising of interest rates by central banks caught most market participants by surprise, and the fluctuations were sharp at times.\n\nThe more investors sought risk and held longer-dated bonds, the more they lost. In the end, the market average result for the year was –17% in Europe, and the Estonian government bond offered a return of –21%.\n\nIn this situation, the LHV XS pension fund ended the year with –3.6%, being the best-performing conservative pension fund in Estonia. LHV’s XS also continues to have the highest returns over the past three, five, ten and 15 years.\n\nThe price drop in the market offered us many opportunities during the year to acquire new positions for the fund at an attractive interest rate. Nevertheless, the fund still has a considerable amount of liquidity because the impact of the economic recession has not yet reached companies, and this is where the next place to buy may be.\n"},{"year":2022,"month":11,"content":"### November 2022: We acquired bonds of a Swedish asset management company\n\nRomet Enok, Fund Manager\n\nIn early November, we made a new investment in the long-term bonds of EQT, a large Swedish asset management company. EQT’s business model consists of acquiring, managing, and selling unlisted businesses. As the company involves, on a European scale, rather minor amounts of debt capital, the prices of its securities move more than average in certain situations. Therefore, the price of the bonds issued in spring had fallen by approximately 20% by the beginning of November, and at our purchase price, they offer an annual yield of 5.9%.\n\nThe acceleration of inflation has slowed down in Europe, and likewise expectations about how high interest rates could rise have also become more modest. There is still some uncertainty, however, and the deterioration of corporate results should start to come into focus. We have prepared for this, waiting for opportunities to add new investments to the fund.\n"},{"year":2022,"month":10,"content":"### October 2022: A price drop has made bonds attractive\n\nRomet Enok, Fund Manager\n\nAfter the recent months’ decline in bond prices, we began making purchases in October.\n\nWe participated in the new sale of Estonian government bonds at the beginning of the month, when the government raised money to cover the budget deficit for ten years, at a price of slightly more than 4%. Estonia’s very high international credit rating creates the potential for these bonds to bring the buyer a higher yield than the issue price.\n\nAs the month progressed, we also added bonds from European markets to our portfolio. Companies dealing in raw materials have strong financial results and relatively low debt burdens, while bond prices have fallen sharply. While companies paid investors 1 to 2% interest at the beginning of the year, the expected annual return at our purchase level is 5 to 7%.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The rising price of money led to a decline in asset prices**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n","text":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n\nJust one year earlier, the volume of bonds with a negative annual yield was even larger at 18 trillion dollars. Although inflation rates had been on an upward trend throughout 2021, central banks insisted this was temporary: several of them continued to buy up bonds and pump money into circulation until mid-2022.\n\nThe value of the S&P 500 index, which tracks the world’s largest and most important stock market, fell by around 20% last year, despite a mere 5% decline in corporate profits. The price-to-earnings (P/E) ratio of the index was 27 times the earnings for the past 12 months in early 2022 but dropped to 19 by the end of the year.\n\nAlthough, at the start of 2022, the US stock market was overvalued in terms of almost every historical standard, stocks still looked cheap relative to the bond market, where the ten-year US government bond offered an annual yield of 1.63%.\n\nIn early 2022, the US Federal Reserve offered an interest rate of 0.25% on overnight deposits. Over the next 12 months, the Federal Reserve raised interest rates seven times to an eventual 4.5%.\n\n**The adjustment may not be over**\n\nThe interest rate is the price of money. When the price of money was close to zero, all assets, regardless of quality, appeared cheap. Over the past year, interest rates rose significantly, meaning that money once again had a price.\n\nWhile just a year ago, due to negative interest rates, 100 euros in your wallet was worth less than a 100 euro note you would receive in 10 years (yes, absurd!) then, with the reversal of interest rates, we returned to a world where the 100 euros in your bank account today is worth more than a 100 euro note you would receive in ten years. At a 4% price of money, the current value of a future 100 euros 10 years from now is a little less than 68 euros.\n\nA rise in interest rates has a negative impact on asset prices, as the value of future profits and rents falls. Furthermore, why risk buying shares in a company that only offers a 1.5% dividend when essentially risk-free government bonds offer an annual yield of 4%?\n\nI suspect that if interest rates rise further, the values of ventures and projects with higher risks and longer time horizons may fall further.\n\nIn 2022, bond markets fell even more than stock markets, which leaves unanswered the question of whether bond markets overreacted or whether stocks still have room to fall. Bonds are generally lower-risk investments than stocks.\n\nThirty-year US government bonds lost more than half their value to rising interest rates last year. It is true that after 30 years, the investors will get their entire investment back, but the value of the bond that will be redeemed after 30 years is currently only half of that. While there is a direct mathematical relationship between the bond price and the interest rate, expectations about companies’ future profits also come into play in the case of stock prices.\n\nThe price level of stocks depends not only on interest rates but also on the financial performance of companies. Companies’ profit ratios decreased significantly last year, but still remain somewhat above the historical average. The financial performance of companies was stronger than expected last year, even despite the accelerating rate of inflation, rising interest rates, and disruptions in supply chains. If the growth of the largest economies were to turn negative in 2023 and corporate profits fall, this would put stock markets under new pressure.\n\nHowever, this does not mean that all companies would face equal difficulties. I believe that, in the coming years, a company’s debt load and the ease or difficulty of refinancing existing debts or attracting new capital will count more than the sector in which it operates.\n\nFor the past 20 years, and especially during the past ten, interest rates have been historically very low. In July 2012, the European Central Bank lowered the interest rate on its standing deposit facility to zero, and in June 2014 it went negative for the first time. This meant that commercial banks had to start paying for depositing their funds in the central bank. The US Federal Reserve refrained from setting negative interest rates but kept them close to zero for a long time.\n\nNow that the US Federal Reserve pays banks 4.25% for their deposits and the European Central Bank pays 2%, interest rates have merely normalised. Those who hope and expect a return to the monetary policy regime of a few years ago, where the price of money was essentially 0%, are likely to be disappointed. You can find a 200-year history of US dollar interest rates [here](https://advisor.visualcapitalist.com/us-interest-rates/).\n\n**The economy is cyclical**\n\nFor years, I have noted the absurdity of the monetary policy of developed countries. It is necessary to support the economy during a crisis, but more than ten years of continuous support can develop into a dangerous addiction.\n\nIn a recent interview, Jeffrey Gundlach, who was crowned the king of the bond markets after Bill Gross, compared a 0% monetary policy to an adrenaline injection: it is necessary in a life-threatening situation, but it is neither healthy nor reasonable to have an adrenaline shot every morning.\n\nLHV pension funds pursue a very long-term investment strategy. We have always considered the possibility that the economy and securities markets are cyclical, and that both interest rates and stock market ratios fluctuate around their historical averages. The investment portfolios of our pension funds have been designed based on this knowledge.\n\nOwing to conservative investment strategy, we did not make a maximum gain on the phenomenal rise of the stock markets in 2021, when the world’s largest economies were almost locked down, while the policy of zero interest rates and the generosity of governments boosted the value of all companies and projects. But thanks to our conservative investment strategy, we also managed to avoid investing in companies with a high debt burden, whose value was based on nothing but lofty promises and who have been in free fall over the past year.\n\n
\n\nPS!\n\nIn an earlier newsletter, I wrote about the growing importance of stories and narratives, which have even surpassed the ability of companies in certain lines of business to offer real products and services. Several speculative bubbles burst last year. Some were caused by the greed and naivety of the investors themselves, while others were deliberately and maliciously created illusions. The lawsuit between the scandalous medical diagnostics startup Theranos and its founder Elizabeth Holmes was settled last year.\n\nI would like to hope that the events of the past year point to the importance of independent critical thinking, and that we, as citizens and investors, will be better able to tell between illusions and reality in the future.\n\nBy the way, Merriam Webster, the oldest publisher of dictionaries and reference books in the United States, chose _[gaslighting](https://www.merriam-webster.com/words-at-play/word-of-the-year?utm_source=Sailthru&utm_medium=email&utm_campaign=Insider%20Today%2C%20December%201%2C%202022&utm_term=INSIDER%20TODAY%20SEND%20LIST)_ as the word of the year for 2022. It means creating a false narrative that causes a victim of fraud to question the validity of their own thoughts.\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019782","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":31.17,"fundManager":"LHV"},"LSK00":{"heading":"LHV Pensionifond S","id":"s","code":"s","dataMarker":"SK00","suitability":"**Suitable if**\n- you have 2–5 years left until retirement age,\n- you have low risk tolerance,\n- your aim is the preservation and modest growth of your pension savings.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe Fund's assets are mainly invested in bonds. The Fund's assets may be invested in sub-investment grade bonds. Up to 25% of the fund's assets may be invested in real estate, infrastructure, equity funds and convertible bonds. The Fund may also grant a loan. The long-term preferred asset class of the fund is listed debt instruments.\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":5068},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":88.18,"unit":"%"},{"name":"Equity funds","value":4.63,"unit":"%"},{"name":"Real Estate funds","value":1.39,"unit":"%"},{"name":"Money and deposits","value":5.79,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| German Treasury Bill 18/01/2023 | 10.38% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 8.31% |\n| Luminor 0.792% 03/12/24 | 7.32% |\n| Romania 2.875% 28/10/24 | 5.13% |\n| Estonia 4.0% 12/10/2032 | 5.01% |\n| ZKB Gold ETF | 4.63% |\n| ALTUMG 1.3% 07/03/25 | 4.53% |\n| France Government 25/02/23 | 3.45% |\n| KBC Group NV 0.625% 07/12/2031 | 3.16% |\n| BNP Paribas 2.5% 31/03/2032 | 3.13% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Riigi Kinnisvara 1.61% 09/06/27 | 8.31% |\n| Luminor 0.792% 03/12/24 | 7.32% |\n| Estonia 4.0% 12/10/2032 | 5.01% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 28,872,118.85 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 120 000 units |\n| Rate of the depository’s charge | 0.0468% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,6240%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0,64%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_tingimused_26112020.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2022.pdf)\n- [Analysis of the amendments made to the prospectus (in Estonian)](/assets/files/pension/Prospekti_muudatuste_pohjendus_ja_moju_analyys_052022.pdf)\n- [Key Investor Information (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_S_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_S_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2022,"month":12,"content":"### December 2022: The most difficult year in the bond market in recent decades\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nEuropean bond markets were again in the red in December. The entirety of 2022 was one of the most difficult years in recent decades. The sudden raising of interest rates by central banks caught most market participants by surprise, and the fluctuations were sharp at times.\n\nThe more investors sought risk and held longer-dated bonds, the more they lost. In the end, the market average result for the year was –17% in Europe, and the Estonian government bond offered a return of –21%.\n\nThe LHV S pension fund ended the year with a result of –2.2%. It ranked fourth among the 26 second-pillar funds of the Estonian pension system.\n\nThe price drop in the market offered us many opportunities during the year to acquire new positions for the fund at an attractive interest rate. Nevertheless, the fund still has a considerable amount of liquidity because the impact of the economic recession has not yet reached companies, and this is where the next place to buy may be.\n"},{"year":2022,"month":11,"content":"### November 2022: We acquired bonds of a Swedish asset management company\n\nKristo Oidermaa and Romet Enok, Fund Manager\n\nIn early November, we made a new investment in the long-term bonds of EQT, a large Swedish asset management company. EQT’s business model consists of acquiring, managing, and selling unlisted businesses. As the company involves, on a European scale, rather minor amounts of debt capital, the prices of its securities move more than average in certain situations. Therefore, the price of the bonds issued in spring had fallen by approximately 20% by the beginning of November, and at our purchase price, they offer an annual yield of 5.9%.\n\nThe acceleration of inflation has slowed down in Europe, and likewise expectations about how high interest rates could rise have also become more modest. There is still some uncertainty, however, and the deterioration of corporate results should start to come into focus. We have prepared for this, waiting for opportunities to add new investments to the fund.\n"},{"year":2022,"month":10,"content":"### October 2022: A price drop has made bonds attractive\n\nKristo Oidermaa and Romet Enok, Fund Manager\n\nAfter the recent months’ decline in bond prices, we began making purchases in October.\n\nWe participated in the new sale of Estonian government bonds at the beginning of the month, when the government raised money to cover the budget deficit for ten years, at a price of slightly more than 4%. Estonia’s very high international credit rating creates the potential for these bonds to bring the buyer a higher yield than the issue price.\n\nAs the month progressed, we also added bonds from European markets to our portfolio. Companies dealing in raw materials have strong financial results and relatively low debt burdens, while bond prices have fallen sharply. While companies paid investors 1 to 2% interest at the beginning of the year, the expected annual return at our purchase level is 5 to 7%.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The rising price of money led to a decline in asset prices**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n","text":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n\nJust one year earlier, the volume of bonds with a negative annual yield was even larger at 18 trillion dollars. Although inflation rates had been on an upward trend throughout 2021, central banks insisted this was temporary: several of them continued to buy up bonds and pump money into circulation until mid-2022.\n\nThe value of the S&P 500 index, which tracks the world’s largest and most important stock market, fell by around 20% last year, despite a mere 5% decline in corporate profits. The price-to-earnings (P/E) ratio of the index was 27 times the earnings for the past 12 months in early 2022 but dropped to 19 by the end of the year.\n\nAlthough, at the start of 2022, the US stock market was overvalued in terms of almost every historical standard, stocks still looked cheap relative to the bond market, where the ten-year US government bond offered an annual yield of 1.63%.\n\nIn early 2022, the US Federal Reserve offered an interest rate of 0.25% on overnight deposits. Over the next 12 months, the Federal Reserve raised interest rates seven times to an eventual 4.5%.\n\n**The adjustment may not be over**\n\nThe interest rate is the price of money. When the price of money was close to zero, all assets, regardless of quality, appeared cheap. Over the past year, interest rates rose significantly, meaning that money once again had a price.\n\nWhile just a year ago, due to negative interest rates, 100 euros in your wallet was worth less than a 100 euro note you would receive in 10 years (yes, absurd!) then, with the reversal of interest rates, we returned to a world where the 100 euros in your bank account today is worth more than a 100 euro note you would receive in ten years. At a 4% price of money, the current value of a future 100 euros 10 years from now is a little less than 68 euros.\n\nA rise in interest rates has a negative impact on asset prices, as the value of future profits and rents falls. Furthermore, why risk buying shares in a company that only offers a 1.5% dividend when essentially risk-free government bonds offer an annual yield of 4%?\n\nI suspect that if interest rates rise further, the values of ventures and projects with higher risks and longer time horizons may fall further.\n\nIn 2022, bond markets fell even more than stock markets, which leaves unanswered the question of whether bond markets overreacted or whether stocks still have room to fall. Bonds are generally lower-risk investments than stocks.\n\nThirty-year US government bonds lost more than half their value to rising interest rates last year. It is true that after 30 years, the investors will get their entire investment back, but the value of the bond that will be redeemed after 30 years is currently only half of that. While there is a direct mathematical relationship between the bond price and the interest rate, expectations about companies’ future profits also come into play in the case of stock prices.\n\nThe price level of stocks depends not only on interest rates but also on the financial performance of companies. Companies’ profit ratios decreased significantly last year, but still remain somewhat above the historical average. The financial performance of companies was stronger than expected last year, even despite the accelerating rate of inflation, rising interest rates, and disruptions in supply chains. If the growth of the largest economies were to turn negative in 2023 and corporate profits fall, this would put stock markets under new pressure.\n\nHowever, this does not mean that all companies would face equal difficulties. I believe that, in the coming years, a company’s debt load and the ease or difficulty of refinancing existing debts or attracting new capital will count more than the sector in which it operates.\n\nFor the past 20 years, and especially during the past ten, interest rates have been historically very low. In July 2012, the European Central Bank lowered the interest rate on its standing deposit facility to zero, and in June 2014 it went negative for the first time. This meant that commercial banks had to start paying for depositing their funds in the central bank. The US Federal Reserve refrained from setting negative interest rates but kept them close to zero for a long time.\n\nNow that the US Federal Reserve pays banks 4.25% for their deposits and the European Central Bank pays 2%, interest rates have merely normalised. Those who hope and expect a return to the monetary policy regime of a few years ago, where the price of money was essentially 0%, are likely to be disappointed. You can find a 200-year history of US dollar interest rates [here](https://advisor.visualcapitalist.com/us-interest-rates/).\n\n**The economy is cyclical**\n\nFor years, I have noted the absurdity of the monetary policy of developed countries. It is necessary to support the economy during a crisis, but more than ten years of continuous support can develop into a dangerous addiction.\n\nIn a recent interview, Jeffrey Gundlach, who was crowned the king of the bond markets after Bill Gross, compared a 0% monetary policy to an adrenaline injection: it is necessary in a life-threatening situation, but it is neither healthy nor reasonable to have an adrenaline shot every morning.\n\nLHV pension funds pursue a very long-term investment strategy. We have always considered the possibility that the economy and securities markets are cyclical, and that both interest rates and stock market ratios fluctuate around their historical averages. The investment portfolios of our pension funds have been designed based on this knowledge.\n\nOwing to conservative investment strategy, we did not make a maximum gain on the phenomenal rise of the stock markets in 2021, when the world’s largest economies were almost locked down, while the policy of zero interest rates and the generosity of governments boosted the value of all companies and projects. But thanks to our conservative investment strategy, we also managed to avoid investing in companies with a high debt burden, whose value was based on nothing but lofty promises and who have been in free fall over the past year.\n\n
\n\nPS!\n\nIn an earlier newsletter, I wrote about the growing importance of stories and narratives, which have even surpassed the ability of companies in certain lines of business to offer real products and services. Several speculative bubbles burst last year. Some were caused by the greed and naivety of the investors themselves, while others were deliberately and maliciously created illusions. The lawsuit between the scandalous medical diagnostics startup Theranos and its founder Elizabeth Holmes was settled last year.\n\nI would like to hope that the events of the past year point to the importance of independent critical thinking, and that we, as citizens and investors, will be better able to tell between illusions and reality in the future.\n\nBy the way, Merriam Webster, the oldest publisher of dictionaries and reference books in the United States, chose _[gaslighting](https://www.merriam-webster.com/words-at-play/word-of-the-year?utm_source=Sailthru&utm_medium=email&utm_campaign=Insider%20Today%2C%20December%201%2C%202022&utm_term=INSIDER%20TODAY%20SEND%20LIST)_ as the word of the year for 2022. It means creating a false narrative that causes a victim of fraud to question the validity of their own thoughts.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019824","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":30.47,"fundManager":"LHV"},"LMK25":{"heading":"LHV Pensionifond M","id":"m","code":"m","dataMarker":"MK25","suitability":"**Suitable if**\n- you have 3–10 years left until retirement age,\n- you have moderate risk tolerance,\n- your aim is the long-term stable growth of your pension savings.\n","isLhvFund":true,"strategy":"**Strategy**\n\nWhen investing in assets, the fund prefers cash-flow assets and, where possible, the local market, including less liquid private equity and real estate investments. The investments are predominantly in local currency and up to 75% of the fund's assets can be invested directly in equities. The fund's long-term preferred asset class is real estate investments.\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":7779},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":52.85,"unit":"%"},{"name":"Shares","value":8.77,"unit":"%"},{"name":"Equity funds","value":6.56,"unit":"%"},{"name":"Real Estate funds","value":16.89,"unit":"%"},{"name":"Private Equity funds","value":7.57,"unit":"%"},{"name":"Money and deposits","value":7.35,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| German Treasury Bill 22/02/23 | 7.98% |\n| Luminor 0.792% 03/12/24 | 5.02% |\n| ZKB Gold ETF | 4.43% |\n| EfTEN Kinnisvarafond | 4.05% |\n| France Government 25/02/23 | 3.98% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.80% |\n| SG Capital Partners Fund 1 | 2.75% |\n| Eastnine 08/07/24 | 2.32% |\n| iShares Gold Producers UCITS ETF | 2.13% |\n| Baltic Horizon Fund 4.25% 08/05/23 | 2.08% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 0.792% 03/12/24 | 5.02% |\n| EfTEN Kinnisvarafond | 4.05% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.80% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 100,044,307.24 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 400,000 units |\n| Rate of the depository’s charge | 0.0444% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,6240%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** Performance fee is 20% of the positive difference between the fund's performance and the benchmark, maximum of 2% per annum of the fund's volume. Performance fee for 2021 0,00%.\n\n**Ongoing charges (inc management fee):** 1,17%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_tingimused_26112020.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2022.pdf)\n- [Analysis of the amendments made to the prospectus (in Estonian)](/assets/files/pension/Prospekti_muudatuste_pohjendus_ja_moju_analyys_052022.pdf)\n- [Key Investor Information (as of 01.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_M_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_M_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2022,"month":12,"content":"### December 2022: Coop Pank redeemed bonds prematurely\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn December, world stock markets mostly fell. Measured in euros, the MSCI World index fell by 7.6%, the US S&P 500 index fell by 9.4%, and the Nasdaq Composite index, which tracks the US technology sector, fell as much as 12.1%. The Japanese Nikkei index fell 4.4%, the European Euro Stoxx 50 index 4.3% and the MSCI Emerging Markets index 5.3%, measured in euros. The Baltic stock markets stood out last month: the Tallinn, Riga, and Vilnius stock markets rose by 0.4%, 3.4% and 0.1%, respectively.\n\nIn our portfolio of over-the-counter investments, BaltCap’s two funds had news in December. The Adoro company in BaltCap Private Equity Fund III is acquiring the social welfare centre Dzīves Ābece in Latvia. The centre was established in 2018 and currently has 97 beds. The BaltCap Infrastructure Fund announced having reached an agreement to build a new police department worth 21.9 million euros in Šiauliai, Lithuania. The development should be completed in three years, after which the company belonging to the fund will also provide administrative services for the building for a period of 12 years. The approximately 5,200 sq m building will have four floors for 245 employees and a car park for 270 cars.\n\nIn the bond portfolio, Coop Pank called its subordinated bonds ahead of schedule, but as planned. The bonds were issued directly to LHV pension funds in 2017 and earned a total return of approximately 35%. LHV funds were the first institutional investor in the new bank. The company has developed rapidly and now involves capital through the stock exchange.\n\nEuropean bond markets remained clearly in the red in December, showing once again the value of financing Estonian companies, both in developing the local economy and in achieving a higher return on pension assets.\n\nThe year 2022 was particularly difficult for the public bond markets: for example, the European market offered an average return of –17%, and Estonian government bonds fell as much as 21%. Fearing risks, we have avoided public bonds in recent years, but the new year may start offering new opportunities in this area.\n"},{"year":2022,"month":11,"content":"### November 2022: Stock markets continue to recover\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn November, the world’s stock markets continued to rise, and the euro strengthened significantly. Measured in euros, the MSCI World index rose by 2.7% and the US S&P 500 index by 1%, but the Nasdaq Composite index, which tracks the US technology sector, remained almost at the same level as in October, measured in euros. Japan’s Nikkei index rose by 3.6% in euros in November.\n\nWe experienced strong growth in European stock exchanges in November, when the Euro Stoxx 50 index rose by 9.7%. The same trend persisted in emerging markets: the MSCI Emerging Markets index rose by 9.9% measured in euros. While trends in the Baltic stock markets are often mixed, this month the Tallinn, Riga, and Vilnius markets moved in the same direction and rose by 5.3%, 5% and 4.7% respectively.\n\nIn November, two Estonian private and venture capital funds sold one investment each. A private equity fund led by Livonia Partners announced selling the window manufacturer Fenestra to Trigon Capital. Livonia invested in Fenestra in 2019, and after its sale, five more companies remain in the fund’s portfolio. Also, the local private equity company BaltCap announced that the BaltCap Latvia Venture Capital Fund, which they manage, was selling the digital medical services provider Blue Bridge Technologies. The company was founded in 2007 and BaltCap invested in it six years later. Blue Bridge Technologies was sold in its entirety to the software investor Everfield.\n\nLast month was positive for the fund’s stock investments. Shares of gold mining companies, the value of which increased by 4–14%, contributed the most to the increase in the price of the fund’s unit. We saw a decline in energy stocks, where we also locked in gains from this year’s rise during the month.\n\nThe fund’s key positions on the stock markets remain primarily in investments related to mineral resources. In November, we reduced our funds’ equity investments in US energy companies to create liquidity for new purchases. We look forward to putting money back into better priced stocks during a more nervous market phase.\n\nAs the most significant news from the companies in the fund’s bond portfolio, Coop Bank raised a large amount of funds through the stock exchange. Strengthening bank reserves before an economic downturn is a very good idea from our fund’s point of view. LHV funds have financed Coop’s growth over the years with various bonds. As the latest investment last summer, we subscribed to long-term securities with 10% annual interest. The current securities issue is subordinated to our bonds and thus further increases the value of the bonds in the fund.\n"},{"year":2022,"month":10,"content":"### October 2022: Stock markets recovered from the decline\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn October, world markets recovered. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index, and the European Euro Stoxx 50 rose 6.2%, 6.9%, 2.5% and 9.1% in euros, respectively. However, emerging markets moved in the opposite direction: the MSCI Emerging Markets index fell by 4.1% in October. Compared to world stock markets, the Baltic stock exchanges remained relatively neutral: during the month, the Tallinn and Riga stock exchanges fell by 0.6% and 0.4%, respectively, and the Vilnius stock exchange rose by 1%.\n\nIn October, the private equity firm BaltCap announced that its managed fund, BaltCap Private Equity Fund III, will buy Estonia’s largest bookseller Rahva Raamat and merge it with the Lithuanian publishing and trading company Alma Littera, which it acquired in September. Rahva Raamat has a comprehensive e-shop and 12 brick-and-mortar stores in eight Estonian cities.\n\nFollowing the bond market price drop in recent months, we acquired a new larger position for the fund. The bonds of one of Europe’s most important banks, the French BNP Paribas, offer an annual return of more than 6% at our purchase level.\n\nAt the same time, we signed a bond investment agreement with an Estonian company, as Dimedium Grupp raised money from the funds to buy out some of the company’s previous owners. The loan is for three years, with an annual interest of 10%, to which an additional payment will be added at redemption.\n\nInterest rates have risen sharply, and as a result, international bonds offer increasingly strong competition to domestic transactions. We are actively seeking opportunities in both areas.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The rising price of money led to a decline in asset prices**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n","text":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n\nJust one year earlier, the volume of bonds with a negative annual yield was even larger at 18 trillion dollars. Although inflation rates had been on an upward trend throughout 2021, central banks insisted this was temporary: several of them continued to buy up bonds and pump money into circulation until mid-2022.\n\nThe value of the S&P 500 index, which tracks the world’s largest and most important stock market, fell by around 20% last year, despite a mere 5% decline in corporate profits. The price-to-earnings (P/E) ratio of the index was 27 times the earnings for the past 12 months in early 2022 but dropped to 19 by the end of the year.\n\nAlthough, at the start of 2022, the US stock market was overvalued in terms of almost every historical standard, stocks still looked cheap relative to the bond market, where the ten-year US government bond offered an annual yield of 1.63%.\n\nIn early 2022, the US Federal Reserve offered an interest rate of 0.25% on overnight deposits. Over the next 12 months, the Federal Reserve raised interest rates seven times to an eventual 4.5%.\n\n**The adjustment may not be over**\n\nThe interest rate is the price of money. When the price of money was close to zero, all assets, regardless of quality, appeared cheap. Over the past year, interest rates rose significantly, meaning that money once again had a price.\n\nWhile just a year ago, due to negative interest rates, 100 euros in your wallet was worth less than a 100 euro note you would receive in 10 years (yes, absurd!) then, with the reversal of interest rates, we returned to a world where the 100 euros in your bank account today is worth more than a 100 euro note you would receive in ten years. At a 4% price of money, the current value of a future 100 euros 10 years from now is a little less than 68 euros.\n\nA rise in interest rates has a negative impact on asset prices, as the value of future profits and rents falls. Furthermore, why risk buying shares in a company that only offers a 1.5% dividend when essentially risk-free government bonds offer an annual yield of 4%?\n\nI suspect that if interest rates rise further, the values of ventures and projects with higher risks and longer time horizons may fall further.\n\nIn 2022, bond markets fell even more than stock markets, which leaves unanswered the question of whether bond markets overreacted or whether stocks still have room to fall. Bonds are generally lower-risk investments than stocks.\n\nThirty-year US government bonds lost more than half their value to rising interest rates last year. It is true that after 30 years, the investors will get their entire investment back, but the value of the bond that will be redeemed after 30 years is currently only half of that. While there is a direct mathematical relationship between the bond price and the interest rate, expectations about companies’ future profits also come into play in the case of stock prices.\n\nThe price level of stocks depends not only on interest rates but also on the financial performance of companies. Companies’ profit ratios decreased significantly last year, but still remain somewhat above the historical average. The financial performance of companies was stronger than expected last year, even despite the accelerating rate of inflation, rising interest rates, and disruptions in supply chains. If the growth of the largest economies were to turn negative in 2023 and corporate profits fall, this would put stock markets under new pressure.\n\nHowever, this does not mean that all companies would face equal difficulties. I believe that, in the coming years, a company’s debt load and the ease or difficulty of refinancing existing debts or attracting new capital will count more than the sector in which it operates.\n\nFor the past 20 years, and especially during the past ten, interest rates have been historically very low. In July 2012, the European Central Bank lowered the interest rate on its standing deposit facility to zero, and in June 2014 it went negative for the first time. This meant that commercial banks had to start paying for depositing their funds in the central bank. The US Federal Reserve refrained from setting negative interest rates but kept them close to zero for a long time.\n\nNow that the US Federal Reserve pays banks 4.25% for their deposits and the European Central Bank pays 2%, interest rates have merely normalised. Those who hope and expect a return to the monetary policy regime of a few years ago, where the price of money was essentially 0%, are likely to be disappointed. You can find a 200-year history of US dollar interest rates [here](https://advisor.visualcapitalist.com/us-interest-rates/).\n\n**The economy is cyclical**\n\nFor years, I have noted the absurdity of the monetary policy of developed countries. It is necessary to support the economy during a crisis, but more than ten years of continuous support can develop into a dangerous addiction.\n\nIn a recent interview, Jeffrey Gundlach, who was crowned the king of the bond markets after Bill Gross, compared a 0% monetary policy to an adrenaline injection: it is necessary in a life-threatening situation, but it is neither healthy nor reasonable to have an adrenaline shot every morning.\n\nLHV pension funds pursue a very long-term investment strategy. We have always considered the possibility that the economy and securities markets are cyclical, and that both interest rates and stock market ratios fluctuate around their historical averages. The investment portfolios of our pension funds have been designed based on this knowledge.\n\nOwing to conservative investment strategy, we did not make a maximum gain on the phenomenal rise of the stock markets in 2021, when the world’s largest economies were almost locked down, while the policy of zero interest rates and the generosity of governments boosted the value of all companies and projects. But thanks to our conservative investment strategy, we also managed to avoid investing in companies with a high debt burden, whose value was based on nothing but lofty promises and who have been in free fall over the past year.\n\n
\n\nPS!\n\nIn an earlier newsletter, I wrote about the growing importance of stories and narratives, which have even surpassed the ability of companies in certain lines of business to offer real products and services. Several speculative bubbles burst last year. Some were caused by the greed and naivety of the investors themselves, while others were deliberately and maliciously created illusions. The lawsuit between the scandalous medical diagnostics startup Theranos and its founder Elizabeth Holmes was settled last year.\n\nI would like to hope that the events of the past year point to the importance of independent critical thinking, and that we, as citizens and investors, will be better able to tell between illusions and reality in the future.\n\nBy the way, Merriam Webster, the oldest publisher of dictionaries and reference books in the United States, chose _[gaslighting](https://www.merriam-webster.com/words-at-play/word-of-the-year?utm_source=Sailthru&utm_medium=email&utm_campaign=Insider%20Today%2C%20December%201%2C%202022&utm_term=INSIDER%20TODAY%20SEND%20LIST)_ as the word of the year for 2022. It means creating a false narrative that causes a victim of fraud to question the validity of their own thoughts.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019774","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":43.46,"fundManager":"LHV"},"LLK50":{"heading":"LHV Pensionifond L","id":"l","code":"l","dataMarker":"LK50","suitability":"**Suitable if**\n- you have more than 10 years left until retirement,\n- you have average risk tolerance,\n- your aim is the long-term growth of your pension savings.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe assets of the Fund are invested in various asset classes in both local and foreign markets. The Fund's assets may be invested extensively in unquoted instruments, which are primarily used for investing in securities issued by companies domiciled in the home market. The long-term preferred asset class of the fund is private equity investments.\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":62359},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":21.11,"unit":"%"},{"name":"Shares","value":18.3,"unit":"%"},{"name":"Equity funds","value":11.04,"unit":"%"},{"name":"Real Estate funds","value":15.57,"unit":"%"},{"name":"Private Equity funds","value":26.33,"unit":"%"},{"name":"Money and deposits","value":7.64,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| ZKB Gold ETF | 4.14% |\n| iShares Gold Producers UCITS ETF | 3.73% |\n| EfTEN Kinnisvarafond | 3.71% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.21% |\n| German Treasury Bill 22/02/23 | 2.87% |\n| Investindustrial VII L.P. | 2.26% |\n| East Capital Baltic Property Fund III | 2.24% |\n| SG Capital Partners Fund 1 | 2.16% |\n| Usaldusfond EfTEN Real Estate Fund 4 | 2.14% |\n| Partners Group Direct Equity 2019 | 2.04% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 3.71% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.21% |\n| East Capital Baltic Property Fund III | 2.24% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 799,446,091.30 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 2 000 000 units |\n| Rate of the depository’s charge | 0.0420% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,6240%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** Performance fee is 20% of the positive difference between the fund's performance and the benchmark, maximum of 2% per annum of the fund's volume. Performance fee for 2021 0,24%.\n\n**Ongoing charges (inc management fee):** 1,62%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_tingimused_26112020.pdf)\n- [Information to unit-holders (in Estonian)](/assets/files/pension/Osakuomanikele_antav_teave_LHV_Pensionifond_L.pdf)\n- [Comparison of investment policies (in Estonian)](/assets/files/pension/investeerimispoliitikate_vordlus_Eesti_L.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2022.pdf)\n- [Analysis of the amendments made to the prospectus (in Estonian)](/assets/files/pension/Prospekti_muudatuste_pohjendus_ja_moju_analyys_052022.pdf)\n- [Key Investor Information (as of 01.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_L_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_L_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2022,"month":12,"content":"### December 2022: We reduced equity positions in the energy and banking sectors\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn December, world stock markets mostly fell. Measured in euros, the MSCI World index fell by 7.6%, the US S&P 500 index fell by 9.4%, and the Nasdaq Composite index, which tracks the US technology sector, fell as much as 12.1%. The Japanese Nikkei index fell 4.4%, the European Euro Stoxx 50 index 4.3% and the MSCI Emerging Markets index 5.3%, measured in euros. The Baltic stock markets stood out last month: the Tallinn, Riga, and Vilnius stock markets rose by 0.4%, 3.4% and 0.1%, respectively.\n\nIn our portfolio of over-the-counter investments, BaltCap’s two funds had news in December. The Adoro company in BaltCap Private Equity Fund III is acquiring the social welfare centre Dzīves Ābece in Latvia. The centre was established in 2018 and currently has 97 beds. The BaltCap Infrastructure Fund announced having reached an agreement to build a new police department worth 21.9 million euros in Šiauliai, Lithuania. The development should be completed in three years, after which the company belonging to the fund will also provide administrative services for the building for a period of 12 years. The approximately 5,200 sq m building will have four floors for 245 employees and a car park for 270 cars.\n\nOur investments in listed stocks depreciated at the end of the year, driven by profit-taking in positions related to the energy sector. Stock investments related to precious metals escaped the general decline of the markets.\n\nAt the beginning of the month, we reduced our equity positions in the US energy sector and European banks, which had offered good returns in the short term. With these sales, we increased the buffer that can be used for new investments in the near future.\n\nIn the bond portfolio, Coop Pank called its subordinated bonds ahead of schedule, but as planned. The bonds were issued directly to LHV pension funds in 2017 and earned a total return of approximately 35%. LHV funds were the first institutional investor in the new bank. The company has developed rapidly and now involves capital through the stock exchange.\n\nEuropean bond markets remained clearly in the red in December, showing once again the value of financing Estonian companies, both in developing the local economy and in achieving a higher return on pension assets.\n\nThe year 2022 was particularly difficult for the public bond markets: for example, the European market offered an average return of –17%, and Estonian government bonds fell as much as 21%. Fearing risks, we have avoided public bonds in recent years, but the new year may start offering new opportunities in this area.\n"},{"year":2022,"month":11,"content":"### November 2022: Stock markets continue to recover\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn November, the world’s stock markets continued to rise, and the euro strengthened significantly. Measured in euros, the MSCI World index rose by 2.7% and the US S&P 500 index by 1%, but the Nasdaq Composite index, which tracks the US technology sector, remained almost at the same level as in October, measured in euros. Japan’s Nikkei index rose by 3.6% in euros in November.\n\nWe experienced strong growth in European stock exchanges in November, when the Euro Stoxx 50 index rose by 9.7%. The same trend persisted in emerging markets: the MSCI Emerging Markets index rose by 9.9% measured in euros. While trends in the Baltic stock markets are often mixed, this month the Tallinn, Riga, and Vilnius markets moved in the same direction and rose by 5.3%, 5% and 4.7% respectively.\n\nIn November, two Estonian private and venture capital funds sold one investment each. A private equity fund led by Livonia Partners announced selling the window manufacturer Fenestra to Trigon Capital. Livonia invested in Fenestra in 2019, and after its sale, five more companies remain in the fund’s portfolio. Also, the local private equity company BaltCap announced that the BaltCap Latvia Venture Capital Fund, which they manage, was selling the digital medical services provider Blue Bridge Technologies. The company was founded in 2007 and BaltCap invested in it six years later. Blue Bridge Technologies was sold in its entirety to the software investor Everfield.\n\nNovember was positive for the fund’s stock investments. The value of copper-related stocks rose the most, as they went up 20% as a response to the expected change in China’s Covid-19 policy. Among other investments, the share prices of gold mining companies increased to a greater extent. We saw a decline in energy stocks, where we also locked in gains from this year’s rise during the month.\n\nThe fund’s key positions on the stock markets remain primarily in investments related to mineral resources. In November, we reduced our funds’ equity investments in US energy companies to create liquidity for new purchases. We look forward to putting money back into better priced stocks during a more nervous market phase.\n\nAs the most significant news from the companies in the fund’s bond portfolio, Coop Bank raised a large amount of funds through the stock exchange. Strengthening bank reserves before an economic downturn is a very good idea from our fund’s point of view. LHV funds have financed Coop’s growth over the years with various bonds. As the latest investment last summer, we subscribed to long-term securities with 10% annual interest. The current securities issue is subordinated to our bonds and thus further increases the value of the bonds in the fund.\n"},{"year":2022,"month":10,"content":"### October 2022: We added a new over-the-counter investment to our portfolio\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn October, world markets recovered. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index, and the European Euro Stoxx 50 rose 6.2%, 6.9%, 2.5% and 9.1% in euros, respectively. However, emerging markets moved in the opposite direction: the MSCI Emerging Markets index fell by 4.1% in October. Compared to world stock markets, the Baltic stock exchanges remained relatively neutral: during the month, the Tallinn and Riga stock exchanges fell by 0.6% and 0.4%, respectively, and the Vilnius stock exchange rose by 1%.\n\nWe added the new local venture capital fund Superangel Two, led by experienced startup investors Veljo Otsason and Marko Oolo, as a new OTC investment in our pension fund. We have also used the pension fund to invest in Superangel One, the predecessor of Superangel Two. Superangel One’s portfolio includes well-known startups, such as Bolt, Veriff, Montonio, Salv, Starship and Parcelsea. Superangel Two continues to implement the previous fund’s strategy by investing in early-stage start-ups operating mainly in Estonia.\n\nIn October, the private equity firm BaltCap announced that its managed fund, BaltCap Private Equity Fund III, will buy Estonia’s largest bookseller Rahva Raamat and merge it with the Lithuanian publishing and trading company Alma Littera, which it acquired in September. Rahva Raamat has a comprehensive e-shop and 12 brick-and-mortar stores in eight Estonian cities.\n\nIn the same month, encouraging quarterly results supported the fund’s listed equity investments. Among European investments, bank shares saw the most success, as the financial results of this sector are improved by rising interest income. Among US investments, shares of Valaris and Freeport McMoran, related to mineral resources, rose the most. Most of the fund’s share positions are related to mineral resources and companies that process them, which in many cases are earning record profits in the context of high commodity prices.\n\nAt the same time, we signed a bond investment agreement with an Estonian company, as Dimedium Grupp raised money from the funds to buy out some of the company’s previous owners. The loan is for three years, with an annual interest of 10%, to which an additional payment will be added at redemption.\n\nInterest rates have risen sharply, and as a result, international bonds offer increasingly strong competition to domestic transactions. We are actively seeking opportunities in both areas.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The rising price of money led to a decline in asset prices**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n","text":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n\nJust one year earlier, the volume of bonds with a negative annual yield was even larger at 18 trillion dollars. Although inflation rates had been on an upward trend throughout 2021, central banks insisted this was temporary: several of them continued to buy up bonds and pump money into circulation until mid-2022.\n\nThe value of the S&P 500 index, which tracks the world’s largest and most important stock market, fell by around 20% last year, despite a mere 5% decline in corporate profits. The price-to-earnings (P/E) ratio of the index was 27 times the earnings for the past 12 months in early 2022 but dropped to 19 by the end of the year.\n\nAlthough, at the start of 2022, the US stock market was overvalued in terms of almost every historical standard, stocks still looked cheap relative to the bond market, where the ten-year US government bond offered an annual yield of 1.63%.\n\nIn early 2022, the US Federal Reserve offered an interest rate of 0.25% on overnight deposits. Over the next 12 months, the Federal Reserve raised interest rates seven times to an eventual 4.5%.\n\n**The adjustment may not be over**\n\nThe interest rate is the price of money. When the price of money was close to zero, all assets, regardless of quality, appeared cheap. Over the past year, interest rates rose significantly, meaning that money once again had a price.\n\nWhile just a year ago, due to negative interest rates, 100 euros in your wallet was worth less than a 100 euro note you would receive in 10 years (yes, absurd!) then, with the reversal of interest rates, we returned to a world where the 100 euros in your bank account today is worth more than a 100 euro note you would receive in ten years. At a 4% price of money, the current value of a future 100 euros 10 years from now is a little less than 68 euros.\n\nA rise in interest rates has a negative impact on asset prices, as the value of future profits and rents falls. Furthermore, why risk buying shares in a company that only offers a 1.5% dividend when essentially risk-free government bonds offer an annual yield of 4%?\n\nI suspect that if interest rates rise further, the values of ventures and projects with higher risks and longer time horizons may fall further.\n\nIn 2022, bond markets fell even more than stock markets, which leaves unanswered the question of whether bond markets overreacted or whether stocks still have room to fall. Bonds are generally lower-risk investments than stocks.\n\nThirty-year US government bonds lost more than half their value to rising interest rates last year. It is true that after 30 years, the investors will get their entire investment back, but the value of the bond that will be redeemed after 30 years is currently only half of that. While there is a direct mathematical relationship between the bond price and the interest rate, expectations about companies’ future profits also come into play in the case of stock prices.\n\nThe price level of stocks depends not only on interest rates but also on the financial performance of companies. Companies’ profit ratios decreased significantly last year, but still remain somewhat above the historical average. The financial performance of companies was stronger than expected last year, even despite the accelerating rate of inflation, rising interest rates, and disruptions in supply chains. If the growth of the largest economies were to turn negative in 2023 and corporate profits fall, this would put stock markets under new pressure.\n\nHowever, this does not mean that all companies would face equal difficulties. I believe that, in the coming years, a company’s debt load and the ease or difficulty of refinancing existing debts or attracting new capital will count more than the sector in which it operates.\n\nFor the past 20 years, and especially during the past ten, interest rates have been historically very low. In July 2012, the European Central Bank lowered the interest rate on its standing deposit facility to zero, and in June 2014 it went negative for the first time. This meant that commercial banks had to start paying for depositing their funds in the central bank. The US Federal Reserve refrained from setting negative interest rates but kept them close to zero for a long time.\n\nNow that the US Federal Reserve pays banks 4.25% for their deposits and the European Central Bank pays 2%, interest rates have merely normalised. Those who hope and expect a return to the monetary policy regime of a few years ago, where the price of money was essentially 0%, are likely to be disappointed. You can find a 200-year history of US dollar interest rates [here](https://advisor.visualcapitalist.com/us-interest-rates/).\n\n**The economy is cyclical**\n\nFor years, I have noted the absurdity of the monetary policy of developed countries. It is necessary to support the economy during a crisis, but more than ten years of continuous support can develop into a dangerous addiction.\n\nIn a recent interview, Jeffrey Gundlach, who was crowned the king of the bond markets after Bill Gross, compared a 0% monetary policy to an adrenaline injection: it is necessary in a life-threatening situation, but it is neither healthy nor reasonable to have an adrenaline shot every morning.\n\nLHV pension funds pursue a very long-term investment strategy. We have always considered the possibility that the economy and securities markets are cyclical, and that both interest rates and stock market ratios fluctuate around their historical averages. The investment portfolios of our pension funds have been designed based on this knowledge.\n\nOwing to conservative investment strategy, we did not make a maximum gain on the phenomenal rise of the stock markets in 2021, when the world’s largest economies were almost locked down, while the policy of zero interest rates and the generosity of governments boosted the value of all companies and projects. But thanks to our conservative investment strategy, we also managed to avoid investing in companies with a high debt burden, whose value was based on nothing but lofty promises and who have been in free fall over the past year.\n\n
\n\nPS!\n\nIn an earlier newsletter, I wrote about the growing importance of stories and narratives, which have even surpassed the ability of companies in certain lines of business to offer real products and services. Several speculative bubbles burst last year. Some were caused by the greed and naivety of the investors themselves, while others were deliberately and maliciously created illusions. The lawsuit between the scandalous medical diagnostics startup Theranos and its founder Elizabeth Holmes was settled last year.\n\nI would like to hope that the events of the past year point to the importance of independent critical thinking, and that we, as citizens and investors, will be better able to tell between illusions and reality in the future.\n\nBy the way, Merriam Webster, the oldest publisher of dictionaries and reference books in the United States, chose _[gaslighting](https://www.merriam-webster.com/words-at-play/word-of-the-year?utm_source=Sailthru&utm_medium=email&utm_campaign=Insider%20Today%2C%20December%201%2C%202022&utm_term=INSIDER%20TODAY%20SEND%20LIST)_ as the word of the year for 2022. It means creating a false narrative that causes a victim of fraud to question the validity of their own thoughts.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019832","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":33.04,"fundManager":"LHV"},"LXK75":{"heading":"LHV Pensionifond XL","id":"xl","code":"xl","dataMarker":"XLK50","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you are prepared to take above-average risks,\n- your aim is the long-term growth of your pension savings.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe 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.\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":24543},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":23.82,"unit":"%"},{"name":"Shares","value":22.18,"unit":"%"},{"name":"Equity funds","value":12.59,"unit":"%"},{"name":"Real Estate funds","value":11.32,"unit":"%"},{"name":"Private Equity funds","value":18.48,"unit":"%"},{"name":"Money and deposits","value":11.61,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| German Treasury Bill 22/02/23 | 6.79% |\n| France Government 25/02/23 | 6.44% |\n| ZKB Gold ETF | 4.11% |\n| iShares Gold Producers UCITS ETF | 3.58% |\n| Axcel VI | 2.73% |\n| Lyxor EURO STOXX Banks DR UCITS | 2.60% |\n| Usaldusfond EfTEN Real Estate Fund 4 | 2.56% |\n| East Capital Baltic Property Fund III | 2.38% |\n| EfTEN Kinnisvarafond | 2.25% |\n| Monte Rosa V Class J | 2.13% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| East Capital Baltic Property Fund III | 2.38% |\n| EfTEN Kinnisvarafond | 2.25% |\n| Livonia Partners Fund I | 1.49% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 205,841,764.84 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 530 000 units |\n| Rate of the depository’s charge | 0.0432% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,6240%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** Performance fee is 20% of the positive difference between the fund's performance and the benchmark, maximum of 2% per annum of the fund's volume. Performance fee for 2021 0,28%.\n\n**Ongoing charges (inc management fee):** 1,28%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_tingimused.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2022.pdf)\n- [Analysis of the amendments made to the prospectus (in Estonian)](/assets/files/pension/Prospekti_muudatuste_pohjendus_ja_moju_analyys_052022.pdf)\n- [Key Investor Information (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_KIID_01092022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2022,"month":12,"content":"### December 2022: We reduced equity positions in the energy and banking sectors\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn December, world stock markets mostly fell. Measured in euros, the MSCI World index fell by 7.6%, the US S&P 500 index fell by 9.4%, and the Nasdaq Composite index, which tracks the US technology sector, fell as much as 12.1%. The Japanese Nikkei index fell 4.4%, the European Euro Stoxx 50 index 4.3% and the MSCI Emerging Markets index 5.3%, measured in euros. The Baltic stock markets stood out last month: the Tallinn, Riga, and Vilnius stock markets rose by 0.4%, 3.4% and 0.1%, respectively.\n\nIn our portfolio of over-the-counter investments, BaltCap’s two funds had news in December. The Adoro company in BaltCap Private Equity Fund III is acquiring the social welfare centre Dzīves Ābece in Latvia. The centre was established in 2018 and currently has 97 beds. The BaltCap Infrastructure Fund announced having reached an agreement to build a new police department worth 21.9 million euros in Šiauliai, Lithuania. The development should be completed in three years, after which the company belonging to the fund will also provide administrative services for the building for a period of 12 years. The approximately 5,200 sq m building will have four floors for 245 employees and a car park for 270 cars.\n\nOur investments in listed stocks depreciated at the end of the year, driven by profit-taking in positions related to the energy sector. Stock investments related to precious metals escaped the general decline of the markets.\n\nAt the beginning of the month, we reduced the XL fund’s equity positions in the US energy sector and European banks, which had offered good returns in the short term. With these sales, we increased the buffer that can be used for new investments in the near future.\n\nEuropean bond markets were again in the red in December. The entirety of 2022 was one of the most difficult years in recent decades. The sudden raising of interest rates by central banks caught most market participants by surprise, and the fluctuations were sharp at times.\n\nThe more investors sought risk and held longer-dated bonds, the more they lost. In the end, the market average result for the year was –17% in Europe, and the Estonian government bond offered a return of –21%. Fearing risks, we have avoided public bonds in recent years, but the new year may start offering new opportunities in this area.\n"},{"year":2022,"month":11,"content":"### November 2022: Stock markets continue to recover\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn November, the world’s stock markets continued to rise, and the euro strengthened significantly. Measured in euros, the MSCI World index rose by 2.7% and the US S&P 500 index by 1%, but the Nasdaq Composite index, which tracks the US technology sector, remained almost at the same level as in October, measured in euros. Japan’s Nikkei index rose by 3.6% in euros in November.\n\nWe experienced strong growth in European stock exchanges in November, when the Euro Stoxx 50 index rose by 9.7%. The same trend persisted in emerging markets: the MSCI Emerging Markets index rose by 9.9% measured in euros. While trends in the Baltic stock markets are often mixed, this month the Tallinn, Riga, and Vilnius markets moved in the same direction and rose by 5.3%, 5% and 4.7% respectively.\n\nNovember was positive for the fund’s stock investments. The value of copper-related stocks rose the most, as they went up 20% as a response to the expected change in China’s Covid-19 policy. Among other investments, the share prices of gold mining companies increased to a greater extent. We saw a decline in energy stocks, where we also locked in gains from this year’s rise during the month.\n\nThe fund’s key positions on the stock markets remain primarily in investments related to mineral resources. In November, we reduced our funds’ equity investments in US energy companies to create liquidity for new purchases. We look forward to putting money back into better priced stocks during a more nervous market phase.\n\nIn November, two Estonian private and venture capital funds sold one investment each. A private equity fund led by Livonia Partners announced selling the window manufacturer Fenestra to Trigon Capital. Livonia invested in Fenestra in 2019, and after its sale, five more companies remain in the fund’s portfolio. Also, the local private equity company BaltCap announced that the BaltCap Latvia Venture Capital Fund, which they manage, was selling the digital medical services provider Blue Bridge Technologies. The company was founded in 2007 and BaltCap invested in it six years later. Blue Bridge Technologies was sold in its entirety to the software investor Everfield.\n"},{"year":2022,"month":10,"content":"### October 2022: We added a new over-the-counter investment to our portfolio\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn October, world markets recovered. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index, and the European Euro Stoxx 50 rose 6.2%, 6.9%, 2.5% and 9.1% in euros, respectively. However, emerging markets moved in the opposite direction: the MSCI Emerging Markets index fell by 4.1% in October. Compared to world stock markets, the Baltic stock exchanges remained relatively neutral: during the month, the Tallinn and Riga stock exchanges fell by 0.6% and 0.4%, respectively, and the Vilnius stock exchange rose by 1%.\n\nWe added the new local venture capital fund Superangel Two, led by experienced startup investors Veljo Otsason and Marko Oolo, as a new OTC investment in our pension fund. We have also used the pension fund to invest in Superangel One, the predecessor of Superangel Two. Superangel One’s portfolio includes well-known startups, such as Bolt, Veriff, Montonio, Salv, Starship and Parcelsea. Superangel Two continues to implement the previous fund’s strategy by investing in early-stage start-ups operating mainly in Estonia.\n\nIn the same month, encouraging quarterly results supported the fund’s listed equity investments. Among European investments, bank shares saw the most success, as the financial results of this sector are improved by rising interest income. Among US investments, shares of Valaris and Freeport McMoran, related to mineral resources, rose the most. Most of the fund’s share positions are related to mineral resources and companies that process them, which in many cases are earning record profits in the context of high commodity prices.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The rising price of money led to a decline in asset prices**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n","text":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n\nJust one year earlier, the volume of bonds with a negative annual yield was even larger at 18 trillion dollars. Although inflation rates had been on an upward trend throughout 2021, central banks insisted this was temporary: several of them continued to buy up bonds and pump money into circulation until mid-2022.\n\nThe value of the S&P 500 index, which tracks the world’s largest and most important stock market, fell by around 20% last year, despite a mere 5% decline in corporate profits. The price-to-earnings (P/E) ratio of the index was 27 times the earnings for the past 12 months in early 2022 but dropped to 19 by the end of the year.\n\nAlthough, at the start of 2022, the US stock market was overvalued in terms of almost every historical standard, stocks still looked cheap relative to the bond market, where the ten-year US government bond offered an annual yield of 1.63%.\n\nIn early 2022, the US Federal Reserve offered an interest rate of 0.25% on overnight deposits. Over the next 12 months, the Federal Reserve raised interest rates seven times to an eventual 4.5%.\n\n**The adjustment may not be over**\n\nThe interest rate is the price of money. When the price of money was close to zero, all assets, regardless of quality, appeared cheap. Over the past year, interest rates rose significantly, meaning that money once again had a price.\n\nWhile just a year ago, due to negative interest rates, 100 euros in your wallet was worth less than a 100 euro note you would receive in 10 years (yes, absurd!) then, with the reversal of interest rates, we returned to a world where the 100 euros in your bank account today is worth more than a 100 euro note you would receive in ten years. At a 4% price of money, the current value of a future 100 euros 10 years from now is a little less than 68 euros.\n\nA rise in interest rates has a negative impact on asset prices, as the value of future profits and rents falls. Furthermore, why risk buying shares in a company that only offers a 1.5% dividend when essentially risk-free government bonds offer an annual yield of 4%?\n\nI suspect that if interest rates rise further, the values of ventures and projects with higher risks and longer time horizons may fall further.\n\nIn 2022, bond markets fell even more than stock markets, which leaves unanswered the question of whether bond markets overreacted or whether stocks still have room to fall. Bonds are generally lower-risk investments than stocks.\n\nThirty-year US government bonds lost more than half their value to rising interest rates last year. It is true that after 30 years, the investors will get their entire investment back, but the value of the bond that will be redeemed after 30 years is currently only half of that. While there is a direct mathematical relationship between the bond price and the interest rate, expectations about companies’ future profits also come into play in the case of stock prices.\n\nThe price level of stocks depends not only on interest rates but also on the financial performance of companies. Companies’ profit ratios decreased significantly last year, but still remain somewhat above the historical average. The financial performance of companies was stronger than expected last year, even despite the accelerating rate of inflation, rising interest rates, and disruptions in supply chains. If the growth of the largest economies were to turn negative in 2023 and corporate profits fall, this would put stock markets under new pressure.\n\nHowever, this does not mean that all companies would face equal difficulties. I believe that, in the coming years, a company’s debt load and the ease or difficulty of refinancing existing debts or attracting new capital will count more than the sector in which it operates.\n\nFor the past 20 years, and especially during the past ten, interest rates have been historically very low. In July 2012, the European Central Bank lowered the interest rate on its standing deposit facility to zero, and in June 2014 it went negative for the first time. This meant that commercial banks had to start paying for depositing their funds in the central bank. The US Federal Reserve refrained from setting negative interest rates but kept them close to zero for a long time.\n\nNow that the US Federal Reserve pays banks 4.25% for their deposits and the European Central Bank pays 2%, interest rates have merely normalised. Those who hope and expect a return to the monetary policy regime of a few years ago, where the price of money was essentially 0%, are likely to be disappointed. You can find a 200-year history of US dollar interest rates [here](https://advisor.visualcapitalist.com/us-interest-rates/).\n\n**The economy is cyclical**\n\nFor years, I have noted the absurdity of the monetary policy of developed countries. It is necessary to support the economy during a crisis, but more than ten years of continuous support can develop into a dangerous addiction.\n\nIn a recent interview, Jeffrey Gundlach, who was crowned the king of the bond markets after Bill Gross, compared a 0% monetary policy to an adrenaline injection: it is necessary in a life-threatening situation, but it is neither healthy nor reasonable to have an adrenaline shot every morning.\n\nLHV pension funds pursue a very long-term investment strategy. We have always considered the possibility that the economy and securities markets are cyclical, and that both interest rates and stock market ratios fluctuate around their historical averages. The investment portfolios of our pension funds have been designed based on this knowledge.\n\nOwing to conservative investment strategy, we did not make a maximum gain on the phenomenal rise of the stock markets in 2021, when the world’s largest economies were almost locked down, while the policy of zero interest rates and the generosity of governments boosted the value of all companies and projects. But thanks to our conservative investment strategy, we also managed to avoid investing in companies with a high debt burden, whose value was based on nothing but lofty promises and who have been in free fall over the past year.\n\n
\n\nPS!\n\nIn an earlier newsletter, I wrote about the growing importance of stories and narratives, which have even surpassed the ability of companies in certain lines of business to offer real products and services. Several speculative bubbles burst last year. Some were caused by the greed and naivety of the investors themselves, while others were deliberately and maliciously created illusions. The lawsuit between the scandalous medical diagnostics startup Theranos and its founder Elizabeth Holmes was settled last year.\n\nI would like to hope that the events of the past year point to the importance of independent critical thinking, and that we, as citizens and investors, will be better able to tell between illusions and reality in the future.\n\nBy the way, Merriam Webster, the oldest publisher of dictionaries and reference books in the United States, chose _[gaslighting](https://www.merriam-webster.com/words-at-play/word-of-the-year?utm_source=Sailthru&utm_medium=email&utm_campaign=Insider%20Today%2C%20December%201%2C%202022&utm_term=INSIDER%20TODAY%20SEND%20LIST)_ as the word of the year for 2022. It means creating a false narrative that causes a victim of fraud to question the validity of their own thoughts.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019766","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":23.28,"fundManager":"LHV"},"LIK75":{"heading":"LHV Pensionifond Indeks","id":"indeks","code":"lik","dataMarker":"LIK75","suitability":"**Suitable if**\n- you want to invest in financial markets on a continuous basis,\n- you wish to grow your pension pillar at the lowest possible costs,\n- you have prior personal investment experience.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe fund invests all of its assets in equity index-following investment funds and the fund manager does not actively change the fund’s risk level. The share of assets invested in equities is kept close to 100% of the fund’s size. Whenever the proportion of money in the fund exceeds 2% then it is invested within five working days.\n\nInvestments in funds investing in equities are distributed between three types of markets – developed markets, emerging markets and frontier markets – based on their approximate share in global gross domestic product (GDP).\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":18024},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.15,"unit":"%"},{"name":"Money and deposits","value":0.85,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Lyxor Core MSCI World DR UCITS | 29.01% |\n| Amundi Prime Global UCITS ETF | 28.41% |\n| HSBC MSCI Emerging Markets UCITS | 14.03% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 12.63% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 7.31% |\n| SPDR MSCI World UCITS ETF | 4.39% |\n| iShares MSCI Frontier and Select EM ETF | 3.39% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 70,997,109.57 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 350,000 units |\n| Rate of the depository’s charge | 0.0468% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.2000%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0,33%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_tingimused_2023.pdf)\n- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_tingimused_2021_02.pdf)\n- [Analysis of the amendment of funds' terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_Indeks.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian) (as of 02.01.2023)](/assets/files/pension/LHV_Pensionifond_Indeks_prospekt_2023.pdf)\n- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_prospekt_2022.pdf)\n- [Key Investor Information (in Estonian) (as of 02.01.2023)](/assets/files/pension/LHV_Pensionifond_Indeks_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_KIID_2022.pdf)\n"},{"title":"Sample portfolios","type":"markdown","column":"left","content":"- [Sample portfolio (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_mudelportfell_01_2023.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109401","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV"},"TUK00":{"heading":"Tuleva Maailma Võlakirjade Pensionifond","id":"tv","code":"tv","dataMarker":"TUK00","suitability":"**Suitable if**\n- you have less than 10 years till retirement,\n- you are willing to forgo higher returns in order to avoid losses.\n","strategy":"**Strategy**\n\nThe management company employs a passive investment strategy, only investing the fund’s assets into the shares of investment funds following the said financial indices. The selection of investment funds favours passively managed and liquid euro funds with a low total cost rate and low transactions costs.\n","fundInfo":{"company":{"title":"Tuleva Fondid AS"},"investors":1792},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bond funds","value":95.52,"unit":"%"},{"name":"Money and deposits","value":4.54,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| BlackRock BGIF - Global Government Bond Index - X2 | 24.11% |\n| BlackRock FIDF - Euro Credit Bond Index Fund - Flexible | 23.93% |\n| BlackRock BGIF - Euro Aggregate Bond Index Fund - X2 | 23.91% |\n| BlackRock FIDF - Euro Government Bond Index Fund - Flexible | 23.57% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.41%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600109443","strategyType":"Conservative","managementStyle":"Passive","riskLevel":3,"countryShareEe":0,"fundManager":"Tuleva"},"TUK75":{"heading":"Tuleva Maailma Aktsiate Pensionifond","id":"ta","code":"ta","dataMarker":"TUK75","suitability":"**Suitable if**\n- you are younger than 55 years,\n- you would like to earn best expected return over long term and you are not disturbed by short-term fluctuations of the market.\n","strategy":"**Strategy**\n\nThe management company employs a passive investment strategy, only investing the fund’s assets into the shares of investment funds following the said financial indices. The selection of investment funds favours passively managed and liquid euro funds with a low total cost rate and low transactions costs.\n","fundInfo":{"company":{"title":"Tuleva Fondid AS"},"investors":26284},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":93.48,"unit":"%"},{"name":"Bond funds","value":5.42,"unit":"%"},{"name":"Money and deposits","value":1.12,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| BlackRock ISF - Developed World ESG Screened Index | 27.10% |\n| iShares MSCI USA ESG Screened UCITS ETF | 26.44% |\n| iShares MSCI World ESG Screened UCITS ETF | 18.38% |\n| iShares Emerging Market Screened Equity Index Fund | 11.43% |\n| iShares MSCI Europe ESG Screened UCITS ETF | 7.94% |\n| BlackRock BGIF - Global Government Bond Index - X2 | 5.42% |\n| iShares MSCI Japan ESG Screened UCITS ETF | 2.19% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.37%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109435","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Tuleva"},"SEK50":{"heading":"SEB Progressiivne Pensionifond","id":"progressiivne","code":"progressiivne","dataMarker":"SEK50","suitability":"**Suitable if**\n- you have more than 3 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\n\nFund invests up to 50% of its assets in shares, with the remainder allocated to bonds and deposits. As the fund invests in shares, bonds and deposits in an equal amount, moderate fluctuations in the value of the fund's assets may occur.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":47249},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":24.36,"unit":"%"},{"name":"Shares","value":4.31,"unit":"%"},{"name":"Equity funds","value":41.11,"unit":"%"},{"name":"Real Estate funds","value":10.41,"unit":"%"},{"name":"Private Equity funds","value":0.91,"unit":"%"},{"name":"Bond funds","value":11.43,"unit":"%"},{"name":"Money and deposits","value":7.48,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI World UCITS ETF | 12.25% |\n| SEB Global Exposure Fund | 8.26% |\n| SEB Fund 3 - SEB Global Exposure Fund | 7.14% |\n| iShares MSCI World ESG Screened UCITS ETF | 5.96% |\n| Bundesrepublik Deutschland 0% 15.08.2031 | 5.69% |\n| EfTEN Real Estate Fund IV | 5.40% |\n| Republic of Estonia 4% 12.10.2032 | 5.32% |\n| Amundi Index Euro Corporate Sri- UCITS ETF DR | 3.23% |\n| HSBC MSCI Emerging Markets UCITS ETF | 3.75% |\n| iShares Core S&P 500 UCITS ETF | 2.34% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Republic of Estonia 4% 12.10.2032 | 5.32% |\n| Tallinna Sadam AS | 2.32% |\n| Riigi Kinnisvara 1.61% 09.06.2027 | 2.07% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.70%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 1.01%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019725","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":18.59,"fundManager":"SEB"},"SEK25":{"heading":"SEB Optimaalne Pensionifond","id":"optimaalne","code":"optimaalne","dataMarker":"SEK25","suitability":"**Suitable if**\n- you have less than 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\n\nFund mainly invests in bonds and deposits, with up to 25% invested in shares. As the fund largely invests in bonds and deposits, there may be moderate fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":3164},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":35.02,"unit":"%"},{"name":"Shares","value":3.79,"unit":"%"},{"name":"Equity funds","value":15.9,"unit":"%"},{"name":"Real Estate funds","value":11.95,"unit":"%"},{"name":"Private Equity funds","value":0.49,"unit":"%"},{"name":"Bond funds","value":26.37,"unit":"%"},{"name":"Money and deposits","value":6.48,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Amundi Index Euro Corporate Sri- UCITS ETF DR | 13.06% |\n| Bundesrepublik Deutschland 0% 15.08.2031 | 8.05% |\n| iShares MSCI World ESG Screened UCITS ETF | 7.87% |\n| Republic of Estonia 4% 12.10.2032 | 6.82% |\n| EfTEN Real Estate Fund IV | 5.81% |\n| SEB Global Exposure Fund | 4.46% |\n| PIMCO GIS Euro Credit Fund | 3.71% |\n| Bundesrepublic Deutschland 0.5% 15.08.2027 | 3.32% |\n| Fair Oaks High Grade Credit Fund EUR | 2.90% |\n| Bundesrepublic Deutschland 0% 15.08.2030 | 2.54% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Republic of Estonia 4% 12.10.2032 | 6.82% |\n| Tallinna Sadam AS | 2.46% |\n| Birdeye Timber Fund 3 Usaldusfond | 2.44% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.70%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 1.03%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600098612","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":19.87,"fundManager":"SEB"},"SEK00":{"heading":"SEB Konservatiivne Pensionifond","id":"konservatiivne","code":"konservatiivne","dataMarker":"SEK00","suitability":"**Suitable if**\n- you have less than 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\n\nInvests at least 90% of its assets in investment grade bonds, money market instruments and deposits. Up to 10% is allowed to invest into other assets, including equities. Investment in these asset classes involves lower risks, meaning that there is little fluctuation in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":6847},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":34.06,"unit":"%"},{"name":"Equity funds","value":7.51,"unit":"%"},{"name":"Bond funds","value":53.62,"unit":"%"},{"name":"Money and deposits","value":4.81,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR | 20.61% |\n| Amundi Index Euro Corporate Sri- UCITS ETF | 20.36% |\n| PIMCO GIS Euro Credit Fund | 6.72% |\n| Morgan Stanley Sustainable Euro Corporate Bond Fund | 5.93% |\n| Bundesrepublic Deutschland 0.5% 15.08.2027 | 4.73% |\n| iShares MSCI World ESG Screened UCITS ETF | 4.10% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 4.07% |\n| Republic of Estonia 4% 12.10.2032 | 3.63% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 3.49% |\n| Augstsprieguma Tikls 0.5% 20.01.2027 | 2.41% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Republic of Estonia 4% 12.10.2032 | 3.63% |\n| LHV GROUP FRN 09.09.2025 TAP | 1.90% |\n| Luminor Bank FRN 03.12.2024 | 1.16% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.39%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.51%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019717","strategyType":"Conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":10.02,"fundManager":"SEB"},"SEK100":{"heading":"SEB Pensionifond 100","id":"sek100","code":"sek100","dataMarker":"SEK100","suitability":"**Suitable if**\n- you have more than five years until retirement,\n- you prefer a high risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\n\nInvests up to 100% of its assets in shares. This involves high risks, resulting in big fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":2452},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Shares","value":2.17,"unit":"%"},{"name":"Equity funds","value":87.98,"unit":"%"},{"name":"Real Estate funds","value":0.1,"unit":"%"},{"name":"Money and deposits","value":9.75,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares MSCI World ESG Screened UCITS ETF | 28.62% |\n| SEB Global Exposure Fund | 10.15% |\n| iShares MSCI World ESG Enhanced UCITS ETF | 9.27% |\n| Amundi MSCI Emerging Markets UCITS ETF | 4.60% |\n| HSBC MSCI Emerging Markets UCITS ETF | 4.46% |\n| iShares MSCI USA ESG Screened UCITS ETF | 4.23% |\n| iShares MSCI World Value Factor ESG UCITS ETF | 3.93% |\n| Invesco Markets PLC - Invesco S&P 500 ESG UCITS | 3.88% |\n| iShares Core MSCI World UCITS ETF | 3.49% |\n| iShares MSCI World Health Care Sector ESG UCITS ETF | 3.09% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Enefit Green AS | 1.28% |\n| Tallinna Sadam AS | 0.37% |\n| Hepsor AS | 0.33% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.70%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.87%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001699","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":6,"countryShareEe":1.98,"fundManager":"SEB"},"SWK99":{"heading":"Swedbank pensionifond indeks 1990–99 sündinutele","id":"k9099","code":"k99","dataMarker":"SWK99","suitability":"**Suitable if**\n- you were born in the 90s;\n- you want the fund’s risk level to change with your age;\n- you want to never have to worry about switching funds again.\n","strategy":"**Strategy**\n\nThe Fund is established as a lifecycle fund with so called passive investment strategy, meaning that the assets of the Fund are invested into financial instruments that track global indices and the Management Company reduces the ratio of instruments carrying equity risk in the Fund´s assets over time pursuant to the conditions and prospectus of the Fund.\nThe proportion of investments with equity risk will only ever vary from the indicated level by max. 2%. The remainder is invested in bonds, other debt instruments, deposits and other assets.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":45794},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Shares","value":96.95,"unit":"%"},{"name":"Equity funds","value":2.6,"unit":"%"},{"name":"Money and deposits","value":0.48,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Apple | 4.14% |\n| Microsoft | 3.37% |\n| Access Global A | 2.60% |\n| Amazon.com | 1.60% |\n| Alphabet A | 1.13% |\n| Berkshire Hathaway B | 1.00% |\n| Johnson & Johnson | 0.96% |\n| Alphabet C | 0.86% |\n| Visa | 0.83% |\n| JPMorgan Chase | 0.82% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.31%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109393","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"Swedbank"},"SWK75":{"heading":"Swedbank pensionifond 1980–89 sündinutele","id":"k4","code":"k4","dataMarker":"SWK75","suitability":"**Suitable if**\n- you were born in the 80s;\n- you want the fund’s risk level to change with your age;\n- you want to never have to worry about switching funds again.\n","strategy":"**Strategy**\n\nA unique life-cycle fund where the risk level changes over time. When you are younger, you can take more risks and invest in equities. The closer you get to retirement, the lower the proportion of equities and the higher the proportion of bonds. The fund invests sustainably. \n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":64956},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":2.29,"unit":"%"},{"name":"Shares","value":54.37,"unit":"%"},{"name":"Equity funds","value":28.85,"unit":"%"},{"name":"Real Estate funds","value":7.66,"unit":"%"},{"name":"Private Equity funds","value":1.62,"unit":"%"},{"name":"Money and deposits","value":5.25,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Access Edge Emerging Markets A | 6.97% |\n| Access Europa A | 6.07% |\n| Globalfond A | 3.70% |\n| Amundi Index MSCI World SRI UC | 3.24% |\n| AMUNDI I.S-MSCI EME.E.L.-UCI.ETF DR USD | 2.67% |\n| Apple | 1.91% |\n| EfTEN Kinnisvarafond II AS | 1.75% |\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 1.74% |\n| Transition Energy A | 1.67% |\n| Microsoft | 1.63% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II AS | 1.75% |\n| East Capital Baltic Property Fund III | 1.18% |\n| LHV Group 9.500% Perpetual | 0.83% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.53%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.68%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600103248","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":11.05,"fundManager":"Swedbank"},"SWK50":{"heading":"Swedbank pensionifond 1970–79 sündinutele","id":"k3","code":"k3","dataMarker":"SWK50","suitability":"**Suitable if**\n- you were born in the 70s;\n- you want the fund’s risk level to change with your age;\n- you want to never have to worry about switching funds again.\n","strategy":"**Strategy**\n\nA unique life-cycle fund where the risk level of equities changes over time. The closer you get to retirement, the lower the proportion of equities and the higher the proportion of bonds. The fund invests sustainably.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":76986},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":10.08,"unit":"%"},{"name":"Shares","value":43.89,"unit":"%"},{"name":"Equity funds","value":24.79,"unit":"%"},{"name":"Real Estate funds","value":11.08,"unit":"%"},{"name":"Private Equity funds","value":1.6,"unit":"%"},{"name":"Bond funds","value":3.65,"unit":"%"},{"name":"Money and deposits","value":4.97,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Access Edge Emerging Markets A | 5.14% |\n| Access Europa A | 4.89% |\n| iShares USD Treasury Bond 1-3yr UCITS ETF | 3.65% |\n| Globalfond A | 3.53% |\n| EfTEN Kinnisvarafond II AS | 3.44% |\n| Amundi Index MSCI World SRI UC | 3.13% |\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 3.10% |\n| East Capital Baltic Property Fund III | 2.18% |\n| Usaldusfond EfTEN Real Estate Fund 4 | 1.58% |\n| Apple | 1.57% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II | 3.44% |\n| East Capital Baltic Property Fund III | 2.18% |\n| Lumi Retal Property Fund | 1.07% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.53%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.70%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019758","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":15.67,"fundManager":"Swedbank"},"SWK25":{"heading":"Swedbank pensionifond 1960–69 sündinutele","id":"k2","code":"k2","dataMarker":"SWK25","suitability":"**Suitable if**\n- you were born in the 60s;\n- you want the fund’s risk level to change with your age;\n- you want to never have to worry about switching funds again.\n","strategy":"**Strategy**\n\nA unique life-cycle fund where the risk level changes automatically over time. The closer you get to retirement, the lower the proportion of equities and the higher the proportion of bonds. The fund invests sustainably.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":25625},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":32.63,"unit":"%"},{"name":"Shares","value":20.79,"unit":"%"},{"name":"Equity funds","value":12.12,"unit":"%"},{"name":"Real Estate funds","value":14.17,"unit":"%"},{"name":"Private Equity funds","value":0.77,"unit":"%"},{"name":"Bond funds","value":17.87,"unit":"%"},{"name":"Money and deposits","value":1.69,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares USD Treasury Bond 1-3yr UCITS ETF | 11.85% |\n| EfTEN Kinnisvarafond II AS | 4.78% |\n| Lyxor US Treasury 1-3Y DR UCITS ETF | 4.43% |\n| Access Edge Emerging Markets A | 2.73% |\n| Access Europa A | 2.53% |\n| East Capital Baltic Property Fund III | 2.42% |\n| Birdeye Capital Timber Fund 2 | 1.86% |\n| Amundi Index MSCI World SRI UC | 1.82% |\n| Luminor Bank VAR 241203 | 1.61% |\n| Corporate Bond Europe High Yield A | 1.59% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 4.78% |\n| East Capital Baltic Property Fund III | 2.42% |\n| Birdeye Capital Timber Fund 2 | 1.86% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.53%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.74%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019741","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":21.89,"fundManager":"Swedbank"},"SWK00":{"heading":"Swedbank Pensionifond Konservatiivne","id":"k1","code":"k1","dataMarker":"SWK00","suitability":"**Suitable if**\n- your retirement age is close;\n- you want to maintain the money you have already collected;\n- you are looking for a low-risk fund.\n","strategy":"**Strategy**\n\nAt least 80% of the fund’s assets are invested in bonds, money market instruments, and deposits. The rest is invested in equities, real estate, and other authorised assets. The fund unit price does not fluctuate significantly over a shorter period. It is not a life-cycle fund. The fund invests sustainably.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":6557},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":59.21,"unit":"%"},{"name":"Real Estate funds","value":11.2,"unit":"%"},{"name":"Bond funds","value":27.29,"unit":"%"},{"name":"Money and deposits","value":2.34,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Lyxor US Treasury 1-3Y DR UCITS ETF | 14.89% |\n| iShares USD Treasury Bond 1-3yr UCITS ETF | 12.40% |\n| East Capital Baltic Property Fund III | 8.56% |\n| Luminor Bank VAR 241203 | 4.85% |\n| Altum 1.300% 250307 | 2.49% |\n| Nykredit Realkredit 0.250% 260113 | 2.04% |\n| City of Tallinn Estonia FRN 271129 | 1.85% |\n| Volkswagen Financial Services 3.375% 280406 | 1.73% |\n| Ignitis 2.000% 300521 | 1.66% |\n| Birdeye Capital Timber Fund 2 | 1.65% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| East Capital Baltic Property Fund III | 8.56% |\n| Luminor Bank VAR 241203 | 4.85% |\n| City of Tallinn Estonia FRN 271129 | 1.85% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.42%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019733","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":23.41,"fundManager":"Swedbank"},"SEK75":{"heading":"SEB Energiline Pensionifond","id":"energiline","code":"energiline","dataMarker":"SEK75","suitability":"**Suitable if**\n- you have more than 5 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\n\nFund up to 75% of its assets in shares, with the remainder allocated to bonds and deposits. Investing mainly in shares involves higher risks, resulting in bigger fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":21509},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":15.41,"unit":"%"},{"name":"Shares","value":4.74,"unit":"%"},{"name":"Equity funds","value":60.13,"unit":"%"},{"name":"Real Estate funds","value":6.58,"unit":"%"},{"name":"Private Equity funds","value":0.46,"unit":"%"},{"name":"Bond funds","value":4.46,"unit":"%"},{"name":"Money and deposits","value":8.22,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| SEB Global Exposure Fund | 9.60% |\n| iShares MSCI World ESG Screened UCITS ETF | 8.10% |\n| SEB Fund 3 - SEB Global Exposure Fund | 6.90% |\n| Amundi MSCI Emerging Markets UCITS ETF | 4.54% |\n| HSBC MSCI Emerging Markets UCITS ETF | 4.17% |\n| iShares MSCI World Value Factor ESG UCITS ETF | 4.01% |\n| iShares MSCI USA ESG Enhanced UCITS ETF | 3.73% |\n| Bundesrepublik Deutschland 0% 15.08.2031 | 3.60% |\n| Republic of Estonia 4% 12.10.2032 | 3.34% |\n| iShares MSCI World Health Care Sector ESG UCITS ETF | 3.21% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Republic of Estonia 4% 12.10.2032 | 3.34% |\n| Birdeye Timber Fund 3 Usaldusfond | 1.85% |\n| Tallinna Sadam AS | 1.75% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.70%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.97%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600103297","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":13.59,"fundManager":"SEB"},"SIK75":{"heading":"SEB Pensionifond Indeks 100","id":"eindeks","code":"sik","dataMarker":"SIK75","suitability":"**Suitable if**\n- you have more than five years until retirement,\n- you prefer a medium risk fund,\n- your goal is to mirror securities markets.\n","strategy":"**Strategy**\n\nInvests up to 100% of its assets in equities, by implementing a passive investment strategy and mirroring securities markets. Investing in equities involves high risks, resulting in big fluctuations in the value of the fund’s assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":22684},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.75,"unit":"%"},{"name":"Money and deposits","value":0.25,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Amundi Prime Global UCITS ETF DR | 29.42% |\n| iShares Core S&P 500 UCITS ETF | 26.19% |\n| Vanguard S&P 500 UCITS ETF | 14.63% |\n| HSBC MSCI Emerging Markets UCITS ETF | 11.15% |\n| Lyxor Core STOXX Europe 600 DR ETF | 10.85% |\n| Xtrackers Nikkei 225 UCITS ETF | 3.71% |\n| UBS Lux Fund Solutions - MSCI Canada UCITS ETF | 1.94% |\n| iShares Core MSCI Pacific ex-Japan UCITS ETF USD Acc | 1.87% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.25%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.34%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109427","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"SEB"},"NPK00":{"heading":"Luminor C Pensionifond","id":"c","code":"c","dataMarker":"NPK00","suitability":"**Suitable if**\n- your saving period is less than 3 years,\n- you would rather protect your pension assets instead of focusing on the growth.\n","strategy":"**Strategy**\n\nInvests a maximum of 10% of the fund's assets in shares and similar risk-bearing assets. At times of high interest rates, the fund may invest most of its assets in deposits to avoid setbacks on the bond markets.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":3543},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":14.16,"unit":"%"},{"name":"Equity funds","value":4.7,"unit":"%"},{"name":"Bond funds","value":74.99,"unit":"%"},{"name":"Money and deposits","value":6.16,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares Euro Investment Grade | 14.43% |\n| Vanguard Euro Government Bond | 13.26% |\n| Amundi Index Euro Agg Corporate | 12.46% |\n| Robeco Euro Credit Bond Fund | 11.47% |\n| Nordea 1 - US Corporate Bond Fund | 9.67% |\n| iShares Euro Corporate Bond Interest | 6.99% |\n| Nordea 2 - US Corporate Enhanced | 4.53% |\n| EPSO-G 3.117% | 2.64% |\n| Neuberger Berman Emerging Market | 2.18% |\n| LATVEN 2.42 05/05/27 | 1.76% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Estonian Eurobond 0,125 | 1.53% |\n| ESTONIA 4 12/10/2032 | 1.33% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.70%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 1.01%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600098455","strategyType":"Conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":2.86,"fundManager":"Luminor"},"NPK25":{"heading":"Luminor B Pensionifond","id":"b","code":"b","dataMarker":"NPK25","suitability":"**Suitable if**\n- your saving period is more than 3 years,\n- you want to grow your pension assets, but do not want to take the risk of significant decreases in the price of the accumulated assets.\n","strategy":"**Strategy**\n\nInvests a maximum of 30% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. This creates a situation where the higher and lower risk markets balance each other and help achieve the goal with moderate risk. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":1580},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":8.66,"unit":"%"},{"name":"Equity funds","value":20.82,"unit":"%"},{"name":"Real Estate funds","value":3.39,"unit":"%"},{"name":"Private Equity funds","value":0.18,"unit":"%"},{"name":"Bond funds","value":57.39,"unit":"%"},{"name":"Money and deposits","value":9.57,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares Euro Investment Grade | 13.13% |\n| Amundi Index Euro Agg Corporate | 9.64% |\n| Robeco Euro Credit Bond Fund | 7.71% |\n| Neuberger Berman Emerging Market | 7.01% |\n| Vanguard Euro Government Bond | 6.19% |\n| Nordea 1 - European High Yield | 5.07% |\n| iShares Developed World Index | 4.67% |\n| Nordea 1 - US Corporate Bond Fund | 4.32% |\n| Nordea 2 - Emerging Mkt Hard Ccy | 4.31% |\n| iShares North America Index Fund | 4.01% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 3.39% |\n| Estonian Eurobond 0,125 | 0.91% |\n| ESTONIA 4 12/10/2032 | 0.71% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.93%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the annual increase of Estonian social security pension contribution since the end date of previous calendar year.\n\n**Ongoing charges (inc management fee):** 1.35%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600098448","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":5.19,"fundManager":"Luminor"},"NPK75":{"heading":"Luminor A Pluss Pensionifond","id":"apluss","code":"A pluss","dataMarker":"NPK75","suitability":"**Suitable if**\n- your saving period is more than 20 years,\n- you tolerate a short-term decrease in the value of assets well,\n- your goal is to achieve potentially high return on assets in the longer run despite short-term fluctuations in prices.\n","strategy":"**Strategy**\n\nInvests a maximum of 100% of fund assets in equity and assets with similar risk. The rest is invested in bonds, deposits or similar instruments. If necessary, depending on the market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":8093},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":90.22,"unit":"%"},{"name":"Real Estate funds","value":2.84,"unit":"%"},{"name":"Private Equity funds","value":0.54,"unit":"%"},{"name":"Bond funds","value":3.43,"unit":"%"},{"name":"Money and deposits","value":2.96,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares Developed World ESG | 15.96% |\n| iShares Developed World Index Fund | 15.61% |\n| iShares North America Index Fund | 15.14% |\n| iShares Core MSCI World UCITS ETF | 10.79% |\n| iShares Emerging Markets Index Fund | 9.39% |\n| iShares Core MSCI EM IMI UCITS ETF | 8.54% |\n| iShares Europe Equity Index Fund | 4.12% |\n| Xtrackers MSCI World Utilities UCITS | 3.47% |\n| EFTEN Kinnisvarafond II AS | 2.67% |\n| Xtrackers MSCI World Consumer | 2.27% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 2.67% |\n| KS Livonia Partners Fund II AIF | 0.54% |\n| EfTEN Kinnisvarafond AS | 0.17% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.93%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the annual increase of Estonian social security pension contribution since the end date of previous calendar year.\n\n**Ongoing charges (inc management fee):** 1.44%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600103503","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":3.38,"fundManager":"Luminor"},"NPK50":{"heading":"Luminor A Pensionifond","id":"A","code":"A","dataMarker":"NPK50","suitability":"**Suitable if**\n- your saving period is more than 10 years,\n- you tolerate a short-term decrease in the value of assets well,\n- your goal is to achieve a somewhat higher return on assets regardless of short-term price fluctuations.\n","strategy":"**Strategy**\n\nInvests a maximum of 60% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":13860},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":4.69,"unit":"%"},{"name":"Equity funds","value":50.69,"unit":"%"},{"name":"Real Estate funds","value":7.16,"unit":"%"},{"name":"Private Equity funds","value":0.34,"unit":"%"},{"name":"Bond funds","value":28.97,"unit":"%"},{"name":"Money and deposits","value":8.15,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares Developed World Index | 10.24% |\n| Screened Index Fund (IE) Inst Acc | 9.58% |\n| iShares Core MSCI World UCITS | 7.31% |\n| Neuberger Berman Emerging Market | 7.02% |\n| iShares Euro Investment Grade | 5.86% |\n| iShares Emerging Markets Index | 5.53% |\n| Robeco Euro Credit Bond Fund | 5.27% |\n| EFTEN Kinnisvarafond II AS | 5.26% |\n| iShares North America Index Fund | 5.18% |\n| iShares Core MSCI EM IMI UCITS | 4.54% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EFTEN Kinnisvarafond II AS | 5.26% |\n| EfTEN Kinnisvarafond AS | 1.90% |\n| Estonian Eurobond 0,125 | 0.82% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.93%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the annual increase of Estonian social security pension contribution since the end date of previous calendar year.\n\n**Ongoing charges (inc management fee):** 1.43%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600098430","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":8.6,"fundManager":"Luminor"},"NIK100":{"heading":"Luminor Pensionifond Jätkusuutlik Tulevik, Indeks","id":"jatkusuutlik","code":"jatkusuutlik","dataMarker":"NIK100","suitability":"**Suitable if**\n- you have more than 10 years left until retirement,\n- you tolerate possible short-term fluctuations in the value of the assets well in order to earn a potentially higher than average return in the long term.\n","strategy":"**Strategy**\n\nThe fund’s assets are invested in equity funds and other similar instruments. The equity risk is maintained at around 100% regardless of the situation on financial markets. The fund invests globally. The fund may invest in different industries and regions and assets denominated in different currencies.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":261},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":93.79,"unit":"%"},{"name":"Money and deposits","value":6.21,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| iShares MSCI EM SRI ETF | 23.47% |\n| UBS (Lux) Fund Solutions - MSCI | 19.02% |\n| iShares MSCI World SRI UCITS ETF | 18.82% |\n| Amundi Index MSCI World SRI | 18.44% |\n| BNP Paribas Easy MSCI World SRI | 14.05% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","active":true,"content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,25%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0,61%\n\n*Ongoing fees are given as estimates based on forecasted total fees.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001806","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"Luminor"},"SPT30":{"heading":"Luminor Intress Pluss Pensionifond","id":"intress-pluss","code":"lum_int","dataMarker":"SPT30","securityId":88317,"active":true,"suitability":"**Suitable if**\n- your saving period is more than 3 years long,\n- you want to increase your pension assets, but do not want to take risks at the price of significant decrease in the value of collected assets.\n","strategy":"**Strategy**\nFund invests a maximum of 20% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. This creates a situation where the higher and lower risk markets balance each other and help achieve the goal with moderate risk. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1,2%"},"fundInfo":{"company":{"title":"Luminor Pensions Estonia AS","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600109369, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.2%\n\n**Ongoing charges (inc management fee):** 1.77%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600109369","strategyType":null,"managementStyle":"Active","riskLevel":4,"countryShareEe":32.12534,"fundManager":"Luminor","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LHT75":{"heading":"LHV Täiendav Pensionifond","id":"taiendav","code":"lhv_iii","dataMarker":"LHT75","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have medium risk tolerance,\n- you are aware of investment risks and wish to make long-term investments in a supplementary funded pension, with the aim of using the accumulated money tax-effectively after reaching retirement age.\n","strategy":"**Strategy**\nThe fund makes significant investments in equity markets: to ensure maximum growth, the proportion of equity markets is kept close to 75% of the value of the fund’s assets. The proportion of equity markets may also be higher – up to 95% – or lower (in recent years close to 40%), if considered reasonable by the fund manager.\n","isLhvFund":true,"costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1%"},"fundInfo":{"date":"30.09.2020","capacity":"18,195,533.69 €","company":{"title":"LHV Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"https://www.seb.ee/en/contacts","fee":"0,06%"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600010294, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"assets","title":"Current assets","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":37.53,"unit":"%"},{"name":"Shares","value":19.08,"unit":"%"},{"name":"Equity funds","value":13.26,"unit":"%"},{"name":"Real Estate funds","value":12.54,"unit":"%"},{"name":"Private Equity funds","value":2.71,"unit":"%"},{"name":"Money and deposits","value":14.89,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022.\n\n| Biggest investments | |\n|---|---:|\n| German Treasury Bill 22/02/23 | 10.80% |\n| France Government 25/02/23 | 8.79% |\n| EfTEN Kinnisvarafond | 3.90% |\n| ZKB Gold ETF | 3.82% |\n| iShares Gold Producers UCITS ETF | 3.32% |\n| German Treasury Bill 18/01/2023 | 3.01% |\n| BNP Paribas 2.5% 31/03/2032 | 2.90% |\n| Lyxor EURO STOXX Banks DR UCITS | 2.52% |\n| BIGBANK 7.5% 16/05/2032 | 2.43% |\n| East Capital Baltic Property Fund III | 2.33% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 3.90% |\n| BIGBANK 7.5% 16/05/2032 | 2.43% |\n| East Capital Baltic Property Fund III | 2.33% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 24,933,395.79 € |\n| Management company | LHV Varahaldus |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n\n**Rate of the depository’s charge:** 0.0444%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1%\n\n**Ongoing charges (inc management fee):** 1.46%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_tingimused_2017-06-13.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_prospekt_060818.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Taiendav_Pensionifond_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_Taiendav_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2022,"month":12,"content":"### December 2022: We reduced equity positions in the energy and banking sectors\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn December, world stock markets mostly fell. Measured in euros, the MSCI World index fell by 7.6%, the US S&P 500 index fell by 9.4%, and the Nasdaq Composite index, which tracks the US technology sector, fell as much as 12.1%. The Japanese Nikkei index fell 4.4%, the European Euro Stoxx 50 index 4.3% and the MSCI Emerging Markets index 5.3%, measured in euros. The Baltic stock markets stood out last month: the Tallinn, Riga, and Vilnius stock markets rose by 0.4%, 3.4% and 0.1%, respectively.\n\nOur investments in listed stocks depreciated at the end of the year, driven by profit-taking in positions related to the energy sector. Stock investments related to precious metals escaped the general decline of the markets.\n\nAt the beginning of the month, we reduced the fund’s equity positions in the US energy sector and European banks, which had offered good returns in the short term. With these sales, we increased the buffer that can be used for new investments in the near future.\n\nEuropean bond markets remained clearly in the red in December, showing once again the value of financing Estonian companies, both in developing the local economy and in achieving a higher return on pension assets.\n\nThe year 2022 was particularly difficult for the public bond markets: for example, the European market offered an average return of –17%, and Estonian government bonds fell as much as 21%. Fearing risks, we have avoided public bonds in recent years, but the new year may start offering new opportunities in this area.\n"},{"year":2022,"month":11,"content":"### November 2022: Stock markets continue to recover\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn November, the world’s stock markets continued to rise, and the euro strengthened significantly. Measured in euros, the MSCI World index rose by 2.7% and the US S&P 500 index by 1%, but the Nasdaq Composite index, which tracks the US technology sector, remained almost at the same level as in October, measured in euros. Japan’s Nikkei index rose by 3.6% in euros in November.\n\nWe experienced strong growth in European stock exchanges in November, when the Euro Stoxx 50 index rose by 9.7%. The same trend persisted in emerging markets: the MSCI Emerging Markets index rose by 9.9% measured in euros. While trends in the Baltic stock markets are often mixed, this month the Tallinn, Riga, and Vilnius markets moved in the same direction and rose by 5.3%, 5% and 4.7% respectively.\n\nThe local private equity company BaltCap announced that the BaltCap Latvia Venture Capital Fund, which they manage, was selling the digital medical services provider Blue Bridge Technologies. The company was founded in 2007 and BaltCap invested in it six years later. Blue Bridge Technologies was sold in its entirety to the software investor Everfield.\n\nNovember was positive for the fund’s stock investments. The value of copper-related stocks rose the most, as they went up 20% as a response to the expected change in China’s Covid-19 policy. Among other investments, the share prices of gold mining companies increased to a greater extent. We saw a decline in energy stocks, where we also locked in gains from this year’s rise during the month.\n\nThe fund’s key positions on the stock markets remain primarily in investments related to mineral resources. In November, we reduced our funds’ equity investments in US energy companies to create liquidity for new purchases. We look forward to putting money back into better priced stocks during a more nervous market phase.\n"},{"year":2022,"month":10,"content":"### October 2022: Stock markets recovered from the decline\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn October, world markets recovered. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index, and the European Euro Stoxx 50 rose 6.2%, 6.9%, 2.5% and 9.1% in euros, respectively. However, emerging markets moved in the opposite direction: the MSCI Emerging Markets index fell by 4.1% in October. Compared to world stock markets, the Baltic stock exchanges remained relatively neutral: during the month, the Tallinn and Riga stock exchanges fell by 0.6% and 0.4%, respectively, and the Vilnius stock exchange rose by 1%.\n\nIn the same month, encouraging quarterly results supported the fund’s listed equity investments. Among European investments, bank shares saw the most success, as the financial results of this sector are improved by rising interest income. Among US investments, shares of Valaris and Freeport McMoran, related to mineral resources, rose the most. Most of the fund’s share positions are related to mineral resources and companies that process them, which in many cases are earning record profits in the context of high commodity prices.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The rising price of money led to a decline in asset prices**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n","text":"The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.\n\nJust one year earlier, the volume of bonds with a negative annual yield was even larger at 18 trillion dollars. Although inflation rates had been on an upward trend throughout 2021, central banks insisted this was temporary: several of them continued to buy up bonds and pump money into circulation until mid-2022.\n\nThe value of the S&P 500 index, which tracks the world’s largest and most important stock market, fell by around 20% last year, despite a mere 5% decline in corporate profits. The price-to-earnings (P/E) ratio of the index was 27 times the earnings for the past 12 months in early 2022 but dropped to 19 by the end of the year.\n\nAlthough, at the start of 2022, the US stock market was overvalued in terms of almost every historical standard, stocks still looked cheap relative to the bond market, where the ten-year US government bond offered an annual yield of 1.63%.\n\nIn early 2022, the US Federal Reserve offered an interest rate of 0.25% on overnight deposits. Over the next 12 months, the Federal Reserve raised interest rates seven times to an eventual 4.5%.\n\n**The adjustment may not be over**\n\nThe interest rate is the price of money. When the price of money was close to zero, all assets, regardless of quality, appeared cheap. Over the past year, interest rates rose significantly, meaning that money once again had a price.\n\nWhile just a year ago, due to negative interest rates, 100 euros in your wallet was worth less than a 100 euro note you would receive in 10 years (yes, absurd!) then, with the reversal of interest rates, we returned to a world where the 100 euros in your bank account today is worth more than a 100 euro note you would receive in ten years. At a 4% price of money, the current value of a future 100 euros 10 years from now is a little less than 68 euros.\n\nA rise in interest rates has a negative impact on asset prices, as the value of future profits and rents falls. Furthermore, why risk buying shares in a company that only offers a 1.5% dividend when essentially risk-free government bonds offer an annual yield of 4%?\n\nI suspect that if interest rates rise further, the values of ventures and projects with higher risks and longer time horizons may fall further.\n\nIn 2022, bond markets fell even more than stock markets, which leaves unanswered the question of whether bond markets overreacted or whether stocks still have room to fall. Bonds are generally lower-risk investments than stocks.\n\nThirty-year US government bonds lost more than half their value to rising interest rates last year. It is true that after 30 years, the investors will get their entire investment back, but the value of the bond that will be redeemed after 30 years is currently only half of that. While there is a direct mathematical relationship between the bond price and the interest rate, expectations about companies’ future profits also come into play in the case of stock prices.\n\nThe price level of stocks depends not only on interest rates but also on the financial performance of companies. Companies’ profit ratios decreased significantly last year, but still remain somewhat above the historical average. The financial performance of companies was stronger than expected last year, even despite the accelerating rate of inflation, rising interest rates, and disruptions in supply chains. If the growth of the largest economies were to turn negative in 2023 and corporate profits fall, this would put stock markets under new pressure.\n\nHowever, this does not mean that all companies would face equal difficulties. I believe that, in the coming years, a company’s debt load and the ease or difficulty of refinancing existing debts or attracting new capital will count more than the sector in which it operates.\n\nFor the past 20 years, and especially during the past ten, interest rates have been historically very low. In July 2012, the European Central Bank lowered the interest rate on its standing deposit facility to zero, and in June 2014 it went negative for the first time. This meant that commercial banks had to start paying for depositing their funds in the central bank. The US Federal Reserve refrained from setting negative interest rates but kept them close to zero for a long time.\n\nNow that the US Federal Reserve pays banks 4.25% for their deposits and the European Central Bank pays 2%, interest rates have merely normalised. Those who hope and expect a return to the monetary policy regime of a few years ago, where the price of money was essentially 0%, are likely to be disappointed. You can find a 200-year history of US dollar interest rates [here](https://advisor.visualcapitalist.com/us-interest-rates/).\n\n**The economy is cyclical**\n\nFor years, I have noted the absurdity of the monetary policy of developed countries. It is necessary to support the economy during a crisis, but more than ten years of continuous support can develop into a dangerous addiction.\n\nIn a recent interview, Jeffrey Gundlach, who was crowned the king of the bond markets after Bill Gross, compared a 0% monetary policy to an adrenaline injection: it is necessary in a life-threatening situation, but it is neither healthy nor reasonable to have an adrenaline shot every morning.\n\nLHV pension funds pursue a very long-term investment strategy. We have always considered the possibility that the economy and securities markets are cyclical, and that both interest rates and stock market ratios fluctuate around their historical averages. The investment portfolios of our pension funds have been designed based on this knowledge.\n\nOwing to conservative investment strategy, we did not make a maximum gain on the phenomenal rise of the stock markets in 2021, when the world’s largest economies were almost locked down, while the policy of zero interest rates and the generosity of governments boosted the value of all companies and projects. But thanks to our conservative investment strategy, we also managed to avoid investing in companies with a high debt burden, whose value was based on nothing but lofty promises and who have been in free fall over the past year.\n\n
\n\nPS!\n\nIn an earlier newsletter, I wrote about the growing importance of stories and narratives, which have even surpassed the ability of companies in certain lines of business to offer real products and services. Several speculative bubbles burst last year. Some were caused by the greed and naivety of the investors themselves, while others were deliberately and maliciously created illusions. The lawsuit between the scandalous medical diagnostics startup Theranos and its founder Elizabeth Holmes was settled last year.\n\nI would like to hope that the events of the past year point to the importance of independent critical thinking, and that we, as citizens and investors, will be better able to tell between illusions and reality in the future.\n\nBy the way, Merriam Webster, the oldest publisher of dictionaries and reference books in the United States, chose _[gaslighting](https://www.merriam-webster.com/words-at-play/word-of-the-year?utm_source=Sailthru&utm_medium=email&utm_campaign=Insider%20Today%2C%20December%201%2C%202022&utm_term=INSIDER%20TODAY%20SEND%20LIST)_ as the word of the year for 2022. It means creating a false narrative that causes a victim of fraud to question the validity of their own thoughts.\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Täiendav Pensionifond","type":"markdown","column":"left","content":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - LHV Pank AS\nEE961700017004379157 - Luminor Bank AS\nEE141010220263146225 - SEB Pank AS\nEE362200221067235244 - Swedbank AS\n\n**Explanation**\n30101119828, EE3600010294, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600010294","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":15.04,"fundManager":"LHV","minSumInEurWhenBuying":6.39,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LIT100":{"heading":"LHV Pensionifond Indeks Pluss","id":"indeks-pluss","code":"lhv_lit","dataMarker":"LIT100","securityId":147612,"suitability":"**Suitable if**\n- you are prepared to tolerate the risks arising from potentially significant fluctuations in equity markets,\n- you have previous investment experience.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe fund invests all of its assets in equity index-following investment funds and the fund manager does not actively change the fund’s risk level. The share of assets invested in equities is kept close to 100% of the fund’s size. Whenever the proportion of money in the fund exceeds 2% then it is invested within five working days.\n\nInvestments in funds investing in equities are distributed between three types of markets – developed markets, emerging markets and frontier markets – based on their approximate share in global gross domestic product (GDP).\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0.2%"},"fundInfo":{"date":"30.09.2020","capacity":"8,094,598.17 €","pocket":"468,750 units","company":{"title":"LHV Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"https://www.seb.ee/en/contacts","fee":"0,06%"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600109419, IK:Your ID Code\n\n**Amount**\nAmount invested in euros\n","accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":93.05,"unit":"%"},{"name":"Money and deposits","value":6.95,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Amundi Prime Global UCITS ETF | 26.94% |\n| Lyxor Core MSCI World DR UCITS | 24.21% |\n| HSBC MSCI Emerging Markets UCITS | 17.71% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 10.33% |\n| SPDR MSCI World UCITS ETF | 7.32% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 3.43% |\n| iShares MSCI Frontier and Select EM ETF | 3.11% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 30,678,704.13 € |\n| Management company | LHV Varahaldus |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Rate of the depository’s charge:** 0.0468%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.2%\n\n**Ongoing charges (inc management fee):** 0.42%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_tingimused_2021_02.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_prospekt_2021_02.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_KIID_2022.pdf)\n"},{"title":"Models","type":"markdown","column":"left","content":"- [Sample portfolio (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_mudelportfell_09_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_LIT100_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_Pluss_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_Pluss_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_Pluss_aruanne_2019.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Pensionifond Indeks Pluss","type":"markdown","column":"left","content":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - LHV Pank AS\nEE961700017004379157 - Luminor Bank AS\nEE141010220263146225 - SEB Pank AS\nEE362200221067235244 - Swedbank AS\n\n**Explanation**\n30101119828, EE3600109419, IK:Your ID Code\n\n**Amount**\nAmount invested in euros\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600109419","strategyType":null,"managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SET100":{"heading":"SEB Aktiivne Pensionifond","id":"aktiivne","code":"seb_akt","dataMarker":"SET100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have more than 5 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\nThe fund invests up to 100% of the assets in shares. Investing mainly in shares involves higher risks, resulting in big fluctuations in the value of the fund's assets.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"0.95%"},"fundInfo":{"company":{"title":"SEB Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600074076, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.95%\n\n**Ongoing charges (inc management fee):** 1.19%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600074076","strategyType":null,"managementStyle":"Active","riskLevel":5,"countryShareEe":32.12534,"fundManager":"SEB","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":4,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SET35":{"heading":"SEB Tasakaalukas Pensionifond","id":"tasakaalukas","code":"seb_tas","dataMarker":"SET35","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have at least 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\nThe fund mainly invests in bonds and deposits, with up to 25% invested in shares. As the fund invests in shares, bonds and deposits in an equal amount, moderate fluctuations in the value of the fund's assets may occur.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"0.85%"},"fundInfo":{"company":{"title":"SEB Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600008934, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.85%\n\n**Ongoing charges (inc management fee):** 1.13%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600008934","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":32.12534,"fundManager":"SEB","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":4,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"NPT100":{"heading":"Luminor Aktsiad 100 Pensionifond","id":"aktsiad100","code":"Lu_100","dataMarker":"NPT100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- your saving period is over 10 years long,\n- you tolerate potential short-term decrease,\n- your goal is to achieve potential above average return on assets in the long term despite short-term fluctuation in prices.\n","strategy":"**Strategy**\nFund may invest all funds in equity and assets with similar risk. If necessary, depending on the market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1,5%"},"fundInfo":{"company":{"title":"Luminor Pensions Estonia AS","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600098422, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.5%\n\n**Ongoing charges (inc management fee):** 2.14%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600098422","strategyType":null,"managementStyle":"Active","riskLevel":5,"countryShareEe":32.12534,"fundManager":"Luminor","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWT30":{"heading":"Swedbank Pensionifond V30","id":"swedv1","code":"v1","dataMarker":"SWT30","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you are a conservative or elderly saver,\n- you are a saver with moderate risk tolerance,\n- your objective is to achieve a stable increase in assets over a longer savings period (at least 5 years).\n","strategy":"**Strategy**\nUp to 30% of the fund’s assets are invested in equity risk instruments; the rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"0.95%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600007530, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.95%\n\n**Ongoing charges (inc management fee):** 0.95%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600007530","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":32.12534,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWT60":{"heading":"Swedbank Pensionifond V60","id":"swedv2","code":"v2","dataMarker":"SWT60","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have a relatively high risk tolerance and are aware of opportunities and risks related to equities,\n- your objective is to increase assets as much as possible over a long or medium savings period (at least 7 years).\n","strategy":"**Strategy**\nUp to 60% of the fund’s assets are invested in equity risk instruments; the rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1.05%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600071031, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.05%\n\n**Ongoing charges (inc management fee):** 1.05%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600071031","strategyType":null,"managementStyle":"Active","riskLevel":4,"countryShareEe":32.12534,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWT100":{"heading":"Swedbank Pensionifond V100","id":"swedv3","code":"v3","dataMarker":"SWT100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you are with a high risk tolerance experienced investor,\n- your objective is to increase assets as much as possible over a long savings period (at least 10 years).\n","strategy":"**Strategy**\nUp to 100% of the Fund's assets may be invested in instruments with equity risk. The Funds’ assets are, *inter alia*, invested through other investment funds.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1,15%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600071049, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.15%\n\n**Ongoing charges (inc management fee):** 1.15%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600071049","strategyType":null,"managementStyle":"Active","riskLevel":5,"countryShareEe":32.12534,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWV100":{"heading":"Swedbank Pensionifond V100 indeks (exit restricted)","id":"swedv100","code":"v100","dataMarker":"SWV100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you are with a high risk tolerance experienced investor,\n- your objective is to increase assets as much as possible over a long savings period (at least 10 years),\n- you want to save for retirement and you do not mind the age restriction (55 years) on withdrawing money from the fund or the fact that the units of the fund may only be switched to funds subject to the same or more stringent rules,\n- you are prepared to invest 100% in equities and who prefer to do it predominantly via a pension fund that invests in indices.\n","strategy":"**Strategy**\nThe Fund is established as an investment fund with so called passive investment policy, which means that the assets of the Fund are predominantly invested in other investment funds tracking global equity indices of developed countries. Up to 100% of the Fund's assets may be invested in instruments with equity risk, and the Management Company shall not react to changes in the composition of such indices. The Funds’ assets are, inter alia, invested through other investment funds.\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0,29%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600109484,IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.29%\n\n**Ongoing charges (inc management fee):** 0.29%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600109484","strategyType":null,"managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"TUV100":{"heading":"Tuleva III Samba Pensionifond","id":"tuv100","code":"tuv100","dataMarker":"TUV100","securityId":null,"active":null,"suitability":"**Suitable if**\n- you are younger than 55 (for people who are 55 or over, the fund is suitable in combination with a bond fund or bank deposit),\n- and you want to achieve the best possible rate of return, and you are not staggered by short-term fluctuations of the market.\n","strategy":"**Strategy**\nThe assets of the fund are only invested in units of investment funds that follow the MSCI All-Country World Index (MSCI ACWI), its subindices, or indices with a similar composition of underlying assets.\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0.23%"},"fundInfo":{"company":{"title":"Tuleva Fondid AS","link":null},"depository":{"title":"AS Swedbank","url":"https://www.swedbank.ee/about/about/branches/official"},"investors":0},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600001707, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.23%\n\n**Ongoing charges (inc management fee):** 0.35%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001707","strategyType":null,"managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Tuleva","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":4,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LRK100":{"heading":"LHV Pensionifond Roheline","id":"roheline","code":"roheline","dataMarker":"LRK100","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you are partial to thinking green,\n- you would like to invest your pension funds in an environmentally friendly and sustainable manner.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe fund's assets are invested in accordance with the principle that investments must be responsible, environmentally friendly, green, ethical, sustainable, anti-climate change, resource-efficient or have a lower greenhouse gas footprint than other investment opportunities.\n","fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":8828},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":0.87,"unit":"%"},{"name":"Shares","value":30.26,"unit":"%"},{"name":"Equity funds","value":61.96,"unit":"%"},{"name":"Real Estate funds","value":1.34,"unit":"%"},{"name":"Money and deposits","value":5.57,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| Global X Copper Miners ETF | 11.73% |\n| iShares Global Clean Energy ET | 8.22% |\n| Global X Lithium and Battery Tech | 7.88% |\n| Invesco Solar ETF | 7.77% |\n| L and G Battery Value-Chain UCITS | 7.51% |\n| KraneShares Global Carbon Strategy ETF | 7.17% |\n| WisdomTree Battery Solutions UCITS | 4.81% |\n| UPM-Kymmene | 2.89% |\n| L and G Hydrogen Economy UCITS ETF | 2.68% |\n| Ignitis Grupe | 2.62% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Birdeye Timber Fund 3 | 1.34% |\n| Hepsor | 0.62% |\n| Sopruse157 omanikulaen | 0.36% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 45,304,252.54 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 1,000,000.002 units |\n| Rate of the depository’s charge | 0.0468% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.4067%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0,83%\n\n*The ongoing charges figure is an estimate based on the current management fee and estimated total fees. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_tingimused.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_prospekt_2023.pdf)\n- [Prospectus (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_prospekt_2022.pdf)\n- [Analysis of the amendments made to the prospectus (in Estonian)](/assets/files/pension/Prospekti_muutmise_moju_analyys_23052022.pdf)\n- [Key Investor Information (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_aruanne_2021.pdf)\n- [Annual report for 2020 (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_aruanne_2020.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001723","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":2.53,"fundManager":"LHV"},"LRT100":{"heading":"LHV Pensionifond Roheline Pluss","id":"roheline-pluss","code":"rohelinepluss","dataMarker":"LRT100","securityId":189345,"suitability":"**Suitable if**\n- you are partial to thinking green,\n- you would like to invest your pension funds in an environmentally friendly and sustainable manner.\n","isLhvFund":true,"strategy":"**Strategy**\n\nThe fund's assets are invested in accordance with the principle that investments must be responsible, environmentally friendly, green, ethical, sustainable, anti-climate change, resource-efficient or have a lower greenhouse gas footprint than other investment opportunities.\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0,49%"},"fundInfo":{"date":"30.09.2020","capacity":"7,003,906.73 €","pocket":"468,750 units","company":{"title":"LHV Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"https://www.seb.ee/en/contacts","fee":"0,06%"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600001764, IK:Your ID Code\n\n**Amount**\nAmount invested in euros\n","accordion":[{"id":"assets","title":"Current assets","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Shares","value":27.81,"unit":"%"},{"name":"Equity funds","value":60.47,"unit":"%"},{"name":"Real Estate funds","value":1.71,"unit":"%"},{"name":"Money and deposits","value":10,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022.\n\n| Biggest investments | |\n|---|---:|\n| Global X Copper Miners ETF | 11.02% |\n| iShares Global Clean Energy ET | 8.73% |\n| Invesco Solar ETF | 8.14% |\n| Global X Lithium and Battery Tech | 7.53% |\n| KraneShares Global Carbon Strategy ETF | 7.40% |\n| L and G Battery Value-Chain UCITS | 6.41% |\n| WisdomTree Battery Solutions UCITS | 3.87% |\n| Rockwool | 2.69% |\n| L and G Hydrogen Economy UCITS ETF | 2.65% |\n| UPM-Kymmene | 2.52% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Birdeye Timber Fund 3 | 1.71% |\n| Hepsor | 0.45% |\n"}]},{"id":"info","title":"Information about the fund","active":true,"content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.12.2022) | 6,930,495.08 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 468,750 units |\n| Depository | [AS SEB Pank](https://www.seb.ee/en/contacts) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Rate of the depository’s charge:** 0.0468%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.49%\n\n**Ongoing charges (inc management fee):** 0,98%\n\n*The ongoing charges have been estimated, based on the expected total of charges. The annual report of the fund provides details of the paid fees for each year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_Pluss_tingimused.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (as of 02.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_Pluss_prospekt_2023.pdf)\n- [Prospectus (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_Pluss_prospekt_2021.pdf)\n- [Key Investor Information (as of 01.01.2023) (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_Pluss_KIID_2023.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_Pluss_KIID_2022.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 December 2022) (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_Pluss_kuuaruanne_2022_12.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_Pluss_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2022.pdf)\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Pensionifond Roheline Pluss","type":"markdown","column":"left","content":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - LHV Pank AS\nEE961700017004379157 - Luminor Bank AS\nEE141010220263146225 - SEB Pank AS\nEE362200221067235244 - Swedbank AS\n\n**Explanation**\n30101119828, EE3600001764, IK:Your ID Code\n\n**Amount**\nAmount invested in euros\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001764","strategyType":null,"managementStyle":"Active","riskLevel":6,"countryShareEe":2.16,"fundManager":"LHV","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWV30":{"heading":"Swedbank Pensionifond V30 indeks (exit restricted)","id":"swedv30","code":"v30indeks","dataMarker":"SWV30","securityId":204900,"active":true,"suitability":"**Suitable if**\n- you are a conservative or elderly saver with moderate risk tolerance,\n- your goal is asset stability and long-term growth (min. 5 years),\n- you want to save for retirement, and you do not mind the age restriction (55 years) on withdrawing money from the fund or the fact that the units of the fund may only be switched to funds subject to the same or more stringent rules,\n- you want to invest up to 30% in equities and prefer to do so through a pension fund that predominantly invests in the index.\n","strategy":"**Strategy**\nUp to 30% of the Fund’s assets may be invested in instruments with equity risk, and the Management Company shall not react to changes in the composition of such indices. The investment of the assets of the Fund shall take into consideration the ESG (environmental, social, governance) factors or principles of other fields of responsible and sustainable policy (environment, climate, working conditions, company management, etc.).\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0,29%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600001749, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.29%\n\n**Ongoing charges (inc management fee):** 0.29%\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001749","strategyType":null,"managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWV60":{"heading":"Swedbank Pensionifond V60 indeks (exit restricted)","id":"swedv60","code":"v60indeks","dataMarker":"SWV60","securityId":204901,"active":true,"suitability":"**Suitable if**\n- you have a relatively high risk tolerance,\n- your goal is a higher growth of assets in the medium or long term (min. 7 years),\n- you want to save for retirement, and you do not mind the age restriction (55 years) on withdrawing money from the fund or the fact that the units of the fund may only be switched to funds subject to the same or more stringent rules,\n- you want to invest up to 60% in equities and prefer to do so through a pension fund that predominantly invests in the index.\n","strategy":"**Strategy**\nUp to 60% of the Fund’s assets may be invested in instruments with equity risk, and the Management Company shall not react to changes in the composition of such indices. The investment of the assets of the Fund shall take into consideration the ESG (environmental, social, governance) factors or principles of other fields of responsible and sustainable policy (environment, climate, working conditions, company management, etc.).\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0,29%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600001731, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.29%\n\n**Ongoing charges (inc management fee):** 0.29%\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001731","strategyType":null,"managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"NIT100":{"heading":"Luminor Täiendav Pensionifond Jätkusuutlik Tulevik, Indeks","id":"jatkusuutlik-taiendav","code":"jatkusuutlik-taiendav","dataMarker":"NIT100","securityId":213281,"active":true,"suitability":"**Suitable if**\n- you have more than 10 years left until retirement,\n- you tolerate a short-term decrease in the value of assets well.\n","strategy":"**Strategy**\nFund invests a maximum of 20% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. This creates a situation where the higher and lower risk markets balance each other and help achieve the goal with moderate risk. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","costs":{"entraceFee":"0%","exitFee":"0,25%","managementFee":"0,25%"},"fundInfo":{"company":{"title":"Luminor Pensions Estonia AS","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":0},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE961700017004379157 - *Luminor Bank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\n\n**Explanation**\n30101119828, EE3600001798, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0,25%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0,25%\n\n**Ongoing charges (inc management fee):** 0,58%\n\n*Ongoing fees are given as estimates based on forecasted total fees.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001798","strategyType":null,"managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"Luminor","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWI100":{"heading":"Swedbank III Samba Pensionifond Indeks","id":"swi100","code":"SWI100","dataMarker":"SWI100","securityId":218897,"active":true,"suitability":"**Suitable if**\n- you want your pension money to follow the movement of global stock markets,\n- your goal is higher asset growth over a longer time horizon (at least 10 years),\n- you are ready that the value of your assets may fluctuate more.\n","strategy":"**Strategy**\nThe Fund is established as an investment fund with so called passive investment policy, which means that the assets of the Fund are invested in other investment funds tracking global equity indices of developed countries. Up to 100% of the Fund's assets may be invested in instruments with equity risk, and the Management Company shall not react to changes in the composition of such indices. The investment of the assets of the Fund shall take into consideration the ESG (environmental, social, governance) factors or principles of other fields of responsible and sustainable policy (environment, climate, working conditions, company management, etc.)\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"0,29%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":0},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE547700771002908125 - *LHV Pank AS*\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600001822, IK:Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.29%\n\n**Ongoing charges (inc management fee):** 0.29%\n\n*Ongoing fees are given as estimates based on forecasted total fees.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nAfter reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001822","strategyType":null,"managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"Swedbank","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":0,"transactionDaysForSell":1,"transactionDaysForExchange":3},"SWK100":{"heading":"Swedbank Pensionifond Indeks","id":"swk100","code":"SWK100","dataMarker":"SWK100","suitability":"**Suitable if**\n- you have at least 10 more years of pension saving ahead of you;\n- you have a relatively high risk tolerance;\n- you want to accumulate in an index fund.\n","strategy":"**Strategy**\n\nThe Fund is established as an investment fund with so called passive investment policy, which means that the assets of the Fund are invested in other investment funds tracking global equity indices of developed countries. Up to 100% of the Fund's assets may be invested in instruments with equity risk, and the Management Company shall not react to changes in the composition of such indices. The investment of the assets of the Fund shall take into consideration the ESG (environmental, social, governance) factors or principles of other fields of responsible and sustainable policy (environment, climate, working conditions, company management, etc.)\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":6665},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.5,"unit":"%"},{"name":"Money and deposits","value":0.52,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.12.2022\n\n| Biggest investments | |\n|---|---:|\n| UBS Lux Fund Solutions - MSCI | 23.10% |\n| Lyxor MSCI World ESG Leaders Extra (DR) UCITS ETF | 22.30% |\n| Amundi Index MSCI World SRI UC | 19.65% |\n| Access Global A | 17.60% |\n| Access Edge Global A | 16.85% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","active":true,"content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.31%\n\n*Ongoing fees are given as estimates based on forecasted total fees.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001814","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"Swedbank"}}