{"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,"pensionCampaign":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","strategyCampaign":"### **Loss-avoiding XS**\n- At least 80% of the XS fund assets are invested in investment-grade bonds, money market instruments traded on a regulated market, deposits, units or shares of other investment funds investing mainly in the above assets, and other assets.\n- The money accumulated for pensions in the S fund remains stable. In investing, we follow the rating restrictions imposed by legislation governing conservative pension funds. \n- The fund’s preferred long-term asset class is low-risk debt instruments.\n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-enok.png","name":"Romet Enok","profession":"Fund Manager at LHV","quote":"_„Bond price movements are starting to calm down with the expectation that inflation risk has been brought under control. In such an environment, bonds are once again offering returns.“_\n\n**[Market overview](#history){.arrow-bold .tab-link}**\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":2375},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":91.55,"unit":"%"},{"name":"Equity funds","value":4.3,"unit":"%"},{"name":"Cash and deposits","value":4.15,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| France Treasury Bill 25/05/2025 | 8.86% |\n| Luminor 7.75% 08/06/2027 | 7.88% |\n| Eesti Energia perpetual NC5.25 | 7.62% |\n| ALTUMG 1.3% 07/03/25 | 4.92% |\n| Bank Gospodarstwa Krajow 1.375% 01/06/25 | 4.46% |\n| Deutschland 1.0% 15/08/2025 | 4.43% |\n| France Treasury Bill 09/04/2025 | 4.42% |\n| ZKB Gold ETF | 4.30% |\n| Kojamo 0.875% 28/05/2029 | 3.92% |\n| BNP Paribas 2.5% 31/03/2032 | 3.57% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 7.75% 08/06/2027 | 7.88% |\n| Eesti Energia perpetual NC5.25 | 7.62% |\n| Coop Pank 5.0% 10/03/2032 | 3.06% |\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 31.03.2025) | 11,411,477 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 40,000 units |\n| Rate of the depository’s charge | 0.0451% (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):** 0.54%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2024. 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_052023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_XS_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2025,"month":2,"content":"### February 2025: The portfolio was supplemented with bank securities\n\nRomet Enok, Fund Manager\n\nWe expanded our bond portfolio with securities from two banks in the region. At the beginning of the month, we acquired five-year bonds of Poland’s major bank Pekao on the secondary market, with an expected annual yield of approximately 4%. Additionally, we participated in the primary issuance of subordinated bonds for the European market by Luminor Bank. These perpetual bonds carry an annual interest rate of 7.375% and are callable in six years. This was also one of our portfolio’s most notable movers in February – by the end of the month, these bonds had gained nearly 2% in value in addition to accrued interest. The key question for the bond market at the moment is whether the European Central Bank will continue cutting interest rates after early March. At the same time, bond prices – particularly for companies with relatively weaker credit ratings – have risen significantly. \n"},{"year":2025,"month":1,"content":"### January 2025: Gold helped increase portfolio returns\n\nRomet Enok, Fund Manager\n\nResponding to the European Central Bank’s rate cut at the end of the month, the European bond market finished January with a flat result. The market for corporate bonds and lower-rated borrowers, by contrast, achieved a gain of nearly 0.5%. Our portfolio performed slightly better, mainly due to an investment outside the bond market, as gold once again appreciated by nearly 6% over the month.\n"},{"year":2024,"month":12,"content":"### December 2024: Increased gold allocation\n\nRomet Enok, Fund Manager\n\nWe further increased our allocation to gold investments. Gold’s nearly 30% price increase over the past year was the best performance for this asset class in more than a decade and the largest contributor to the strong performance of our XS fund. However, ongoing risks related to political uncertainty and fiscal challenges faced by governments continue to make precious metals attractive, even after such significant price gains. While the main segments of the bond market ended December in negative territory, the XS fund achieved a return of approximately +0.3%. Once again, XS was Estonia’s top-performing conservative second-pillar fund in 2024. The fund also outperformed European corporate and government bond markets.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**A dizzying rise in the US stock markets**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n","text":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n\nThe S&P 500 Index, which tracks the largest companies in the United States, rose by 23% last year in dollar terms. Notably, a third of this index consists of the shares of seven technology giants (the “magnificent seven”), whose market values rose between 20% and 177%.\n\nInvestor optimism and heightened risk appetite reflected in the cryptocurrency markets. The price of Bitcoin soared to $93,714 in 2024, marking a 120% increase.\n\n![Pilt](/assets/images/pension/Andrese_joonis1_122024.png){.pension-img}\n_Figure 1. Returns of different asset classes in dollars in 2024_\n\nOutside the United States, stock markets also delivered respectable returns. The MSCI Europe Index rose by 5.8% in euro terms (or 2.4% in dollar terms), but its performance still lagged significantly behind the soaring US stock markets.\n\n![Pilt](/assets/images/pension/Andrese_joonis2_122024.png){.pension-img}\n_Figure 2. The performance gap between the MSCI Europe Index (excluding the United Kingdom) and the MSCI USA Index in percentage points_\n\n**Mysterious interest rates**\n\nWhile mainstream media may give the impression that interest rates are broadly declining worldwide, the reality is far more nuanced.\n\nIn June 2024, the European Central Bank lowered interest rates for the first time in a long while, prompted by a downward trend in inflation and the need to support sluggish eurozone economic growth. However, it is premature to declare victory over inflation. Prices in the euro area continue to rise faster than the central bank’s target, and by year-end, the inflation rate had even accelerated slightly.\n\nFor long-term investments, international companies focus on long-term bond yields rather than short-term rates like Euribor, and in Europe, these yields remained steady throughout last year. Germany’s ten-year government bond yield ended 2024 at 2.4%, the same level as at the start of the year.\n\nIn the United States, inflation has been easing since the summer of 2022 but remains stubbornly high, driven by unchecked government spending. In September 2024, the US Federal Reserve cut short-term interest rates by 0.5 percentage points for the first time in years, followed by reductions of 0.25 percentage points in both November and December. Yet, long-term bond yields moved higher, rising from 3.95% to 4.58% over the course of the year.\n\n**Evaluating US economic growth in the context of the government’s budget deficit**\n\nIt is perplexing to see discussions about the strength of the US economy when the moderate growth is largely propped up by the government’s unprecedentedly high spending. Just as nominal economic growth is adjusted for inflation to calculate real growth, the government’s budget deficit should be factored in when assessing the overall economic environment. Spending borrowed money makes it easy to create an illusion of success and prosperity.\n\nFor example, if the government borrows $100 and spends it, private sector revenues –corporate profits and wages – will rise by roughly the same amount.\n\nCurrently, US corporate profits are exceptionally high relative to the size of the economy. Profit margins remain elevated, and valuation multiples such as price-to-earnings (P/E) ratios are at near record levels.\n\n![Pilt](/assets/images/pension/Andrese_joonis3_122024.png){.pension-img}\n_Figure 3. Average valuation metrics of US companies compared to historical averages_\n\n**The rise in asset prices fuels investor optimism and bolsters the economy**\n\nThe US stock markets delivered exceptionally high returns in 2023, and at the start of 2024, few hoped a repeat of such remarkable success. Over the past two years, the S&P 500 has surged by more than 50%, marking the second-largest two-year percentage increase in the history of US stock markets. The most significant two-year growth occurred in the late 1990s, just before the dot-com bubble burst.\n\n![Pilt](/assets/images/pension/Andrese_joonis4_122024.png){.pension-img}\n_Figure 4. S&P 500 returns from 1928 to 2024_\n\nTraditionally, the economic environment determines the value of companies, but following the financial crisis of 2008, central banks and governments reversed this dynamic with loose monetary and fiscal policies.\n\nNow the so-called wealth effect is what influences the economy and not the other way around: when stock prices go up, consumers open their wallets and the economy grows. The assumption is, of course, that loose monetary and fiscal policies will continue.\n\nIn stock markets today, price trends have become a key metric. Growth in profits and revenue has taken a backseat to movements in stock prices. While it is difficult to predict how long this reversed dependency will persist, unsustainable processes inevitably come to an end.\n\nThe role of pension funds is to preserve and grow clients’ assets over the long term. The second pension pillar’s success should be evaluated relative to the first pension pillar, making nominal wage growth the ultimate benchmark for pension funds over time.\n\nAt LHV, we believe that the goal of pension funds is not to maximise risk at all costs but to balance risk and return carefully while considering the broader economic environment and market conditions. In our view, the role of fund managers – if the fund is actively managed – is to carefully evaluate the risk and expected return of each investment and to avoid both market-driven euphoria and panic.\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019782","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":22.58,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that the III pillar is a unique investment opportunity with a tax incentive supported by the state?**\n","id":"iii","button":{"url":"/en/pension/iii/","title":"Read more","size":"lg"}}}},"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,"pensionCampaign":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","strategyCampaign":"### **A responsible keeper in S**\n- We invest the assets of the S fund mainly in bonds. The fund’s assets may also be invested in bonds with a credit rating below investment grade. \n- Up to 25% of the fund’s assets may be invested in real estate, items of infrastructure, equity funds and convertible bonds. \n- The fund can also be used to grant loans. The fund’s preferred long-term asset class is listed debt instruments.\n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-enok.png","name":"Romet Enok","profession":"Fund Manager at LHV","quote":"_„Money in seriously large amounts moves in the world in the form of bonds. In truth, a bond is nothing more than a fancy name for a loan contract: parties agree on the time when the money is disbursed, the interest rate, and the repayment.“_\n\n**[Market overview](#history){.arrow-bold .tab-link}**\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":3811},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":80.97,"unit":"%"},{"name":"Shares","value":0.01,"unit":"%"},{"name":"Equity funds","value":5.59,"unit":"%"},{"name":"Real Estate funds","value":9.39,"unit":"%"},{"name":"Cash and deposits","value":4.04,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| Eesti Energia perpetual NC5.25 | 8.11% |\n| Luminor 7.75% 08/06/2027 | 6.29% |\n| France Treasury Bill 09/04/2025 | 5.91% |\n| ZKB Gold ETF | 5.59% |\n| ALTUMG 1.3% 07/03/25 | 5.41% |\n| EfTEN Real Estate Fund 5 | 4.36% |\n| KBC Group NV 0.625% 07/12/2031 | 4.19% |\n| Kojamo 0.875% 28/05/2029 | 4.14% |\n| BNP Paribas 2.5% 31/03/2032 | 3.98% |\n| Coop Pank 5.0% 10/03/2032 | 3.55% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eesti Energia perpetual NC5.25 | 8.11% |\n| Luminor 7.75% 08/06/2027 | 6.29% |\n| EfTEN Real Estate Fund 5 | 4.36% |\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 31.03.2025) | 25,452,087 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 90,000 units |\n| Rate of the depository’s charge | 0.0439% (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:** 0,6120%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0,70%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2024. 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_052023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_S_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_S_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2025,"month":2,"content":"### February 2025: The portfolio was supplemented with bank securities\n\nKristo Oidermaa and Romet Enok, Fund Manager\n\nWe expanded our bond portfolio with securities from two banks in the region. At the beginning of the month, we acquired five-year bonds of Poland’s major bank Pekao on the secondary market, with an expected annual yield of approximately 4%. Additionally, we participated in the primary issuance of subordinated bonds for the European market by Luminor Bank. These perpetual bonds carry an annual interest rate of 7.375% and are callable in six years. This was also one of our portfolio’s most notable movers in February – by the end of the month, these bonds had gained nearly 2% in value in addition to accrued interest. The key question for the bond market at the moment is whether the European Central Bank will continue cutting interest rates after early March. At the same time, bond prices – particularly for companies with relatively weaker credit ratings – have risen significantly. \n"},{"year":2025,"month":1,"content":"### January 2025: Gold helped increase portfolio returns\n\nKristo Oidermaa and Romet Enok, Fund Manager\n\nResponding to the European Central Bank’s rate cut at the end of the month, the European bond market finished January with a flat result. The market for corporate bonds and lower-rated borrowers, by contrast, achieved a gain of nearly 0.5%. Our portfolio performed slightly better, mainly due to an investment outside the bond market, as gold once again appreciated by nearly 6% over the month. \n"},{"year":2024,"month":12,"content":"### December 2024: Increased real estate allocation\n\nKristo Oidermaa and Romet Enok, Fund Manager\n\nWe participated in EfTEN Real Estate Fund’s share offering on the Tallinn Stock Exchange. Building a second asset class within the fund, alongside bonds, through real estate investments has progressed well and, as of the end of the year, accounts for nearly 10% of the fund’s assets. While the main segments of the bond market ended December in negative territory, the S fund achieved a return of +0.3%. The fund also outperformed European corporate and government bond markets throughout the year. The most significant contributors to this success were our investment in physical gold and the long-term bonds of Eesti Energia, subscribed to during the summer.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**A dizzying rise in the US stock markets**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n","text":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n\nThe S&P 500 Index, which tracks the largest companies in the United States, rose by 23% last year in dollar terms. Notably, a third of this index consists of the shares of seven technology giants (the “magnificent seven”), whose market values rose between 20% and 177%.\n\nInvestor optimism and heightened risk appetite reflected in the cryptocurrency markets. The price of Bitcoin soared to $93,714 in 2024, marking a 120% increase.\n\n![Pilt](/assets/images/pension/Andrese_joonis1_122024.png){.pension-img}\n_Figure 1. Returns of different asset classes in dollars in 2024_\n\nOutside the United States, stock markets also delivered respectable returns. The MSCI Europe Index rose by 5.8% in euro terms (or 2.4% in dollar terms), but its performance still lagged significantly behind the soaring US stock markets.\n\n![Pilt](/assets/images/pension/Andrese_joonis2_122024.png){.pension-img}\n_Figure 2. The performance gap between the MSCI Europe Index (excluding the United Kingdom) and the MSCI USA Index in percentage points_\n\n**Mysterious interest rates**\n\nWhile mainstream media may give the impression that interest rates are broadly declining worldwide, the reality is far more nuanced.\n\nIn June 2024, the European Central Bank lowered interest rates for the first time in a long while, prompted by a downward trend in inflation and the need to support sluggish eurozone economic growth. However, it is premature to declare victory over inflation. Prices in the euro area continue to rise faster than the central bank’s target, and by year-end, the inflation rate had even accelerated slightly.\n\nFor long-term investments, international companies focus on long-term bond yields rather than short-term rates like Euribor, and in Europe, these yields remained steady throughout last year. Germany’s ten-year government bond yield ended 2024 at 2.4%, the same level as at the start of the year.\n\nIn the United States, inflation has been easing since the summer of 2022 but remains stubbornly high, driven by unchecked government spending. In September 2024, the US Federal Reserve cut short-term interest rates by 0.5 percentage points for the first time in years, followed by reductions of 0.25 percentage points in both November and December. Yet, long-term bond yields moved higher, rising from 3.95% to 4.58% over the course of the year.\n\n**Evaluating US economic growth in the context of the government’s budget deficit**\n\nIt is perplexing to see discussions about the strength of the US economy when the moderate growth is largely propped up by the government’s unprecedentedly high spending. Just as nominal economic growth is adjusted for inflation to calculate real growth, the government’s budget deficit should be factored in when assessing the overall economic environment. Spending borrowed money makes it easy to create an illusion of success and prosperity.\n\nFor example, if the government borrows $100 and spends it, private sector revenues –corporate profits and wages – will rise by roughly the same amount.\n\nCurrently, US corporate profits are exceptionally high relative to the size of the economy. Profit margins remain elevated, and valuation multiples such as price-to-earnings (P/E) ratios are at near record levels.\n\n![Pilt](/assets/images/pension/Andrese_joonis3_122024.png){.pension-img}\n_Figure 3. Average valuation metrics of US companies compared to historical averages_\n\n**The rise in asset prices fuels investor optimism and bolsters the economy**\n\nThe US stock markets delivered exceptionally high returns in 2023, and at the start of 2024, few hoped a repeat of such remarkable success. Over the past two years, the S&P 500 has surged by more than 50%, marking the second-largest two-year percentage increase in the history of US stock markets. The most significant two-year growth occurred in the late 1990s, just before the dot-com bubble burst.\n\n![Pilt](/assets/images/pension/Andrese_joonis4_122024.png){.pension-img}\n_Figure 4. S&P 500 returns from 1928 to 2024_\n\nTraditionally, the economic environment determines the value of companies, but following the financial crisis of 2008, central banks and governments reversed this dynamic with loose monetary and fiscal policies.\n\nNow the so-called wealth effect is what influences the economy and not the other way around: when stock prices go up, consumers open their wallets and the economy grows. The assumption is, of course, that loose monetary and fiscal policies will continue.\n\nIn stock markets today, price trends have become a key metric. Growth in profits and revenue has taken a backseat to movements in stock prices. While it is difficult to predict how long this reversed dependency will persist, unsustainable processes inevitably come to an end.\n\nThe role of pension funds is to preserve and grow clients’ assets over the long term. The second pension pillar’s success should be evaluated relative to the first pension pillar, making nominal wage growth the ultimate benchmark for pension funds over time.\n\nAt LHV, we believe that the goal of pension funds is not to maximise risk at all costs but to balance risk and return carefully while considering the broader economic environment and market conditions. In our view, the role of fund managers – if the fund is actively managed – is to carefully evaluate the risk and expected return of each investment and to avoid both market-driven euphoria and panic.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019824","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":30.44,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that the III pillar is a unique investment opportunity with a tax incentive supported by the state?**\n","id":"iii","button":{"url":"/en/pension/iii/","title":"Read more","size":"lg"}}}},"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,"pensionCampaign":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","strategyCampaign":"### **A stable choice in M**\n- The M fund’s investment strategy focuses on assets that generate a steady cash flow: real estate and bond investments. \n- For bond investments, we have focused on Estonian companies. This has given the fund a significantly higher rate of return over the past seven years, compared to the global bond markets.\n- M is actively managed, which is why the risks are managed and the pension saver’s money is kept safe. Our investment team makes decisions based on thorough analysis and the economic situation.\n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-enok.png","name":"Romet Enok","profession":"Fund Manager at LHV","quote":"_„Unstable times have shown that LHV pension fund M’s strategy has proven its worth: investments with a stable rate of return have protected and grown the assets of pension savers even in a market in decline.“_\n\n**[Market overview](#history){.arrow-bold .tab-link}**\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":5535},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":49.09,"unit":"%"},{"name":"Shares","value":6.07,"unit":"%"},{"name":"Direct real estate investment","value":6.18,"unit":"%"},{"name":"Equity funds","value":5.99,"unit":"%"},{"name":"Real Estate funds","value":19.1,"unit":"%"},{"name":"Private Equity funds","value":9.71,"unit":"%"},{"name":"Cash and deposits","value":3.86,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| Eesti Energia perpetual NC5.25 | 6.97% |\n| France Treasury Bill 25/05/2025 | 6.20% |\n| Luminor 7.75% 08/06/2027 | 5.08% |\n| Deutschland 1.0% 15/08/2025 | 4.49% |\n| ZKB Gold ETF | 3.99% |\n| German Treasury Bill 18/06/2025 | 3.61% |\n| EfTEN Real Estate Fund | 3.58% |\n| East Capital Real Estate Fund IV | 3.05% |\n| SG Capital Partners Fund 1 | 2.83% |\n| EfTEN Real Estate Fund 5 | 2.63% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eesti Energia perpetual NC5.25 | 6.97% |\n| Luminor 7.75% 08/06/2027 | 5.08% |\n| East Capital Real Estate Fund IV | 3.05% |\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 31.03.2025) | 105,612,957 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 300,000 units |\n| Rate of the depository’s charge | 0.0427% (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:** 0,6120%\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.\n\n**Ongoing charges (inc management fee):** 1.14%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2024 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_052023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_M_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_M_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2025,"month":2,"content":"### February 2025 The portfolio was supplemented with bank securities\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFebruary was quite volatile due to Donald Trump’s inauguration. The US S&P 500 index declined by 1.4% in dollars over the month. The Euro Stoxx 50 index rose by 3.4% in euros. The Emerging Markets Index gained 0.4% in dollars, with China’s market rising by 11.7%. The OMX Baltic Benchmark Index climbed 3.2% over the month.\n\nEfTEN Kinnisvarafond II sold the Kaunas Terminal Logistics Complex in February to the Lithuanian asset management firm Prosperus. The transaction was valued at 18.2 million euros. The complex covers 28,737 square metres and is located in a key industrial area. Prosperus is one of Lithuania’s largest real estate investors and is known for its strategic investments in high-potential properties across the Baltic region.\n\nWe expanded our bond portfolio with securities from two banks in the region. At the beginning of the month, we acquired five-year bonds of Poland’s major bank Pekao on the secondary market, with an expected annual yield of approximately 4%. Additionally, we participated in the primary issuance of subordinated bonds for the European market by Luminor Bank. These perpetual bonds carry an annual interest rate of 7.375% and are callable in six years. This was also one of our portfolio’s most notable movers in February – by the end of the month, these bonds had gained nearly 2% in value in addition to accrued interest. The key question for the bond market at the moment is whether the European Central Bank will continue cutting interest rates after early March. At the same time, bond prices – particularly for companies with relatively weaker credit ratings – have risen significantly. \n"},{"year":2025,"month":1,"content":"### January 2025: The year started strong in the stock markets\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe year started strong in developed markets. The US S&P 500 index ended January with a return of +2.7% in dollar terms, while the European Euro Stoxx index gained 8.1% in euros. The emerging markets index rose 1.7% in dollar terms, with its largest constituent, China, increasing by 0.6%. The OMX Baltic Benchmark index climbed 5.3% in euros over the month.\n\nIn January, the private equity fund INVL announced an agreement to sell InMedica Group, Lithuania’s largest private clinic and hospital network, to Mehiläinen, Finland’s largest healthcare provider. The transaction will be finalised once it receives approval from competition authorities in both countries. InMedica serves more than 2.7 million patients annually across 89 facilities in Lithuania, Finland, Sweden, Germany and Estonia, generating over €150 million in annual revenue. Mehiläinen, with a 115-year history, and operations in Finland, Sweden, Germany and Estonia, aims to strengthen its position in the Baltic region, where the healthcare market is experiencing rapid growth.\n\nLatvia’s Citadele Bank repaid its subordinated bond issued in 2017. The bond was listed on the stock exchange, but LHV pension funds remained an anchor investor throughout, as part of our 2016–2019 investments in subordinated bonds from local Baltic banks – Siauliu in Lithuania, Citadele in Latvia, and Coop and Bigbank in Estonia. Over this period, Baltic banks have expanded their businesses and market shares, while also developing a public market for their subordinated bonds. Pension funds earned strong interest from these and contributed to the growth of the local financial sector.\n"},{"year":2024,"month":12,"content":"### December 2024: Markets show signs of calming\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFollowing November’s “Trump rally”, December saw a slight pullback, with S&P 500 ending the month down 2.5% in dollar terms. By contrast, the Euro Stoxx 50 index rose by 1.9% in euro terms, while the Emerging Markets index was nearly flat, posting -0.3% in dollar terms. Among emerging markets, Brazil was the biggest decliner, but this was offset by China, which rose by 2.6% in dollar terms. The OMX Baltic Benchmark index also increased by 1.6% for the month.\n\nAt the end of 2024, private equity funds were quite active. KJK Funds sold one of their largest investments, Don Don, a Balkan-based bakery chain, to Grupo Bimbo, a globally renowned Mexican baked-goods giant. Don Don, which began operations in 1994 in Slovenia, has steadily expanded into Croatia, Serbia, Bulgaria and several other European countries. The deal provided Grupo Bimbo with access to new markets. \n\nIn the bond portfolio, Citadele Bank announced to the stock exchange that it plans to redeem its subordinated bond issued in 2017 in January. This news fittingly concluded a year during which the fund exited several bond investments both in Estonia and across European markets.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**A dizzying rise in the US stock markets**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n","text":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n\nThe S&P 500 Index, which tracks the largest companies in the United States, rose by 23% last year in dollar terms. Notably, a third of this index consists of the shares of seven technology giants (the “magnificent seven”), whose market values rose between 20% and 177%.\n\nInvestor optimism and heightened risk appetite reflected in the cryptocurrency markets. The price of Bitcoin soared to $93,714 in 2024, marking a 120% increase.\n\n![Pilt](/assets/images/pension/Andrese_joonis1_122024.png){.pension-img}\n_Figure 1. Returns of different asset classes in dollars in 2024_\n\nOutside the United States, stock markets also delivered respectable returns. The MSCI Europe Index rose by 5.8% in euro terms (or 2.4% in dollar terms), but its performance still lagged significantly behind the soaring US stock markets.\n\n![Pilt](/assets/images/pension/Andrese_joonis2_122024.png){.pension-img}\n_Figure 2. The performance gap between the MSCI Europe Index (excluding the United Kingdom) and the MSCI USA Index in percentage points_\n\n**Mysterious interest rates**\n\nWhile mainstream media may give the impression that interest rates are broadly declining worldwide, the reality is far more nuanced.\n\nIn June 2024, the European Central Bank lowered interest rates for the first time in a long while, prompted by a downward trend in inflation and the need to support sluggish eurozone economic growth. However, it is premature to declare victory over inflation. Prices in the euro area continue to rise faster than the central bank’s target, and by year-end, the inflation rate had even accelerated slightly.\n\nFor long-term investments, international companies focus on long-term bond yields rather than short-term rates like Euribor, and in Europe, these yields remained steady throughout last year. Germany’s ten-year government bond yield ended 2024 at 2.4%, the same level as at the start of the year.\n\nIn the United States, inflation has been easing since the summer of 2022 but remains stubbornly high, driven by unchecked government spending. In September 2024, the US Federal Reserve cut short-term interest rates by 0.5 percentage points for the first time in years, followed by reductions of 0.25 percentage points in both November and December. Yet, long-term bond yields moved higher, rising from 3.95% to 4.58% over the course of the year.\n\n**Evaluating US economic growth in the context of the government’s budget deficit**\n\nIt is perplexing to see discussions about the strength of the US economy when the moderate growth is largely propped up by the government’s unprecedentedly high spending. Just as nominal economic growth is adjusted for inflation to calculate real growth, the government’s budget deficit should be factored in when assessing the overall economic environment. Spending borrowed money makes it easy to create an illusion of success and prosperity.\n\nFor example, if the government borrows $100 and spends it, private sector revenues –corporate profits and wages – will rise by roughly the same amount.\n\nCurrently, US corporate profits are exceptionally high relative to the size of the economy. Profit margins remain elevated, and valuation multiples such as price-to-earnings (P/E) ratios are at near record levels.\n\n![Pilt](/assets/images/pension/Andrese_joonis3_122024.png){.pension-img}\n_Figure 3. Average valuation metrics of US companies compared to historical averages_\n\n**The rise in asset prices fuels investor optimism and bolsters the economy**\n\nThe US stock markets delivered exceptionally high returns in 2023, and at the start of 2024, few hoped a repeat of such remarkable success. Over the past two years, the S&P 500 has surged by more than 50%, marking the second-largest two-year percentage increase in the history of US stock markets. The most significant two-year growth occurred in the late 1990s, just before the dot-com bubble burst.\n\n![Pilt](/assets/images/pension/Andrese_joonis4_122024.png){.pension-img}\n_Figure 4. S&P 500 returns from 1928 to 2024_\n\nTraditionally, the economic environment determines the value of companies, but following the financial crisis of 2008, central banks and governments reversed this dynamic with loose monetary and fiscal policies.\n\nNow the so-called wealth effect is what influences the economy and not the other way around: when stock prices go up, consumers open their wallets and the economy grows. The assumption is, of course, that loose monetary and fiscal policies will continue.\n\nIn stock markets today, price trends have become a key metric. Growth in profits and revenue has taken a backseat to movements in stock prices. While it is difficult to predict how long this reversed dependency will persist, unsustainable processes inevitably come to an end.\n\nThe role of pension funds is to preserve and grow clients’ assets over the long term. The second pension pillar’s success should be evaluated relative to the first pension pillar, making nominal wage growth the ultimate benchmark for pension funds over time.\n\nAt LHV, we believe that the goal of pension funds is not to maximise risk at all costs but to balance risk and return carefully while considering the broader economic environment and market conditions. In our view, the role of fund managers – if the fund is actively managed – is to carefully evaluate the risk and expected return of each investment and to avoid both market-driven euphoria and panic.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019774","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":40.43,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that LHV’s III pillar fund Aktiivne III invests in a similar way?**\n","id":"iii","button":{"url":"/en/pension/iii/fund/aktiivne","title":"See more","size":"lg"}}}},"LLK50":{"heading":"LHV Pensionifond L","id":"l","code":"l","dataMarker":"LK50","suitability":"**Suitable if**\n- you have average risk tolerance,\n- your aim is the long-term growth of your pension savings.\n","isLhvFund":true,"pensionCampaign":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","strategyCampaign":"### **Crisis-resilient flagship L**\n- The L fund strategy is based on the principle that a prerequisite for a proper rate of return is the ability to avoid major losses. That is why we diversify this fund’s investments across several asset classes. As the proportion of equity is moderate, the fund is less exposed to stock market movements.\n- Real estate as an asset class accounts for just over 20% of the fund’s investments, providing a secure and stable cash flow in an inflationary environment. We evaluate real estate properties once per year. \n- L is actively managed, which is why the risks are managed and the pension saver’s money is kept safe. Our investment team makes decisions based on thorough analysis and the economic situation.\n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-oidermaa.png","name":"Kristo Oidermaa","profession":"Fund Manager at LHV","quote":"_„If the portfolio is diversified in terms of the money it invests, it is also possible to come out of crises with very few losses. Pension fund L has had a positive rate of return for 12 years in a row, already.“_\n\n**[Market overview](#history){.arrow-bold .tab-link}**\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":44413},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":8,"unit":"%"},{"name":"Shares","value":15.82,"unit":"%"},{"name":"Direct real estate investment","value":5.61,"unit":"%"},{"name":"Equity funds","value":13.61,"unit":"%"},{"name":"Real Estate funds","value":14.7,"unit":"%"},{"name":"Private Equity funds","value":36.38,"unit":"%"},{"name":"Cash and deposits","value":5.85,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| ZKB Gold ETF | 4.09% |\n| Investindustrial VII L.P. | 3.36% |\n| EfTEN Real Estate Fund | 2.88% |\n| Partners Group Direct Equity 2019 | 2.62% |\n| Invesco MDAX UCITS ETF | 2.54% |\n| East Capital Baltic Property Fund III | 2.42% |\n| France Treasury Bill 25/05/2025 | 2.26% |\n| Ardian ASF VIII | 2.21% |\n| QS Global Mid-Market Opportunities | 2.14% |\n| INVL Baltic Sea Growth Fund | 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 | 2.42% |\n| Usaldusfond BaltCap Private Equity Fund III | 2.08% |\n| East Capital Real Estate Fund IV | 1.71% |\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 31.03.2025) | 837,785,603 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 1,600,000 units |\n| Rate of the depository’s charge | 0.0403% (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:** 0,6120%\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.\n\n**Ongoing charges (inc management fee):** 1.48%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2024 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_052023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_L_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_L_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2025,"month":2,"content":"### February 2025: Europe raising head\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFebruary was quite volatile due to Donald Trump’s inauguration. The US S&P 500 index declined by 1.4% in dollars over the month. The Euro Stoxx 50 index rose by 3.4% in euros. The Emerging Markets Index gained 0.4% in dollars, with China’s market rising by 11.7%. The OMX Baltic Benchmark Index climbed 3.2% over the month.\n\nIn February, we reduced our gold and energy positions and exited our holding in Metso Corporation. We also added exposure to Germany’s mid-cap and small-cap index. Contributing the most to returns over the month were our position in Alibaba, which surged by approximately 44%; the European banking index fund, which gained about 13.5%; our gold miner, which rose by 8.9%; and Finnish energy company Fortum, which increased by 7.8%. The poorest performers which our energy holdings, which declined between 19% and 25%, and our U.S. industrial stocks, which fell between 8% and 15%. Over the past year, we have been steadily diversifying our portfolios, adding high-capital-efficiency market leaders in their niches alongside cyclical commodity companies, both in Scandinavia and the United States. Over the past month, we have also increased our exposure to Continental Europe.\n\nEfTEN Kinnisvarafond II sold the Kaunas Terminal Logistics Complex in February to the Lithuanian asset management firm Prosperus. The transaction was valued at 18.2 million euros. The complex covers 28,737 square metres and is located in a key industrial area. Prosperus is one of Lithuania’s largest real estate investors and is known for its strategic investments in high-potential properties across the Baltic region.\n"},{"year":2025,"month":1,"content":"### January 2025: The year started strong in the stock markets\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe year started strong in developed markets. The US S&P 500 index ended January with a return of +2.7% in dollar terms, while the European Euro Stoxx index gained 8.1% in euros. The emerging markets index rose 1.7% in dollar terms, with its largest constituent, China, increasing by 0.6%. The OMX Baltic Benchmark index climbed 5.3% in euros over the month.\n\nIn January, we sold our position in Volkswagen stock, with no other major transactions taking place. The strongest contributors to returns were our gold positions, which rose 8–19%, and the European banks index fund, which gained around 11%. The biggest detractors were our position in Freeport-McMoRan, an energy metals company, which declined by 5.5%; logistics firm DSV, which fell by 6%; and Occidental Petroleum, which dropped by 5.6%. Over the past year, we have gradually diversified our portfolios, balancing cyclical commodity holdings with high-return-on-capital companies that are market leaders in their niches, both in Scandinavia and the United States.\n\nIn January, the private equity fund INVL announced an agreement to sell InMedica Group, Lithuania’s largest private clinic and hospital network, to Mehiläinen, Finland’s largest healthcare provider. The transaction will be finalised once it receives approval from competition authorities in both countries. InMedica serves more than 2.7 million patients annually across 89 facilities in Lithuania, Finland, Sweden, Germany and Estonia, generating over €150 million in annual revenue. Mehiläinen, with a 115-year history, and operations in Finland, Sweden, Germany and Estonia, aims to strengthen its position in the Baltic region, where the healthcare market is experiencing rapid growth.\n\nLatvia’s Citadele Bank repaid its subordinated bond issued in 2017. The bond was listed on the stock exchange, but LHV pension funds remained an anchor investor throughout, as part of our 2016–2019 investments in subordinated bonds from local Baltic banks – Siauliu in Lithuania, Citadele in Latvia, and Coop and Bigbank in Estonia. Over this period, Baltic banks have expanded their businesses and market shares, while also developing a public market for their subordinated bonds. Pension funds earned strong interest from these and contributed to the growth of the local financial sector.\n"},{"year":2024,"month":12,"content":"### December 2024: Markets show signs of calming\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFollowing November’s “Trump rally”, December saw a slight pullback, with S&P 500 ending the month down 2.5% in dollar terms. By contrast, the Euro Stoxx 50 index rose by 1.9% in euro terms, while the Emerging Markets index was nearly flat, posting -0.3% in dollar terms. Among emerging markets, Brazil was the biggest decliner, but this was offset by China, which rose by 2.6% in dollar terms. The OMX Baltic Benchmark index also increased by 1.6% for the month.\n\nIn December, we added new names to the portfolio, including the US company United Rentals, which specialises in construction equipment rental, and Novo Nordisk, a pharmaceutical company. The strongest contributors to returns during the month were the European banks index, which rose by approximately 5.4%, Stora Enso, which gained 6.8%, and one of our energy positions, Antero Resources, which rose by 7.2%. On the downside, our gold-related positions fell between 6% and 12%, while our energy-metals holdings declined between 9% and 14%. Throughout the year, we have been steadily diversifying our portfolios, adding high-capital-efficiency companies that are market leaders in their niches across Scandinavia and the United States alongside cyclical commodity investments.\n\nAt the end of 2024, private equity funds were quite active. KJK Funds sold one of their largest investments, Don Don, a Balkan-based bakery chain, to Grupo Bimbo, a globally renowned Mexican baked-goods giant. Don Don, which began operations in 1994 in Slovenia, has steadily expanded into Croatia, Serbia, Bulgaria and several other European countries. The deal provided Grupo Bimbo with access to new markets. \n\nIn the bond portfolio, Citadele Bank announced to the stock exchange that it plans to redeem its subordinated bond issued in 2017 in January. This news fittingly concluded a year during which the fund exited several bond investments both in Estonia and across European markets.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**A dizzying rise in the US stock markets**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n","text":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n\nThe S&P 500 Index, which tracks the largest companies in the United States, rose by 23% last year in dollar terms. Notably, a third of this index consists of the shares of seven technology giants (the “magnificent seven”), whose market values rose between 20% and 177%.\n\nInvestor optimism and heightened risk appetite reflected in the cryptocurrency markets. The price of Bitcoin soared to $93,714 in 2024, marking a 120% increase.\n\n![Pilt](/assets/images/pension/Andrese_joonis1_122024.png){.pension-img}\n_Figure 1. Returns of different asset classes in dollars in 2024_\n\nOutside the United States, stock markets also delivered respectable returns. The MSCI Europe Index rose by 5.8% in euro terms (or 2.4% in dollar terms), but its performance still lagged significantly behind the soaring US stock markets.\n\n![Pilt](/assets/images/pension/Andrese_joonis2_122024.png){.pension-img}\n_Figure 2. The performance gap between the MSCI Europe Index (excluding the United Kingdom) and the MSCI USA Index in percentage points_\n\n**Mysterious interest rates**\n\nWhile mainstream media may give the impression that interest rates are broadly declining worldwide, the reality is far more nuanced.\n\nIn June 2024, the European Central Bank lowered interest rates for the first time in a long while, prompted by a downward trend in inflation and the need to support sluggish eurozone economic growth. However, it is premature to declare victory over inflation. Prices in the euro area continue to rise faster than the central bank’s target, and by year-end, the inflation rate had even accelerated slightly.\n\nFor long-term investments, international companies focus on long-term bond yields rather than short-term rates like Euribor, and in Europe, these yields remained steady throughout last year. Germany’s ten-year government bond yield ended 2024 at 2.4%, the same level as at the start of the year.\n\nIn the United States, inflation has been easing since the summer of 2022 but remains stubbornly high, driven by unchecked government spending. In September 2024, the US Federal Reserve cut short-term interest rates by 0.5 percentage points for the first time in years, followed by reductions of 0.25 percentage points in both November and December. Yet, long-term bond yields moved higher, rising from 3.95% to 4.58% over the course of the year.\n\n**Evaluating US economic growth in the context of the government’s budget deficit**\n\nIt is perplexing to see discussions about the strength of the US economy when the moderate growth is largely propped up by the government’s unprecedentedly high spending. Just as nominal economic growth is adjusted for inflation to calculate real growth, the government’s budget deficit should be factored in when assessing the overall economic environment. Spending borrowed money makes it easy to create an illusion of success and prosperity.\n\nFor example, if the government borrows $100 and spends it, private sector revenues –corporate profits and wages – will rise by roughly the same amount.\n\nCurrently, US corporate profits are exceptionally high relative to the size of the economy. Profit margins remain elevated, and valuation multiples such as price-to-earnings (P/E) ratios are at near record levels.\n\n![Pilt](/assets/images/pension/Andrese_joonis3_122024.png){.pension-img}\n_Figure 3. Average valuation metrics of US companies compared to historical averages_\n\n**The rise in asset prices fuels investor optimism and bolsters the economy**\n\nThe US stock markets delivered exceptionally high returns in 2023, and at the start of 2024, few hoped a repeat of such remarkable success. Over the past two years, the S&P 500 has surged by more than 50%, marking the second-largest two-year percentage increase in the history of US stock markets. The most significant two-year growth occurred in the late 1990s, just before the dot-com bubble burst.\n\n![Pilt](/assets/images/pension/Andrese_joonis4_122024.png){.pension-img}\n_Figure 4. S&P 500 returns from 1928 to 2024_\n\nTraditionally, the economic environment determines the value of companies, but following the financial crisis of 2008, central banks and governments reversed this dynamic with loose monetary and fiscal policies.\n\nNow the so-called wealth effect is what influences the economy and not the other way around: when stock prices go up, consumers open their wallets and the economy grows. The assumption is, of course, that loose monetary and fiscal policies will continue.\n\nIn stock markets today, price trends have become a key metric. Growth in profits and revenue has taken a backseat to movements in stock prices. While it is difficult to predict how long this reversed dependency will persist, unsustainable processes inevitably come to an end.\n\nThe role of pension funds is to preserve and grow clients’ assets over the long term. The second pension pillar’s success should be evaluated relative to the first pension pillar, making nominal wage growth the ultimate benchmark for pension funds over time.\n\nAt LHV, we believe that the goal of pension funds is not to maximise risk at all costs but to balance risk and return carefully while considering the broader economic environment and market conditions. In our view, the role of fund managers – if the fund is actively managed – is to carefully evaluate the risk and expected return of each investment and to avoid both market-driven euphoria and panic.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019832","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":23.91,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that LHV’s III pillar fund Aktiivne III invests in a similar way?**\n","id":"iii","button":{"url":"/en/pension/iii/fund/aktiivne","title":"See more","size":"lg"}}}},"LXK75":{"heading":"LHV Pensionifond XL","id":"xl","code":"xl","dataMarker":"XLK50","suitability":"**Suitable if**\n- you are prepared to take above-average risks,\n- your aim is the long-term growth of your pension savings\n","isLhvFund":true,"pensionCampaign":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","strategyCampaign":"### **XL with its higher proportion of equity**\n- XL is LHV’s most quick-tempered actively managed pension fund. This means that XL invests more in equity markets than any other active LHV fund.\n- While XL is allowed to allocate all of its assets to equity markets, we prefer to diversify the fund’s investments across a number of asset classes – real estate, private equity funds, and OTC bonds. \n- XL is actively managed, which is why the risks are managed and the pension saver’s money is kept safe. Our investment team makes decisions based on thorough analysis and the economic situation. \n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-oidermaa.png","name":"Kristo Oidermaa","profession":"Fund Manager at LHV","quote":"_„We have taken a thematic approach to the composition of the XL Fund equity portfolio and have selected sectors that have always offered a good rate of return in times of high inflation.“_\n\n**[Market overview](#history){.arrow-bold .tab-link}**\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":26068},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Debt instruments","value":11.74,"unit":"%"},{"name":"Shares","value":28.59,"unit":"%"},{"name":"Direct real estate investment","value":3.74,"unit":"%"},{"name":"Equity funds","value":19.37,"unit":"%"},{"name":"Real Estate funds","value":9.83,"unit":"%"},{"name":"Private Equity funds","value":20.1,"unit":"%"},{"name":"Cash and deposits","value":6.63,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| ZKB Gold ETF | 4.90% |\n| Eesti Energia perpetual NC5.25 | 3.88% |\n| Axcel VI | 3.71% |\n| Invesco MDAX UCITS ETF | 3.05% |\n| Fortum | 3.04% |\n| First Trust RBA American Industrial Renaissance | 2.43% |\n| AMUNDI EURO STOXX BANKS UCITS ETF | 2.12% |\n| Monte Rosa V Class J | 2.11% |\n| Investindustrial VII L.P. | 2.05% |\n| East Capital Baltic Property Fund III | 2.02% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eesti Energia perpetual NC5.25 | 3.88% |\n| East Capital Baltic Property Fund III | 2.02% |\n| Luminor 7.75% 08/06/2027 | 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 31.03.2025) | 274,891,523 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 530 000 units |\n| Rate of the depository’s charge | 0.0415% (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:** 0,6120%\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.\n\n**Ongoing charges (inc management fee):** 1.21%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2024 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_052023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_XL_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2025,"month":2,"content":"### February 2025: Europe raising head\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFebruary was quite volatile due to Donald Trump’s inauguration. The US S&P 500 index declined by 1.4% in dollars over the month. The Euro Stoxx 50 index rose by 3.4% in euros. The Emerging Markets Index gained 0.4% in dollars, with China’s market rising by 11.7%. The OMX Baltic Benchmark Index climbed 3.2% over the month.\n\nIn February, we reduced our gold and energy positions and exited our holding in Metso Corporation. We also added exposure to Germany’s mid-cap and small-cap index. Contributing the most to returns over the month were our position in Alibaba, which surged by approximately 44%; the European banking index fund, which gained about 13.5%; European defence company Saab, which rose by 36.3%; and Finnish energy company Fortum, which increased by 7.8%. The poorest performers which our energy holdings, which declined between 19% and 25%, and our U.S. industrial stocks, which fell between 8% and 15%. Over the past year, we have been steadily diversifying our portfolios, adding high-capital-efficiency market leaders in their niches alongside cyclical commodity companies, both in Scandinavia and the United States. Over the past month, we have also increased our exposure to Continental Europe.\n\nEfTEN Kinnisvarafond II sold the Kaunas Terminal Logistics Complex in February to the Lithuanian asset management firm Prosperus. The transaction was valued at 18.2 million euros. The complex covers 28,737 square metres and is located in a key industrial area. Prosperus is one of Lithuania’s largest real estate investors and is known for its strategic investments in high-potential properties across the Baltic region.\n\nWe participated in the primary issuance for the European market of subordinated bonds by Luminor Bank. These perpetual bonds carry an annual interest rate of 7.375% and are callable in six years. This was also one of our portfolio’s most notable movers in February – by the end of the month, these bonds had gained nearly 2% in value in addition to accrued interest.\n"},{"year":2025,"month":1,"content":"### January 2025: The year started strong in the stock markets\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe year started strong in developed markets. The US S&P 500 index ended January with a return of +2.7% in dollar terms, while the European Euro Stoxx index gained 8.1% in euros. The emerging markets index rose 1.7% in dollar terms, with its largest constituent, China, increasing by 0.6%. The OMX Baltic Benchmark index climbed 5.3% in euros over the month.\n\nIn January, we sold our position in Volkswagen stock, with no other major transactions taking place. The strongest contributors to returns were our gold positions, which rose 8–19%, and the European banks index fund, which gained around 11%. The biggest detractors were our position in Freeport-McMoRan, an energy metals company, which declined by 5.5%; logistics firm DSV, which fell by 6%; and Occidental Petroleum, which dropped by 5.6%. Over the past year, we have gradually diversified our portfolios, balancing cyclical commodity holdings with high-return-on-capital companies that are market leaders in their niches, both in Scandinavia and the United States.\n\nIn January, the private equity fund INVL announced an agreement to sell InMedica Group, Lithuania’s largest private clinic and hospital network, to Mehiläinen, Finland’s largest healthcare provider. The transaction will be finalised once it receives approval from competition authorities in both countries. InMedica serves more than 2.7 million patients annually across 89 facilities in Lithuania, Finland, Sweden, Germany and Estonia, generating over €150 million in annual revenue. Mehiläinen, with a 115-year history, and operations in Finland, Sweden, Germany and Estonia, aims to strengthen its position in the Baltic region, where the healthcare market is experiencing rapid growth.\n\nLatvia’s Citadele Bank repaid its subordinated bond issued in 2017. The bond was listed on the stock exchange, but LHV pension funds remained an anchor investor throughout, as part of our 2016–2019 investments in subordinated bonds from local Baltic banks – Siauliu in Lithuania, Citadele in Latvia, and Coop and Bigbank in Estonia. Over this period, Baltic banks have expanded their businesses and market shares, while also developing a public market for their subordinated bonds. Pension funds earned strong interest from these and contributed to the growth of the local financial sector.\n"},{"year":2024,"month":12,"content":"### December 2024: Markets show signs of calming\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFollowing November’s “Trump rally”, December saw a slight pullback, with S&P 500 ending the month down 2.5% in dollar terms. By contrast, the Euro Stoxx 50 index rose by 1.9% in euro terms, while the Emerging Markets index was nearly flat, posting -0.3% in dollar terms. Among emerging markets, Brazil was the biggest decliner, but this was offset by China, which rose by 2.6% in dollar terms. The OMX Baltic Benchmark index also increased by 1.6% for the month.\n\nIn December, we added several new names to the portfolio, including ASML, Applied Industrial Technologies, Builders FirstSource, Old Dominion Freight Line and Novo Nordisk. We also increased our holdings in United Rentals and Valaris. The top contributors to returns for the month were the European banks index (+5.4%), Stora Enso (+6.8%), Metso Corporation (+7.85%) and Antero Resources (+7.2%). The largest detractors were the US industrial companies index, which fell by 10%, our gold-related positions (-6% to -12%), our energy metals holdings (-9% to -14%) and Novo Nordisk (-19%). Throughout the year, we have been steadily diversifying our portfolios, adding high-capital-efficiency companies that are market leaders in their niches across Scandinavia and the United States alongside cyclical commodity investments.\n\nAt the end of 2024, private equity funds were quite active. One of our direct investments, Scandinavia’s leading waste management company NG Group, acquired Fortum’s recycling and waste solutions division for €800 million. As a result, NG now manages all waste streams, including hazardous waste, turning them into valuable resources. The merged entity generates annual revenues of €1.2 billion and employs 3,500 people across the Nordic region.\n\nKJK Funds sold one of their largest investments, Don Don, a Balkan-based bakery chain, to Grupo Bimbo, a globally renowned Mexican baked-goods giant. Don Don, which began operations in 1994 in Slovenia, has steadily expanded into Croatia, Serbia, Bulgaria and several other European countries. The deal provided Grupo Bimbo with access to new markets. \n\nIn the bond portfolio, Citadele Bank announced to the stock exchange that it plans to redeem its subordinated bond issued in 2017 in January. This news fittingly concluded a year during which the fund exited several bond investments both in Estonia and across European markets.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**A dizzying rise in the US stock markets**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n","text":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n\nThe S&P 500 Index, which tracks the largest companies in the United States, rose by 23% last year in dollar terms. Notably, a third of this index consists of the shares of seven technology giants (the “magnificent seven”), whose market values rose between 20% and 177%.\n\nInvestor optimism and heightened risk appetite reflected in the cryptocurrency markets. The price of Bitcoin soared to $93,714 in 2024, marking a 120% increase.\n\n![Pilt](/assets/images/pension/Andrese_joonis1_122024.png){.pension-img}\n_Figure 1. Returns of different asset classes in dollars in 2024_\n\nOutside the United States, stock markets also delivered respectable returns. The MSCI Europe Index rose by 5.8% in euro terms (or 2.4% in dollar terms), but its performance still lagged significantly behind the soaring US stock markets.\n\n![Pilt](/assets/images/pension/Andrese_joonis2_122024.png){.pension-img}\n_Figure 2. The performance gap between the MSCI Europe Index (excluding the United Kingdom) and the MSCI USA Index in percentage points_\n\n**Mysterious interest rates**\n\nWhile mainstream media may give the impression that interest rates are broadly declining worldwide, the reality is far more nuanced.\n\nIn June 2024, the European Central Bank lowered interest rates for the first time in a long while, prompted by a downward trend in inflation and the need to support sluggish eurozone economic growth. However, it is premature to declare victory over inflation. Prices in the euro area continue to rise faster than the central bank’s target, and by year-end, the inflation rate had even accelerated slightly.\n\nFor long-term investments, international companies focus on long-term bond yields rather than short-term rates like Euribor, and in Europe, these yields remained steady throughout last year. Germany’s ten-year government bond yield ended 2024 at 2.4%, the same level as at the start of the year.\n\nIn the United States, inflation has been easing since the summer of 2022 but remains stubbornly high, driven by unchecked government spending. In September 2024, the US Federal Reserve cut short-term interest rates by 0.5 percentage points for the first time in years, followed by reductions of 0.25 percentage points in both November and December. Yet, long-term bond yields moved higher, rising from 3.95% to 4.58% over the course of the year.\n\n**Evaluating US economic growth in the context of the government’s budget deficit**\n\nIt is perplexing to see discussions about the strength of the US economy when the moderate growth is largely propped up by the government’s unprecedentedly high spending. Just as nominal economic growth is adjusted for inflation to calculate real growth, the government’s budget deficit should be factored in when assessing the overall economic environment. Spending borrowed money makes it easy to create an illusion of success and prosperity.\n\nFor example, if the government borrows $100 and spends it, private sector revenues –corporate profits and wages – will rise by roughly the same amount.\n\nCurrently, US corporate profits are exceptionally high relative to the size of the economy. Profit margins remain elevated, and valuation multiples such as price-to-earnings (P/E) ratios are at near record levels.\n\n![Pilt](/assets/images/pension/Andrese_joonis3_122024.png){.pension-img}\n_Figure 3. Average valuation metrics of US companies compared to historical averages_\n\n**The rise in asset prices fuels investor optimism and bolsters the economy**\n\nThe US stock markets delivered exceptionally high returns in 2023, and at the start of 2024, few hoped a repeat of such remarkable success. Over the past two years, the S&P 500 has surged by more than 50%, marking the second-largest two-year percentage increase in the history of US stock markets. The most significant two-year growth occurred in the late 1990s, just before the dot-com bubble burst.\n\n![Pilt](/assets/images/pension/Andrese_joonis4_122024.png){.pension-img}\n_Figure 4. S&P 500 returns from 1928 to 2024_\n\nTraditionally, the economic environment determines the value of companies, but following the financial crisis of 2008, central banks and governments reversed this dynamic with loose monetary and fiscal policies.\n\nNow the so-called wealth effect is what influences the economy and not the other way around: when stock prices go up, consumers open their wallets and the economy grows. The assumption is, of course, that loose monetary and fiscal policies will continue.\n\nIn stock markets today, price trends have become a key metric. Growth in profits and revenue has taken a backseat to movements in stock prices. While it is difficult to predict how long this reversed dependency will persist, unsustainable processes inevitably come to an end.\n\nThe role of pension funds is to preserve and grow clients’ assets over the long term. The second pension pillar’s success should be evaluated relative to the first pension pillar, making nominal wage growth the ultimate benchmark for pension funds over time.\n\nAt LHV, we believe that the goal of pension funds is not to maximise risk at all costs but to balance risk and return carefully while considering the broader economic environment and market conditions. In our view, the role of fund managers – if the fund is actively managed – is to carefully evaluate the risk and expected return of each investment and to avoid both market-driven euphoria and panic.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019766","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":20.6,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that LHV’s III pillar fund Aktiivne III invests in a similar way?**\n","id":"iii","button":{"url":"/en/pension/iii/fund/aktiivne","title":"See more","size":"lg"}}}},"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,"pensionCampaign":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 two types of markets – developed markets and emerging markets – based on their approximate share in global gross domestic product (GDP).\n","strategyCampaign":"### **Index fund with low management fees**\n- We believe that the next growth will come from emerging markets, specifically, which is why we have allocated 37% of the fund’s investments to China, Taiwan, India, South Korea, Brazil and other emerging markets.\n- The fund’s risks are wisely diversified: investments are spread across more countries and are less dependent on the US stock market\n- Additionally, as is typical for indexes, it has a low expense ratio with ongoing fees of 0.30%.\n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-rebane.png","name":"Erko Rebane","profession":"Portfolio Manager at LHV","quote":"_„An index fund can also have a diversified strategy: investments are allocated according to the size of national economies, or GDP, rather than the size of the stock market, or market capitalisation, which would lead to a large proportion of the US stock market.“_\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":25318},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.35,"unit":"%"},{"name":"Cash and deposits","value":0.65,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| Amundi Prime Global UCITS ETF | 27.88% |\n| Amundi ETF ICAV - Amundi MSCI | 26.10% |\n| HSBC MSCI Emerging Markets UCITS | 25.65% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 6.90% |\n| SPDR MSCI World UCITS ETF | 5.94% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 4.12% |\n| Amundi Prime All Country World | 2.74% |\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 31.03.2025) | 153,213,977 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 500,000 units |\n| Rate of the depository’s charge | 0.0451% (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:** 0.1800%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.30%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2024. 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_tingimused_2023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_prospekt_022025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_KIID_022025.pdf)\n"},{"title":"Sample portfolios","type":"markdown","column":"left","content":"- [Sample portfolio (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_mudelportfell_092024.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_Indeks_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109401","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that LHV’s III pillar fund Indeks III invests in a similar way?**\n","id":"iii","button":{"url":"/en/pension/iii/fund/indeks","title":"See more","size":"lg"}}}},"LHT75":{"heading":"LHV Pensionifond Aktiivne III","id":"aktiivne","code":"aktiivne","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 prefers to invest its assets in foreign markets, in more liquid instruments and in instruments traded on regulated markets. The Fund’s assets may be invested in shares, equity funds and other equity-like instruments. In addition to the above, the Fund’s assets may also be invested in bonds, money market instruments, deposits, units or shares in other investment funds, real estate, derivative instruments, securities whose underlying asset is a precious metal or a commodity or whose price depends on a precious metal or a commodity, and other assets. The Fund can also be used to borrow and lend. The Management Company may borrow up to 25% of the value of the Fund’s assets on the Fund’s account, which also allows for investing more than 100% of the value of the Fund’s assets, up to 125% of the value of the Fund’s assets, in equity risk instruments.\n","isLhvFund":true,"costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0.89%"},"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":30.65,"unit":"%"},{"name":"Shares","value":27.99,"unit":"%"},{"name":"Equity funds","value":21.31,"unit":"%"},{"name":"Real Estate funds","value":11.02,"unit":"%"},{"name":"Private Equity funds","value":3.1,"unit":"%"},{"name":"Cash and deposits","value":5.93,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| France Treasury Bill 25/05/2025 | 5.18% |\n| ZKB Gold ETF | 4.70% |\n| Eesti Energia perpetual NC5.25 | 3.89% |\n| German Treasury Bill 19/03/2025 | 3.05% |\n| Invesco MDAX UCITS ETF | 3.01% |\n| Fortum | 2.91% |\n| EfTEN Real Estate Fund | 2.84% |\n| First Trust RBA American Industrial Renaissance | 2.81% |\n| BNP Paribas 2.5% 31/03/2032 | 2.46% |\n| AMUNDI EURO STOXX BANKS UCITS ETF | 2.02% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eesti Energia perpetual NC5.25 | 3.89% |\n| East Capital Baltic Property Fund III | 1.99% |\n| BIGBANK 7.5% 16/05/2032 | 1.87% |\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 31.03.2025) | 32,525,841 € |\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:** 0.0439%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.89%\n\n**Ongoing charges (inc management fee):** 1.21%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2024. 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_Aktiivne_III_tingimused.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_vabatahtlike_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Aktiivne_III_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_Aktiivne_III_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_Aktiivne_III_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2025,"month":2,"content":"### February 2025: Europe raising head\n\nFebruary was quite volatile due to Donald Trump’s inauguration. The US S&P 500 index declined by 1.4% in dollars over the month. The Euro Stoxx 50 index rose by 3.4% in euros. The Emerging Markets Index gained 0.4% in dollars, with China’s market rising by 11.7%. The OMX Baltic Benchmark Index climbed 3.2% over the month.\n\nIn February, we reduced our gold and energy positions and exited our holding in Metso Corporation. We also added exposure to Germany’s mid-cap and small-cap index. Contributing the most to returns over the month were our position in Alibaba, which surged by approximately 44%; the European banking index fund, which gained about 13.5%; European defence company Saab, which rose by 36.3%; and Finnish energy company Fortum, which increased by 7.8%. The poorest performers which our energy holdings, which declined between 19% and 25%, and our U.S. industrial stocks, which fell between 8% and 15%. Over the past year, we have been steadily diversifying our portfolios, adding high-capital-efficiency market leaders in their niches alongside cyclical commodity companies, both in Scandinavia and the United States. Over the past month, we have also increased our exposure to Continental Europe.\n\nWe participated in the primary issuance for the European market of subordinated bonds by Luminor Bank. These perpetual bonds carry an annual interest rate of 7.375% and are callable in six years. This was also one of our portfolio’s most notable movers in February – by the end of the month, these bonds had gained nearly 2% in value in addition to accrued interest.\n"},{"year":2025,"month":1,"content":"### January 2025: The year started strong in the stock markets\n\nThe year started strong in developed markets. The US S&P 500 index ended January with a return of +2.7% in dollar terms, while the European Euro Stoxx index gained 8.1% in euros. The emerging markets index rose 1.7% in dollar terms, with its largest constituent, China, increasing by 0.6%. The OMX Baltic Benchmark index climbed 5.3% in euros over the month.\n\nIn January, we sold our position in Volkswagen stock, with no other major transactions taking place. The strongest contributors to returns were our gold positions, which rose 8–19%, and the European banks index fund, which gained around 11%. The biggest detractors were our position in Freeport-McMoRan, an energy metals company, which declined by 5.5%; logistics firm DSV, which fell by 6%; and Occidental Petroleum, which dropped by 5.6%. Over the past year, we have gradually diversified our portfolios, balancing cyclical commodity holdings with high-return-on-capital companies that are market leaders in their niches, both in Scandinavia and the United States.\n\nIn January, the private equity fund INVL announced an agreement to sell InMedica Group, Lithuania’s largest private clinic and hospital network, to Mehiläinen, Finland’s largest healthcare provider. The transaction will be finalised once it receives approval from competition authorities in both countries. InMedica serves more than 2.7 million patients annually across 89 facilities in Lithuania, Finland, Sweden, Germany and Estonia, generating over €150 million in annual revenue. Mehiläinen, with a 115-year history, and operations in Finland, Sweden, Germany and Estonia, aims to strengthen its position in the Baltic region, where the healthcare market is experiencing rapid growth.\n\nLatvia’s Citadele Bank repaid its subordinated bond issued in 2017. The bond was listed on the stock exchange, but LHV pension funds remained an anchor investor throughout, as part of our 2016–2019 investments in subordinated bonds from local Baltic banks – Siauliu in Lithuania, Citadele in Latvia, and Coop and Bigbank in Estonia. Over this period, Baltic banks have expanded their businesses and market shares, while also developing a public market for their subordinated bonds. Pension funds earned strong interest from these and contributed to the growth of the local financial sector.\n"},{"year":2024,"month":12,"content":"### December 2024: Markets show signs of calming\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nFollowing November’s “Trump rally”, December saw a slight pullback, with S&P 500 ending the month down 2.5% in dollar terms. By contrast, the Euro Stoxx 50 index rose by 1.9% in euro terms, while the Emerging Markets index was nearly flat, posting -0.3% in dollar terms. Among emerging markets, Brazil was the biggest decliner, but this was offset by China, which rose by 2.6% in dollar terms. The OMX Baltic Benchmark index also increased by 1.6% for the month.\n\nIn December, we added several new names to the portfolio, including ASML, Applied Industrial Technologies, Builders FirstSource, Old Dominion Freight Line and Novo Nordisk. We also increased our holdings in United Rentals and Valaris. The top contributors to returns for the month were the European banks index (+5.4%), Stora Enso (+6.8%), Metso Corporation (+7.85%) and Antero Resources (+7.2%). The largest detractors were the US industrial companies index, which fell by 10%, our gold-related positions (-6% to -12%), our energy metals holdings (-9% to -14%) and Novo Nordisk (-19%). Throughout the year, we have been steadily diversifying our portfolios, adding high-capital-efficiency companies that are market leaders in their niches across Scandinavia and the United States alongside cyclical commodity investments.\n\nAt the end of 2024, private equity funds were quite active. KJK Funds sold one of their largest investments, Don Don, a Balkan-based bakery chain, to Grupo Bimbo, a globally renowned Mexican baked-goods giant. Don Don, which began operations in 1994 in Slovenia, has steadily expanded into Croatia, Serbia, Bulgaria and several other European countries. The deal provided Grupo Bimbo with access to new markets. \n\nIn the bond portfolio, Citadele Bank announced to the stock exchange that it plans to redeem its subordinated bond issued in 2017 in January. This news fittingly concluded a year during which the fund exited several bond investments both in Estonia and across European markets.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**A dizzying rise in the US stock markets**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n","text":"The year 2024 turned out to be unexpectedly strong for financial markets, with the MSCI World Index, which tracks the performance of developed country stock markets, gaining 19.2%. This was primarily driven by an extraordinarily powerful rise in US stocks. Since the share of US companies in the World Index is nearly 74%, it is understandable why the global stock market index performed so well.\n\nThe S&P 500 Index, which tracks the largest companies in the United States, rose by 23% last year in dollar terms. Notably, a third of this index consists of the shares of seven technology giants (the “magnificent seven”), whose market values rose between 20% and 177%.\n\nInvestor optimism and heightened risk appetite reflected in the cryptocurrency markets. The price of Bitcoin soared to $93,714 in 2024, marking a 120% increase.\n\n![Pilt](/assets/images/pension/Andrese_joonis1_122024.png){.pension-img}\n_Figure 1. Returns of different asset classes in dollars in 2024_\n\nOutside the United States, stock markets also delivered respectable returns. The MSCI Europe Index rose by 5.8% in euro terms (or 2.4% in dollar terms), but its performance still lagged significantly behind the soaring US stock markets.\n\n![Pilt](/assets/images/pension/Andrese_joonis2_122024.png){.pension-img}\n_Figure 2. The performance gap between the MSCI Europe Index (excluding the United Kingdom) and the MSCI USA Index in percentage points_\n\n**Mysterious interest rates**\n\nWhile mainstream media may give the impression that interest rates are broadly declining worldwide, the reality is far more nuanced.\n\nIn June 2024, the European Central Bank lowered interest rates for the first time in a long while, prompted by a downward trend in inflation and the need to support sluggish eurozone economic growth. However, it is premature to declare victory over inflation. Prices in the euro area continue to rise faster than the central bank’s target, and by year-end, the inflation rate had even accelerated slightly.\n\nFor long-term investments, international companies focus on long-term bond yields rather than short-term rates like Euribor, and in Europe, these yields remained steady throughout last year. Germany’s ten-year government bond yield ended 2024 at 2.4%, the same level as at the start of the year.\n\nIn the United States, inflation has been easing since the summer of 2022 but remains stubbornly high, driven by unchecked government spending. In September 2024, the US Federal Reserve cut short-term interest rates by 0.5 percentage points for the first time in years, followed by reductions of 0.25 percentage points in both November and December. Yet, long-term bond yields moved higher, rising from 3.95% to 4.58% over the course of the year.\n\n**Evaluating US economic growth in the context of the government’s budget deficit**\n\nIt is perplexing to see discussions about the strength of the US economy when the moderate growth is largely propped up by the government’s unprecedentedly high spending. Just as nominal economic growth is adjusted for inflation to calculate real growth, the government’s budget deficit should be factored in when assessing the overall economic environment. Spending borrowed money makes it easy to create an illusion of success and prosperity.\n\nFor example, if the government borrows $100 and spends it, private sector revenues –corporate profits and wages – will rise by roughly the same amount.\n\nCurrently, US corporate profits are exceptionally high relative to the size of the economy. Profit margins remain elevated, and valuation multiples such as price-to-earnings (P/E) ratios are at near record levels.\n\n![Pilt](/assets/images/pension/Andrese_joonis3_122024.png){.pension-img}\n_Figure 3. Average valuation metrics of US companies compared to historical averages_\n\n**The rise in asset prices fuels investor optimism and bolsters the economy**\n\nThe US stock markets delivered exceptionally high returns in 2023, and at the start of 2024, few hoped a repeat of such remarkable success. Over the past two years, the S&P 500 has surged by more than 50%, marking the second-largest two-year percentage increase in the history of US stock markets. The most significant two-year growth occurred in the late 1990s, just before the dot-com bubble burst.\n\n![Pilt](/assets/images/pension/Andrese_joonis4_122024.png){.pension-img}\n_Figure 4. S&P 500 returns from 1928 to 2024_\n\nTraditionally, the economic environment determines the value of companies, but following the financial crisis of 2008, central banks and governments reversed this dynamic with loose monetary and fiscal policies.\n\nNow the so-called wealth effect is what influences the economy and not the other way around: when stock prices go up, consumers open their wallets and the economy grows. The assumption is, of course, that loose monetary and fiscal policies will continue.\n\nIn stock markets today, price trends have become a key metric. Growth in profits and revenue has taken a backseat to movements in stock prices. While it is difficult to predict how long this reversed dependency will persist, unsustainable processes inevitably come to an end.\n\nThe role of pension funds is to preserve and grow clients’ assets over the long term. The second pension pillar’s success should be evaluated relative to the first pension pillar, making nominal wage growth the ultimate benchmark for pension funds over time.\n\nAt LHV, we believe that the goal of pension funds is not to maximise risk at all costs but to balance risk and return carefully while considering the broader economic environment and market conditions. In our view, the role of fund managers – if the fund is actively managed – is to carefully evaluate the risk and expected return of each investment and to avoid both market-driven euphoria and panic.\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Pensionifond Aktiivne III","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 22%. 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 22% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600010294","strategyType":null,"managementStyle":"Active","riskLevel":4,"countryShareEe":15.47,"fundManager":"LHV","minSumInEurWhenBuying":6.39,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LIT100":{"heading":"LHV Pensionifond Indeks III","id":"indeks","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\nFund investments in shares are divided into two market types, based on the approximate size of the world’s economies: developed and emerging.\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":99.58,"unit":"%"},{"name":"Cash and deposits","value":0.42,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| HSBC MSCI Emerging Markets UCITS | 27.65% |\n| Amundi Prime Global UCITS ETF | 27.65% |\n| Amundi ETF ICAV - Amundi MSCI | 24.82% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 5.64% |\n| Amundi Prime All Country World | 5.54% |\n| SPDR MSCI World UCITS ETF | 5.25% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 3.02% |\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 31.03.2025) | 69,900,559 € |\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:** 0.0451%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.2%\n\n**Ongoing charges (inc management fee):** 0.36%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2024. 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_III_tingimused.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_vabatahtlike_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_III_KIID_2025.pdf)\n"},{"title":"Models","type":"markdown","column":"left","content":"- [Sample portfolio (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_III_mudelportfell_092024.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_III_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_Indeks_III_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_Pluss_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_Pluss_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Pensionifond Indeks III","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 22%. 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 22% 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},"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,"pensionCampaign":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","strategyCampaign":"### **The only green fund in Estonia**\n- The first, and in terms of its essence, so far the only fund in the Estonian pension market that invests in the green transition trend\n- Half of the portfolio is invested in funds that follow the principles of sustainability or involve environmental topics\n- All individual investments are environmentally based, i.e., they are related to renewable energy, energy efficiency, water technology, pollution reduction, management, environmental support activities, and responsible forestry and agriculture.\n","spotlight":{"img":"/assets/images/pension/campaign/tsitaat-maenpaa.png","name":"Jani Mäenpää","profession":"Portfolio Manager at LHV","quote":"_„The LHV Roheline is the only pension fund in the Estonian pension market that invests directly in sustainability trends and companies for whom sustainable development is a revenue, not an expense.“_\n"},"fundInfo":{"company":{"title":"LHV Varahaldus"},"investors":3624},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Shares","value":18.25,"unit":"%"},{"name":"Direct real estate investment","value":1.16,"unit":"%"},{"name":"Equity funds","value":65.95,"unit":"%"},{"name":"Real Estate funds","value":2.6,"unit":"%"},{"name":"Private Equity funds","value":4.56,"unit":"%"},{"name":"Cash and deposits","value":7.49,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| Global X Copper Miners ETF | 15.60% |\n| Invesco Solar ETF | 13.21% |\n| Global X Lithium and Battery Tech | 9.83% |\n| iShares Global Clean Energy ET | 8.25% |\n| Amundi MSCI Water ESG Screened | 5.22% |\n| iShares Electric Vehicles and Driving Technology UCITS | 4.75% |\n| QCP PE Fund III | 4.56% |\n| First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF | 4.55% |\n| Fortum | 3.24% |\n| Birdeye Timber Fund 3 | 2.60% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Birdeye Timber Fund 3 | 2.60% |\n| Sopruse157 omanikulaen | 0.68% |\n| Sopruse pst 157 | 0.50% |\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 31.03.2025) | 24,877,912 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 225,000 units |\n| Rate of the depository’s charge | 0.0439% (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):** 0.93%\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_052023.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_Roheline_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_aruanne_2022.pdf)\n- [Annual report for 2021 (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_aruanne_2021.pdf)\n"},{"title":"Other documents","type":"markdown","column":"right","content":"- [Responsible Investment Policy](/assets/files/pension/Responsible_Investment_Policy_2023.pdf)\n"}]},{"id":"sustainability","title":"Sustainability‐related disclosures","content":[{"type":"markdown","column":"left","content":"- [Sustainability information (in Estonian)](/assets/files/pension/Jatkusuutlikkuse_alane_info_LHV_Pensionifond_Roheline.pdf)\n- [Periodic report (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_ESG_lisa_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001723","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":6,"countryShareEe":4.14,"fundManager":"LHV","campaign":{"upsell":{"title":"## **Did you know that LHV’s III pillar fund Roheline III invests in a similar way?**\n","id":"iii","button":{"url":"/en/pension/iii/fund/roheline","title":"See more","size":"lg"}}}},"LRT100":{"heading":"LHV Pensionifond Roheline III","id":"roheline","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\nRoheline III will be allowed to take on a higher degree of concentration risk, as well as to invest in asset classes in which it was not previously allowed to invest. For example, Roheline III can now invest up to a quarter of the Fund’s assets in green transition-related precious metals and raw materials.\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":26.9,"unit":"%"},{"name":"Equity funds","value":58.83,"unit":"%"},{"name":"Real Estate funds","value":2.18,"unit":"%"},{"name":"Private Equity funds","value":3.91,"unit":"%"},{"name":"Cash and deposits","value":8.18,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 28.02.2025\n\n| Biggest investments | |\n|---|---:|\n| Global X Copper Miners ETF | 15.20% |\n| Invesco Solar ETF | 10.55% |\n| Global X Lithium and Battery Tech | 8.10% |\n| iShares Global Clean Energy ET | 6.63% |\n| Amundi MSCI Water ESG Screened | 5.24% |\n| Cie de Saint-Gobain | 5.21% |\n| First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund ETF | 4.48% |\n| QCP PE Fund III | 3.91% |\n| iShares Electric Vehicles and Driving Technology UCITS | 3.89% |\n| UPM-Kymmene | 3.38% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Birdeye Timber Fund 3 | 2.18% |\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 31.03.2025) | 5,683,284 € |\n| Management company | LHV Varahaldus |\n| Equity in the fund | 0 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:** 0.0439%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.49%\n\n**Ongoing charges (inc management fee):** 1.08%\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_III_tingimused.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_vabatahtlike_pensionifondide_prospekt_2025.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_III_KIID_2025.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (28 February 2025) (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_III_kuuaruanne_2025_02.pdf)\n- [Annual report for 2023 (in Estonian)](/assets/files/pension/PF_Roheline_III_aastaaruanne_2023.pdf)\n- [Annual report for 2022 (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_Pluss_aruanne_2022.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_2023.pdf)\n"}]},{"id":"sustainability","title":"Sustainability‐related disclosures","content":[{"type":"markdown","column":"left","content":"- [Sustainability information (in Estonian)](/assets/files/pension/Jatkusuutlikkuse_alane_info_LHV_Pensionifond_Roheline.pdf)\n- [Periodic report (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_ESG_lisa_2023.pdf)\n- [Statement on principal adverse impacts of investment decisions on sustainability factors (in Estonian)](/assets/files/pension/LHV_Pensionifond_PAI_raport.pdf)\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Pensionifond Roheline III","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 22%. 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 22% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600001764","strategyType":null,"managementStyle":"Active","riskLevel":6,"countryShareEe":2.18,"fundManager":"LHV","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3}}<meta name="robots" content="noindex">