{"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","strategy":"**Strategy**\nWe invest the money into the bonds of various governments and their affiliated organisations. They offer the greatest stability and the lowest risks. There is no stock market risk. The money accumulated for your pension remains stable.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":5100},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":70.15,"unit":"%"},{"name":"Money and deposits","value":29.85,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| France Government 1% 25/05/27 | 5.60% |\n| German Government 1.5% 04/09/22 | 4.54% |\n| Czech Republic 3.875% 24/05/22 | 4.19% |\n| Temasek 0.5% 01/03/22 | 4.12% |\n| Slovakia 3.375% 15/11/24 | 3.76% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.72% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 3.48% |\n| USA TREASURY BILL 1.625% 31/08/19 | 2.94% |\n| ALTUMG 1.3% 07/03/25 | 2.64% |\n| Bank Gospodarstwa Krajow 1.375% 01/06/25 | 2.49% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.72% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 3.48% |\n| Elering 0.875% 03/05/2023 | 2.41% |\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 31.07.2019) | 21,515,975.79 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 110 000 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\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:** 0.576%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_tingimused_020519.pdf)\n- [Terms and conditions from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_tingimused_02092019.pdf)\n- [Analysis of the amendments made to the terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_020519.pdf)\n- [Prospectus from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_KIID.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_KIID_02092019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2017.pdf)\n- [Annual report for 2016 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2016.pdf)\n- [Annual report for 2015 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2015.pdf)\n- [Annual report for 2014 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2014.pdf)\n- [Annual report for 2013 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2013.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – Central banks are pushing bond prices even higher\n\nRomet Enok, Fund Manager\n\nThe central bank of the United States of America lowered interest rate for the first time since 2008. As the cycle is turning, the European Central Bank is expected to do the same soon. The slowdown in economic activity will further lower investors' expectations of interest rates. All of this would be a normal development if interest rates weren’t already at absurd levels.\n\nThus we faced a situation in August, where all German government bonds were trading with a negative expected yield – even those with a maturity of 30 years. Perhaps the most insane example comes from the neighbouring country of Austria, where the government bond maturing in 2117 (almost in 100 years) will offer a return of 0.75% per year.\n\nIn this situation, of course, the price of the fund’s investments also rose alongside the market (0.3%), but making new investments is becoming harder. Rather, the funds next step will more likely be selling longer term bonds as prices keep rising.\n"},{"year":2019,"month":6,"content":"### June 2019 – Bond market inclined towards borrowers\n\nRomet Enok, Fund Manager\n\nBond markets throughout the world have clearly set course towards a major cooldown of the economy, expecting new support measures to be implemented by central banks. By the end of June, the expected rate of return of the German ten-year bond had reached the level of –0.3%. It has never before been so deeply in the red. Yet, the impact is much more broad-based: Portugal, which over the last decade has gone through several severe crises, is now getting a ten-year loan with an interest of 0.5%.\n\nAll this shows that the rate of return of the last 6 months has been very good on the markets; nevertheless, the forward-looking outlook is meagre. Thus, the rate of return of the European government bonds was 6% and that of corporate bonds 5.4% in the first quarter, while the average annual rate of return of the last 5 years was 3-4% for both.\n\nGiven this situation, we can in particular avoid risks and wait for the emergence of new attractive investment opportunities. At the moment, the market is strongly inclined towards those who want to take a loan: new bonds are being issued in record volumes and with extremely low interest. Especially considering the fact that bonds are sold in unprecedentedly large volumes, the range of interesting bonds opening up to investors will be probably wider than ever when the market falls. Until then, however, we will rather see as the next step the sale of positions, should the price increase continue.\n"},{"year":2019,"month":5,"content":"### May 2019 – We acquired bonds of a Latvian public financial company\n\nRomet Enok, Fund Manager\n\nIn terms of new issues, we participated in another bond issue of the Latvian public finance company Altum. As the company belongs to the Latvian State and participates in the implementation of public policies, these bonds can be compared to government bonds. In doing so, a somewhat higher interest rate allows a long-term investor to earn more than while holding government bonds.\n\nMeanwhile in the international bond market, the trend of increasing bonds that are expected to have a negative rate of return when held to the end, continued. For example, Germany's ten-year bond ended May with the price, from which a -0.2% annual rate of return is expected when held to the end.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: [http://investments.yale.edu/reports](http://investments.yale.edu/reports).*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019782","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":11.63,"fundManager":"LHV"},"LSK00":{"heading":"LHV Pensionifond S","id":"s","code":"s","dataMarker":"SK00","suitability":"**Suitable if**\n- you have less than 3 years left until retirement,\n- you have low risk tolerance,\n- your aim is the preservation and modest growth of your pension savings.\n","strategy":"**Strategy**\nWe invest your money into corporate bonds. They offer stability in the maintenance of your money and are not affected as much by the prevalent economic situation as corporate shares. Up to 25% of the fund’s assets can be invested into real estate, infrastructure, equity funds and convertible bonds. The growth of your pension savings is limited, but will be stable.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":10649},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":88.08,"unit":"%"},{"name":"Money and deposits","value":11.92,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Temasek 0.5% 01/03/22 | 4.66% |\n| Latvenergo 1.9% 10/06/22 | 4.51% |\n| Luminor 1.5% 18/10/21 | 4.43% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 4.16% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 4.09% |\n| Investor 4.5% 12/05/23 | 3.47% |\n| TOTAL 03/19/20 | 3.12% |\n| Romania 2.875% 28/10/24 | 2.95% |\n| SANOFI 1.875% 04/09/20 | 2.68% |\n| Allianz 07/12/20 | 2.61% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 4.43% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 4.16% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 4.09% |\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 31.07.2019) | 57,753,691.84 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 270 000 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\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:** 0.672%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_tingimused_020519.pdf)\n- [Terms and conditions from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_tingimused_02092019.pdf)\n- [Analysis of the amendments made to the terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_020519.pdf)\n- [Prospectus from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Analysis of the amendments made to the prospectus 2 May 2019 (in Estonian)](/assets/files/pension/Prospekti_muudatuste_pohjendus_ja_moju_analyys_mai.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_KIID.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_KIID_02092019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_S_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2017.pdf)\n- [Annual report for 2016 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2016.pdf)\n- [Annual report for 2015 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2015.pdf)\n- [Annual report for 2014 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2014.pdf)\n- [Annual report for 2013 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2013.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – Finding new investments is difficult, but not impossible\n\nRomet Enok, Fund Manager\n\nIt is becoming increasingly clear that the interest cycle is turning. In July the Federal Reserve lowered interest rates for the first time since 2008 and a consensus is forming that the European Central Bank is going to follow the same path shortly.\n\nThe price increase of bonds is therefore natural, but extraordinary when we consider at how extremely high price level this movement takes place. Thus, as of the beginning of August, all German government bonds trade with a negative expected yield, even those that end in 30 years.\n\nThe situation for investors, however, becomes even more dangerous, as the price of credit for businesses has also decreased. While writing this, the expected future return on major European corporate bonds is on average 0.3% a year! In this situation, the fund's probable next step is to further reduce risks by selling long-term bonds.\n\nIt is difficult, but not impossible, to make new investments. The slightly more than the 5% increase of Finnish insurance group's (Sampo) bonds during July proved this. We made the investment in June and it has already given us a return of 12% in a few weeks.\n"},{"year":2019,"month":6,"content":"### June 2019 – Focus more on local opportunities instead of international bonds\n\nRomet Enok, Fund Manager\n\nBond markets throughout the world have clearly set course towards a major cooldown of the economy, expecting new support measures to be implemented by central banks. This is why the prices of government bonds (6%) as well as corporate bonds (5.4%) experienced an upsurge in Europe in the first half of the year.\n\nIn June, we took advantage of this situation and sold, from amongst our long-term and accordingly higher-risk securities, Lithuanian Energy. The bonds issued by the company in 2017 and 2018 yielded above 8% and 5%, respectively, for the fund. There is no way the bonds of such a large company can offer such a high rate of return for an extended period of time in the current interest environment. We plan to invest the sales proceeds into local bonds with a higher rate of return.\n\nWe are continuing negotiations with several local companies and expect attractive additions to our portfolio in the second half of the year. Local bonds increase the funds’ rate of return in the form of interest, while international bonds do so mainly through price movement. This is why international bonds show a better rate of return at times of steep market increases; yet, as an average of several years, the higher interest of local bonds will give a better return.\n\nFor example, the average rate of return of the European bond markets has been 3-4% over the last 5 years. We make local investments only if the interest level is clearly higher. Of course, we will keep our eyes open, to also take advantage of the opportunities presented by international markets; since the fact that the markets as a whole have an overly high price level does not preclude finding individual good opportunities. It was in this way that the price of the bonds of the Finnish insurance firm Sampo, acquired in May, showed an extraordinary monthly increase, exceeding 6%.\n"},{"year":2019,"month":5,"content":"### May 2019 – Changing the fund terms and conditions opens up new opportunities\n\nRomet Enok, Fund Manager\n\nIn terms of new issues, we participated in another bond issue of the Latvian public finance company Altum. As the company belongs to the Latvian State and participates in the implementation of public policies, these bonds can be compared to government bonds. In doing so, a somewhat higher interest rate allows a long-term investor to earn more than while holding government bonds.\n\nWe recently changed the terms and conditions of the S fund and, as a result, expanded the range of investments that the fund can make. One such investment was the Finnish financial group Sampo that sold new bonds last month, the largest assets of which are If insurance and a large holding at Nordea Bank. The largest owners of the company are the Finnish State and its pension funds. Sampo has the right to repay the bonds after ten years, as long as the annual interest is 3.375%.\n\nIn international bond markets, the pessimism regarding economic prospects deepened and the number of debt securities, expected to have a negative rate of return in the end, is increasing. With the support of the fund’s new terms and conditions that provide more opportunities, we are working on adding OTC and higher-interest bonds to the fund in the future.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: [http://investments.yale.edu/reports](http://investments.yale.edu/reports).*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600019824","strategyType":"Balanced","managementStyle":"Active","riskLevel":2,"countryShareEe":12.87,"fundManager":"LHV"},"LMK25":{"heading":"LHV Pensionifond M","id":"m","code":"m","dataMarker":"MK25","suitability":"**Suitable if**\n- you have 3–10 years left until retirement age,\n- you have moderate risk tolerance,\n- your aim is the long-term stable growth of your pension savings.\n","strategy":"**Strategy**\nWe allocate most of the funds into bonds, which offer stability when it comes to the preservation of your money. For added balance, we also invest into real estate and enterprises to allow for stable growth by your pension savings. Up to 25% of the fund’s assets will be allocated to shares, that is, holdings in companies will be acquired. We invest the rest into bonds and real estate.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":13367},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":77.7,"unit":"%"},{"name":"Shares","value":5.18,"unit":"%"},{"name":"Equity funds","value":1.13,"unit":"%"},{"name":"Real Estate funds","value":7.68,"unit":"%"},{"name":"Private Equity funds","value":3.39,"unit":"%"},{"name":"Money and deposits","value":4.92,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 3.70% |\n| EfTEN Kinnisvarafond | 3.31% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.00% |\n| France Government 2.25% 25/10/22 | 2.58% |\n| Berkshire Hathaway 0.25% 17/01/21 | 2.49% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 2.39% |\n| Tartu linn 25/10/32 | 2.03% |\n| JP Morgan Chase And Co 27/01/20 | 1.96% |\n| BNP Paribas 0.75% 11/11/22 | 1.96% |\n| Coop Pank 6.75% 04/12/2027 | 1.82% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 3.70% |\n| EfTEN Kinnisvarafond | 3.31% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.00% |\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 31.07.2019) | 126,886,440.51 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 380 000 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\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:** 0.96%\n\n**Management fee from 2 September 2019:** 0.72%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 2 January 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_tingimused_020118.pdf)\n- [Terms and conditions from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_tingimused_02092019.pdf)\n- [Analysis of the amendments made to the terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_020519.pdf)\n- [Prospectus from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_KIID.pdf)\n- [Key Investor Information from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_KIID_02092019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_M_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2017.pdf)\n- [Annual report for 2016 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2016.pdf)\n- [Annual report for 2015 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2015.pdf)\n- [Annual report for 2014 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2014.pdf)\n- [Annual report for 2013 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2013.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – Latvian real estate fund contributed to the performance\n\nRomet Enok, Fund Manager\n\nIn July, there were no significant fluctuations in the global stock market, but against the backdrop of a cooling economic environment, the Federal Reserve lowered the base interest rate by 0.25 percentage points and the European Central Bank dropped a hint about the upcoming monetary easing measures.\n\nIn Europe, stock markets in most of the countries showed negative returns. For example, the German stock market index dropped by -1.7% during the month and the Finnish stock exchange was lower by -1.3%. In the Baltics, the best results were made by the Vilnius Stock Exchange with a gain of 4.3%, largely due to 12.1% and 9.9% price jump of the shares of Apranga and Šiauliu Bankas respectively. The Tallinn Stock Exchange made a modest 1.0% increase in July, and Riga's stock market grew by 1.7%.\n\nLatvian Real Estate fund SG Capital, an investment that we made in the spring of this year contributed to the performance of pension fund M. The fund owns three offices in Riga, the biggest of which is the Skanste Business Centre, a complex of office buildings located in the rapidly evolving Skanste business district, where there is currently an active construction and expansion. After completion of the buildings, more than 4000 people will work there.\n\nIn the bond portfolio, we have continued to focus on local investments as we are entering the final phase of the negotiations with a couple of potential transactions. Even a small-scale investment in the local market currently promises a significantly greater positive impact on the fund's result compared to a very big investment in international markets.\n\nAt the beginning of August, the bond market of major European corporations had an average expected return of just 0.3% per annum. Half-jokingly one can say that it is considerably better than the yield of government bonds, where, by now, even the German 30-year-old bond has a negative expected yield, but for the rational investor it is of little help.\n\nThe change of monetary policy contributed to the price increase of bonds, as the Federal Reserve in late July lowered interest rates for the first time since 2008. And in euro area the central bank is expected to walk the same path. As a result, all major bond markets remained on the plus side in July by 0.5 to 1.5 per cent. In our portfolio, again, the bonds issued by the Finnish insurance group Sampo, which were acquired in June, showed the best result by increasing 5% in July. Those bonds have now brought the fund a 12% return in a matter of few weeks.\n"},{"year":2019,"month":6,"content":"### June 2019 – Expectations of loose fiscal policy supported stock markets\n\nRomet Enok, Fund Manager\n\nBond markets throughout the world have clearly set course towards a major cooldown of the economy, expecting new support measures to be implemented by central banks. This is why the prices of government bonds (6%) as well as corporate bonds (5.4%) experienced an upsurge in Europe in the first half of the year.\n\nIn June, we took advantage of this situation and sold, from amongst our long-term and accordingly higher-risk securities, Lithuanian Energy. The bonds issued by the company in 2017 and 2018 yielded above 8% and 5%, respectively, for the fund. There is no way the bonds of such a large company can offer such a high rate of return for an extended period of time in the current interest environment. We plan to invest the sales proceeds into local bonds with a higher rate of return.\n\nWe are continuing negotiations with several local companies and expect attractive additions to our portfolio in the second half of the year. Local bonds increase the funds’ rate of return in the form of interest, while international bonds do so mainly through price movement. This is why international bonds show a better rate of return at times of steep market increases; yet, as an average of several years, the higher interest of local bonds will give a better return.\n\nFor example, the average rate of return of the European bond markets has been 3-4% over the last 5 years. We make local investments only if the interest level is clearly higher. Of course, we will keep our eyes open, to also take advantage of the opportunities presented by international markets; since the fact that the markets as a whole have an overly high price level does not preclude finding individual good opportunities. It was in this way that the price of the bonds of the Finnish insurance firm Sampo, acquired in May, showed an extraordinary monthly increase, exceeding 6%.\n\nJune was positive for global stock markets: both, the stock exchanges of developed and developing markets provided a good rate of return. The increase can be attributed mainly to the continued loose fiscal policy of the US Federal Reserve as well as the European central banks, and accordingly, to the expectations of investors that the low interest environment will remain.\n\nThe level of the Euro Stoxx 50 index, including the 50 largest public companies of the Eurozone, rose 6% over the month and by countries, the top risers were Germany and France. In June, the Japanese stock market index increased by 3.3% in local currency and by 2.1% measured in euros. Baltic stock markets lagged behind the general growth trend of the last month: only the Tallinn Stock Exchange was able to give a positive rate of return with 1.2%. The stock exchanges of Riga and Vilnius declined by 2.7% and 1.7%, respectively.\n\nPrivate equity fund INVL Baltic Sea Growth Fund, included in the portfolio of pension fund M, made its third investment. This was the pulp and paper manufacturer Grigeo investicijų valdymas, which evolved from the Lithuanian timber company Grigeo Group, which mainly reprocesses used paper and manufacturers corrugated cardboard products. This is the biggest company within the sector in the Baltics, benefiting from the increasing demand for cardboard products, for example, in connection with the growing e-trade.\n"},{"year":2019,"month":5,"content":"### May 2019 – Participating in the Baltic Horizon bond issue\n\nRomet Enok, Fund Manager\n\nAfter several peaceful and rather positive months, the world's stock markets were offering a predominantly negative rate of return in fear of the American and Chinese trade war. In Europe, Sweden, with a result of -9.9%, and several southern European countries went through the largest decline.\n\nThe German and Finnish stock exchange made it through somewhat better: both fell by 5% in May. The Japanese stock market index decreased by 7.4% in local currency, and in euros the rate of return was -4.8%. The general recession also included the Tallinn and Vilnius Stock Exchange, with, respectively, a -1.4% and -0.8% rate of return in May. However, the Riga stock exchange index increased by 2.4%, largely due to the increase in the share prices of the pharmaceutical manufacturers Grindeks and Olainfarm, which was almost 8%.\n\nIn April, the long-lasting dispute between the main shareholder of Grindeks and the Latvian Financial Supervision authority was resolved and in May the official buyout offer price was announced: EUR 12.59. While, before the sharp rise in April, the Grindeks share was traded at EUR 8, the price increased by the end of May to EUR 12.2. This makes the rate of return more than 52%. The M pension fund plans to accept the buyout offer and sell all shares.\n\nThe Real Estate fund Baltic Horizon, listed on the Tallinn Stock Exchange, issued the third and last part of bonds. They are subject to the terms and conditions agreed during the first issuance of the company in spring last year: the annual interest is 4.25% and the maturity date is now just under four years away. The company also has the right to repay the bonds in advance by paying the investors up to 2% as extra payments. Representing the interests of pension collectors, we actively participated in settling on the conditions in spring 2018. Therefore, we also bought more bonds from this issue. They are now also listed on the Tallinn Stock Exchange and have in the meantime received an international credit rating. LHV's pension funds hold just over 40% of the Baltic Horizon bonds.\n\nIn terms of new projects, we started negotiations on possible participation in establishing a new dairy industry in Paide, funded by E-Piim, the Dutch investor Interfood, and the Agricultural Registers and Information Board. We also have other local projects currently being negotiated. Soon, we hope to add them to our portfolio with an attractive rate of return.\n\nOn the other hand, international bond markets still offer prospects with a very low rate of return, due to which we only make individual investments when we find attractive opportunities. One such investment was the Finnish financial group Sampo, which sold new bonds in May. The company's largest assets are If Insurance and a large holding in Nordea Bank, and the company’s largest owners are the Finnish State and its pension funds.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: [http://investments.yale.edu/reports](http://investments.yale.edu/reports).*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600019774","strategyType":"Balanced","managementStyle":"Active","riskLevel":2,"countryShareEe":31.97,"fundManager":"LHV"},"LLK50":{"heading":"LHV Pensionifond L","id":"l","code":"l","dataMarker":"LK50","suitability":"**Suitable if**\n- you have more than 10 years left until retirement,\n- you have average risk tolerance,\n- your aim is the long-term growth of your pension savings.\n","strategy":"**Strategy**\nWe invest in different areas, the development of which we believe in (e.g. real estate, forest, private equity, Baltic shares, international stock markets and bonds). We allocate up to 50% of the fund’s assets onto stock markets, obtaining holdings in companies. We invest the rest into bonds and real estate.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":103060},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":63.37,"unit":"%"},{"name":"Shares","value":10.55,"unit":"%"},{"name":"Equity funds","value":4.64,"unit":"%"},{"name":"Real Estate funds","value":9.64,"unit":"%"},{"name":"Private Equity funds","value":7.49,"unit":"%"},{"name":"Money and deposits","value":4.31,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| EfTEN Kinnisvarafond | 4.14% |\n| Luminor 1.5% 18/10/21 | 3.82% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.56% |\n| France Government 2.25% 25/10/22 | 2.96% |\n| Latvia 2.625% 21/01/21 | 2.40% |\n| JP Morgan Chase And Co 27/01/20 | 1.99% |\n| Baltic Horizon Fund 4.25% 08/05/23 | 1.84% |\n| Siauliu Bankas 21/12/20 | 1.84% |\n| East Capital Baltic Property Fund III | 1.78% |\n| China Development Bank 0.375% 16/11/21 | 1.70% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 4.14% |\n| Luminor 1.5% 18/10/21 | 3.82% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.56% |\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 31.07.2019) | 875,029,391.79 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 2 400 000 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\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:** 1.20%\n\n**Management fee from 2 September 2019:** 0.72%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 2 January 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_tingimused_020118.pdf)\n- [Terms and conditions from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_tingimused_02092019.pdf)\n- [Analysis of the amendments made to the terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_020519.pdf)\n- [Prospectus from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_KIID.pdf)\n- [Key Investor Information from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_KIID_02092019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_L_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2017.pdf)\n- [Annual report for 2016 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2016.pdf)\n- [Annual report for 2015 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2015.pdf)\n- [Annual report for 2014 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2014.pdf)\n- [Annual report for 2013 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2013.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – New investment of private equity fund KJK Fund III\n\nKristo Oidermaa, Fund Manager\n\nIn July, there were no significant fluctuations in the global stock market, but against the backdrop of a cooling economic environment, the Federal Reserve lowered the base interest rate by 0.25 percentage points and the European Central Bank dropped a hint about the upcoming monetary easing measures.\n\nIn Europe, stock markets in most of the countries showed negative returns. For example, the German stock market index dropped by -1.7% during the month and the Finnish stock exchange was lower by -1.3%. However, the Japanese stock market rose by 1.2% in local currency and 2.6% as measured in euros. In the Baltics, the best results were made by the Vilnius Stock Exchange with a gain of 4.3%, largely due to 12.1% and 9.9% price jump of the shares of Apranga and Šiauliu Bankas respectively. The Tallinn Stock Exchange made a modest 1.0% increase in July, and Riga's stock market grew by 1.7%.\n\nIn the portfolio of pension fund L, KJK Fund III made another investment related to the sports equipment by acquiring Lithuania's bicycle manufacturer Baltik Vairas. It is the largest manufacturer of such in the Nordic, which can prepare up to 500 000 bicycles annually and exports them to 14 European countries. In the portfolio of KJK Fund III, similar companies can already be found: Estonian water sports equipment producer Tahe Outdoors and the Slovenian winter sports products company Elan.\n\nIn the bond portfolio, we have continued to focus on local investments as we are entering the final phase of the negotiations with a couple of potential transactions. Even a small-scale investment in the local market currently promises a significantly greater positive impact on the fund's result compared to a very big investment in international markets.\n\nAt the beginning of August, the bond market of major European corporations had an average expected return of just 0.3% per annum. Half-jokingly one can say that it is considerably better than the yield of government bonds, where, by now, even the German 30-year-old bond has a negative expected yield, but for the rational investor it is of little help.\n\nThe change of monetary policy contributed to the price increase of bonds, as the Federal Reserve in late July lowered interest rates for the first time since 2008. And in euro area the central bank is expected to walk the same path. As a result, all major bond markets remained on the plus side in July by 0.5 to 1.5 per cent. In our portfolio, again, the bonds issued by the Finnish insurance group Sampo, which were acquired in June, showed the best result by increasing 5% in July. Those bonds have now brought the fund a 12% return in a matter of few weeks.\n"},{"year":2019,"month":6,"content":"### June 2019 – New investment of venture capital fund Karma Ventures\n\nKristo Oidermaa, Fund Manager\n\nJune was positive for global stock markets: both, the stock exchanges of developed and developing markets provided a good rate of return. The increase can be attributed mainly to the continued loose fiscal policy of the US Federal Reserve as well as the European central banks, and accordingly, to the expectations of investors that the low interest environment will remain.\n\nThe level of the Euro Stoxx 50 index, including the 50 largest public companies of the Eurozone, rose 6% over the month and by countries, the top risers were Germany and France. In June, the Japanese stock market index increased by 3.3% in local currency and by 2.1% measured in euros. Baltic stock markets lagged behind the general growth trend of the last month: only the Tallinn Stock Exchange was able to give a positive rate of return with 1.2%. The stock exchanges of Riga and Vilnius declined by 2.7% and 1.7%, respectively.\n\nThe Estonian venture capital fund Karma Ventures, included in the portfolio of pension fund L, made another investment. This time into the startup Infermedica, established in Poland. The company enables customers to enter their symptoms via their mobile and the AI will then ask some questions to give them recommendations for further actions. Infermedica is operating in several European countries and also intends to expand to the US market with the help of the raised capital.\n\nBond markets throughout the world have clearly set course towards a major cooldown of the economy, expecting new support measures to be implemented by central banks. This is why the prices of government bonds (6%) as well as corporate bonds (5.4%) experienced an upsurge in Europe in the first half of the year.\n\nIn June, we took advantage of this situation and sold, from amongst our long-term and accordingly higher-risk securities, Lithuanian Energy. The bonds issued by the company in 2017 and 2018 yielded above 8% and 5%, respectively, for the fund. There is no way the bonds of such a large company can offer such a high rate of return for an extended period of time in the current interest environment. We plan to invest the sales proceeds into local bonds with a higher rate of return.\n\nWe are continuing negotiations with several local companies and expect attractive additions to our portfolio in the second half of the year. Local bonds increase the funds’ rate of return in the form of interest, while international bonds do so mainly through price movement. This is why international bonds show a better rate of return at times of steep market increases; yet, as an average of several years, the higher interest of local bonds will give a better return.\n\nFor example, the average rate of return of the European bond markets has been 3-4% over the last 5 years. We make local investments only if the interest level is clearly higher. Of course, we will keep our eyes open, to also take advantage of the opportunities presented by international markets; since the fact that the markets as a whole have an overly high price level does not preclude finding individual good opportunities. It was in this way that the price of the bonds of the Finnish insurance firm Sampo, acquired in May, showed an extraordinary monthly increase, exceeding 6%.\n"},{"year":2019,"month":5,"content":"### May 2019 – Estonia's first rental houses are open\n\nKristo Oidermaa, Fund Manager\n\nAfter several peaceful and rather positive months, the world's stock markets were offering a predominantly negative rate of return in fear of the American and Chinese trade war. Within a month, the US S&P 500 index decreased by 6.6% in local currency and the Chinese stock exchange index by as much as 13.6%. In Europe, Sweden, with a result of -9.9%, and several southern European countries went through the largest decline.\n\nThe German and Finnish stock exchange made it through somewhat better: both fell by 5% in May. The Japanese stock market index decreased by 7.4% in local currency, and in euros the rate of return was -4.8%. The general recession also included the Tallinn and Vilnius Stock Exchange, with, respectively, a -1.4% and -0.8% rate of return in May. However, the Riga stock exchange index increased by 2.4%, largely due to the increase in the share prices of the pharmaceutical manufacturers Grindeks and Olainfarm, which was almost 8%.\n\nIn May, the Lumi Kodu rental houses that are part of the L Pension Fund portfolio were inaugurated, and by the end of the month the first tenants had already moved in. In total, the LHV pension funds own 127 one- to three-room apartments, located in the Manufaktuur quarter in the Põhja-Tallinn district. In the coming years, we are planning to increase the rental house portfolio to 500 apartments in Tallinn.\n\nThe Real Estate fund Baltic Horizon, listed on the Tallinn Stock Exchange, issued the third and last part of bonds. They are subject to the terms and conditions agreed during the first issuance of the company in spring last year: the annual interest is 4.25% and the maturity date is now just under four years away. The company also has the right to repay the bonds in advance by paying the investors up to 2% as extra payments. Representing the interests of pension collectors, we actively participated in settling on the conditions in spring 2018. Therefore, we also bought more bonds from this issue. They are now also listed on the Tallinn Stock Exchange and have in the meantime received an international credit rating. LHV's pension funds hold just over 40% of the Baltic Horizon bonds.\n\nIn terms of new projects, we started negotiations on possible participation in establishing a new dairy industry in Paide, funded by E-Piim, the Dutch investor Interfood, and the Agricultural Registers and Information Board. We also have other local projects currently being negotiated. Soon, we hope to add them to our portfolio with an attractive rate of return.\n\nOn the other hand, international bond markets still offer prospects with a very low rate of return, due to which we only make individual investments when we find attractive opportunities. One such investment was the Finnish financial group Sampo, which sold new bonds in May. The company's largest assets are If Insurance and a large holding in Nordea Bank, and the company’s largest owners are the Finnish State and its pension funds.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: [http://investments.yale.edu/reports](http://investments.yale.edu/reports).*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]}],"strategyKey":"progressiivne","isin":"EE3600019832","strategyType":"Progressive","managementStyle":"Active","riskLevel":3,"countryShareEe":32.11,"fundManager":"LHV"},"LXK75":{"heading":"LHV Pensionifond XL","id":"xl","code":"xl","dataMarker":"XLK50","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you are prepared to take above-average risks,\n- your aim is the long-term growth of your pension savings.\n","strategy":"**Strategy**\nWe allocate up to 75% of the fund’s assets into shares, i.e. obtaining holdings in companies. We invest the rest into bonds and real estate. In 2012, we changed our investment strategy; until then, up to 50% was invested into shares.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":35093},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":60.06,"unit":"%"},{"name":"Shares","value":11.07,"unit":"%"},{"name":"Equity funds","value":5.2,"unit":"%"},{"name":"Real Estate funds","value":10.24,"unit":"%"},{"name":"Private Equity funds","value":8.12,"unit":"%"},{"name":"Money and deposits","value":5.31,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 3.64% |\n| EfTEN Kinnisvarafond | 3.22% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.89% |\n| France Government 2.25% 25/10/22 | 2.59% |\n| East Capital Baltic Property Fund II | 2.30% |\n| East Capital Baltic Property Fund III | 2.29% |\n| Berkshire Hathaway 0.25% 17/01/21 | 2.21% |\n| Allianz 07/12/20 | 2.05% |\n| JP Morgan Chase And Co 27/01/20 | 1.94% |\n| HSBC Holdings Plc 04/12/21 | 1.89% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 3.64% |\n| EfTEN Kinnisvarafond | 3.22% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.89% |\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 31.07.2019) | 186,921,851.25 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 500 000 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\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:** 1.20%\n\n**Management fee from 2 September 2019:** 0.72%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 2 January 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_tingimused_020118.pdf)\n- [Terms and conditions from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_tingimused_02092019.pdf)\n- [Analysis of the amendments made to the terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_020519.pdf)\n- [Prospectus from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_KIID.pdf)\n- [Key Investor Information from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_KIID_02092019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2017.pdf)\n- [Annual report for 2016 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2016.pdf)\n- [Annual report for 2015 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2015.pdf)\n- [Annual report for 2014 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2014.pdf)\n- [Annual report for 2013 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2013.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – Our Finnish investments moved in different directions\n\nKristo Oidermaa, Fund Manager\n\nIn July, there were no significant fluctuations in the global stock market, but against the backdrop of a cooling economic environment, the Federal Reserve lowered the base interest rate by 0.25 percentage points and the European Central Bank dropped a hint about the upcoming monetary easing measures.\n\nIn Europe, stock markets in most of the countries showed negative returns. For example, the German stock market index dropped by -1.7% during the month and the Finnish stock exchange was lower by -1.3%. However, the Japanese stock market rose by 1.2% in local currency and 2.6% as measured in euros. In the Baltics, the best results were made by the Vilnius Stock Exchange with a gain of 4.3%, largely due to 12.1% and 9.9% price jump of the shares of Apranga and Šiauliu Bankas respectively. The Tallinn Stock Exchange made a modest 1.0% increase in July, and Riga's stock market grew by 1.7%.\n\nFinnish stocks in the pension fund XL portfolio moved in different directions last month. The shares of paper and pulp company Metsä Board dropped by 4.8% in July, as the company reported weaknesses in the II quarter results. Revenue decreased by 8% compared to the same period in 2018 and net profit fell by 13% mainly due to the weakness in the Chinese market. Finnish retailing conglomerat Kesko reported an increase in revenue by 4% to a new record high, and company's shares therefore rose 9.7% during the month.\n\nIn the bond portfolio, we have continued to focus on local investments as we are entering the final phase of the negotiations with a couple of potential transactions. Even a small-scale investment in the local market currently promises a significantly greater positive impact on the fund's result compared to a very big investment in international markets.\n\nAt the beginning of August, the bond market of major European corporations had an average expected return of just 0.3% per annum. Half-jokingly one can say that it is considerably better than the yield of government bonds, where, by now, even the German 30-year-old bond has a negative expected yield, but for the rational investor it is of little help.\n\nThe change of monetary policy contributed to the price increase of bonds, as the Federal Reserve in late July lowered interest rates for the first time since 2008. And in euro area the central bank is expected to walk the same path. As a result, all major bond markets remained on the plus side in July by 0.5 to 1.5 per cent. In our portfolio, again, the bonds issued by the Finnish insurance group Sampo, which were acquired in June, showed the best result by increasing 5% in July. Those bonds have now brought the fund a 12% return in a matter of few weeks.\n"},{"year":2019,"month":6,"content":"### June 2019 – Expectations of loose fiscal policy supported stock markets\n\nKristo Oidermaa, Fund Manager\n\nJune was positive for global stock markets: both, the stock exchanges of developed and developing markets provided a good rate of return. The increase can be attributed mainly to the continued loose fiscal policy of the US Federal Reserve as well as the European central banks, and accordingly, to the expectations of investors that the low interest environment will remain.\n\nThe level of the Euro Stoxx 50 index, including the 50 largest public companies of the Eurozone, rose 6% over the month and by countries, the top risers were Germany and France. Also, the emerging markets index demonstrated good results, showing a 5.7% rate of return measured in local currency. In June, the Japanese stock market index increased by 3.3% in local currency and by 2.1% measured in euros. Baltic stock markets lagged behind the general growth trend of the last month: only the Tallinn Stock Exchange was able to give a positive rate of return with 1.2%. The stock exchanges of Riga and Vilnius declined by 2.7% and 1.7%, respectively.\n\nThe German wholesale club retailer Metro AG, belonging to the pension fund XL portfolio, received a takeover bid for all shares in June and, thanks to that, the share price of the company increased by 13.9% over the month. This is the world’s eighth largest wholesale and retail chain, with nearly 800 stores in 25 countries. The supervisory board of Metro AG advised shareholders to reject the bid for now, as it considers the price to be too low.\n\nAlso, Finnish forestry companies Store Enso and Metsä Board provided a good rate of return in June, with share prices increasing by 9.2% and 15.9%, respectively, in a month.\n\nBond markets throughout the world have clearly set course towards a major cooldown of the economy, expecting new support measures to be implemented by central banks. This is why the prices of government bonds (6%) as well as corporate bonds (5.4%) experienced an upsurge in Europe in the first half of the year.\n\nIn June, we took advantage of this situation and sold, from amongst our long-term and accordingly higher-risk securities, Lithuanian Energy. The bonds issued by the company in 2017 and 2018 yielded above 8% and 5%, respectively, for the fund. There is no way the bonds of such a large company can offer such a high rate of return for an extended period of time in the current interest environment. We plan to invest the sales proceeds into local bonds with a higher rate of return.\n\nWe are continuing negotiations with several local companies and expect attractive additions to our portfolio in the second half of the year. Local bonds increase the funds’ rate of return in the form of interest, while international bonds do so mainly through price movement. This is why international bonds show a better rate of return at times of steep market increases; yet, as an average of several years, the higher interest of local bonds will give a better return.\n\nFor example, the average rate of return of the European bond markets has been 3-4% over the last 5 years. We make local investments only if the interest level is clearly higher. Of course, we will keep our eyes open, to also take advantage of the opportunities presented by international markets; since the fact that the markets as a whole have an overly high price level does not preclude finding individual good opportunities. It was in this way that the price of the bonds of the Finnish insurance firm Sampo, acquired in May, showed an extraordinary monthly increase, exceeding 6%.\n"},{"year":2019,"month":5,"content":"### May 2019 – Investment in Slovenian sports equipment manufacturer\n\nKristo Oidermaa, Fund Manager\n\nAfter several peaceful and rather positive months, the world's stock markets were offering a predominantly negative rate of return in fear of the American and Chinese trade war. Within a month, the US S&P 500 index decreased by 6.6% in local currency and the Chinese stock exchange index by as much as 13.6%. In Europe, Sweden, with a result of -9.9%, and several southern European countries went through the largest decline.\n\nThe German and Finnish stock exchange made it through somewhat better: both fell by 5% in May. The Japanese stock market index decreased by 7.4% in local currency, and in euros the rate of return was -4.8%. The general recession also included the Tallinn and Vilnius Stock Exchange, with, respectively, a -1.4% and -0.8% rate of return in May. However, the Riga stock exchange index increased by 2.4%, largely due to the increase in the share prices of the pharmaceutical manufacturers Grindeks and Olainfarm, which was almost 8%.\n\nThe private equity fund KJK Fund III, a member of the XL Pension Fund portfolio, made a new investment in Elan, a Slovenian sports equipment manufacturer. The company produces, for example, winter sports equipment and sailing yachts and is among the world's leading producers in its field. Previously, the KJK has invested in the Estonian water sports equipment company Tahe Outdoors.\n\nThe Real Estate fund Baltic Horizon, listed on the Tallinn Stock Exchange, issued the third and last part of bonds. They are subject to the terms and conditions agreed during the first issuance of the company in spring last year: the annual interest is 4.25% and the maturity date is now just under four years away. The company also has the right to repay the bonds in advance by paying the investors up to 2% as extra payments. Representing the interests of pension collectors, we actively participated in settling on the conditions in spring 2018. Therefore, we also bought more bonds from this issue. They are now also listed on the Tallinn Stock Exchange and have in the meantime received an international credit rating. LHV's pension funds hold just over 40% of the Baltic Horizon bonds.\n\nIn terms of new projects, we started negotiations on possible participation in establishing a new dairy industry in Paide, funded by E-Piim, the Dutch investor Interfood, and the Agricultural Registers and Information Board. We also have other local projects currently being negotiated. Soon, we hope to add them to our portfolio with an attractive rate of return.\n\nOn the other hand, international bond markets still offer prospects with a very low rate of return, due to which we only make individual investments when we find attractive opportunities. One such investment was the Finnish financial group Sampo, which sold new bonds in May. The company's largest assets are If Insurance and a large holding in Nordea Bank, and the company’s largest owners are the Finnish State and its pension funds.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: [http://investments.yale.edu/reports](http://investments.yale.edu/reports).*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]}],"strategyKey":"agressiivne","isin":"EE3600019766","strategyType":"Aggressive","managementStyle":"Active","riskLevel":3,"countryShareEe":29.36,"fundManager":"LHV"},"LIK75":{"heading":"LHV Pensionifond Indeks","id":"indeks","code":"lik","dataMarker":"LIK75","suitability":"**Suitable if**\n- you want to invest in financial markets on a continuous basis,\n- you wish to grow your pension pillar at the lowest possible costs,\n- you have prior personal investment experience.\n","strategy":"**Strategy**\nWe invest broadly in equity and real estate funds. When investing, we prefer funds that are exchange traded (ETF), have a low cost rate, hold physical assets (not synthetic), are cost effective, liquid and follow the base index. Up to 75% of the fund’s assets have been invested in equity funds, the rest in real estate funds. We invest in equity funds both in developed, emerging as well as frontier markets, based on global GDP distribution. Whenever the proportion of money in the fund exceeds 2%, it is invested within five working days.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":1331},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":71.53,"unit":"%"},{"name":"Real Estate funds","value":27.26,"unit":"%"},{"name":"Money and deposits","value":1.2,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Lyxor Core MSCI World DR UCITS | 28.95% |\n| Amundi Index FTSE EPRA Nareit Global UCITS ETF | 27.26% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 21.58% |\n| iShares Core MSCI World UCITS | 13.09% |\n| db x-trackers MSCI World Index UCITS ETF | 4.02% |\n| iShares MSCI Frontier 100 ETF | 2.18% |\n| Vanguard FTSE Emerging Markets UCITS ETF | 1.71% |\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 31.07.2019) | 16,485,261.13 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 468 750 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.39%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 02 January 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_tingimused-2018-01-02.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 02 January 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_prospekt-2018-01-02.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_KIID.pdf)\n"},{"title":"Sample portfolios","type":"markdown","column":"left","content":"- [Sample portfolio (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_mudelportfell_09_2018.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2017.pdf)\n"}]}],"strategyKey":"agressiivne","isin":"EE3600109401","strategyType":"Aggressive","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV"},"TUK00":{"heading":"Tuleva Maailma Võlakirjade Pensionifond","id":"tv","code":"tv","dataMarker":"TUK00","suitability":"**Suitable if**\n- you have less than 10 years till retirement,\n- you are willing to forgo higher returns in order to avoid losses.\n","strategy":"**Strategy**\nThe management company employs a passive investment strategy, only investing the fund’s assets into the shares of investment funds following the said financial indices. The selection of investment funds favours passively managed and liquid euro funds with a low total cost rate and low transactions costs.\n","fundInfo":{"company":{"title":"Tuleva Fondid AS"},"investors":2200},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bond funds","value":96.57,"unit":"%"},{"name":"Money and deposits","value":3.49,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| BlackRock BGIF - Global Government Bond Index - X2 | 24.76% |\n| BlackRock FIDF - Euro Government Bond Index Fund - Flexible | 24.18% |\n| BlackRock BGIF - Euro Aggregate Bond Index Fund - X2 | 23.97% |\n| BlackRock FIDF - Euro Credit Bond Index Fund - Flexible | 23.65% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.34%\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600109443","strategyType":"Conservative","managementStyle":"Passive","riskLevel":3,"countryShareEe":0,"fundManager":"Tuleva"},"TUK75":{"heading":"Tuleva Maailma Aktsiate Pensionifond","id":"ta","code":"ta","dataMarker":"TUK75","suitability":"**Suitable if**\n- you are younger than 55 years,\n- you would like to earn best expected return over long term and you are not disturbed by short-term fluctuations of the market.\n","strategy":"**Strategy**\nThe management company employs a passive investment strategy, only investing the fund’s assets into the shares of investment funds following the said financial indices. The selection of investment funds favours passively managed and liquid euro funds with a low total cost rate and low transactions costs.\n","fundInfo":{"company":{"title":"Tuleva Fondid AS"},"investors":7389},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":72.75,"unit":"%"},{"name":"Bond funds","value":26.16,"unit":"%"},{"name":"Money and deposits","value":1.13,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| BlackRock BGIF - World Equity Index - X2 | 28.15% |\n| BlackRock ISF - Developed World Index | 28.15% |\n| BlackRock BGIF - Global Government Bond Index - X2 | 26.16% |\n| BlackRock ISF - Developed World ex Tobacco | 8.25% |\n| BlackRock ISF - Emerging Markets Index | 8.20% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.34%\n"}]}],"strategyKey":"agressiivne","isin":"EE3600109435","strategyType":"Aggressive","managementStyle":"Passive","riskLevel":4,"countryShareEe":0,"fundManager":"Tuleva"},"SEK50":{"heading":"SEB Progressiivne Pensionifond","id":"progressiivne","code":"progressiivne","dataMarker":"SEK50","suitability":"**Suitable if**\n- you have more than 3 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\nFund invests up to 50% of its assets in shares, with the remainder allocated to bonds and deposits. As the fund invests in shares, bonds and deposits in an equal amount, moderate fluctuations in the value of the fund's assets may occur.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":94748},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":38.46,"unit":"%"},{"name":"Shares","value":33.3,"unit":"%"},{"name":"Equity funds","value":9.62,"unit":"%"},{"name":"Real Estate funds","value":2.48,"unit":"%"},{"name":"Private Equity funds","value":1.26,"unit":"%"},{"name":"Bond funds","value":11.83,"unit":"%"},{"name":"Money and deposits","value":3.06,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Bundesrepublic Deutschland 2% 15.08.2023 | 9.51% |\n| France Government 0% 25.02.2020 | 3.38% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 3.27% |\n| Amundi MSCI Emerging Markets UCITS ETF | 3.18% |\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 2.48% |\n| Tallinna Sadam AS | 2.08% |\n| iShares Core S&P 500 UCITS ETF | 2.08% |\n| Xtrackers MSCI World Energy UCITS ETF | 2.02% |\n| Luminor Bank Estonia 1.5% 18.10.2021 | 2.02% |\n| Raiffeisen-Osteuropa-Rent Fund | 1.67% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Tallinna Sadam AS | 2.08% |\n| Luminor Bank Estonia 1,5% 18.10.2021 | 2.02% |\n| Elering 0.875% 03.05.2023 | 0.96% |\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:** 1.09%\n"}]}],"strategyKey":"progressiivne","isin":"EE3600019725","strategyType":"Progressive","managementStyle":"Active","riskLevel":4,"countryShareEe":8.65,"fundManager":"SEB"},"SEK25":{"heading":"SEB Optimaalne Pensionifond","id":"optimaalne","code":"optimaalne","dataMarker":"SEK25","suitability":"**Suitable if**\n- you have less than 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\nFund mainly invests in bonds and deposits, with up to 25% invested in shares. As the fund largely invests in bonds and deposits, there may be moderate fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":6088},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":37.12,"unit":"%"},{"name":"Shares","value":2.85,"unit":"%"},{"name":"Equity funds","value":14.56,"unit":"%"},{"name":"Real Estate funds","value":2.45,"unit":"%"},{"name":"Private Equity funds","value":0.61,"unit":"%"},{"name":"Bond funds","value":39.25,"unit":"%"},{"name":"Money and deposits","value":3.17,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 9.45% |\n| Bundesrepublic Deutschland 2% 15.08.2023 | 8.15% |\n| Bundesrepublic Deutschland 3% 04.07.2020 | 8.00% |\n| PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund | 5.51% |\n| Robeco Ql Global Dynamic Duration | 4.46% |\n| iShares Core S&P 500 UCITS ETF | 3.73% |\n| Goldman Sachs Global Credit Portfolio (Hedged) I | 3.69% |\n| SEB Ethical Global Index Fund | 3.30% |\n| France Government 0% 25.02.2020 | 3.13% |\n| SEB Fund 4 Short Bond Fund Euro | 3.11% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Tallinna Sadam AS | 1.99% |\n| Luminor Bank Estonia 1,5% 18.10.2021 | 1.96% |\n| Elering 0.875% 03.05.2023 | 0.93% |\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:** 0.82%\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600098612","strategyType":"Balanced","managementStyle":"Active","riskLevel":3,"countryShareEe":8.24,"fundManager":"SEB"},"SEK00":{"heading":"SEB Konservatiivne Pensionifond","id":"konservatiivne","code":"konservatiivne","dataMarker":"SEK00","suitability":"**Suitable if**\n- you have less than 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\nFund mainly invests in bonds and deposits. Investment in these asset classes involves lower risks, meaning that there is little fluctuation in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":12493},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":49.61,"unit":"%"},{"name":"Bond funds","value":45.77,"unit":"%"},{"name":"Money and deposits","value":4.62,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Bundesrepublic Deutschland 3% 04.07.2020 | 18.10% |\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 13.54% |\n| iShares Core EUR Corp Bond UCITS ETF EUR (Dist) | 8.66% |\n| UBS ETF-Barclays Euro Area Liquid Corporates 1-5 Year UCITS ETF | 8.45% |\n| iShares EUR Corporate Bond Large Cap UCITS ETF | 8.18% |\n| Bundesrepublic Deutschland 1.5% 15.02.2023 | 4.60% |\n| Lithuanian Government Bond 0.7% 27.05.2020 | 3.51% |\n| Republic of Lithuania 7.375% 11.02.2020 | 2.89% |\n| iShares Euro Ultrashort Bond UCITS ETF | 2.82% |\n| SEB Fund 4 Short Bond Fund Euro | 2.81% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor Bank Estonia 1,5% 18.10.2021 | 2.11% |\n| Elering 0.875% 03.05.2023 | 1.08% |\n| Baltic Horizon Fund 4.25% 08.05.2023 | 0.40% |\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:** 0.49%\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019717","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":3.92,"fundManager":"SEB"},"SWK99":{"heading":"Swedbank Pensionifond K90-99","id":"k9099","code":"k99","dataMarker":"SWK99","suitability":"**Suitable if**\n- you were born between 1990 and 1999,\n- you don’t want to change funds yourself during the savings period (although you can still do so if you need to),\n- you prefer the risk profile of the fund to change automatically.\n","strategy":"**Strategy**\nThe Fund is established as a lifecycle fund with so called passive investment strategy, meaning that the assets of the Fund are invested into financial instruments that track global indices and the Management Company reduces the ratio of instruments carrying equity risk in the Fund´s assets over time pursuant to the conditions and prospectus of the Fund.\nThe proportion of investments with equity risk will only ever vary from the indicated level by max. 2%. The remainder is invested in bonds, other debt instruments, deposits and other assets.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":5971},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":73.55,"unit":"%"},{"name":"Bond funds","value":25.44,"unit":"%"},{"name":"Money and deposits","value":2.35,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| SPDR Barclays Euro Aggregate Bond UCITS ETF | 25.44% |\n| HSBC MSCI World UCITS ETF | 23.65% |\n| LYXOR Core MSCI World | 21.90% |\n| Amundi Index MSCI World UCITS ETF | 20.36% |\n| Access Global | 7.64% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.49%\n"}]}],"strategyKey":"agressiivne","isin":"EE3600109393","strategyType":"Aggressive","managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Swedbank"},"SWK75":{"heading":"Swedbank Pensionifond K4","id":"k4","code":"k4","dataMarker":"SWK75","suitability":"**Suitable if**\n- your age is up to 44 years,\n- you are a pension saver with relatively high risk tolerance who is aware of the main features and risks of securities,\n- your objective is to grow your pension assets as much as possible over a longer savings period (more than 10 years).\n","strategy":"**Strategy**\nUp to 75% of the fund’s assets are invested in equity-risk instruments, with up to 50% permitted to be invested directly in equities. The rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":106774},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":35.61,"unit":"%"},{"name":"Shares","value":39.17,"unit":"%"},{"name":"Equity funds","value":18.69,"unit":"%"},{"name":"Real Estate funds","value":4.24,"unit":"%"},{"name":"Private Equity funds","value":0.75,"unit":"%"},{"name":"Money and deposits","value":1.62,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 18.39% |\n| Republic of Austria 0.250% 191018 | 3.83% |\n| Spain Government 5.400% 230131 | 3.81% |\n| Spain Government 0.050% 210131 | 3.25% |\n| Spain Government 0.750% 210730 | 2.21% |\n| Spain Government 2.150% 251031 | 1.72% |\n| Eften Kinnisvarafond II aktsia | 1.57% |\n| Lithuania 0.000% 210131 | 1.23% |\n| Luminor Bank 1.500% 211018 | 1.11% |\n| East Capital Baltic Property III | 1.02% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II aktsia | 1.57% |\n| Luminor Bank 1,500% 211018 | 1.11% |\n| East Capital Baltic Property III | 1.02% |\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:** 0.83%\n"}]}],"strategyKey":"agressiivne","isin":"EE3600103248","strategyType":"Aggressive","managementStyle":"Active","riskLevel":4,"countryShareEe":8.18,"fundManager":"Swedbank"},"SWK50":{"heading":"Swedbank Pensionifond K3","id":"k3","code":"k3","dataMarker":"SWK50","suitability":"**Suitable if**\n- your age is between 55 to 62 years,\n- you are a pension saver with higher than average risk tolerance who is aware of the main features and risks of securities,\n- your objective is to grow your pension assets as much as possible over a longer savings period (more than 10 years).\n","strategy":"**Strategy**\nUp to 50% of the fund’s assets are invested in equity-risk instruments; the rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":142837},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":51.87,"unit":"%"},{"name":"Shares","value":27.54,"unit":"%"},{"name":"Equity funds","value":10.75,"unit":"%"},{"name":"Real Estate funds","value":5.34,"unit":"%"},{"name":"Private Equity funds","value":1.02,"unit":"%"},{"name":"Bond funds","value":2.26,"unit":"%"},{"name":"Money and deposits","value":1.3,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 9.02% |\n| Spain Government 0.050% 210131 | 5.42% |\n| Spain Government 5.400% 230131 | 3.52% |\n| Spain Government 0.750% 210730 | 2.93% |\n| French Government Bond 0.000% 210225 | 2.60% |\n| Amundi 12 M | 2.26% |\n| Eften Kinnisvarafond II aktsia | 2.22% |\n| Lithuania 0.700% 200527 | 2.11% |\n| Lithuania 2.100% 210828 | 1.78% |\n| Lithuania 3.400% 201003 | 1.60% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II aktsia | 2.22% |\n| Luminor Bank 1.500% 211018 | 1.57% |\n| East Capital Baltic Property III | 1.35% |\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:** 0.83%\n"}]}],"strategyKey":"progressiivne","isin":"EE3600019758","strategyType":"Progressive","managementStyle":"Active","riskLevel":4,"countryShareEe":11.13,"fundManager":"Swedbank"},"SWK25":{"heading":"Swedbank Pensionifond K2","id":"k2","code":"k2","dataMarker":"SWK25","suitability":"**Suitable if**\n- your age is between 55 to 62 years,\n- you are a pension saver with moderate risk tolerance,\n- your objective is to achieve stable growth in your pension assets over a medium savings period (at least seven years).\n","strategy":"**Strategy**\nUp to 25% of the fund’s assets are invested in equity-risk instruments; the rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":45384},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":75.53,"unit":"%"},{"name":"Shares","value":0.35,"unit":"%"},{"name":"Equity funds","value":13.4,"unit":"%"},{"name":"Real Estate funds","value":6.43,"unit":"%"},{"name":"Private Equity funds","value":1.42,"unit":"%"},{"name":"Bond funds","value":1.59,"unit":"%"},{"name":"Money and deposits","value":1.36,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Spain Government 0.050% 210131 | 6.91% |\n| Spain Government 0.750% 210730 | 4.24% |\n| Amundi ETF MSCI Europe UCITS | 3.83% |\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 3.68% |\n| French Government Bond 0.000% 210225 | 3.58% |\n| Vanguard S&P 500 ETF | 3.38% |\n| Eften Kinnisvarafond II aktsia | 3.01% |\n| Luminor Bank 1.500% 211018 | 2.73% |\n| Lithuania 2.100% 210828 | 2.67% |\n| Lithuania 3.400% 201003 | 2.54% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II aktsia | 3.01% |\n| Luminor Bank 1.500% 211018 | 2.73% |\n| East Capital Baltic Property III | 1.47% |\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:** 0.79%\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600019741","strategyType":"Balanced","managementStyle":"Active","riskLevel":3,"countryShareEe":17.85,"fundManager":"Swedbank"},"SWK00":{"heading":"Swedbank Pensionifond K1","id":"k1","code":"k1","dataMarker":"SWK00","suitability":"**Suitable if**\n- your age is 63 years or above,\n- you are a pension saver with low risk tolerance,\n- your objective is to grow your pension assets in the short term (less than three years).\n","strategy":"**Strategy**\n100% of the fund’s assets are invested in bonds, money market instruments, deposits, real estate and other assets without equity risk.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":10883},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":80.17,"unit":"%"},{"name":"Bond funds","value":5,"unit":"%"},{"name":"Money and deposits","value":16.25,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Lithuania Government 0.300% 210504 | 3.82% |\n| Spain Government 0.050% 210131 | 2.91% |\n| Luminor Bank 1.500% 211018 | 2.81% |\n| Eesti Energia 2.384% 230922 | 2.47% |\n| Lithuania Government 0.400% 230816 | 2.32% |\n| Lithuania 0.000% 210131 | 2.01% |\n| City of Tallinn Estonia FRN 271129 | 1.89% |\n| Lithuania 2.100% 210828 | 1.88% |\n| ING Bank FRN 211126 | 1.83% |\n| Cooperatieve Rabobank 1.375 270203 | 1.76% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor Bank 1,500% 211018 | 2.81% |\n| Eesti Energia 2.384% 230922 | 2.47% |\n| City of Tallinn Estonia FRN 271129 | 1.89% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019733","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":11.52,"fundManager":"Swedbank"},"SEK75":{"heading":"SEB Energiline Pensionifond","id":"energiline","code":"energiline","dataMarker":"SEK75","suitability":"**Suitable if**\n- you have more than 5 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\nFund up to 75% of its assets in shares, with the remainder allocated to bonds and deposits. Investing mainly in shares involves higher risks, resulting in bigger fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":32112},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":18.36,"unit":"%"},{"name":"Shares","value":2.35,"unit":"%"},{"name":"Equity funds","value":62.58,"unit":"%"},{"name":"Real Estate funds","value":2.1,"unit":"%"},{"name":"Private Equity funds","value":0.43,"unit":"%"},{"name":"Bond funds","value":11.51,"unit":"%"},{"name":"Money and deposits","value":2.66,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI World UCITS ETF | 19.34% |\n| iShares Core S&P 500 UCITS ETF | 10.62% |\n| Bundesrepublic Deutschland 2% 15.08.2023 | 7.04% |\n| Amundi Index MSCI World UCITS ETF DR | 5.63% |\n| SEB Ethical Global Index Fund C | 5.46% |\n| Xtrackers MSCI World UCITS ETF | 5.17% |\n| Bundesrepublic Deutschland 3% 04.07.2020 | 3.80% |\n| Amundi MSCI Emerging Markets ETF | 3.26% |\n| iShares STOXX Europe 600 UCITS ETF (DE) | 3.08% |\n| PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund | 3.07% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor Bank Estonia 1,5% 18.10.2021 | 1.65% |\n| Tallinna Sadam AS | 1.54% |\n| Baltic Horizon Fund | 0.80% |\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:** 1.06%\n"}]}],"strategyKey":"agressiivne","isin":"EE3600103297","strategyType":"Aggressive","managementStyle":"Active","riskLevel":4,"countryShareEe":6.55,"fundManager":"SEB"},"LEK75":{"heading":"LHV Pensionifond Eesti","id":"eesti","code":"eesti","dataMarker":"LEK75","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you want to link your pension with the Estonian economy,\n- you also have investments in other regions.\n","strategy":"**Strategy**\nThe fund invests, subject to the availability of suitable investments, up to 100% in Estonia. Investments are made in shares, debts, real estate, and also in other funds. Since the number of securities traded on the Tallinn Stock Exchange is low, the fund invests extensively outside the exchange. Since the fund is linked to one region, it would not be wise to invest all your pension assets in this fund.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":100},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":47.83,"unit":"%"},{"name":"Shares","value":25.94,"unit":"%"},{"name":"Real Estate funds","value":14.57,"unit":"%"},{"name":"Private Equity funds","value":0.18,"unit":"%"},{"name":"Money and deposits","value":11.48,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Birdeye Timber Fund | 4.32% |\n| EfTEN Kinnisvarafond II | 4.22% |\n| Tallinna Kaubamaja | 4.18% |\n| Tallinna Sadam | 4.16% |\n| Eesti Energia 2.384% 22/09/23 | 4.03% |\n| Luminor 1.5% 18/10/21 | 3.81% |\n| Baltic Horizon Fund 4.25% 08/05/23 | 3.79% |\n| Birdeye Timber Fund 2 | 3.78% |\n| Autolist 12% 03/04/22 | 3.75% |\n| HSBC Holdings Plc 04/12/21 | 3.75% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Birdeye Timber Fund | 4.32% |\n| EfTEN Kinnisvarafond II | 4.22% |\n| Tallinna Kaubamaja | 4.18% |\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 31.07.2019) | 2,688,520.17 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 2,690,184.87 units |\n| Rate of the depository’s charge | 0,0576% (paid by LHV) |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\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:** 1.20%\n\n**Management fee from 2 September 2019:** 0.72%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 19 March 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Eesti_tingimused.pdf)\n- [Terms and conditions from 02 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Eesti_tingimused_02092019.pdf)\n- [Analysis of the amendments made to the terms and prospectus (in Estonian)](/assets/files/pension/Fondide_tingimuste_ja_prospekti_muutmise_moju_analyys_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus from 2 May 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_020519.pdf)\n- [Prospectus from 2 September 2019 (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Eesti_KIID.pdf)\n- [Key Investor Information from 02 September 2019 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Eesti_KIID_02092019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 July 2019) (in Estonian)](/assets/files/pension/LHV_pensionifond_Eesti_kuuaruanne_2019_07.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_Eesti_aruanne_2018.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – Several Estonian public companies announced new investments\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn July the Vilnius Stock Exchange was the best in the Baltics by rising 4.3%. The Stock Exchange index in Riga rose 1.7% during the course of the month and the Tallinn stock market ended with a modest increase of 1.0%.\n\nIn July several companies in the Tallinn Stock Exchange reported their second quarter results. For example, the revenue of Tallinna Kaubamaja Group grew by 4.5% compared to the same period last year, with good results in all of the segments except footwear. The revenue of the supermarkets (Selver) segment and Kaubamaja increased by 5.8% and 3.6% respectively in the year. However, the net profit of the company decreased by 9.2% in the second quarter mainly due to wage pressures and the increase in IT costs, but also because of the costly rebuilding of stores. The next major development projects include improving the convenience and order fulfillment speed of the online shop, as well as the construction of a new production building for culinary products.\n\nA new project was also announced by the Port of Tallinn, which plans to reconstruct the ferry Tõll to an environmentally friendly hybrid ship. The total cost of work is 1.6 million euros and the ship will start running on electricity in the first months of the next year.\n"},{"year":2019,"month":6,"content":"### June 2019 – Baltic stock exchanges remained modest\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nWhile the global stock markets predominantly provided a very good return in June, the result of the Baltic stock exchanges remained quite meagre. Only the Tallinn Stock Exchange earned a positive result, with a 1.2% increase, while those of Riga and Vilnius declined by 2.7% and 1.7%, respectively.\n\nThe rate of return of the pension fund Estonia was supported by the shares of Ekspress Group and Tallink Group, with both rising 3% over the month. Shares of Tallinna Sadam, however, gave an unfavourable impact, dropping by 3%. It is likely that the share price was influenced by two court cases relating to the company, which the Harju County Court accepted for proceedings in June. First, the subsidiaries of Tallinna Sadam are accused of using alleged business secrets when participating in the public procurement of the ferry line service between Saaremaa and Hiiumaa. In the statement of claim, compensation is demanded for the buildings and equipment of the former coal terminal located in the Port of Muuga. The total amount of claims exceeds EUR 46 million; however, according to the management of Tallinna Sadam, both claims are groundless.\n"},{"year":2019,"month":5,"content":"### May 2019 – Racing after Eften equities\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn May, the Tallinn Stock Exchange went along with the decline of the global stock markets and the stock exchange index decreased by 1.4% within a month. At the same time, the Vilnius Stock Exchange index also decreased by 0.8%, while the Riga Stock Exchange increased by 2.4%, largely due to the increase in the share prices of the pharmaceutical manufacturers Grindeks and Olainfarm, which was almost 8%. In part, the decline of the Tallinn Stock Exchange was due to the fact that in May a number of companies paid the investors dividends, which were previously announced.\n\nThe LHV Pension Fund Etonia also participated in the subscription of the new shares of Eften Real Estate Fund III. The Real Estate Fund issued one million shares with a price of EUR 16 per share. As the interest of the investors was very high, the shares were oversubscribed more than three times. The current shareholders, including the Pension Fund Estonia, had a privileged guarantee of a third of their earlier investment. At the end of May, the share of Eften III was traded at EUR 17 on the Tallinn Stock Exchange.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: [http://investments.yale.edu/reports](http://investments.yale.edu/reports).*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]}],"strategyKey":"agressiivne","isin":"EE3600109476","strategyType":"Aggressive","managementStyle":"Active","riskLevel":3,"countryShareEe":63.1,"fundManager":"LHV"},"SIK75":{"heading":"SEB Energiline Pensionifond Indeks","id":"eindeks","code":"sik","dataMarker":"SIK75","suitability":"**Suitable if**\n- you have more than five years until retirement,\n- you prefer a medium risk fund,\n- your goal is to mirror securities markets.\n","strategy":"**Strategy**\nFund invests up to 75% of its assets in equities, with the remainder allocated to fixed income, by implementing a passive investment strategy and mirroring securities markets. Investing mainly in equities involves higher risks, resulting in bigger fluctuations in the value of the fund’s assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":957},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":72.98,"unit":"%"},{"name":"Bond funds","value":26.95,"unit":"%"},{"name":"Money and deposits","value":0.08,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| iShares Core S&P 500 UCITS ETF | 26.95% |\n| SPDR Bloomberg Barclays Euro Aggregate Bond UCITS ETF | 22.39% |\n| Lyxor Core STOXX Europe 600 DE ETF | 13.91% |\n| Amundi MSCI Emerging Markets UCITS ETF | 8.52% |\n| Xtrackers MSCI USA UCITS ETF | 5.54% |\n| Xtrackers Nikkei 225 UCITS ETF | 5.14% |\n| SOURCE S&P 500 UCITS ETF | 5.14% |\n| Vanguard S&P 500 UCITS ETF | 2.70% |\n| iShares Core MSCI Pacific ex-Japan UCITS ETF USD Acc | 2.59% |\n| iShares EUR Aggregate Bond UCITS ETF EUR Dist | 2.28% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"}]}],"strategyKey":"agressiivne","isin":"EE3600109427","strategyType":"Aggressive","managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"SEB"},"NPK00":{"heading":"Luminor C Pensionifond","id":"c","code":"c","dataMarker":"NPK00","suitability":"**Suitable if**\n- your saving period is less than 3 years,\n- you would rather protect your pension assets instead of focusing on the growth.\n","strategy":"**Strategy**\nPension fund C only invests in blue bonds, deposits and other similar instruments. This is a way of avoiding greater short-term fluctuations. At times of high interest rates, the fund may invest most of its assets in deposits to avoid setbacks on the bond markets.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":4730},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bond funds","value":93.24,"unit":"%"},{"name":"Money and deposits","value":6.77,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Xtrackers USD Corporate Bond UCITS ETF | 9.58% |\n| Nordea 2 - US Corporate Enhanced Bd Fd | 9.49% |\n| Nordea 1 - US Corporate Bond Fund | 9.43% |\n| iShares Core Euro Government Bond UCITS ETF | 9.18% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 9.04% |\n| Nordea Pro Euro Bond I Growth | 8.64% |\n| Nordea Euro Medium Term Bond Growth | 7.29% |\n| iShares Core Euro Corporate Bond UCITS ETF | 5.23% |\n| Nordea Corporate Bond I Growth | 5.10% |\n| SPDR Barclays Euro Corporate Bond UCITS ETF | 4.86% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.7%\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600098455","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":0,"fundManager":"Luminor"},"NPK25":{"heading":"Luminor B Pensionifond","id":"b","code":"b","dataMarker":"NPK25","suitability":"**Suitable if**\n- your saving period is more than 3 years,\n- you want to grow your pension assets, but do not want to take the risk of significant decreases in the price of the accumulated assets.\n","strategy":"**Strategy**\nInvests a maximum of 25% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. This creates a situation where the higher and lower risk markets balance each other and help achieve the goal with moderate risk. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":2358},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":19.45,"unit":"%"},{"name":"Real Estate funds","value":5,"unit":"%"},{"name":"Bond funds","value":72.42,"unit":"%"},{"name":"Money and deposits","value":3.11,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Nordea Emerging Market Bond Fund Growth | 7.90% |\n| Nordea Euro Bond I Growth | 7.68% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 6.92% |\n| Xtrackers USD Corporate Bond UCITS ETF | 6.79% |\n| iShares Core Euro Government Bond UCITS ETF | 5.98% |\n| EfTEN Kinnisvarafond II AS | 5.00% |\n| Nordea 1 - US Corporate Bond Fund | 4.80% |\n| iShares Core MSCI Emerging Markets | 4.70% |\n| iShares Euro Corporate Bond Large Cap UCITS ETF | 4.66% |\n| Nordea 1 - Emerging Mkt Hard Ccy Bond Fd | 4.59% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 5.00% |\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:** 1.19%\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600098448","strategyType":"Balanced","managementStyle":"Active","riskLevel":3,"countryShareEe":5,"fundManager":"Luminor"},"NPK75":{"heading":"Luminor A Pluss Pensionifond","id":"apluss","code":"A pluss","dataMarker":"NPK75","suitability":"**Suitable if**\n- your saving period is more than 20 years,\n- you tolerate a short-term decrease in the value of assets well,\n- your goal is to achieve potentially high return on assets in the longer run despite short-term fluctuations in prices.\n","strategy":"**Strategy**\nInvests a maximum of 75% of fund assets in equity and assets with similar risk. The rest is invested in bonds, deposits or similar instruments. If necessary, depending on the market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":6865},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":62.66,"unit":"%"},{"name":"Real Estate funds","value":3.45,"unit":"%"},{"name":"Bond funds","value":30.3,"unit":"%"},{"name":"Money and deposits","value":3.59,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI Emerging Markets | 7.01% |\n| iShares MSCI North America UCITS ETF | 5.62% |\n| Financial Select Sector SPDR | 5.33% |\n| Nordea 1 - Emerging Mkt Hard Ccy Bond Fd | 4.92% |\n| Nordea 1 - US Corporate Bond Fund | 4.43% |\n| iShares Core MSCI World UCITS ETF | 3.81% |\n| S&P Depository Receipts Trust | 3.76% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 3.71% |\n| Nordea 1 - European High Yield Vond Fund BI-EUR | 3.70% |\n| Nordea Global High Yield Growth | 3.53% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 3.25% |\n| EfTEN Kinnisvarafond AS | 0.20% |\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:** 1.19%\n"}]}],"strategyKey":"agressiivne","isin":"EE3600103503","strategyType":"Aggressive","managementStyle":"Active","riskLevel":4,"countryShareEe":3.45,"fundManager":"Luminor"},"NPK50":{"heading":"Luminor A Pensionifond","id":"A","code":"A","dataMarker":"NPK50","suitability":"**Suitable if**\n- your saving period is more than 10 years,\n- you tolerate a short-term decrease in the value of assets well,\n- your goal is to achieve a somewhat higher return on assets regardless of short-term price fluctuations.\n","strategy":"**Strategy**\nInvests a maximum of 50% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":27651},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":38.75,"unit":"%"},{"name":"Real Estate funds","value":4.46,"unit":"%"},{"name":"Bond funds","value":54.15,"unit":"%"},{"name":"Money and deposits","value":2.64,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|---:|\n| Xtrackers USD Corporate Bond UCITS ETF | 7.05% |\n| iShares Core Euro Government Bond UCITS ETF | 6.28% |\n| Nordea Emerging Market Bond Fund Growth | 5.23% |\n| Nordea 1 - US Corporate Bond Fund | 4.83% |\n| Nordea Global High Yield Growth | 4.50% |\n| Nordea 1 - European High Yield Vond Fund BI-EUR | 4.44% |\n| Nordea 1 - Emerging Stars Equity Fund | 4.29% |\n| iShares MSCI North America UCITS ETF | 3.95% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 3.90% |\n| S&P Depository Receipts Trust | 3.72% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 3.34% |\n| EfTEN Kinnisvarafond AS | 1.12% |\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:** 1.19%\n"}]}],"strategyKey":"progressiivne","isin":"EE3600098430","strategyType":"Progressive","managementStyle":"Active","riskLevel":4,"countryShareEe":4.46,"fundManager":"Luminor"},"SPT30":{"heading":"Luminor Intress Pluss Pensionifond","id":"intress-pluss","code":"lum_int","dataMarker":"SPT30","securityId":88317,"active":true,"suitability":"**Suitable if**\n- your saving period is more than 3 years long,\n- you want to increase your pension assets, but do not want to take risks at the price of significant decrease in the value of collected assets.\n","strategy":"## **Strategy**\nFund invests a maximum of 20% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. This creates a situation where the higher and lower risk markets balance each other and help achieve the goal with moderate risk. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","costs":{"entraceFee":"1%","exitFee":"1%","managementFee":"1,2%"},"fundInfo":{"company":{"title":"Luminor Pensions Estonia AS","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600109369, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 1%\n\n**Exit fee:** 1%\n\n**Management fee:** 1,2%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600109369","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":32.12534,"fundManager":"Luminor","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LHT75":{"heading":"LHV Täiendav Pensionifond","id":"taiendav","code":"lhv_iii","dataMarker":"LHT75","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have medium risk tolerance,\n- you are aware of investment risks and wish to make long-term investments in a supplementary funded pension, with the aim of using the accumulated money after reaching the age of 55.\n","strategy":"## **Strategy**\nThe fund makes significant investments in equity markets: to ensure maximum growth, the proportion of equity markets is kept close to 75% of the value of the fund’s assets. The proportion of equity markets may also be higher – up to 95% – or lower (in recent years close to 40%), if considered reasonable by the fund manager.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1%"},"fundInfo":{"date":"31.07.2019","capacity":"15,711,341.46 €","company":{"title":"LHV Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"https://www.seb.ee/eng/contact/contact","fee":"0,06%"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank 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":"Bonds","value":53.7,"unit":"%"},{"name":"Shares","value":13.59,"unit":"%"},{"name":"Equity funds","value":9.96,"unit":"%"},{"name":"Real Estate funds","value":13.64,"unit":"%"},{"name":"Private Equity funds","value":4.12,"unit":"%"},{"name":"Bond funds","value":0.13,"unit":"%"},{"name":"Money and deposits","value":4.86,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019.\n\n| Biggest investments | |\n|---|--:|\n| EfTEN Kinnisvarafond | 5.11% |\n| Luminor 1.5% 18/10/21 | 3.84% |\n| East Capital Baltic Property Fund III | 3.15% |\n| East Capital Baltic Property Fund II | 2.65% |\n| iShares DAX EX | 2.60% |\n| Citadele banka 6.25% 06/12/2026 | 2.45% |\n| JP Morgan Chase And Co 27/01/20 | 2.02% |\n| China Development Bank 0.375% 16/11/21 | 2.00% |\n| HSBC Holdings Plc 04/12/21 | 1.93% |\n| SAP 13/03/21 | 1.88% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 5.11% |\n| Luminor 1.5% 18/10/21 | 3.84% |\n| East Capital Baltic Property Fund III | 3.15% |\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 31.07.2019) | 16,037,432.65 € |\n| Management company | AS LHV Varahaldus |\n| Rate of the depository’s charge | 0,0576% |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n\n**Management fee:** 1%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 13 June 2017 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_tingimused_2017-06-13.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus from 6 August 2018 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_prospekt_060818.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_KIID.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2017.pdf)\n- [Annual report for 2016 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2016.pdf)\n- [Annual report for 2015 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2015.pdf)\n- [Annual report for 2014 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2014.pdf)\n- [Annual report for 2013 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2013.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2019,"month":7,"content":"### July 2019 – Metro’s takeover bid was not attractive enough\n\nRomet Enok, Fund Manager\n\nIn July, there were no significant fluctuations in the global stock market, but against the backdrop of a cooling economic environment, the Federal Reserve lowered the base interest rate by 0.25 percentage points and the European Central Bank dropped a hint about the upcoming monetary easing measures.\n\nIn Europe, stock markets in most of the countries showed negative returns. For example, the German stock market index dropped by -1.7% during the month and the Finnish stock exchange was lower by -1.3%. However, the Japanese stock market rose by 1.2% in local currency and 2.6% as measured in euros. In the Baltics, the best results were made by the Vilnius Stock Exchange with a gain of 4.3%, largely due to 12.1% and 9.9% price jump of the shares of Apranga and Šiauliu Bankas respectively. The Tallinn Stock Exchange made a modest 1.0% increase in July, and Riga's stock market grew by 1.7%.\n\nThe shareholders of the German wholesale/cash and carry group Metro, which belongs to LHV's pension fund Täiendav, received a takeover bid of 16 euros per share in July. The share has been trading around 15 euros since the beginning of the year and the company's supervisory board considered the price to be too low and recommended that shareholders reject it. LHV funds have also decided not to sell shares.\n\nIn the bond portfolio, we have continued to focus on local investments as we are entering the final phase of the negotiations with a couple of potential transactions. Even a small-scale investment in the local market currently promises a significantly greater positive impact on the fund's result compared to a very big investment in international markets.\n\nAt the beginning of August, the bond market of major European corporations had an average expected return of just 0.3% per annum. Half-jokingly one can say that it is considerably better than the yield of government bonds, where, by now, even the German 30-year-old bond has a negative expected yield, but for the rational investor it is of little help.\n\nThe change of monetary policy contributed to the price increase of bonds, as the Federal Reserve in late July lowered interest rates for the first time since 2008. And in euro area the central bank is expected to walk the same path. As a result, all major bond markets remained on the plus side in July by 0.5 to 1.5 per cent. In our portfolio, again, the bonds issued by the Finnish insurance group Sampo, which were acquired in June, showed the best result by increasing 5% in July. Those bonds have now brought the fund a 12% return in a matter of few weeks.\n"},{"year":2019,"month":6,"content":"### June 2019 – Stock markets recovered from the decline in May\n\nRomet Enok, Fund Manager\n\nJune was positive for global stock markets: both, the stock exchanges of developed and developing markets provided a good rate of return. The increase can be attributed mainly to the continued loose fiscal policy of the US Federal Reserve as well as the European central banks, and accordingly, to the expectations of investors that the low interest environment will remain.\n\nThe level of the Euro Stoxx 50 index, including the 50 largest public companies of the Eurozone, rose 6% over the month and by countries, the top risers were Germany and France. Also, the emerging markets index demonstrated good results, showing a 5.7% rate of return measured in local currency. In June, the Japanese stock market index increased by 3.3% in local currency and by 2.1% measured in euros. Baltic stock markets lagged behind the general growth trend of the last month: only the Tallinn Stock Exchange was able to give a positive rate of return with 1.2%. The stock exchanges of Riga and Vilnius declined by 2.7% and 1.7%, respectively.\n\nThe German wholesale club retailer Metro AG, belonging to the pension fund Täiendav portfolio, received a takeover bid for all shares in June and, thanks to that, the share price of the company increased 13.9% over the month. This is the world’s eighth largest wholesale and retail chain, with nearly 800 stores in 25 countries. The supervisory board of Metro AG advised shareholders to reject the bid for now, as it considers the price to be too low.\n\nAlso, Finnish forestry companies Store Enso and Metsä Board provided a good rate of return in June, with share prices increasing by 9.2% and 15.9%, respectively, in a month.\n\nBond markets throughout the world have clearly set course towards a major cooldown of the economy, expecting new support measures to be implemented by central banks. This is why the prices of government bonds (6%) as well as corporate bonds (5.4%) experienced an upsurge in Europe in the first half of the year.\n\nWe are continuing negotiations with several local companies and expect attractive additions to our portfolio in the second half of the year. Local bonds increase the funds’ rate of return in the form of interest, while international bonds do so mainly through price movement. This is why international bonds show a better rate of return at times of steep market increases; yet, as an average of several years, the higher interest of local bonds will give a better return.\n\nFor example, the average rate of return of the European bond markets has been 3-4% over the last 5 years. We make local investments only if the interest level is clearly higher. Of course, we will keep our eyes open, to also take advantage of the opportunities presented by international markets; since the fact that the markets as a whole have an overly high price level does not preclude finding individual good opportunities. It was in this way that the price of the bonds of the Finnish insurance firm Sampo, acquired in May, showed an extraordinary monthly increase, exceeding 6%.\n"},{"year":2019,"month":5,"content":"### May 2019 – Pharmaceutical companies pulled the Latvian stock market uphill\n\nRomet Enok, Fund Manager\n\nAfter several peaceful and rather positive months, the world's stock markets were offering a predominantly negative rate of return in fear of the American and Chinese trade war. Within a month, the US S&P 500 index decreased by 6.6% in local currency and the Chinese stock exchange index by as much as 13.6%. In Europe, Sweden, with a result of -9.9%, and several southern European countries went through the largest decline.\n\nThe German and Finnish stock exchange made it through somewhat better: both fell by 5% in May. The Japanese stock market index decreased by 7.4% in local currency, and in euros the rate of return was -4.8%. The general recession also included the Tallinn and Vilnius Stock Exchange, with, respectively, a -1.4% and -0.8% rate of return in May. However, the Riga stock exchange index increased by 2.4%, largely due to the increase in the share prices of the pharmaceutical manufacturers Grindeks and Olainfarm, which was almost 8%.\n\nGrindeks continued to increase as a result of a stock exchange announcement, published in April, according to which the company's major shareholder is planning to make a buyout offer to the others. In May, the price of the offer was reported as EUR 12.59 and LHV pension funds are also planning to sell their shares at this price.\n\nOlainfarm unveiled considerably stronger quarterly results than expected, showing that despite ownership problems, the company is able to increase its profit.\n\nThe Real Estate fund Baltic Horizon, listed on the Tallinn Stock Exchange, issued the third and last part of bonds. They are subject to the terms and conditions agreed during the first issuance of the company in spring last year: the annual interest is 4.25% and the maturity date is now just under four years away. The company also has the right to repay the bonds in advance by paying the investors up to 2% as extra payments. Representing the interests of pension collectors, we actively participated in settling on the conditions in spring 2018. Therefore, we also bought more bonds from this issue. They are now also listed on the Tallinn Stock Exchange and have in the meantime received an international credit rating. LHV's pension funds hold just over 40% of the Baltic Horizon bonds.\n\nWe also have other local projects currently being negotiated. Soon, we hope to add them to our portfolio with an attractive rate of return.\n\nOn the other hand, international bond markets still offer prospects with a very low rate of return, due to which we only make individual investments when we find attractive opportunities. One such investment was the Finnish financial group Sampo, which sold new bonds in May. The company's largest assets are If Insurance and a large holding in Nordea Bank, and the company’s largest owners are the Finnish State and its pension funds.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Underestimated impact of new changes**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n","text":"July was notably more eventful on the securities markets than the monthly returns of stock indices and bonds might suggest. The first half of the month saw an upward trend on global stock markets, with the final days of the month yielding back some of that growth.\n\nThis year, stock markets have been supported by the expectation that, following a short break, central banks will once again open the money taps. Only last December, the Federal Reserve raised the interest rate by 25 bp and was forecasting two more hikes for this year; yet, only a few months later, the expectation had become that interest rates will be lowered instead.\n\nOn 31 July, the US Federal Reserve did lower the interest rate range of overnight lending rate offered to financial institutions to a target range of 2.00% to 2.25%. Even though the Supervisory Board of the European Central Bank left interest rates unchanged at its July meeting, it was implied to the markets that these could drop in the future, and that it is also investigating the possibility of resuming the bond purchasing programme, which ended in December 2018.\n\nCentral banks are being forced to ease their monetary policy as economic growth has slowed in many parts of the world and darkening clouds are gathering on the horizon in the escalating trade war. Against the backdrop of the economic slowdown and modest profit growth expectations of undertakings, this year’s rise in share prices demonstrates that investors are seeing the relaxed monetary policy and lower interest rates as an elixir capable of solving every problem.\n\n**There are more than two asset classes**\n\nThe amendment of the Investment Funds Act, which was adopted at the end of the last year and enters into force on 2 September, has received minimal attention despite its radical nature; although the topics relating to pension funds have been on the agenda for a long time, and those opposing the pension funds have started to draft another legislative amendment.\n\nBasically, concerning the amendments set out in the Investment Funds Act, the press has mainly mentioned the increase in the percentage of shares permitted in the funds of up to 100% of the assets of the pension fund. However, the more important updates have been neglected. Most likely this focus on the percentage of shares arises from the fact that since 2002, the strategies of pension funds have been defined through the percentage of shares in the pension funds (balanced – 25%, progressive – 50% and aggressive – 75%).\n\nHowever, the law entering into force in September is so fundamental that, in essence, it makes describing the classification of investment strategies through the percentage of shares irrelevant. Dividing the investment universe into shares and bonds is as general and shallow as dividing investment strategies into active and passive. I can’t say that it is wrong, but for me, this is almost irrelevant.\n\nThere are far more asset classes than merely bonds and shares. For example, the investment firm managing donations to Yale University divides their managed investment portfolio (USD 30 billion) into eight asset classes.\n\n![joonis1](/assets/images/pension/Andres_joonis1_ENG.png){.pensionJoonis}\n\n*Distribution of investments by Yale University at the end of 2018. Source: http://investments.yale.edu/reports*\n\nAs we can see, the percentage of domestic equity (the US) as an asset class in the portfolio of Yale University is just 3.5%, despite the fact that the US is the world’s largest stock market. While absolute return strategies, private equity funds, venture capital, natural resources and real estate investments may be generally classified as investments similar to equities, the investment team from Yale University treats them as independent asset classes; as their risk and return characteristics are clearly different and they behave differently in different phases of the economic cycle.\n\nAllowing a higher percentage of shares in pension funds is to be welcomed; however, the new law will bring about much more important changes. The Investment Funds Act, entering into force from 2 September, notably expands the investment opportunities of Estonian pension funds into real assets and OTC securities, including into private equity and venture capital funds, whose long-term expected rate of return is higher than that of the listed shares. LHV pension funds have, for some time, focussed on OTC investments and the forthcoming new law will broaden our investment opportunities even more.\n\nThe new law also stipulates the return expectations to be set for the pension funds through the introduction of a success fee. If the pension funds grow the money of pension savers faster than the salaries rise, the fund will be entitled to a success fee. At the same time, the management fees of pension funds are lowered radically. Setting Estonia’s salary growth as the benchmark index for pension funds should also focus the attention of fund managers towards searching and creating local investment opportunities, as the correlation between Estonian salaries and the cost of Estonian assets should be high over the long term.\n\nReshaping the investment strategies of pension funds and finding and realising new investment opportunities is a lengthy process, and it is regrettable if amendments of Acts are initiated faster than the previous ones are able to enter into force.\n\nI suspect that such hasty actions also prevent politicians from understanding the very essence of what they are voting for, and what is relevant may be completely forgotten and pushed aside in the process of political extortion and compromises.\n\n**Disservice to future pensioners**\n\nWhen an Estonian citizen retires, their income compared to their final salary (this ratio is called the replacement rate of pension) will drop more than in any other European country (also in those that are poorer than us).\n\n![joonis1](/assets/images/pension/Andres_joonis2_ENG.png){.pensionJoonis}\n\n*Slide 12 of the presentation by Lauri Leppik: Theoretical replacement rate of net salary and net pension of a person paid an average salary for 40 years and thereafter retired among the European Union countries. European Commission data for 2018.*\n\nThe politicians of the Pro Patria Party believe that future pensions being even lower than those of today is not a problem, and it is the children who should support their parents during retirement. It is in this way that they are trying to push through an erroneous vision that the future decrease in pensions will support the rise in birth rates. I suspect that the logic of the politicians of the Pro Patria Party is flawed, and poor pensions in the future will mean increasing wealth inequalities in society, resulting in political instability, which in turn will start inhibiting the growth of population as well as wealth.\n\nTo make sure that the focus is maintained, we need to find a solution to the problems that is as direct as possible. Decreasing pensions in order to raise the birth rate is not only too indirect of a method to be efficient, but is frankly the wrong solution.\n\nAll changes to the pension system should be assessed based on whether pensions will increase or decrease in the future in comparison with salaries. But before that, politicians should adopt a position on whether today’s pensions in Estonia are too high or too low. Today, I am left with the feeling that even though there are discussions about a possible one-off pension increase, then there are still amendments being drafted which will lead to a big drop in pensions in the future and force elderly people to live below the poverty line.\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Täiendav Pensionifond","type":"markdown","column":"left","content":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - SEB Pank AS\nEE362200221067235244 - Swedbank AS\nEE961700017004379157 - Luminor Bank 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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600010294","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":23.77,"fundManager":"LHV","minSumInEurWhenBuying":6.39,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LIT100":{"heading":"LHV Pensionifond Indeks Pluss","id":"indeks-pluss","code":"lhv_lit","dataMarker":"LIT100","securityId":147612,"suitability":"**Suitable if**\n- you are prepared to tolerate the risks arising from potentially significant fluctuations in equity markets,\n- you have previous investment experience.\n","strategy":"## **Strategy**\nThe fund invests all of its assets in equity markets and the fund manager does not actively change the fund’s risk level. The fund’s assets are invested in index-following investment funds. The share of assets invested in equities is kept close to 100% of the fund’s volume. Whenever the proportion of money in the fund exceeds 2%, it is invested within five working days.\n\nNo particular indices are followed in investing the assets of the fund. Investments in funds investing in equities are distributed between three types of markets – developed markets, emerging markets and frontier markets – based on their approximate share in global gross domestic product (GDP).\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0.39%"},"fundInfo":{"date":"31.07.2019","capacity":"2,979,140.43 €","pocket":"468 750 units","company":{"title":"LHV Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"https://www.seb.ee/eng/contact/contact","fee":"0,06%"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank 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":97.55,"unit":"%"},{"name":"Money and deposits","value":2.45,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2019\n\n| Biggest investments | |\n|---|--:|\n| db x-trackers MSCI Emerging Markets Index UCITS | 28.58% |\n| iShares Core MSCI World UCITS | 28.55% |\n| Lyxor Core MSCI World DR UCITS | 27.39% |\n| db x-trackers MSCI World Index UCITS ETF | 7.44% |\n| Vanguard FTSE Emerging Markets UCITS ETF | 3.31% |\n| iShares MSCI Frontier 100 ETF | 2.27% |\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 31.07.2019) | 3,871,660.31 € |\n| Management company | AS LHV Varahaldus |\n| Rate of the depository’s charge | 0,0576% |\n| Depository | [AS SEB Pank](https://www.seb.ee/eng/contact/contact) |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.39%\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions from 13 September 2017 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_tingimused-2017-09-13.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus from 6 August 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_prospekt_060818.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_KIID.pdf)\n"},{"title":"Models","type":"markdown","column":"left","content":"- [Sample portfolio (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_mudelportfell_09_2018.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_aruanne_2018.pdf)\n- [Annual report for 2017 (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_aruanne_2017.pdf)\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Pensionifond Indeks Pluss","type":"markdown","column":"left","content":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - SEB Pank AS\nEE362200221067235244 - Swedbank AS\nEE961700017004379157 - Luminor Bank 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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600109419","strategyType":null,"managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SET100":{"heading":"SEB Aktiivne Pensionifond","id":"aktiivne","code":"seb_akt","dataMarker":"SET100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have more than 5 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"## **Strategy**\nThe fund invests up to 100% of the assets in shares. Investing mainly in shares involves higher risks, resulting in big fluctuations in the value of the fund's assets.\n","costs":{"entraceFee":"1%","exitFee":"1%","managementFee":"1.5%"},"fundInfo":{"company":{"title":"SEB Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600074076, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 1%\n\n**Exit fee:** 1%\n\n**Management fee:** 1.5%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600074076","strategyType":null,"managementStyle":"Active","riskLevel":5,"countryShareEe":32.12534,"fundManager":"SEB","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":4,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SET35":{"heading":"SEB Tasakaalukas Pensionifond","id":"tasakaalukas","code":"seb_tas","dataMarker":"SET35","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have at least 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"## **Strategy**\nThe fund mainly invests in bonds and deposits, with up to 50% invested in shares. As the fund invests in shares, bonds and deposits in an equal amount, moderate fluctuations in the value of the fund's assets may occur.\n","costs":{"entraceFee":"1%","exitFee":"1%","managementFee":"1%"},"fundInfo":{"company":{"title":"SEB Varahaldus","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600008934, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 1%\n\n**Exit fee:** 1%\n\n**Management fee:** 1%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600008934","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":32.12534,"fundManager":"SEB","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":4,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"NPT100":{"heading":"Luminor Aktsiad 100 Pensionifond","id":"aktsiad100","code":"Lu_100","dataMarker":"NPT100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- your saving period is over 10 years long,\n- you tolerate potential short-term decrease,\n- your goal is to achieve potential above average return on assets in the long term despite short-term fluctuation in prices.\n","strategy":"## **Strategy**\nFund may invest all funds in equity and assets with similar risk. If necessary, depending on the market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","costs":{"entraceFee":"1%","exitFee":"1%","managementFee":"1,5%"},"fundInfo":{"company":{"title":"Luminor Pensions Estonia AS","link":null},"depository":{"title":"AS SEB Pank","url":"http://www.seb.ee/kontaktid"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600098422, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 1%\n\n**Exit fee:** 1%\n\n**Management fee:** 1,5%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600098422","strategyType":null,"managementStyle":"Active","riskLevel":5,"countryShareEe":32.12534,"fundManager":"Luminor","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWT30":{"heading":"Swedbank Pensionifond V30","id":"swedv1","code":"v1","dataMarker":"SWT30","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you are a conservative or elderly saver,\n- you are a saver with moderate risk tolerance,\n- your objective is to achieve a stable increase in assets over a longer savings period (at least 5 years).\n","strategy":"## **Strategy**\nUp to 30% of the fund’s assets are invested in equity risk instruments; the rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1,2%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600007530, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n\n**Management fee:** 1,2%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600007530","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":32.12534,"fundManager":"Swedbank","minSumInEurWhenBuying":30,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWT60":{"heading":"Swedbank Pensionifond V60","id":"swedv2","code":"v2","dataMarker":"SWT60","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you have a relatively high risk tolerance and are aware of opportunities and risks related to equities,\n- your objective is to increase assets as much as possible over a long or medium savings period (at least 7 years).\n","strategy":"## **Strategy**\nUp to 60% of the fund’s assets are invested in equity risk instruments; the rest are invested in bonds, money market instruments, deposits, real estate and other assets.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1,3%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600071031, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n\n**Management fee:** 1,3%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600071031","strategyType":null,"managementStyle":"Active","riskLevel":4,"countryShareEe":32.12534,"fundManager":"Swedbank","minSumInEurWhenBuying":30,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWT100":{"heading":"Swedbank Pensionifond V100","id":"swedv3","code":"v3","dataMarker":"SWT100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you are with a high risk tolerance experienced investor,\n- your objective is to increase assets as much as possible over a long savings period (at least 10 years).\n","strategy":"## **Strategy**\nUp to 100% of the Fund's assets may be invested in instruments with equity risk. The Funds’ assets are, *inter alia*, invested through other investment funds.\n","costs":{"entraceFee":"0%","exitFee":"1%","managementFee":"1,4%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600071049, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n\n**Management fee:** 1,4%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600071049","strategyType":null,"managementStyle":"Active","riskLevel":5,"countryShareEe":32.12534,"fundManager":"Swedbank","minSumInEurWhenBuying":30,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"SWV100":{"heading":"Swedbank Pensionifond V100 indeks (exit restricted)","id":"swedv100","code":"v100","dataMarker":"SWV100","securityId":88317,"active":true,"suitability":"**Suitable if**\n- you are with a high risk tolerance experienced investor,\n- your objective is to increase assets as much as possible over a long savings period (at least 10 years),\n- you want to save for retirement and you do not mind the age restriction (55 years) on withdrawing money from the fund or the fact that the units of the fund may only be switched to funds subject to the same or more stringent rules,\n- you are prepared to invest 100% in equities and who prefer to do it predominantly via a pension fund that invests in indices.\n","strategy":"## **Strategy**\nThe Fund is established as an investment fund with so called passive investment policy, which means that the assets of the Fund are predominantly invested in other investment funds tracking global equity indices of developed countries. Up to 100% of the Fund's assets may be invested in instruments with equity risk, and the Management Company shall not react to changes in the composition of such indices. The Funds’ assets are, inter alia, invested through other investment funds.\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0,49%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600109484, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":"Expenses","type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0,49%\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\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600109484","strategyType":null,"managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Swedbank","minSumInEurWhenBuying":30,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3}}