{"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**\n\nAt least 90% of the Fund's assets are invested in investment grade bonds, money market instruments traded on a regulated market, deposits, shares or other assets of other investment funds investing mainly in the above assets and other assets. The money raised for retirement remains stable. The assets of the Fund are invested in compliance with the rating restrictions imposed on the conservative pension fund by law. The long-term preferred asset class of the fund is low-risk debt instruments.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":4887},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":78.67,"unit":"%"},{"name":"Money and deposits","value":21.33,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| France Government 25/05/21 | 7.70% |\n| German Government 1.5% 04/09/22 | 3.85% |\n| Temasek 0.5% 01/03/22 | 3.52% |\n| Czech Republic 3.875% 24/05/22 | 3.50% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.23% |\n| Slovakia 3.375% 15/11/24 | 3.16% |\n| Ignitis Grupe 2% 21/05/30 | 2.93% |\n| Luminor 1.5% 18/10/21 | 2.81% |\n| BNP Paribas 2.875% 24/10/22 | 2.67% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 2.64% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.23% |\n| Luminor 1.5% 18/10/21 | 2.81% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 2.64% |\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 31.07.2020) | 24,805,259.71 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 80 000 units |\n| Rate of the depository’s charge | 0,0564% (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:** 0.504%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.61%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_XS_tingimused_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (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"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_aruanne_2019.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"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":8,"content":"### August 2020 – Lithuanian energy company Ignitis plans IPO\n\nRomet Enok, Fund Manager\n\nThe Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.\n\nThe dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.\n"},{"year":2020,"month":7,"content":"### July 2020 – We realised profit earned from Estonian government bonds\n\nRomet Enok, Fund Manager\n\nOver the course of July we sold all of the Estonian government bonds that we had subscribed to during the issue that took place a month earlier. In little over a month, the sharp rise in bond prices increased the return earned by LHV funds by approximately 2%.\n\nThese government bonds will yield interest of around 0.125% per year for the next ten years. Consequently, the price increase meant that the bonds could already be sold now for the same amount of profit we would have earned by gathering interest for the next ten years.\n\nIn other words, on our sales level, the future return of these bonds would have been close to zero if we had kept the bond until the maturity date. In contrast, the investment of LHV pension funds made outside the public market in the bonds of Riigi Kinnisvara AS will yield an annual interest of 1.61%.\n\nWe wish to take even better advantage of such facts in the future: we will use direct investments to offer pension savers investments with greater return, which can only be accessed by funds.\n\nOverall, the month was good for bond markets with the general rule being “the poorer the credit quality, the better the return”. Thus the profit earned by investors ranged from a little over 1% for eurozone government bonds to over 4% for the bonds of companies with a very low rating located across the ocean in the United States. The price movements continue to be based mainly on central banks’ support measures.\n"},{"year":2020,"month":6,"content":"### June 2020 – We purchased bonds issued by the Republic of Estonia\n\nRomet Enok, Fund Manager\n\nWe made a big new investment in the fund by subscribing to bonds issued by the Republic of Estonia when the state borrowed 1.5 billion euros for 10 years in the form of securities. Estonia’s debt burden continues to be much smaller compared with other countries, thanks to which the bond’s credit rating is very high.\n\nHowever, compared with countries who have decades-long active relationships with investors, Estonia has to offer a little more attractive conditions to investors in order to raise money, as it is essentially a newcomer on the bond market. The security is also the perfect match for our current market expectations, in relation to which we are maintaining a low risk level.\n\nBond markets continued to rebound in June, but overall a large proportion of market segments remained in the red in the first half of the year. A clear exception in both the euro area and the United States is government bonds: an increase in their prices has always been a sign of problems for most companies. Unfortunately, this signal is currently incomplete: whilst government bonds are very popular, corporate securities are not showing a great decrease.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The price of gold rises as confidence tumbles**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n","text":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n\nThe financial world has been verging on the surreal for years. But only recently have there been so many absurd situations and decisions that the line between the real and the surreal is beginning to blur.\n\nWho could have predicted that a company’s shares could go up by more than 100% after filing for bankruptcy? The global car rental company Hertz filed for bankruptcy in June after running into difficulties but then began to prepare a public share offering due to growing investor interest. The authorities ruled out this plan, as the money from the share issue would have simply gone to creditors.\n\nWhile anything can be rationalised, there is a line beyond which reason starts to resist. For me, that line was crossed a while ago, in 2014. That was when the European Central Bank lowered its key interest rate to –0.1%, which meant that interest would be paid by the lender rather than the borrower. But maybe I’m just too old-fashioned.\n\nThe ECB has now further lowered its interest rate on the deposit facility to –0.5%. As a result, almost all German government bonds will carry a definite loss if held to maturity, and even the very highly indebted Italian government can enjoy the luxury of negative interest rates.\n\nIn 2020, however, events have moved towards the surreal at an entirely new pace. From a half-century low of 3.5% in February, US unemployment surged to a historical peak of 14.7% by April. On the other hand, although the S&P500 Index, which follows the performance of the largest US companies, initially fell by 34%, the US stock market was close to its previous peak by the end of July.\n\n**Protection against the absurd**\n\nLHV’s pension funds have for a long time increasingly focused on real assets, including real estate. We have also kept an eye on the commodities sector, but as long as the global economy shows no signs of recovery, there is no reason to expect an increase in the demand for industrial commodities.\n\nThere is one mineral resource that stands out from the rest in our current absurd and unreal world: more and more investors are starting to see gold again as a yardstick against which to measure the value of other assets. Gold is shining ever brighter in an environment where countries have abandoned all budgetary discipline and central banks are unashamedly financing public spending without even trying to find justifications.\n\nWhile investing in the low-risk government bonds guarantees a loss due to negative interest rates, there is at least some hope of earning from gold. Investing in gold is encouraged by the growing tensions between the world’s two largest economies, deepening social inequality and the resulting dissatisfaction.\n\n**When power overrides the common good**\n\nFlipping through an analysis, entitled “Where to put money amid the bear market in trust”, by Citigroup strategist Matt King last September, one slide stuck in my mind. It described how the nature of democracy can change when power becomes more important to politicians than values.\n\nTrust in politicians has not waned overnight; it has happened gradually over a long period almost everywhere in the world. It’s impossible to pinpoint a particular moment and say that trust ended there, but some events and periods should be noted.\n\nIn spring 2019, I registered for the first time the phrase “parliamentary mathematics” being used in Estonia. Politics should be based on values; mathematics is value-free. The new coalition agreement, however, was described by the participants as a trade-off: they weighed and bargained who would have the biggest slice of the pie. With the agreement signed and the pie divided, the abolition of the mandatory funded pension was already decided by summer 2019.\n\nAt a pensions seminar organised by the International Monetary Fund and Bank of Estonia on 30 September last year, the Estonian finance minister announced in his typically forthright manner that the matter had been decided: mandatory pension would be terminated (i.e. replaced by a voluntary scheme) and any further discussions would have to be held without the minister. He then left the seminar. The stakeholders were left with no other choice but to look on as the decision was written into law.\n\nI was somewhat surprised to see the otherwise outspoken finance minister give slightly vague answers before a full sitting of the Supreme Court at the beginning of August this year regarding the preparation of the new Funded Pensions Act. However, during a recess, the minister was once again straightforward with the press. He declared that failing a favourable decision by the Supreme Court, the government would abolish the second pension pillar completely.\n\nLiberty, responsibility and self-determination are precious values for society, but it would be absurd to make every mandatory element voluntary. For example, I hope the abolition of compulsory basic education will never be demanded on the grounds that parents, who know their children best and care about them the most, can provide them with the best and most personalised education. It is probably clear to everyone that it would be demagogic to say that without compulsory education, schools would compete and provide better education.\n\n**Disservice rather than service**\n\nIt would be naïve, or downright malevolent, to claim that the proposed pension reform will boost competition and productivity. The government’s reform aims to turn the existing pension funds with their very long-term horizons into short-term (about 12 months) funds. This would significantly restrict their ability to choose investment opportunities and make the different funds even more similar to one another.\n\nThere is no doubt, then, that the law pushed by the government would hamper the performance of pension funds and restrain competition, putting those that continue to invest at a disadvantage. This is because the volume of pension funds would shrink, service fees would go up, and the share of bonds with negative yields in the funds would increase.\n\nThe draft act doesn’t contain a single provision that would expand the investment opportunities of pension funds. Then again, this is not important for the government, given that the main goal and political decision is to abolish the mandatory funded pension, leaving the public with a choice between fast or slow liquidation.\n\nThe pension reform proposed by the government would (initially) retain the current pension funds but would destroy the three-pillar pension system where each pillar has a distinct function (the voluntary second pillar would lose its distinct function).\n\nIt is natural for a pension system to evolve and change with the values of society. But it is absurd that the development and improvement of the pension system should be treated in the same way as political bargaining and pie slicing to be handled in the space of a few months.\n\nIf we were to learn anything from the pension reform completed in 2002, it is that haste does not bring success. The collection phase turned out more or less well because it received at least some attention. By contrast, the disbursement phase, the discussion of which was postponed arguing that it could wait, is still not working today, 18 years later. This does not mean that pension insurance is necessarily a bad or useless product.\n\nWhile fine tuning its plan to abolish the second pillar, the current coalition has failed to take the time to examine what it is abolishing. If anything, it is a lack of interest and time that could explain the justice minister’s answer to the Supreme Court that the coalition’s reform plan would reduce discrimination, enabling people to join a pension fund at any age.\n\nUnlike now, there were politicians in the Pro Patria party at the time of the creation of the funded pension system who realised that small contributions over a short time would only make a small amount, and if paid out over a long period, the disbursements would be extremely small. A short collection period would be impractical and lead to disappointment, which is why the 2002 reform, now labelled “discriminatory”, aimed to protect the people who did not have enough time to collect a proper pension.\n\nIn retrospect, it is pension insurance contracts that should have been restricted 18 years ago, not making them available for benefits below 10,000 euros or until 2030, by which time the market will be large enough for a viable product. At present, there is a risk that the Funded Pensions Act will be amended so that pension insurance will never be available in Estonia.\n\nI hope that Estonia is (and will remain) a country that is guided by the principle “with power comes responsibility” and will not embrace the increasingly common cut-throat morality of “might makes right”.\n\nAs long as trust in the state and the currency it issues is on a downward trend in the world, the price of gold is likely to move up, or rather, the value of money relative to gold will decline. Rationality is out and absurdity in.\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019782","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":12.41,"fundManager":"LHV"},"LSK00":{"heading":"LHV Pensionifond S","id":"s","code":"s","dataMarker":"SK00","suitability":"**Suitable if**\n- you have 2–5 years left until retirement age,\n- you have low risk tolerance,\n- your aim is the preservation and modest growth of your pension savings.\n","strategy":"**Strategy**\n\nThe Fund's assets are mainly invested in bonds. The Fund's assets may be invested in sub-investment grade bonds. Up to 25% of the fund's assets may be invested in real estate, infrastructure, equity funds and convertible bonds. The Fund may also grant a loan. The long-term preferred asset class of the fund is listed debt instruments.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":8827},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":86.59,"unit":"%"},{"name":"Money and deposits","value":13.41,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Temasek 0.5% 01/03/22 | 4.93% |\n| Latvenergo 1.9% 10/06/22 | 4.81% |\n| Luminor 1.5% 18/10/21 | 4.69% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 4.47% |\n| German Government 3.25% 04/07/21 | 3.86% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 3.85% |\n| France Government 3.75% 25/04/21 | 3.68% |\n| France Government 25/05/21 | 3.37% |\n| German Government 2.25% 04/09/21 | 3.33% |\n| Investor 4.5% 12/05/23 | 3.15% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 4.69% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 4.47% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 3.85% |\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 31.07.2020) | 53,724,980.57 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 200 000 units |\n| Rate of the depository’s charge | 0,0564% (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:** 0.60%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.69%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_S_tingimused_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (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"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_S_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_S_aruanne_2019.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"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":8,"content":"### August 2020 – Lithuanian energy company Ignitis plans IPO\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.\n\nThe dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.\n"},{"year":2020,"month":7,"content":"### July 2020 – We realised profit earned from Estonian government bonds\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nOver the course of July we sold all of the Estonian government bonds that we had subscribed to during the issue that took place a month earlier. In little over a month, the sharp rise in bond prices increased the return earned by LHV funds by approximately 2%.\n\nThese government bonds will yield interest of around 0.125% per year for the next ten years. Consequently, the price increase meant that the bonds could already be sold now for the same amount of profit we would have earned by gathering interest for the next ten years.\n\nIn other words, on our sales level, the future return of these bonds would have been close to zero if we had kept the bond until the maturity date. In contrast, the investment of LHV pension funds made outside the public market in the bonds of Riigi Kinnisvara AS will yield an annual interest of 1.61%.\n\nWe wish to take even better advantage of such facts in the future: we will use direct investments to offer pension savers investments with greater return, which can only be accessed by funds.\n\nOverall, the month was good for bond markets with the general rule being “the poorer the credit quality, the better the return”. Thus the profit earned by investors ranged from a little over 1% for eurozone government bonds to over 4% for the bonds of companies with a very low rating located across the ocean in the United States. The price movements continue to be based mainly on central banks’ support measures.\n"},{"year":2020,"month":6,"content":"### June 2020 – We purchased bonds issued by the Republic of Estonia\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nWe made a big new investment in the fund by subscribing to bonds issued by the Republic of Estonia when the state borrowed 1.5 billion euros for 10 years in the form of securities. Estonia’s debt burden continues to be much smaller compared with other countries, thanks to which the bond’s credit rating is very high.\n\nHowever, compared with countries who have decades-long active relationships with investors, Estonia has to offer a little more attractive conditions to investors in order to raise money, as it is essentially a newcomer on the bond market. The security is also the perfect match for our current market expectations, in relation to which we are maintaining a low risk level.\n\nBond markets continued to rebound in June, but overall a large proportion of market segments remained in the red in the first half of the year. A clear exception in both the euro area and the United States is government bonds: an increase in their prices has always been a sign of problems for most companies. Unfortunately, this signal is currently incomplete: whilst government bonds are very popular, corporate securities are not showing a great decrease.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The price of gold rises as confidence tumbles**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n","text":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n\nThe financial world has been verging on the surreal for years. But only recently have there been so many absurd situations and decisions that the line between the real and the surreal is beginning to blur.\n\nWho could have predicted that a company’s shares could go up by more than 100% after filing for bankruptcy? The global car rental company Hertz filed for bankruptcy in June after running into difficulties but then began to prepare a public share offering due to growing investor interest. The authorities ruled out this plan, as the money from the share issue would have simply gone to creditors.\n\nWhile anything can be rationalised, there is a line beyond which reason starts to resist. For me, that line was crossed a while ago, in 2014. That was when the European Central Bank lowered its key interest rate to –0.1%, which meant that interest would be paid by the lender rather than the borrower. But maybe I’m just too old-fashioned.\n\nThe ECB has now further lowered its interest rate on the deposit facility to –0.5%. As a result, almost all German government bonds will carry a definite loss if held to maturity, and even the very highly indebted Italian government can enjoy the luxury of negative interest rates.\n\nIn 2020, however, events have moved towards the surreal at an entirely new pace. From a half-century low of 3.5% in February, US unemployment surged to a historical peak of 14.7% by April. On the other hand, although the S&P500 Index, which follows the performance of the largest US companies, initially fell by 34%, the US stock market was close to its previous peak by the end of July.\n\n**Protection against the absurd**\n\nLHV’s pension funds have for a long time increasingly focused on real assets, including real estate. We have also kept an eye on the commodities sector, but as long as the global economy shows no signs of recovery, there is no reason to expect an increase in the demand for industrial commodities.\n\nThere is one mineral resource that stands out from the rest in our current absurd and unreal world: more and more investors are starting to see gold again as a yardstick against which to measure the value of other assets. Gold is shining ever brighter in an environment where countries have abandoned all budgetary discipline and central banks are unashamedly financing public spending without even trying to find justifications.\n\nWhile investing in the low-risk government bonds guarantees a loss due to negative interest rates, there is at least some hope of earning from gold. Investing in gold is encouraged by the growing tensions between the world’s two largest economies, deepening social inequality and the resulting dissatisfaction.\n\n**When power overrides the common good**\n\nFlipping through an analysis, entitled “Where to put money amid the bear market in trust”, by Citigroup strategist Matt King last September, one slide stuck in my mind. It described how the nature of democracy can change when power becomes more important to politicians than values.\n\nTrust in politicians has not waned overnight; it has happened gradually over a long period almost everywhere in the world. It’s impossible to pinpoint a particular moment and say that trust ended there, but some events and periods should be noted.\n\nIn spring 2019, I registered for the first time the phrase “parliamentary mathematics” being used in Estonia. Politics should be based on values; mathematics is value-free. The new coalition agreement, however, was described by the participants as a trade-off: they weighed and bargained who would have the biggest slice of the pie. With the agreement signed and the pie divided, the abolition of the mandatory funded pension was already decided by summer 2019.\n\nAt a pensions seminar organised by the International Monetary Fund and Bank of Estonia on 30 September last year, the Estonian finance minister announced in his typically forthright manner that the matter had been decided: mandatory pension would be terminated (i.e. replaced by a voluntary scheme) and any further discussions would have to be held without the minister. He then left the seminar. The stakeholders were left with no other choice but to look on as the decision was written into law.\n\nI was somewhat surprised to see the otherwise outspoken finance minister give slightly vague answers before a full sitting of the Supreme Court at the beginning of August this year regarding the preparation of the new Funded Pensions Act. However, during a recess, the minister was once again straightforward with the press. He declared that failing a favourable decision by the Supreme Court, the government would abolish the second pension pillar completely.\n\nLiberty, responsibility and self-determination are precious values for society, but it would be absurd to make every mandatory element voluntary. For example, I hope the abolition of compulsory basic education will never be demanded on the grounds that parents, who know their children best and care about them the most, can provide them with the best and most personalised education. It is probably clear to everyone that it would be demagogic to say that without compulsory education, schools would compete and provide better education.\n\n**Disservice rather than service**\n\nIt would be naïve, or downright malevolent, to claim that the proposed pension reform will boost competition and productivity. The government’s reform aims to turn the existing pension funds with their very long-term horizons into short-term (about 12 months) funds. This would significantly restrict their ability to choose investment opportunities and make the different funds even more similar to one another.\n\nThere is no doubt, then, that the law pushed by the government would hamper the performance of pension funds and restrain competition, putting those that continue to invest at a disadvantage. This is because the volume of pension funds would shrink, service fees would go up, and the share of bonds with negative yields in the funds would increase.\n\nThe draft act doesn’t contain a single provision that would expand the investment opportunities of pension funds. Then again, this is not important for the government, given that the main goal and political decision is to abolish the mandatory funded pension, leaving the public with a choice between fast or slow liquidation.\n\nThe pension reform proposed by the government would (initially) retain the current pension funds but would destroy the three-pillar pension system where each pillar has a distinct function (the voluntary second pillar would lose its distinct function).\n\nIt is natural for a pension system to evolve and change with the values of society. But it is absurd that the development and improvement of the pension system should be treated in the same way as political bargaining and pie slicing to be handled in the space of a few months.\n\nIf we were to learn anything from the pension reform completed in 2002, it is that haste does not bring success. The collection phase turned out more or less well because it received at least some attention. By contrast, the disbursement phase, the discussion of which was postponed arguing that it could wait, is still not working today, 18 years later. This does not mean that pension insurance is necessarily a bad or useless product.\n\nWhile fine tuning its plan to abolish the second pillar, the current coalition has failed to take the time to examine what it is abolishing. If anything, it is a lack of interest and time that could explain the justice minister’s answer to the Supreme Court that the coalition’s reform plan would reduce discrimination, enabling people to join a pension fund at any age.\n\nUnlike now, there were politicians in the Pro Patria party at the time of the creation of the funded pension system who realised that small contributions over a short time would only make a small amount, and if paid out over a long period, the disbursements would be extremely small. A short collection period would be impractical and lead to disappointment, which is why the 2002 reform, now labelled “discriminatory”, aimed to protect the people who did not have enough time to collect a proper pension.\n\nIn retrospect, it is pension insurance contracts that should have been restricted 18 years ago, not making them available for benefits below 10,000 euros or until 2030, by which time the market will be large enough for a viable product. At present, there is a risk that the Funded Pensions Act will be amended so that pension insurance will never be available in Estonia.\n\nI hope that Estonia is (and will remain) a country that is guided by the principle “with power comes responsibility” and will not embrace the increasingly common cut-throat morality of “might makes right”.\n\nAs long as trust in the state and the currency it issues is on a downward trend in the world, the price of gold is likely to move up, or rather, the value of money relative to gold will decline. Rationality is out and absurdity in.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019824","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":13.21,"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**\n\nWhen investing in assets, the fund prefers cash-flow assets and, where possible, the local market, including less liquid private equity and real estate investments. The investments are predominantly in local currency and up to 75% of the fund's assets can be invested directly in equities. The fund's long-term preferred asset class is real estate investments.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":13826},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":75.1,"unit":"%"},{"name":"Shares","value":8.67,"unit":"%"},{"name":"Equity funds","value":1.88,"unit":"%"},{"name":"Real Estate funds","value":8.41,"unit":"%"},{"name":"Private Equity funds","value":3.44,"unit":"%"},{"name":"Money and deposits","value":2.5,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 4.54% |\n| German Government 2.25% 04/09/21 | 3.75% |\n| German Government 3.25% 04/07/21 | 3.70% |\n| EfTEN Kinnisvarafond | 3.00% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.71% |\n| France Government 3.75% 25/04/21 | 2.52% |\n| France Government 25/05/21 | 2.43% |\n| France Government 2.25% 25/10/22 | 2.26% |\n| JP Morgan 1.375% 16/09/21 | 2.06% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 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 | 4.54% |\n| EfTEN Kinnisvarafond | 3.00% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.71% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.07.2020) | 140,320,391.36 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 400 000 units |\n| Rate of the depository’s charge | 0,0564% (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:** 0.60%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.\n\n**Ongoing charges (inc management fee):** 0.84%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_M_tingimused_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (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"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_M_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_M_aruanne_2019.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"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":8,"content":"### August 2020 – Global stock market surge driven by the US\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAugust was mostly positive for the world’s stock markets, and the stock market indices of almost all developed countries ended on the positive side.\n\nThe leader was again the US stock market, whose S&P 500 index rose by 7% in local currency during the month. The Japanese stock exchange, whose index rose by 6.6% in local currency, was a close second. However, due to the strengthening of the euro, the returns from both these stock markets remained lower when measured in euros (5.6% and 5.2%, respectively).\n\nAmong European countries, Finland and Germany gained the most with returns of 6.3% and 5.1%, respectively. In the Baltics, the Riga stock market index outperformed the others with a 5% rise. The Vilnius stock market index went up by 1%, while the Tallinn stock market was negative by -3.6%.\n\nIn August, second quarter financial results came in from several companies on the Tallinn stock exchange, the shares of which are part of the Pension Fund M portfolio. Tallink Grupp reported poor results as expected: the company’s turnover decreased by 75% compared to the same period last year and the net loss was 27.4 million euros. Passengers were transported almost exclusively on the Estonian–Finnish route, but 77% less than a year ago. The part of Tallink’s fleet that remained operable carried mainly goods during the quarter.\n\nThe Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.\n\nAmong our local investments, Coop Pank announced having received a relatively high Baa2 rating from Moody’s. An international rating helps banks to attract certain deposits as well as offer guarantee products. We invested in Coop Pank’s ten-year subordinated bonds about three years ago, quite at the beginning of the bank’s new business. During this period, the fund has earned a cumulative interest return of approximately 20% on the investment.\n\nThe dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.\n"},{"year":2020,"month":7,"content":"### July 2020 – Equity markets moved in different directions\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets moved in different directions in July. While the stock exchanges of the US and emerging markets showed positive results, European stock exchanges mostly remained in the red.\n\nThe Euro Stoxx 50 Index, which brings together major European companies, fell by 1.6% in July with the United Kingdom, Spain and France suffering the biggest losses. The Finnish and Swedish equity markets showed positive returns, adding 2.7% and 2.6% respectively. The Japanese Nikkei Index, however, fell by a total of 5.4% in euro terms over the month.\n\nOf the Baltic states, Vilnius stock exchange showed the best result with a 5.4% return, while the results of Riga and Tallinn stock exchanges were modest (0.5% and –0.2% respectively).\n\nLithuanian tour operator Novaturas, which operates under the name Novatours in Estonia, emerged from the first half of the year with a net loss of 2.2 million euros (the company earned 437,000 euros of profit in the same period last year). The company’s activities were suspended from mid-March to July due to the coronavirus pandemic. In early June, Novaturas announced that the current majority shareholder will waive its holding in the company and the company will gain three new major shareholders from Estonia. 10.25% of the shares were acquired by Rendez-Vous OÜ, which is owned by Janek Pohla and whose subsidiary is water sports equipment producer and seller Tahe Outdoors OÜ.\n\nOver the course of July we sold all of the Estonian government bonds that we had subscribed to during the issue that took place a month earlier. In little over a month, the sharp rise in bond prices increased the return earned by LHV funds by approximately 2%.\n\nThese government bonds will yield interest of around 0.125% per year for the next ten years. Consequently, the price increase meant that the bonds could already be sold now for the same amount of profit we would have earned by gathering interest for the next ten years.\n\nIn other words, on our sales level, the future return of these bonds would have been close to zero if we had kept the bond until the maturity date. In contrast, the investment of LHV pension funds made outside the public market in the bonds of Riigi Kinnisvara AS will yield an annual interest of 1.61%.\n\nWe wish to take even better advantage of such facts in the future: we will use direct investments to offer pension savers investments with greater return, which can only be accessed by funds.\n\nOverall, the month was good for bond markets with the general rule being “the poorer the credit quality, the better the return”. Thus the profit earned by investors ranged from a little over 1% for eurozone government bonds to over 4% for the bonds of companies with a very low rating located across the ocean in the United States. The price movements continue to be based mainly on central banks’ support measures.\n"},{"year":2020,"month":6,"content":"### June 2020 – Coffee Address buys Estonia-based coffee company\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe return of global equity markets continued to be mainly positive in June. Euro Stoxx 50, which brings together the 50 largest stock companies in the euro area, added 6.4% during the month, whereas the greatest return was shown by the German Stock Index, which was up by 6.2%. The return of the Japanese Nikkei index was somewhat lower: +1.9% in the local currency and 0.5% in euros. The MSCI Emerging Markets Index, however, added a total of 7% in June.\n\nOnce again, Baltic equity markets showed good performance. The Tallinn Stock Exchange index added 2.4% in June and Riga and Vilnius Stock Exchanges were both up by 2.2%.\n\nIn June, private equity company BaltCap announced the acquisition of Estonia-based coffee company 7Kohvipoissi by Coffee Address, which belongs to their BaltCap Private Equity Fund II portfolio. According to Coffee Address, the Estonian coffee services market is rapidly evolving and this transaction helps improve the service quality and expand the product range. Coffee Address was established in 1993 and offers its clients 250,000 cups of coffee each day.\n\nWe made a big new investment in the fund by subscribing to bonds issued by the Republic of Estonia when the state borrowed 1.5 billion euros for 10 years in the form of securities. Estonia’s debt burden continues to be much smaller compared with other countries, thanks to which the bond’s credit rating is very high.\n\nHowever, compared with countries who have decades-long active relationships with investors, Estonia has to offer a little more attractive conditions to investors in order to raise money, as it is essentially a newcomer on the bond market. The security is also the perfect match for our current market expectations, in relation to which we are maintaining a low risk level.\n\nBond markets continued to rebound in June, but overall a large proportion of market segments remained in the red in the first half of the year. A clear exception in both the euro area and the United States is government bonds: an increase in their prices has always been a sign of problems for most companies. Unfortunately, this signal is currently incomplete: whilst government bonds are very popular, corporate securities are not showing a great decrease.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The price of gold rises as confidence tumbles**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n","text":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n\nThe financial world has been verging on the surreal for years. But only recently have there been so many absurd situations and decisions that the line between the real and the surreal is beginning to blur.\n\nWho could have predicted that a company’s shares could go up by more than 100% after filing for bankruptcy? The global car rental company Hertz filed for bankruptcy in June after running into difficulties but then began to prepare a public share offering due to growing investor interest. The authorities ruled out this plan, as the money from the share issue would have simply gone to creditors.\n\nWhile anything can be rationalised, there is a line beyond which reason starts to resist. For me, that line was crossed a while ago, in 2014. That was when the European Central Bank lowered its key interest rate to –0.1%, which meant that interest would be paid by the lender rather than the borrower. But maybe I’m just too old-fashioned.\n\nThe ECB has now further lowered its interest rate on the deposit facility to –0.5%. As a result, almost all German government bonds will carry a definite loss if held to maturity, and even the very highly indebted Italian government can enjoy the luxury of negative interest rates.\n\nIn 2020, however, events have moved towards the surreal at an entirely new pace. From a half-century low of 3.5% in February, US unemployment surged to a historical peak of 14.7% by April. On the other hand, although the S&P500 Index, which follows the performance of the largest US companies, initially fell by 34%, the US stock market was close to its previous peak by the end of July.\n\n**Protection against the absurd**\n\nLHV’s pension funds have for a long time increasingly focused on real assets, including real estate. We have also kept an eye on the commodities sector, but as long as the global economy shows no signs of recovery, there is no reason to expect an increase in the demand for industrial commodities.\n\nThere is one mineral resource that stands out from the rest in our current absurd and unreal world: more and more investors are starting to see gold again as a yardstick against which to measure the value of other assets. Gold is shining ever brighter in an environment where countries have abandoned all budgetary discipline and central banks are unashamedly financing public spending without even trying to find justifications.\n\nWhile investing in the low-risk government bonds guarantees a loss due to negative interest rates, there is at least some hope of earning from gold. Investing in gold is encouraged by the growing tensions between the world’s two largest economies, deepening social inequality and the resulting dissatisfaction.\n\n**When power overrides the common good**\n\nFlipping through an analysis, entitled “Where to put money amid the bear market in trust”, by Citigroup strategist Matt King last September, one slide stuck in my mind. It described how the nature of democracy can change when power becomes more important to politicians than values.\n\nTrust in politicians has not waned overnight; it has happened gradually over a long period almost everywhere in the world. It’s impossible to pinpoint a particular moment and say that trust ended there, but some events and periods should be noted.\n\nIn spring 2019, I registered for the first time the phrase “parliamentary mathematics” being used in Estonia. Politics should be based on values; mathematics is value-free. The new coalition agreement, however, was described by the participants as a trade-off: they weighed and bargained who would have the biggest slice of the pie. With the agreement signed and the pie divided, the abolition of the mandatory funded pension was already decided by summer 2019.\n\nAt a pensions seminar organised by the International Monetary Fund and Bank of Estonia on 30 September last year, the Estonian finance minister announced in his typically forthright manner that the matter had been decided: mandatory pension would be terminated (i.e. replaced by a voluntary scheme) and any further discussions would have to be held without the minister. He then left the seminar. The stakeholders were left with no other choice but to look on as the decision was written into law.\n\nI was somewhat surprised to see the otherwise outspoken finance minister give slightly vague answers before a full sitting of the Supreme Court at the beginning of August this year regarding the preparation of the new Funded Pensions Act. However, during a recess, the minister was once again straightforward with the press. He declared that failing a favourable decision by the Supreme Court, the government would abolish the second pension pillar completely.\n\nLiberty, responsibility and self-determination are precious values for society, but it would be absurd to make every mandatory element voluntary. For example, I hope the abolition of compulsory basic education will never be demanded on the grounds that parents, who know their children best and care about them the most, can provide them with the best and most personalised education. It is probably clear to everyone that it would be demagogic to say that without compulsory education, schools would compete and provide better education.\n\n**Disservice rather than service**\n\nIt would be naïve, or downright malevolent, to claim that the proposed pension reform will boost competition and productivity. The government’s reform aims to turn the existing pension funds with their very long-term horizons into short-term (about 12 months) funds. This would significantly restrict their ability to choose investment opportunities and make the different funds even more similar to one another.\n\nThere is no doubt, then, that the law pushed by the government would hamper the performance of pension funds and restrain competition, putting those that continue to invest at a disadvantage. This is because the volume of pension funds would shrink, service fees would go up, and the share of bonds with negative yields in the funds would increase.\n\nThe draft act doesn’t contain a single provision that would expand the investment opportunities of pension funds. Then again, this is not important for the government, given that the main goal and political decision is to abolish the mandatory funded pension, leaving the public with a choice between fast or slow liquidation.\n\nThe pension reform proposed by the government would (initially) retain the current pension funds but would destroy the three-pillar pension system where each pillar has a distinct function (the voluntary second pillar would lose its distinct function).\n\nIt is natural for a pension system to evolve and change with the values of society. But it is absurd that the development and improvement of the pension system should be treated in the same way as political bargaining and pie slicing to be handled in the space of a few months.\n\nIf we were to learn anything from the pension reform completed in 2002, it is that haste does not bring success. The collection phase turned out more or less well because it received at least some attention. By contrast, the disbursement phase, the discussion of which was postponed arguing that it could wait, is still not working today, 18 years later. This does not mean that pension insurance is necessarily a bad or useless product.\n\nWhile fine tuning its plan to abolish the second pillar, the current coalition has failed to take the time to examine what it is abolishing. If anything, it is a lack of interest and time that could explain the justice minister’s answer to the Supreme Court that the coalition’s reform plan would reduce discrimination, enabling people to join a pension fund at any age.\n\nUnlike now, there were politicians in the Pro Patria party at the time of the creation of the funded pension system who realised that small contributions over a short time would only make a small amount, and if paid out over a long period, the disbursements would be extremely small. A short collection period would be impractical and lead to disappointment, which is why the 2002 reform, now labelled “discriminatory”, aimed to protect the people who did not have enough time to collect a proper pension.\n\nIn retrospect, it is pension insurance contracts that should have been restricted 18 years ago, not making them available for benefits below 10,000 euros or until 2030, by which time the market will be large enough for a viable product. At present, there is a risk that the Funded Pensions Act will be amended so that pension insurance will never be available in Estonia.\n\nI hope that Estonia is (and will remain) a country that is guided by the principle “with power comes responsibility” and will not embrace the increasingly common cut-throat morality of “might makes right”.\n\nAs long as trust in the state and the currency it issues is on a downward trend in the world, the price of gold is likely to move up, or rather, the value of money relative to gold will decline. Rationality is out and absurdity in.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019774","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":32.89,"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**\n\nThe assets of the Fund are invested in various asset classes in both local and foreign markets. The Fund's assets may be invested extensively in unquoted instruments, which are primarily used for investing in securities issued by companies domiciled in the home market. The long-term preferred asset class of the fund is private equity investments.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":101351},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":48.91,"unit":"%"},{"name":"Shares","value":18.67,"unit":"%"},{"name":"Equity funds","value":9.15,"unit":"%"},{"name":"Real Estate funds","value":10.25,"unit":"%"},{"name":"Private Equity funds","value":8.95,"unit":"%"},{"name":"Money and deposits","value":4.08,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| German Government 2.25% 04/09/21 | 4.21% |\n| German Government 3.25% 04/07/21 | 4.09% |\n| EfTEN Kinnisvarafond | 3.77% |\n| iShares Gold Producers UCITS ETF | 3.26% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.24% |\n| German Treasury Bill 14/04/2021 | 3.17% |\n| France Government 3.75% 25/04/21 | 2.92% |\n| France Government 25/05/21 | 2.77% |\n| France Government 2.25% 25/10/22 | 2.61% |\n| Luminor 1.5% 18/10/21 | 2.23% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 3.77% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.24% |\n| Luminor 1.5% 18/10/21 | 2.23% |\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 31.07.2020) | 962,235,800.23 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 3 159 616.79 units |\n| Rate of the depository’s charge | 0,0564% (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:** 0.60%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.\n\n**Ongoing charges (inc management fee):** 1.01%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_tingimused_02092019.pdf)\n- [Information to unit-holders (in Estonian)](/assets/files/pension/Osakuomanikele_antav_teave_LHV_Pensionifond_L.pdf)\n- [Comparison of investment policies (in Estonian)](/assets/files/pension/investeerimispoliitikate_vordlus_Eesti_L.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_pensionifondide_prospekt_02092019.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_L_KIID.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_L_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_L_aruanne_2019.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"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":8,"content":"### August 2020 – The private equity fund successfully sold its Baltic investment\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAugust was mostly positive for the world’s stock markets, and the stock market indices of almost all developed countries ended on the positive side.\n\nThe leader was again the US stock market, whose S&P 500 index rose by 7% in local currency during the month. The Japanese stock exchange, whose index rose by 6.6% in local currency, was a close second. However, due to the strengthening of the euro, the returns from both these stock markets remained lower when measured in euros (5.6% and 5.2%, respectively).\n\nAmong European countries, Finland and Germany gained the most with returns of 6.3% and 5.1%, respectively. In the Baltics, the Riga stock market index outperformed the others with a 5% rise. The Vilnius stock market index went up by 1%, while the Tallinn stock market was negative by -3.6%.\n\nBPM Mezzanine Fund, a private equity fund in the Pension Fund L portfolio, sold its investment in DEAC, the leading data centre operator in the Baltics. The investment was made in 2016 to provide the company with capital to improve its technological infrastructure and partly to refinance its existing debt burden. The fund’s investors earned a decent return in almost four years.\n\nThe Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.\n\nAmong our local investments, Coop Pank announced having received a relatively high Baa2 rating from Moody’s. An international rating helps banks to attract certain deposits as well as offer guarantee products. We invested in Coop Pank’s ten-year subordinated bonds about three years ago, quite at the beginning of the bank’s new business. During this period, the fund has earned a cumulative interest return of approximately 20% on the investment.\n\nThe dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.\n"},{"year":2020,"month":7,"content":"### July 2020 – Sale of holding in thermally modified wood manufacturer Thermory was finalised\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets moved in different directions in July. While the stock exchanges of the US and emerging markets showed positive results, European stock exchanges mostly remained in the red.\n\nThe Euro Stoxx 50 Index, which brings together major European companies, fell by 1.6% in July with the United Kingdom, Spain and France suffering the biggest losses. The Finnish and Swedish equity markets showed positive returns, adding 2.7% and 2.6% respectively. The Japanese Nikkei Index, however, fell by a total of 5.4% in euro terms over the month.\n\nOf the Baltic states, Vilnius stock exchange showed the best result with a 5.4% return, while the results of Riga and Tallinn stock exchanges were modest (0.5% and –0.2% respectively).\n\nJuly saw the completion of a transaction that involved LHV Pension Fund L and private equity fund Livonia Partners, which is part of its portfolio, exiting the investment in the world’s leading thermally modified wood manufacturer Thermory. The company was bought by UG Investeeringud, whose owner Kristjan Rahu became known for the sale of district heating provider Utilitas to an Australian private equity fund. UG Investeeringud is a long-term owner who values strategic investments and organic growth of the company.\n\nOver the course of July we sold all of the Estonian government bonds that we had subscribed to during the issue that took place a month earlier. In little over a month, the sharp rise in bond prices increased the return earned by LHV funds by approximately 2%.\n\nThese government bonds will yield interest of around 0.125% per year for the next ten years. Consequently, the price increase meant that the bonds could already be sold now for the same amount of profit we would have earned by gathering interest for the next ten years.\n\nIn other words, on our sales level, the future return of these bonds would have been close to zero if we had kept the bond until the maturity date. In contrast, the investment of LHV pension funds made outside the public market in the bonds of Riigi Kinnisvara AS will yield an annual interest of 1.61%.\n\nWe wish to take even better advantage of such facts in the future: we will use direct investments to offer pension savers investments with greater return, which can only be accessed by funds.\n\nOverall, the month was good for bond markets with the general rule being “the poorer the credit quality, the better the return”. Thus the profit earned by investors ranged from a little over 1% for eurozone government bonds to over 4% for the bonds of companies with a very low rating located across the ocean in the United States. The price movements continue to be based mainly on central banks’ support measures.\n"},{"year":2020,"month":6,"content":"### June 2020 – Global equity market sentiment was positive\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe return of global equity markets continued to be mainly positive in June. Euro Stoxx 50, which brings together the 50 largest stock companies in the euro area, added 6.4% during the month, whereas the greatest return was shown by the German Stock Index, which was up by 6.2%. The return of the Japanese Nikkei index was somewhat lower: +1.9% in the local currency and 0.5% in euros. The MSCI Emerging Markets Index, however, added a total of 7% in June.\n\nOnce again, Baltic equity markets showed good performance. The Tallinn Stock Exchange index added 2.4% in June and Riga and Vilnius Stock Exchanges were both up by 2.2%.\n\nThe L Pension Fund portfolio includes Lithuanian private equity fund INVL Baltic Sea Growth Fund, which is mainly focused on investing in medium-sized Baltic enterprises. In June, the INVL Baltic Sea Growth Fund made an investment in Eco Baltia, the largest waste treatment facility in the Baltics. This is the third investment for the fund, which was established in 2018, and as a result, the fund acquired a majority stake in the company. Eco Baltia employs over 800 people. The company’s 2019 turnover reached almost 71 million euros, of which the recycling business unit accounted for over 60%.\n\nWe made a big new investment in the fund by subscribing to bonds issued by the Republic of Estonia when the state borrowed 1.5 billion euros for 10 years in the form of securities. Estonia’s debt burden continues to be much smaller compared with other countries, thanks to which the bond’s credit rating is very high.\n\nHowever, compared with countries who have decades-long active relationships with investors, Estonia has to offer a little more attractive conditions to investors in order to raise money, as it is essentially a newcomer on the bond market. The security is also the perfect match for our current market expectations, in relation to which we are maintaining a low risk level.\n\nBond markets continued to rebound in June, but overall a large proportion of market segments remained in the red in the first half of the year. A clear exception in both the euro area and the United States is government bonds: an increase in their prices has always been a sign of problems for most companies. Unfortunately, this signal is currently incomplete: whilst government bonds are very popular, corporate securities are not showing a great decrease.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The price of gold rises as confidence tumbles**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n","text":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n\nThe financial world has been verging on the surreal for years. But only recently have there been so many absurd situations and decisions that the line between the real and the surreal is beginning to blur.\n\nWho could have predicted that a company’s shares could go up by more than 100% after filing for bankruptcy? The global car rental company Hertz filed for bankruptcy in June after running into difficulties but then began to prepare a public share offering due to growing investor interest. The authorities ruled out this plan, as the money from the share issue would have simply gone to creditors.\n\nWhile anything can be rationalised, there is a line beyond which reason starts to resist. For me, that line was crossed a while ago, in 2014. That was when the European Central Bank lowered its key interest rate to –0.1%, which meant that interest would be paid by the lender rather than the borrower. But maybe I’m just too old-fashioned.\n\nThe ECB has now further lowered its interest rate on the deposit facility to –0.5%. As a result, almost all German government bonds will carry a definite loss if held to maturity, and even the very highly indebted Italian government can enjoy the luxury of negative interest rates.\n\nIn 2020, however, events have moved towards the surreal at an entirely new pace. From a half-century low of 3.5% in February, US unemployment surged to a historical peak of 14.7% by April. On the other hand, although the S&P500 Index, which follows the performance of the largest US companies, initially fell by 34%, the US stock market was close to its previous peak by the end of July.\n\n**Protection against the absurd**\n\nLHV’s pension funds have for a long time increasingly focused on real assets, including real estate. We have also kept an eye on the commodities sector, but as long as the global economy shows no signs of recovery, there is no reason to expect an increase in the demand for industrial commodities.\n\nThere is one mineral resource that stands out from the rest in our current absurd and unreal world: more and more investors are starting to see gold again as a yardstick against which to measure the value of other assets. Gold is shining ever brighter in an environment where countries have abandoned all budgetary discipline and central banks are unashamedly financing public spending without even trying to find justifications.\n\nWhile investing in the low-risk government bonds guarantees a loss due to negative interest rates, there is at least some hope of earning from gold. Investing in gold is encouraged by the growing tensions between the world’s two largest economies, deepening social inequality and the resulting dissatisfaction.\n\n**When power overrides the common good**\n\nFlipping through an analysis, entitled “Where to put money amid the bear market in trust”, by Citigroup strategist Matt King last September, one slide stuck in my mind. It described how the nature of democracy can change when power becomes more important to politicians than values.\n\nTrust in politicians has not waned overnight; it has happened gradually over a long period almost everywhere in the world. It’s impossible to pinpoint a particular moment and say that trust ended there, but some events and periods should be noted.\n\nIn spring 2019, I registered for the first time the phrase “parliamentary mathematics” being used in Estonia. Politics should be based on values; mathematics is value-free. The new coalition agreement, however, was described by the participants as a trade-off: they weighed and bargained who would have the biggest slice of the pie. With the agreement signed and the pie divided, the abolition of the mandatory funded pension was already decided by summer 2019.\n\nAt a pensions seminar organised by the International Monetary Fund and Bank of Estonia on 30 September last year, the Estonian finance minister announced in his typically forthright manner that the matter had been decided: mandatory pension would be terminated (i.e. replaced by a voluntary scheme) and any further discussions would have to be held without the minister. He then left the seminar. The stakeholders were left with no other choice but to look on as the decision was written into law.\n\nI was somewhat surprised to see the otherwise outspoken finance minister give slightly vague answers before a full sitting of the Supreme Court at the beginning of August this year regarding the preparation of the new Funded Pensions Act. However, during a recess, the minister was once again straightforward with the press. He declared that failing a favourable decision by the Supreme Court, the government would abolish the second pension pillar completely.\n\nLiberty, responsibility and self-determination are precious values for society, but it would be absurd to make every mandatory element voluntary. For example, I hope the abolition of compulsory basic education will never be demanded on the grounds that parents, who know their children best and care about them the most, can provide them with the best and most personalised education. It is probably clear to everyone that it would be demagogic to say that without compulsory education, schools would compete and provide better education.\n\n**Disservice rather than service**\n\nIt would be naïve, or downright malevolent, to claim that the proposed pension reform will boost competition and productivity. The government’s reform aims to turn the existing pension funds with their very long-term horizons into short-term (about 12 months) funds. This would significantly restrict their ability to choose investment opportunities and make the different funds even more similar to one another.\n\nThere is no doubt, then, that the law pushed by the government would hamper the performance of pension funds and restrain competition, putting those that continue to invest at a disadvantage. This is because the volume of pension funds would shrink, service fees would go up, and the share of bonds with negative yields in the funds would increase.\n\nThe draft act doesn’t contain a single provision that would expand the investment opportunities of pension funds. Then again, this is not important for the government, given that the main goal and political decision is to abolish the mandatory funded pension, leaving the public with a choice between fast or slow liquidation.\n\nThe pension reform proposed by the government would (initially) retain the current pension funds but would destroy the three-pillar pension system where each pillar has a distinct function (the voluntary second pillar would lose its distinct function).\n\nIt is natural for a pension system to evolve and change with the values of society. But it is absurd that the development and improvement of the pension system should be treated in the same way as political bargaining and pie slicing to be handled in the space of a few months.\n\nIf we were to learn anything from the pension reform completed in 2002, it is that haste does not bring success. The collection phase turned out more or less well because it received at least some attention. By contrast, the disbursement phase, the discussion of which was postponed arguing that it could wait, is still not working today, 18 years later. This does not mean that pension insurance is necessarily a bad or useless product.\n\nWhile fine tuning its plan to abolish the second pillar, the current coalition has failed to take the time to examine what it is abolishing. If anything, it is a lack of interest and time that could explain the justice minister’s answer to the Supreme Court that the coalition’s reform plan would reduce discrimination, enabling people to join a pension fund at any age.\n\nUnlike now, there were politicians in the Pro Patria party at the time of the creation of the funded pension system who realised that small contributions over a short time would only make a small amount, and if paid out over a long period, the disbursements would be extremely small. A short collection period would be impractical and lead to disappointment, which is why the 2002 reform, now labelled “discriminatory”, aimed to protect the people who did not have enough time to collect a proper pension.\n\nIn retrospect, it is pension insurance contracts that should have been restricted 18 years ago, not making them available for benefits below 10,000 euros or until 2030, by which time the market will be large enough for a viable product. At present, there is a risk that the Funded Pensions Act will be amended so that pension insurance will never be available in Estonia.\n\nI hope that Estonia is (and will remain) a country that is guided by the principle “with power comes responsibility” and will not embrace the increasingly common cut-throat morality of “might makes right”.\n\nAs long as trust in the state and the currency it issues is on a downward trend in the world, the price of gold is likely to move up, or rather, the value of money relative to gold will decline. Rationality is out and absurdity in.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019832","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":29.81,"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**\n\nThe Fund prefers foreign markets, more liquid and traded instruments on regulated markets when investing assets. The assets of the Fund may be invested in their entirety in equities, equity funds and other equity-like instruments. The Fund is allowed to borrow up to 10% of the Fund's assets value. The long-term preferred asset class of the fund is public equity investments.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":36233},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":36.04,"unit":"%"},{"name":"Shares","value":25.35,"unit":"%"},{"name":"Equity funds","value":15.45,"unit":"%"},{"name":"Real Estate funds","value":10.18,"unit":"%"},{"name":"Private Equity funds","value":8.29,"unit":"%"},{"name":"Money and deposits","value":4.7,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| German Government 2.25% 04/09/21 | 5.06% |\n| German Government 3.25% 04/07/21 | 4.70% |\n| France Government 3.75% 25/04/21 | 3.87% |\n| France Government 25/05/21 | 3.73% |\n| German Treasury Bill 14/04/2021 | 3.30% |\n| iShares Gold Producers UCITS ETF | 3.10% |\n| EfTEN Kinnisvarafond | 2.87% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.58% |\n| Xtrackers DAX UCITS ETF | 2.47% |\n| TRIGON - New Europe Fund D | 2.45% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 2.87% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.58% |\n| East Capital Baltic Property Fund III | 2.29% |\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 31.07.2020) | 209,963,692.49 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 530 000 units |\n| Rate of the depository’s charge | 0,0564% (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:** 0.60%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.\n\n**Ongoing charges (inc management fee):** 0.98%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_XL_tingimused_02092019.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (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"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_aruanne_2019.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"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":8,"content":"### August 2020 – Stock markets continued to rise led by the US\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAugust was mostly positive for the world’s stock markets, and the stock market indices of almost all developed countries ended on the positive side.\n\nThe leader was again the US stock market, whose S&P 500 index rose by 7% in local currency during the month. The Japanese stock exchange, whose index rose by 6.6% in local currency, was a close second. However, due to the strengthening of the euro, the returns from both these stock markets remained lower when measured in euros (5.6% and 5.2%, respectively). Among European countries, Finland and Germany gained the most with returns of 6.3% and 5.1%, respectively.\n\nHowever, emerging markets moved in different directions: while Asian countries, led by China, achieved largely positive returns, Latin American stock markets mostly fell. In the Baltics, the Riga stock market index outperformed the others with a 5% rise. The Vilnius stock market index went up by 1%, while the Tallinn stock market was negative by -3.6%.\n\nIn August, Siemens Healthineers, which is included in the Pension Fund XL portfolio, announced that it would take over Varian Medical Systems, a cancer treatment company listed on the New York Stock Exchange. The agreed price was 177.5 dollars per share, which is nearly 25% higher than the trading price prior to disclosure. The total transaction is 16.4 billion dollars. The transaction is still pending approval by Varian’s shareholders and the supervisory body. The merged entity will have a very strong market position in the production of medical devices, in particular in the field of cancer treatment.\n\nThe Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.\n\nThe dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.\n"},{"year":2020,"month":7,"content":"### July 2020 – Individual fund investments included big climbers\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets moved in different directions in July. While the stock exchanges of the US and emerging markets showed positive results, European stock exchanges mostly remained in the red.\n\nThe Euro Stoxx 50 Index, which brings together major European companies, fell by 1.6% in July with the United Kingdom, Spain and France suffering the biggest losses. The Finnish and Swedish equity markets showed positive returns, adding 2.7% and 2.6% respectively. The Japanese Nikkei Index, however, fell by a total of 5.4% in euro terms over the month. The MSCI Emerging Markets Index added 8.4% in the local currency, but the return in euros remained as low as at 3.4% owing to the appreciation of the euro.\n\nOf the Baltic states, Vilnius stock exchange showed the best result with a 5.4% return, while the results of Riga and Tallinn stock exchanges were modest (0.5% and –0.2% respectively).\n\nIDEXX Laboratories, which is part of our XL Pension Fund portfolio, showed a good return in July, as its share price rose by 13.7% during the month. The company mainly produces testing equipment for vets and reported good results in Q2 despite the state of emergency.\n\nExcellent results for Q2 were also published by Swedish company Sweco, which advises infrastructure project executors and is an industry leader in the Nordic countries. In July, the company’s share prices increased by a whopping 22.5% on Stockholm stock exchange.\n\nOver the course of July we sold all of the Estonian government bonds that we had subscribed to during the issue that took place a month earlier. In little over a month, the sharp rise in bond prices increased the return earned by LHV funds by approximately 2%.\n\nThese government bonds will yield interest of around 0.125% per year for the next ten years. Consequently, the price increase meant that the bonds could already be sold now for the same amount of profit we would have earned by gathering interest for the next ten years.\n\nIn other words, on our sales level, the future return of these bonds would have been close to zero if we had kept the bond until the maturity date. In contrast, the investment of LHV pension funds made outside the public market in the bonds of Riigi Kinnisvara AS will yield an annual interest of 1.61%.\n\nWe wish to take even better advantage of such facts in the future: we will use direct investments to offer pension savers investments with greater return, which can only be accessed by funds.\n\nOverall, the month was good for bond markets with the general rule being “the poorer the credit quality, the better the return”. Thus the profit earned by investors ranged from a little over 1% for eurozone government bonds to over 4% for the bonds of companies with a very low rating located across the ocean in the United States. The price movements continue to be based mainly on central banks’ support measures.\n"},{"year":2020,"month":6,"content":"### June 2020 – Shares of German industrial companies soared during the month\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe return of global equity markets continued to be mainly positive in June. Euro Stoxx 50, which brings together the 50 largest stock companies in the euro area, added 6.4% during the month, whereas the greatest return was shown by the German Stock Index, which was up by 6.2%. The return of the Japanese Nikkei index was somewhat lower: +1.9% in the local currency and 0.5% in euros. The MSCI Emerging Markets Index, however, added a total of 7% in June.\n\nOnce again, Baltic equity markets showed good performance. The Tallinn Stock Exchange index added 2.4% in June and Riga and Vilnius Stock Exchanges were both up by 2.2%.\n\nThe return of the XL Pension Fund was this time supported by the shares of big German industrial companies. For instance, the share price of Mercedes producer Daimler went up by 8.3% in June, whilst the share price of Siemens added 6.3%. Investments made in Nordic companies also produced a very good result. The shares of Danish kitchen and bathroom furniture producer TCM Group showed a 20% return and the share price of Norwegian store chain Europris went up by 12.2% during the month.\n\nWe made a big new investment in the fund by subscribing to bonds issued by the Republic of Estonia when the state borrowed 1.5 billion euros for 10 years in the form of securities. Estonia’s debt burden continues to be much smaller compared with other countries, thanks to which the bond’s credit rating is very high.\n\nHowever, compared with countries who have decades-long active relationships with investors, Estonia has to offer a little more attractive conditions to investors in order to raise money, as it is essentially a newcomer on the bond market. The security is also the perfect match for our current market expectations, in relation to which we are maintaining a low risk level.\n\nBond markets continued to rebound in June, but overall a large proportion of market segments remained in the red in the first half of the year. A clear exception in both the euro area and the United States is government bonds: an increase in their prices has always been a sign of problems for most companies. Unfortunately, this signal is currently incomplete: whilst government bonds are very popular, corporate securities are not showing a great decrease.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The price of gold rises as confidence tumbles**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n","text":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n\nThe financial world has been verging on the surreal for years. But only recently have there been so many absurd situations and decisions that the line between the real and the surreal is beginning to blur.\n\nWho could have predicted that a company’s shares could go up by more than 100% after filing for bankruptcy? The global car rental company Hertz filed for bankruptcy in June after running into difficulties but then began to prepare a public share offering due to growing investor interest. The authorities ruled out this plan, as the money from the share issue would have simply gone to creditors.\n\nWhile anything can be rationalised, there is a line beyond which reason starts to resist. For me, that line was crossed a while ago, in 2014. That was when the European Central Bank lowered its key interest rate to –0.1%, which meant that interest would be paid by the lender rather than the borrower. But maybe I’m just too old-fashioned.\n\nThe ECB has now further lowered its interest rate on the deposit facility to –0.5%. As a result, almost all German government bonds will carry a definite loss if held to maturity, and even the very highly indebted Italian government can enjoy the luxury of negative interest rates.\n\nIn 2020, however, events have moved towards the surreal at an entirely new pace. From a half-century low of 3.5% in February, US unemployment surged to a historical peak of 14.7% by April. On the other hand, although the S&P500 Index, which follows the performance of the largest US companies, initially fell by 34%, the US stock market was close to its previous peak by the end of July.\n\n**Protection against the absurd**\n\nLHV’s pension funds have for a long time increasingly focused on real assets, including real estate. We have also kept an eye on the commodities sector, but as long as the global economy shows no signs of recovery, there is no reason to expect an increase in the demand for industrial commodities.\n\nThere is one mineral resource that stands out from the rest in our current absurd and unreal world: more and more investors are starting to see gold again as a yardstick against which to measure the value of other assets. Gold is shining ever brighter in an environment where countries have abandoned all budgetary discipline and central banks are unashamedly financing public spending without even trying to find justifications.\n\nWhile investing in the low-risk government bonds guarantees a loss due to negative interest rates, there is at least some hope of earning from gold. Investing in gold is encouraged by the growing tensions between the world’s two largest economies, deepening social inequality and the resulting dissatisfaction.\n\n**When power overrides the common good**\n\nFlipping through an analysis, entitled “Where to put money amid the bear market in trust”, by Citigroup strategist Matt King last September, one slide stuck in my mind. It described how the nature of democracy can change when power becomes more important to politicians than values.\n\nTrust in politicians has not waned overnight; it has happened gradually over a long period almost everywhere in the world. It’s impossible to pinpoint a particular moment and say that trust ended there, but some events and periods should be noted.\n\nIn spring 2019, I registered for the first time the phrase “parliamentary mathematics” being used in Estonia. Politics should be based on values; mathematics is value-free. The new coalition agreement, however, was described by the participants as a trade-off: they weighed and bargained who would have the biggest slice of the pie. With the agreement signed and the pie divided, the abolition of the mandatory funded pension was already decided by summer 2019.\n\nAt a pensions seminar organised by the International Monetary Fund and Bank of Estonia on 30 September last year, the Estonian finance minister announced in his typically forthright manner that the matter had been decided: mandatory pension would be terminated (i.e. replaced by a voluntary scheme) and any further discussions would have to be held without the minister. He then left the seminar. The stakeholders were left with no other choice but to look on as the decision was written into law.\n\nI was somewhat surprised to see the otherwise outspoken finance minister give slightly vague answers before a full sitting of the Supreme Court at the beginning of August this year regarding the preparation of the new Funded Pensions Act. However, during a recess, the minister was once again straightforward with the press. He declared that failing a favourable decision by the Supreme Court, the government would abolish the second pension pillar completely.\n\nLiberty, responsibility and self-determination are precious values for society, but it would be absurd to make every mandatory element voluntary. For example, I hope the abolition of compulsory basic education will never be demanded on the grounds that parents, who know their children best and care about them the most, can provide them with the best and most personalised education. It is probably clear to everyone that it would be demagogic to say that without compulsory education, schools would compete and provide better education.\n\n**Disservice rather than service**\n\nIt would be naïve, or downright malevolent, to claim that the proposed pension reform will boost competition and productivity. The government’s reform aims to turn the existing pension funds with their very long-term horizons into short-term (about 12 months) funds. This would significantly restrict their ability to choose investment opportunities and make the different funds even more similar to one another.\n\nThere is no doubt, then, that the law pushed by the government would hamper the performance of pension funds and restrain competition, putting those that continue to invest at a disadvantage. This is because the volume of pension funds would shrink, service fees would go up, and the share of bonds with negative yields in the funds would increase.\n\nThe draft act doesn’t contain a single provision that would expand the investment opportunities of pension funds. Then again, this is not important for the government, given that the main goal and political decision is to abolish the mandatory funded pension, leaving the public with a choice between fast or slow liquidation.\n\nThe pension reform proposed by the government would (initially) retain the current pension funds but would destroy the three-pillar pension system where each pillar has a distinct function (the voluntary second pillar would lose its distinct function).\n\nIt is natural for a pension system to evolve and change with the values of society. But it is absurd that the development and improvement of the pension system should be treated in the same way as political bargaining and pie slicing to be handled in the space of a few months.\n\nIf we were to learn anything from the pension reform completed in 2002, it is that haste does not bring success. The collection phase turned out more or less well because it received at least some attention. By contrast, the disbursement phase, the discussion of which was postponed arguing that it could wait, is still not working today, 18 years later. This does not mean that pension insurance is necessarily a bad or useless product.\n\nWhile fine tuning its plan to abolish the second pillar, the current coalition has failed to take the time to examine what it is abolishing. If anything, it is a lack of interest and time that could explain the justice minister’s answer to the Supreme Court that the coalition’s reform plan would reduce discrimination, enabling people to join a pension fund at any age.\n\nUnlike now, there were politicians in the Pro Patria party at the time of the creation of the funded pension system who realised that small contributions over a short time would only make a small amount, and if paid out over a long period, the disbursements would be extremely small. A short collection period would be impractical and lead to disappointment, which is why the 2002 reform, now labelled “discriminatory”, aimed to protect the people who did not have enough time to collect a proper pension.\n\nIn retrospect, it is pension insurance contracts that should have been restricted 18 years ago, not making them available for benefits below 10,000 euros or until 2030, by which time the market will be large enough for a viable product. At present, there is a risk that the Funded Pensions Act will be amended so that pension insurance will never be available in Estonia.\n\nI hope that Estonia is (and will remain) a country that is guided by the principle “with power comes responsibility” and will not embrace the increasingly common cut-throat morality of “might makes right”.\n\nAs long as trust in the state and the currency it issues is on a downward trend in the world, the price of gold is likely to move up, or rather, the value of money relative to gold will decline. Rationality is out and absurdity in.\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019766","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":26.48,"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**\n\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":6117},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":73.17,"unit":"%"},{"name":"Real Estate funds","value":25.74,"unit":"%"},{"name":"Money and deposits","value":1.09,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Lyxor Core MSCI World DR UCITS | 27.70% |\n| Amundi Index FTSE EPRA Nareit Global UCITS ETF | 25.74% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 13.76% |\n| HSBC MSCI WORLD UCITS ETF | 10.76% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 10.64% |\n| iShares Core MSCI World UCITS | 5.52% |\n| iShares MSCI Frontier 100 ETF | 1.99% |\n| db x-trackers MSCI World Index UCITS ETF | 1.98% |\n| Vanguard FTSE Emerging Markets UCITS ETF | 0.82% |\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 31.07.2020) | 33,319,558.82 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 550 000 units |\n| Rate of the depository’s charge | 0,0564% (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"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.63%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_tingimused-2018-01-02.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (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_2020.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_aruanne_2019.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":"mittekonservatiivne","isin":"EE3600109401","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV"},"TUK00":{"heading":"Tuleva Maailma Võlakirjade Pensionifond","id":"tv","code":"tv","dataMarker":"TUK00","suitability":"**Suitable if**\n- you have less than 10 years till retirement,\n- you are willing to forgo higher returns in order to avoid losses.\n","strategy":"**Strategy**\n\nThe management company employs a passive investment strategy, only investing the fund’s assets into the shares of investment funds following the said financial indices. The selection of investment funds favours passively managed and liquid euro funds with a low total cost rate and low transactions costs.\n","fundInfo":{"company":{"title":"Tuleva Fondid AS"},"investors":2454},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bond funds","value":97.37,"unit":"%"},{"name":"Money and deposits","value":2.69,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| BlackRock FIDF - Euro Credit Bond Index Fund - Flexible | 24.86% |\n| BlackRock BGIF - Euro Aggregate Bond Index Fund - X2 | 24.68% |\n| BlackRock FIDF - Euro Government Bond Index Fund - Flexible | 24.65% |\n| BlackRock BGIF - Global Government Bond Index - X2 | 23.19% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.34%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.49%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600109443","strategyType":"Conservative","managementStyle":"Passive","riskLevel":3,"countryShareEe":0,"fundManager":"Tuleva"},"TUK75":{"heading":"Tuleva Maailma Aktsiate Pensionifond","id":"ta","code":"ta","dataMarker":"TUK75","suitability":"**Suitable if**\n- you are younger than 55 years,\n- you would like to earn best expected return over long term and you are not disturbed by short-term fluctuations of the market.\n","strategy":"**Strategy**\n\nThe management company employs a passive investment strategy, only investing the fund’s assets into the shares of investment funds following the said financial indices. The selection of investment funds favours passively managed and liquid euro funds with a low total cost rate and low transactions costs.\n","fundInfo":{"company":{"title":"Tuleva Fondid AS"},"investors":17065},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":79.36,"unit":"%"},{"name":"Bond funds","value":19.99,"unit":"%"},{"name":"Money and deposits","value":0.68,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| BlackRock BGIF - World Equity Index - X2 | 28.07% |\n| BlackRock ISF - Developed World Index | 28.04% |\n| BlackRock BGIF - Global Government Bond Index - X2 | 19.99% |\n| BlackRock ISF - Developed World ex Tobacco | 13.63% |\n| BlackRock ISF - Emerging Markets Index | 9.62% |\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"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.46%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109435","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Tuleva"},"SEK50":{"heading":"SEB Progressiivne Pensionifond","id":"progressiivne","code":"progressiivne","dataMarker":"SEK50","suitability":"**Suitable if**\n- you have more than 3 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\n\nFund invests up to 50% of its assets in shares, with the remainder allocated to bonds and deposits. As the fund invests in shares, bonds and deposits in an equal amount, moderate fluctuations in the value of the fund's assets may occur.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":88081},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":17.89,"unit":"%"},{"name":"Shares","value":1.82,"unit":"%"},{"name":"Equity funds","value":41.81,"unit":"%"},{"name":"Real Estate funds","value":2.95,"unit":"%"},{"name":"Private Equity funds","value":1.1,"unit":"%"},{"name":"Bond funds","value":32.23,"unit":"%"},{"name":"Money and deposits","value":2.21,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI World UCITS ETF | 15.00% |\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 12.19% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 9.28% |\n| iShares Core S&P 500 UCITS ETF | 7.58% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 5.76% |\n| SEB Sustainability Global Index Fund | 5.30% |\n| SEB Ethical Global Index Fund | 5.11% |\n| Bundesrepublic Deutschland 2.25% 04.09.2021 | 3.15% |\n| Robeco QI Global Dynamic Duration | 3.10% |\n| Lyxor Core STOXX Europe 600 DE ETF | 2.29% |\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 | 1.93% |\n| Tallinna Sadam AS | 1.82% |\n| EfTEN Real Estate Fund IV | 1.25% |\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:** 0.72%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.94%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019725","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":8.49,"fundManager":"SEB"},"SEK25":{"heading":"SEB Optimaalne Pensionifond","id":"optimaalne","code":"optimaalne","dataMarker":"SEK25","suitability":"**Suitable if**\n- you have less than 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\n\nFund mainly invests in bonds and deposits, with up to 25% invested in shares. As the fund largely invests in bonds and deposits, there may be moderate fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":6110},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":25.61,"unit":"%"},{"name":"Shares","value":1.58,"unit":"%"},{"name":"Equity funds","value":16.54,"unit":"%"},{"name":"Real Estate funds","value":2.71,"unit":"%"},{"name":"Private Equity funds","value":0.48,"unit":"%"},{"name":"Bond funds","value":48.77,"unit":"%"},{"name":"Money and deposits","value":4.31,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 12.36% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 10.19% |\n| Bundesrepublic Deutschland 2% 15.08.2023 | 7.04% |\n| Bundesrepublic Deutschland 2.25% 04.09.2021 | 5.19% |\n| iShares Core MSCI World UCITS ETF | 5.14% |\n| PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund | 5.04% |\n| Robeco QI Global Dynamic Duration | 4.03% |\n| Goldman Sachs Global Credit Portfolio (Hedged) I | 3.59% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 3.53% |\n| iShares Core S&P 500 UCITS ETF | 3.40% |\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 | 1.70% |\n| Tallinna Sadam AS | 1.58% |\n| EfTEN Real Estate Fund IV | 1.11% |\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:** 0.72%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.94%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600098612","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":7.33,"fundManager":"SEB"},"SEK00":{"heading":"SEB Konservatiivne Pensionifond","id":"konservatiivne","code":"konservatiivne","dataMarker":"SEK00","suitability":"**Suitable if**\n- you have less than 3 years until retirement,\n- you prefer a low-risk fund,\n- your goal is to maintain the pension assets.\n","strategy":"**Strategy**\n\nInvests at least 90% of its assets in investment grade bonds, money market instruments and deposits. Up to 10% is allowed to invest into other assets, including equities. Investment in these asset classes involves lower risks, meaning that there is little fluctuation in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":11733},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":39.3,"unit":"%"},{"name":"Equity funds","value":5.25,"unit":"%"},{"name":"Bond funds","value":52.91,"unit":"%"},{"name":"Money and deposits","value":2.54,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core EUR Corp Bond UCITS ETF EUR (Dist) | 18.17% |\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 15.34% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 11.13% |\n| Bundesrepublic Deutschland 2.25% 04.09.2021 | 10.53% |\n| UBS ETF-Barclays Euro Area Liquid Corporates 1-5 Year UCITS ETF | 7.88% |\n| iShares EUR Corporate Bond Large Cap UCITS ETF | 7.64% |\n| Bundesrepublic Deutschland 1.5% 15.02.2023 | 4.25% |\n| iShares Euro Ultrashort Bond UCITS ETF | 2.65% |\n| Luminor Bank Estonia 1.5% 18.10.2021 | 1.96% |\n| Elering 0.875% 03.05.2023 | 1.75% |\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 | 1.96% |\n| Elering 0.875% 03.05.2023 | 1.75% |\n| Baltic Horizon Fund 4.25% 08.05.2023 | 0.37% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.39%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.49%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019717","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":4.38,"fundManager":"SEB"},"SEK100":{"heading":"SEB Pensionifond 100","id":"sek100","code":"sek100","dataMarker":"SEK100","suitability":"**Suitable if**\n- you have more than five years until retirement,\n- you prefer a high risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\n\nInvests up to 100% of its assets in shares. This involves high risks, resulting in big fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":578},"accordion":[{"id":"expenses","title":"Expenses","active":true,"content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.72%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.96%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001699","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":"-","fundManager":"SEB"},"SWK99":{"heading":"Swedbank Pensionifond K1990-1999 indeks","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**\n\nThe Fund is established as a lifecycle fund with so called passive investment strategy, meaning that the assets of the Fund are invested into financial instruments that track global indices and the Management Company reduces the ratio of instruments carrying equity risk in the Fund´s assets over time pursuant to the conditions and prospectus of the Fund.\nThe proportion of investments with equity risk will only ever vary from the indicated level by max. 2%. The remainder is invested in bonds, other debt instruments, deposits and other assets.\n","fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS"},"investors":14984},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.39,"unit":"%"},{"name":"Money and deposits","value":0.65,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Amundi Prime Global Ucits ETF DR | 27.94% |\n| SPDR MSCI World Ucits ETF | 23.24% |\n| Access Global | 18.99% |\n| LYXOR Core MSCI World | 18.00% |\n| HSBC MSCI World UCITS ETF | 11.22% |\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:** 0.41%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.47%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109393","strategyType":"Non-conservative","managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Swedbank"},"SWK75":{"heading":"Swedbank Pensionifond K100","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**\n\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":108429},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":4.29,"unit":"%"},{"name":"Shares","value":42.59,"unit":"%"},{"name":"Equity funds","value":43.31,"unit":"%"},{"name":"Real Estate funds","value":4.1,"unit":"%"},{"name":"Private Equity funds","value":0.72,"unit":"%"},{"name":"Bond funds","value":2.54,"unit":"%"},{"name":"Money and deposits","value":2.5,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 16.17% |\n| Access Europa A | 11.62% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 7.46% |\n| Access USA A | 2.99% |\n| Vanguard Long-Term Treasury ETF | 2.54% |\n| Apple | 1.87% |\n| iShares Gold Producers UCITS ETF | 1.75% |\n| Amundi ETF MSCI Europe UCITS | 1.44% |\n| Eften Kinnisvarafond II aktsia | 1.33% |\n| Microsoft | 1.25% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II aktsia | 1.33% |\n| East Capital Baltic Property III | 0.99% |\n| Luminor Bank 1.500% 211018 | 0.94% |\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:** 0.54%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.70%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600103248","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":8.39,"fundManager":"Swedbank"},"SWK50":{"heading":"Swedbank Pensionifond K60","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**\n\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":136143},"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":26.21,"unit":"%"},{"name":"Equity funds","value":21.59,"unit":"%"},{"name":"Real Estate funds","value":5.49,"unit":"%"},{"name":"Private Equity funds","value":0.76,"unit":"%"},{"name":"Bond funds","value":5.79,"unit":"%"},{"name":"Money and deposits","value":1.73,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 8.39% |\n| Access Europa A | 5.06% |\n| iShares USD Corporate Bond UCITS | 3.08% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 2.78% |\n| Vanguard Long-Term Treasury ETF | 2.71% |\n| Eften Kinnisvarafond II | 2.05% |\n| iShares Gold Producers UCITS ETF | 1.77% |\n| Luminor Bank 1.500% 211018 | 1.45% |\n| East Capital Baltic Property III | 1.44% |\n| Access USA A | 1.04% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II | 2.05% |\n| Luminor Bank 1.500% 211018 | 1.45% |\n| East Capital Baltic Property III | 1.44% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.54%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.67%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019758","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":12.12,"fundManager":"Swedbank"},"SWK25":{"heading":"Swedbank Pensionifond K30","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**\n\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":43454},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":60.57,"unit":"%"},{"name":"Shares","value":0.45,"unit":"%"},{"name":"Equity funds","value":19.18,"unit":"%"},{"name":"Real Estate funds","value":6.65,"unit":"%"},{"name":"Private Equity funds","value":0.76,"unit":"%"},{"name":"Bond funds","value":7.25,"unit":"%"},{"name":"Money and deposits","value":5.19,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares USD Corporate Bond UCITS | 5.57% |\n| Access Europa A | 4.14% |\n| Amundi ETF MSCI Europe UCITS | 3.35% |\n| Vanguard S&P 500 ETF | 3.29% |\n| Luminor Bank 1.375% 221021 | 2.88% |\n| Eften Kinnisvarafond II aktsia | 2.78% |\n| Luminor Bank 1.500% 211018 | 2.53% |\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 2.24% |\n| S&P 500 SPDR | 1.76% |\n| Maxima 3.250% 230913 | 1.71% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor Bank 1.375% 221021 | 2.88% |\n| Eften Kinnisvarafond II aktsia | 2.78% |\n| Luminor Bank 1.500% 211018 | 2.53% |\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:** 0.54%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.65%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600019741","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":18.24,"fundManager":"Swedbank"},"SWK00":{"heading":"Swedbank Pensionifond K10","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**\n\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":10804},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":85.43,"unit":"%"},{"name":"Real Estate funds","value":5.12,"unit":"%"},{"name":"Money and deposits","value":9.48,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Luminor Bank 1.500% 211018 | 4.62% |\n| East Capital Baltic Property Fund III | 4.44% |\n| Luminor Bank 1.375% 221021 | 3.39% |\n| Eesti Energia 2.384% 230922 | 2.17% |\n| Landesbank Hessen-Thueringen Giroze 0.375% 250512 | 2.07% |\n| EssilorLuxottica 0.375% 260105 | 2.06% |\n| Hungary Government 1.250% 251022 | 2.00% |\n| Poland Government International 0.500% 211220 | 1.64% |\n| Bulgaria 1.875% 230321 | 1.58% |\n| Latvenergo 1.900% 220610 | 1.54% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor Bank 1.500% 211018 | 4.62% |\n| East Capital Baltic Property Fund III | 4.44% |\n| Luminor Bank 1.375% 221021 | 3.39% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.37%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019733","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":19.46,"fundManager":"Swedbank"},"SEK75":{"heading":"SEB Energiline Pensionifond","id":"energiline","code":"energiline","dataMarker":"SEK75","suitability":"**Suitable if**\n- you have more than 5 years until retirement,\n- you prefer a medium risk fund,\n- your goal is to grow the pension assets.\n","strategy":"**Strategy**\n\nFund up to 75% of its assets in shares, with the remainder allocated to bonds and deposits. Investing mainly in shares involves higher risks, resulting in bigger fluctuations in the value of the fund's assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":35564},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":11.44,"unit":"%"},{"name":"Shares","value":1.12,"unit":"%"},{"name":"Equity funds","value":64.29,"unit":"%"},{"name":"Real Estate funds","value":2.07,"unit":"%"},{"name":"Private Equity funds","value":0.37,"unit":"%"},{"name":"Bond funds","value":15.35,"unit":"%"},{"name":"Money and deposits","value":5.37,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI World UCITS ETF | 15.27% |\n| iShares Core S&P 500 UCITS ETF | 11.91% |\n| SEB Sustainability Global Index Fund | 7.54% |\n| SEB Ethical Global Index Fund | 7.08% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 5.35% |\n| Amundi Index MSCI World UCITS ETF DR | 4.54% |\n| Xtrackers MSCI World UCITS ETF | 4.16% |\n| Amundi MSCI Emerging Markets ETF | 3.53% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 2.69% |\n| PIMCO Funds Gloval Investors Series PLC-Global Investment Grade Credit Fund | 2.57% |\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 | 1.31% |\n| Tallinna Sadam AS | 1.12% |\n| EfTEN Real Estate Fund IV | 0.89% |\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:** 0.72%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.92%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600103297","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":5.47,"fundManager":"SEB"},"SIK75":{"heading":"SEB Pensionifond Indeks 100","id":"eindeks","code":"sik","dataMarker":"SIK75","suitability":"**Suitable if**\n- you have more than five years until retirement,\n- you prefer a medium risk fund,\n- your goal is to mirror securities markets.\n","strategy":"**Strategy**\n\nInvests up to 100% of its assets in equities, by implementing a passive investment strategy and mirroring securities markets. Investing in equities involves high risks, resulting in big fluctuations in the value of the fund’s assets.\n","fundInfo":{"company":{"title":"AS SEB Varahaldus"},"investors":7788},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.53,"unit":"%"},{"name":"Money and deposits","value":0.46,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core S&P 500 UCITS ETF | 26.80% |\n| Vanguard S&P 500 UCITS ETF | 20.97% |\n| Lyxor Core STOXX Europe 600 DE ETF | 16.88% |\n| UBS ETF - MSCI Emerging Markets UCITS ETF | 9.43% |\n| Xtrackers Nikkei 225 UCITS ETF | 6.76% |\n| Vanguard S&P 500 UCITS ETF | 6.00% |\n| iShares Core MSCI Pacific ex-Japan UCITS ETF USD Acc | 3.24% |\n| UBS ETF-MSCI Canada UCITS ETF | 2.85% |\n| Amundi MSCI Emerging Markets UCITS ETF | 2.55% |\n| Xtrackers MSCI USA UCITS ETF | 2.02% |\n"},{"title":null,"type":"markdown","column":"left","content":"Fund doesn´t make any investments in Estonia\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.29%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.4%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600109427","strategyType":"Non-conservative","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**\n\nInvests a maximum of 10% of the fund's assets in shares and similar risk-bearing assets. At times of high interest rates, the fund may invest most of its assets in deposits to avoid setbacks on the bond markets.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":4841},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":1.5,"unit":"%"},{"name":"Equity funds","value":3.86,"unit":"%"},{"name":"Bond funds","value":91.76,"unit":"%"},{"name":"Money and deposits","value":2.88,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Nordea 2 - US Corporate Enhanced Bd Fd | 12.20% |\n| Nordea 1 - US Corporate Bond Fund | 11.93% |\n| Xtrackers USD Corporate Bond UCITS ETF | 8.85% |\n| Nordea Pro Euro Bond I Growth | 7.24% |\n| iShares Core Euro Government Bond UCITS ETF | 6.70% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 6.58% |\n| Nordea Euro Bond I Growth | 6.31% |\n| iShares Euro Corporate Bond Interest Rate Hedged | 5.42% |\n| Nordea Euro Medium Term Bond Growth | 4.74% |\n| Nordea Corporate Bond I Growth | 3.89% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Estonian Eurobond 0,125 10.06.2030 | 1.50% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.70%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.97%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600098455","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":1.5,"fundManager":"Luminor"},"NPK25":{"heading":"Luminor B Pensionifond","id":"b","code":"b","dataMarker":"NPK25","suitability":"**Suitable if**\n- your saving period is more than 3 years,\n- you want to grow your pension assets, but do not want to take the risk of significant decreases in the price of the accumulated assets.\n","strategy":"**Strategy**\n\nInvests a maximum of 30% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. This creates a situation where the higher and lower risk markets balance each other and help achieve the goal with moderate risk. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":2543},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":0.83,"unit":"%"},{"name":"Equity funds","value":21.79,"unit":"%"},{"name":"Real Estate funds","value":4.29,"unit":"%"},{"name":"Bond funds","value":70.45,"unit":"%"},{"name":"Money and deposits","value":2.65,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Xtrackers USD Corporate Bond UCITS ETF | 8.89% |\n| Nordea 1 - US Corporate Bond Fund | 8.03% |\n| Nordea Euro Bond I Growth | 6.75% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 6.15% |\n| Nordea 2 - Emerging Mkt Hard Ccy Bond Fd | 6.01% |\n| Nordea Emerging Market Bond Growth | 5.38% |\n| iShares Core Euro Government Bond UCITS ETF | 5.33% |\n| EfTEN Kinnisvarafond II AS | 4.29% |\n| Nordea Global High Yield Growth | 4.15% |\n| iShares Euro Corporate Bond Large Cap UCITS ETF | 4.04% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 4.29% |\n| Estonian Eurobond 0,125 10.06.2030 | 0.83% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.94%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.\n\n**Ongoing charges (inc management fee):** 1.55%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600098448","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":3,"countryShareEe":5.12,"fundManager":"Luminor"},"NPK75":{"heading":"Luminor A Pluss Pensionifond","id":"apluss","code":"A pluss","dataMarker":"NPK75","suitability":"**Suitable if**\n- your saving period is more than 20 years,\n- you tolerate a short-term decrease in the value of assets well,\n- your goal is to achieve potentially high return on assets in the longer run despite short-term fluctuations in prices.\n","strategy":"**Strategy**\n\nInvests a maximum of 100% of fund assets in equity and assets with similar risk. The rest is invested in bonds, deposits or similar instruments. If necessary, depending on the market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":9618},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":76.68,"unit":"%"},{"name":"Real Estate funds","value":2.5,"unit":"%"},{"name":"Bond funds","value":17.63,"unit":"%"},{"name":"Money and deposits","value":3.22,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Nordea 1 - Global Stars Equity Fund | 9.32% |\n| Nordea Corporate Bond I Growth | 8.19% |\n| iShares MSCI North America UCITS ETF | 7.65% |\n| RBC Funds - Global Equity Focus Fund | 6.82% |\n| iShares S&P 500 Health Care Sector UCITS ETF USD A | 6.53% |\n| iShares MSCI Europe UCITS ETF DIST | 6.52% |\n| iShares S&P 500 ETF | 6.18% |\n| iShares Core MSCI World UCITS ETF | 5.71% |\n| Nordea 1 - Emerging Stars Equity Fund | 4.87% |\n| Robeco Emerging Markets Equities Class I EUR | 4.82% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 2.35% |\n| EfTEN Kinnisvarafond AS | 0.15% |\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:** 0.94%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.\n\n**Ongoing charges (inc management fee):** 1.62%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600103503","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":2.5,"fundManager":"Luminor"},"NPK50":{"heading":"Luminor A Pensionifond","id":"A","code":"A","dataMarker":"NPK50","suitability":"**Suitable if**\n- your saving period is more than 10 years,\n- you tolerate a short-term decrease in the value of assets well,\n- your goal is to achieve a somewhat higher return on assets regardless of short-term price fluctuations.\n","strategy":"**Strategy**\n\nInvests a maximum of 60% of fund assets in equity and assets with similar risk. The rest is invested either in bonds, deposits or similar instruments. If necessary, depending on market situation, the fund may invest 100% of its assets in bonds or deposits to ensure retention of assets in turbulent times.\n","fundInfo":{"company":{"title":"Luminor Pensions Estonia AS"},"investors":27090},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":0.68,"unit":"%"},{"name":"Equity funds","value":44.29,"unit":"%"},{"name":"Real Estate funds","value":4.04,"unit":"%"},{"name":"Bond funds","value":47.54,"unit":"%"},{"name":"Money and deposits","value":3.44,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|---:|\n| Xtrackers USD Corporate Bond UCITS ETF | 6.89% |\n| iShares Core Euro Government Bond UCITS ETF | 5.88% |\n| Nordea 2 - Emerging Mkt Hard Ccy Bond Fd | 5.64% |\n| iShares MSCI North America UCITS ETF | 5.63% |\n| Nordea Pro Euro Bond I growth | 5.14% |\n| Nordea 1 - Global Stars Equity Fund | 4.98% |\n| iShares Core MSCI World UCITS ETF | 4.65% |\n| iShares MSCI Europe UCITS ETF | 4.41% |\n| Nordea 1 - US Corporate Bond Fund | 4.07% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 3.64% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 3.01% |\n| EfTEN Kinnisvarafond AS | 1.03% |\n| Estonian Eurobond 0,125 10.06.2030 | 0.68% |\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:** 0.94%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** 20% per annum on any increase in the fund's rate of return over the cumulative increase of Estonian social security pension contribution as of 31.08.2019.\n\n**Ongoing charges (inc management fee):** 1.58%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600098430","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":4,"countryShareEe":4.72,"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":null,"type":"markdown","column":"left","content":"**Entry fee:** 1%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.2%\n\n**Ongoing charges (inc management fee):** 1.84%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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 tax-effectively 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":"30.06.2020","capacity":"17,227,150.32 €","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":36.28,"unit":"%"},{"name":"Shares","value":26.02,"unit":"%"},{"name":"Equity funds","value":12.37,"unit":"%"},{"name":"Real Estate funds","value":14.39,"unit":"%"},{"name":"Private Equity funds","value":3.92,"unit":"%"},{"name":"Bond funds","value":0.14,"unit":"%"},{"name":"Money and deposits","value":6.88,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020.\n\n| Biggest investments | |\n|---|--:|\n| EfTEN Kinnisvarafond | 4.75% |\n| Luminor 1.5% 18/10/21 | 3.52% |\n| German Treasury Bill 14/04/2021 | 3.50% |\n| East Capital Baltic Property Fund III | 3.32% |\n| iShares Gold Producers UCITS ETF | 3.11% |\n| France Government 3.75% 25/04/21 | 3.02% |\n| East Capital Baltic Property Fund II | 2.52% |\n| German Government 3.25% 04/07/21 | 2.41% |\n| France Government 25/05/21 | 2.33% |\n| Citadele banka 6.25% 06/12/2026 | 2.28% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 4.75% |\n| Luminor 1.5% 18/10/21 | 3.52% |\n| East Capital Baltic Property Fund III | 3.32% |\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 31.07.2020) | 17,227,150.32 € |\n| Management company | AS LHV Varahaldus |\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:** 1%\n\n**Rate of the depository’s charge:** 0,0564%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1%\n\n**Ongoing charges (inc management fee):** 1.36%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_tingimused_2017-06-13.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_prospekt_060818.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Taiendav_Pensionifond_KIID.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_taiendav_kuuaruanne_2020_08.pdf)\n- [Interim report for the first half-year of 2020 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_I_poolaasta_aruanne_2020.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_taiendav_pensionifond_aruanne_2019.pdf)\n- [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"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":8,"content":"### August 2020 – The automotive industry begins to recover from the corona crisis\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAugust was mostly positive for the world’s stock markets, and the stock market indices of almost all developed countries ended on the positive side.\n\nThe leader was again the US stock market, whose S&P 500 index rose by 7% in local currency during the month. The Japanese stock exchange, whose index rose by 6.6% in local currency, was a close second. However, due to the strengthening of the euro, the returns from both these stock markets remained lower when measured in euros (5.6% and 5.2%, respectively). Among European countries, Finland and Germany gained the most with returns of 6.3% and 5.1%, respectively.\n\nHowever, emerging markets moved in different directions: while Asian countries, led by China, achieved largely positive returns, Latin American stock markets mostly fell. In the Baltics, the Riga stock market index outperformed the others with a 5% rise. The Vilnius stock market index went up by 1%, while the Tallinn stock market was negative by -3.6%.\n\nIn August, the Pension Fund Täiendav gained considerably from the major German automotive corporations Daimler and Volkswagen, whose shares rose by 14% and 11.5%, respectively, during the month. Summer car sales exceeded expectations, especially in China, where sales went up by 16.4% in July. Against this background, the share of Hella, a manufacturer of electronic components for the automotive industry, rose by almost 11% in August.\n\nThe Lithuanian state energy enterprise Ignitis has announced its intention to hold an IPO, the details of which are yet to be announced. The scale of the planned investments in the Lithuanian energy sector explains the company’s need for additional capital. The fund invested in Ignitis bonds in May, when the company raised money using international ten-year bonds. Although the coupon payment on the bonds is only 2% per annum, the fund has earned more than 6% return on the investment in a few months thanks to the price rise.\n\nThe dynamics of international bond markets had no clear direction in August. The highest-rated government bonds fell slightly, while lower-rated corporate bonds rose again in both Europe and the US.\n"},{"year":2020,"month":7,"content":"### July 2020 – E-commerce sector remains robust\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets moved in different directions in July. While the stock exchanges of the US and emerging markets showed positive results, European stock exchanges mostly remained in the red.\n\nThe Euro Stoxx 50 Index, which brings together major European companies, fell by 1.6% in July with the United Kingdom, Spain and France suffering the biggest losses. The Finnish and Swedish equity markets showed positive returns, adding 2.7% and 2.6% respectively. The Japanese Nikkei Index, however, fell by a total of 5.4% in euro terms over the month. The MSCI Emerging Markets Index added 8.4% in the local currency, but the return in euros remained as low as at 3.4% owing to the appreciation of the euro.\n\nOf the Baltic states, Vilnius stock exchange showed the best result with a 5.4% return, while the results of Riga and Tallinn stock exchanges were modest (0.5% and –0.2% respectively).\n\nThe results of Täiendav Pension Fund were once again supported by e-commerce-related shares. South-America-based MercadoLibre showed a 7.8% return in July and the share prices of Chinese company Alibaba increased by 10%. Constantly good return was also ensured by investments made in spring in such Nordic companies as TOMRA Systems, GN Store Nord, Epiroc and Carlsberg. Swedbank’s results for Q2 were better than expected. Over the month, the company’s shares added 21.4% in value on Stockholm stock exchange.\n\nOver the course of July we sold all of the Estonian government bonds that we had subscribed to during the issue that took place a month earlier. In little over a month, the sharp rise in bond prices increased the return earned by LHV funds by approximately 2%.\n\nThese government bonds will yield interest of around 0.125% per year for the next ten years. Consequently, the price increase meant that the bonds could already be sold now for the same amount of profit we would have earned by gathering interest for the next ten years.\n\nIn other words, on our sales level, the future return of these bonds would have been close to zero if we had kept the bond until the maturity date. In contrast, the investment of LHV pension funds made outside the public market in the bonds of Riigi Kinnisvara AS will yield an annual interest of 1.61%.\n\nWe wish to take even better advantage of such facts in the future: we will use direct investments to offer pension savers investments with greater return, which can only be accessed by funds.\n\nOverall, the month was good for bond markets with the general rule being “the poorer the credit quality, the better the return”. Thus the profit earned by investors ranged from a little over 1% for eurozone government bonds to over 4% for the bonds of companies with a very low rating located across the ocean in the United States. The price movements continue to be based mainly on central banks’ support measures.\n"},{"year":2020,"month":6,"content":"### June 2020 – Gold and copper miners benefit from increase in metal prices\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nThe return of global equity markets continued to be mainly positive in June. Euro Stoxx 50, which brings together the 50 largest stock companies in the euro area, added 6.4% during the month, whereas the greatest return was shown by the German Stock Index, which was up by 6.2%. The return of the Japanese Nikkei index was somewhat lower: +1.9% in the local currency and 0.5% in euros. The MSCI Emerging Markets Index, however, added a total of 7% in June.\n\nOnce again, Baltic equity markets showed good performance. The Tallinn Stock Exchange index added 2.4% in June and Riga and Vilnius Stock Exchanges were both up by 2.2%.\n\nIn the context of uncertainty of the future of global economy, the return of the Täiendav Pension Fund was once again supported by the shares of companies active in the mineral extraction industry. The share price of gold mining companies AngloGold Ashanti and Barrick Gold rose by 16.6% and 11.6%, respectively, during the month. The share price of Freeport-McMoRan, whose main activity is copper mining, increased by a whopping 26.9%.\n\nWe made a big new investment in the fund by subscribing to bonds issued by the Republic of Estonia when the state borrowed 1.5 billion euros for 10 years in the form of securities. Estonia’s debt burden continues to be much smaller compared with other countries, thanks to which the bond’s credit rating is very high.\n\nHowever, compared with countries who have decades-long active relationships with investors, Estonia has to offer a little more attractive conditions to investors in order to raise money, as it is essentially a newcomer on the bond market. The security is also the perfect match for our current market expectations, in relation to which we are maintaining a low risk level.\n\nThe bond of Portuguese energy company EDP, which was repaid at the end of the month, is also worth mentioning. This was the last investment made during the euro crisis, which was still in the fund’s portfolio. Since their acquisition in the summer of 2011, the annual yield of the securities of EDP was more than 5.5% and the price of the bond increased by almost 40%.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**The price of gold rises as confidence tumbles**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n","text":"This year has been full of surprises and major changes in our daily lives and in the financial world, which should reflect the economic side of real life. Even in their wildest dreams, school children could not have imagined at the beginning of the year that almost all the schools in the world would be closed for months.\n\nThe financial world has been verging on the surreal for years. But only recently have there been so many absurd situations and decisions that the line between the real and the surreal is beginning to blur.\n\nWho could have predicted that a company’s shares could go up by more than 100% after filing for bankruptcy? The global car rental company Hertz filed for bankruptcy in June after running into difficulties but then began to prepare a public share offering due to growing investor interest. The authorities ruled out this plan, as the money from the share issue would have simply gone to creditors.\n\nWhile anything can be rationalised, there is a line beyond which reason starts to resist. For me, that line was crossed a while ago, in 2014. That was when the European Central Bank lowered its key interest rate to –0.1%, which meant that interest would be paid by the lender rather than the borrower. But maybe I’m just too old-fashioned.\n\nThe ECB has now further lowered its interest rate on the deposit facility to –0.5%. As a result, almost all German government bonds will carry a definite loss if held to maturity, and even the very highly indebted Italian government can enjoy the luxury of negative interest rates.\n\nIn 2020, however, events have moved towards the surreal at an entirely new pace. From a half-century low of 3.5% in February, US unemployment surged to a historical peak of 14.7% by April. On the other hand, although the S&P500 Index, which follows the performance of the largest US companies, initially fell by 34%, the US stock market was close to its previous peak by the end of July.\n\n**Protection against the absurd**\n\nLHV’s pension funds have for a long time increasingly focused on real assets, including real estate. We have also kept an eye on the commodities sector, but as long as the global economy shows no signs of recovery, there is no reason to expect an increase in the demand for industrial commodities.\n\nThere is one mineral resource that stands out from the rest in our current absurd and unreal world: more and more investors are starting to see gold again as a yardstick against which to measure the value of other assets. Gold is shining ever brighter in an environment where countries have abandoned all budgetary discipline and central banks are unashamedly financing public spending without even trying to find justifications.\n\nWhile investing in the low-risk government bonds guarantees a loss due to negative interest rates, there is at least some hope of earning from gold. Investing in gold is encouraged by the growing tensions between the world’s two largest economies, deepening social inequality and the resulting dissatisfaction.\n\n**When power overrides the common good**\n\nFlipping through an analysis, entitled “Where to put money amid the bear market in trust”, by Citigroup strategist Matt King last September, one slide stuck in my mind. It described how the nature of democracy can change when power becomes more important to politicians than values.\n\nTrust in politicians has not waned overnight; it has happened gradually over a long period almost everywhere in the world. It’s impossible to pinpoint a particular moment and say that trust ended there, but some events and periods should be noted.\n\nIn spring 2019, I registered for the first time the phrase “parliamentary mathematics” being used in Estonia. Politics should be based on values; mathematics is value-free. The new coalition agreement, however, was described by the participants as a trade-off: they weighed and bargained who would have the biggest slice of the pie. With the agreement signed and the pie divided, the abolition of the mandatory funded pension was already decided by summer 2019.\n\nAt a pensions seminar organised by the International Monetary Fund and Bank of Estonia on 30 September last year, the Estonian finance minister announced in his typically forthright manner that the matter had been decided: mandatory pension would be terminated (i.e. replaced by a voluntary scheme) and any further discussions would have to be held without the minister. He then left the seminar. The stakeholders were left with no other choice but to look on as the decision was written into law.\n\nI was somewhat surprised to see the otherwise outspoken finance minister give slightly vague answers before a full sitting of the Supreme Court at the beginning of August this year regarding the preparation of the new Funded Pensions Act. However, during a recess, the minister was once again straightforward with the press. He declared that failing a favourable decision by the Supreme Court, the government would abolish the second pension pillar completely.\n\nLiberty, responsibility and self-determination are precious values for society, but it would be absurd to make every mandatory element voluntary. For example, I hope the abolition of compulsory basic education will never be demanded on the grounds that parents, who know their children best and care about them the most, can provide them with the best and most personalised education. It is probably clear to everyone that it would be demagogic to say that without compulsory education, schools would compete and provide better education.\n\n**Disservice rather than service**\n\nIt would be naïve, or downright malevolent, to claim that the proposed pension reform will boost competition and productivity. The government’s reform aims to turn the existing pension funds with their very long-term horizons into short-term (about 12 months) funds. This would significantly restrict their ability to choose investment opportunities and make the different funds even more similar to one another.\n\nThere is no doubt, then, that the law pushed by the government would hamper the performance of pension funds and restrain competition, putting those that continue to invest at a disadvantage. This is because the volume of pension funds would shrink, service fees would go up, and the share of bonds with negative yields in the funds would increase.\n\nThe draft act doesn’t contain a single provision that would expand the investment opportunities of pension funds. Then again, this is not important for the government, given that the main goal and political decision is to abolish the mandatory funded pension, leaving the public with a choice between fast or slow liquidation.\n\nThe pension reform proposed by the government would (initially) retain the current pension funds but would destroy the three-pillar pension system where each pillar has a distinct function (the voluntary second pillar would lose its distinct function).\n\nIt is natural for a pension system to evolve and change with the values of society. But it is absurd that the development and improvement of the pension system should be treated in the same way as political bargaining and pie slicing to be handled in the space of a few months.\n\nIf we were to learn anything from the pension reform completed in 2002, it is that haste does not bring success. The collection phase turned out more or less well because it received at least some attention. By contrast, the disbursement phase, the discussion of which was postponed arguing that it could wait, is still not working today, 18 years later. This does not mean that pension insurance is necessarily a bad or useless product.\n\nWhile fine tuning its plan to abolish the second pillar, the current coalition has failed to take the time to examine what it is abolishing. If anything, it is a lack of interest and time that could explain the justice minister’s answer to the Supreme Court that the coalition’s reform plan would reduce discrimination, enabling people to join a pension fund at any age.\n\nUnlike now, there were politicians in the Pro Patria party at the time of the creation of the funded pension system who realised that small contributions over a short time would only make a small amount, and if paid out over a long period, the disbursements would be extremely small. A short collection period would be impractical and lead to disappointment, which is why the 2002 reform, now labelled “discriminatory”, aimed to protect the people who did not have enough time to collect a proper pension.\n\nIn retrospect, it is pension insurance contracts that should have been restricted 18 years ago, not making them available for benefits below 10,000 euros or until 2030, by which time the market will be large enough for a viable product. At present, there is a risk that the Funded Pensions Act will be amended so that pension insurance will never be available in Estonia.\n\nI hope that Estonia is (and will remain) a country that is guided by the principle “with power comes responsibility” and will not embrace the increasingly common cut-throat morality of “might makes right”.\n\nAs long as trust in the state and the currency it issues is on a downward trend in the world, the price of gold is likely to move up, or rather, the value of money relative to gold will decline. Rationality is out and absurdity in.\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":22.63,"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":"30.06.2020","capacity":"6,110,900.13 €","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":99.22,"unit":"%"},{"name":"Money and deposits","value":0.78,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.07.2020\n\n| Biggest investments | |\n|---|--:|\n| Lyxor Core MSCI World DR UCITS | 25.96% |\n| HSBC MSCI WORLD UCITS ETF | 19.02% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 16.63% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 16.63% |\n| iShares Core MSCI World UCITS | 13.32% |\n| db x-trackers MSCI World Index UCITS ETF | 4.70% |\n| iShares MSCI Frontier 100 ETF | 2.96% |\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 31.07.2020) | 6,110,900.13 € |\n| Management company | AS LHV Varahaldus |\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**Rate of the depository’s charge:** 0,0564%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.39%\n\n**Ongoing charges (inc management fee):** 0.75%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Indeks_Pluss_tingimused-2017-09-13.pdf)\n"},{"title":"Prospects","type":"markdown","column":"left","content":"- [Prospectus (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_2020.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_LIT100_kuuaruanne_2020_08.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_Pluss_aruanne_2019.pdf)\n- [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":"0%","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":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1%\n\n**Ongoing charges (inc management fee):** 1.78%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":"0%","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":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1%\n\n**Ongoing charges (inc management fee):** 1.27%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":null,"type":"markdown","column":"left","content":"**Entry fee:** 1%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.5%\n\n**Ongoing charges (inc management fee):** 2.12%\n\n*Ongoing charges are based on expenses for the last calendar year, ie 2019. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":"0,95%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\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":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.95%\n\n**Ongoing charges (inc management fee):** 1.21%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":"1,05%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\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":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.05%\n\n**Ongoing charges (inc management fee):** 1.31%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":"1,15%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\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":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 1%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 1.15%\n\n**Ongoing charges (inc management fee):** 1.43%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":"0,29%"},"fundInfo":{"company":{"title":"Swedbank Investeerimisfondid AS","link":null},"depository":{"title":"Swedbank AS","url":"hhttps://www.swedbank.ee/about/about/branches/official"},"investors":34382},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\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":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.29%\n\n**Ongoing charges (inc management fee):** 0.90%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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},"TUV100":{"heading":"Tuleva III Samba Pensionifond","id":"tuv100","code":"tuv100","dataMarker":"TUV100","securityId":null,"active":null,"suitability":"**Suitable if**\n- you are younger than 55 (for people who are 55 or over, the fund is suitable in combination with a bond fund or bank deposit),\n- and you want to achieve the best possible rate of return, and you are not staggered by short-term fluctuations of the market.\n","strategy":"**Strategy**\nThe assets of the fund are only invested in units of investment funds that follow the MSCI All-Country World Index (MSCI ACWI), its subindices, or indices with a similar composition of underlying assets.\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0.3%"},"fundInfo":{"company":{"title":"Tuleva Fondid AS","link":null},"depository":{"title":"AS Swedbank","url":"https://www.swedbank.ee/about/about/branches/official"},"investors":0},"transaction":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - *SEB Pank AS*\nEE362200221067235244 - *Swedbank AS*\nEE961700017004379157 - *Luminor Bank AS*\n\n**Explanation**\n30101119828, EE3600001707, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n","accordion":[{"id":"expenses","active":true,"title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n"},{"title":null,"type":"markdown","column":"right","content":"**Management fee:** 0.3%\n\n**Ongoing charges (inc management fee):** 0.49%\n\n*The ongoing charges figure is an estimate based on the current management fee and the 2019 level of all other recognized costs. Ongoing charges may vary from year to year.*\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\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":"EE3600001707","strategyType":null,"managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"Tuleva","minSumInEurWhenBuying":0,"decimalPlacesInNumberOfShares":4,"decimalPlacesInPrice":5,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LRK100":{"heading":"LHV Pensionifond Roheline","id":"roheline","code":"roheline","dataMarker":"LRK100","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you are partial to thinking green,\n- you would like to invest your pension funds in an environmentally friendly and sustainable manner.\n","strategy":"**Strategy**\n\nThe fund's assets are invested in accordance with the principle that investments must be responsible, environmentally friendly, green, ethical, sustainable, anti-climate change, resource-efficient or have a lower greenhouse gas footprint than other investment opportunities.\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":558},"accordion":[{"id":"info","title":"Information about the fund","active":true,"content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.07.2020) | 1,333,296.66 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 781 250 units |\n| Rate of the depository’s charge | 0,0564% (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:** 0.4067%\n"},{"title":null,"type":"markdown","column":"right","content":"**Success fee:** no commission\n\n**Ongoing charges (inc management fee):** 0.85%\n\n*The ongoing charges figure is an estimate based on the current management fee and estimated total fees. Ongoing charges may vary from year to year.*\n"}]},{"id":"documents","title":"Documents","content":[{"title":"Terms and Conditions","type":"markdown","column":"left","content":"- [Terms and conditions (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_tingimused.pdf)\n"},{"title":"Prospectus","type":"markdown","column":"left","content":"- [Prospectus (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_prospekt.pdf)\n- [Analysis of the amendments made to the prospectus 14 May 2020 (in Estonian)](/assets/files/pension/Prospekti_muutmise_moju_analyys_14052020.pdf)\n- [Key Investor Information (in Estonian)](/assets/files/pension/LHV_Pensionifond_Roheline_KIID.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 August 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_kuuaruanne_2020_08.pdf)\n"}]}],"strategyKey":"mittekonservatiivne","isin":"EE3600001723","strategyType":"Non-conservative","managementStyle":"Active","riskLevel":5,"countryShareEe":0,"fundManager":"LHV"}}