{"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":4974},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":76.18,"unit":"%"},{"name":"Money and deposits","value":23.82,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| France Government 25/05/21 | 7.75% |\n| German Government 1.5% 04/09/22 | 3.88% |\n| Temasek 0.5% 01/03/22 | 3.54% |\n| Czech Republic 3.875% 24/05/22 | 3.51% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.27% |\n| Slovakia 3.375% 15/11/24 | 3.16% |\n| Ignitis Grupe 2% 21/05/30 | 2.89% |\n| BNP Paribas 2.875% 24/10/22 | 2.67% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 2.64% |\n| Bank of America 04/05/23 | 2.55% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.27% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 2.64% |\n| Elering 0.875% 03/05/2023 | 2.05% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.05.2020) | 24,623,130.69 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 110 000 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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_XS_kuuaruanne_2020_05.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":5,"content":"### May 2020 – We purchased bonds of Lithuanian energy company\n\nRomet Enok, Fund Manager\n\nMarkets continued to recover from March lows, while a clear link could be detected in relation to the movement of bond prices: the more high-risk the borrower, the more the price of their bonds increased. Thus, lower-rated bonds offered better returns than high-rated bonds; the demand for unsecured bonds was greater than for secured bonds and the price of long-term bonds increased more than that of short-term bonds. Additionally, the organisation of new bond emissions on European markets progressed at a record speed in May.\n\nThe impact of this extremely deep recession on individual companies and states will be revealed in the coming quarters. The price increase in recent weeks can therefore be explained only by central banks announcing support measures in March and April. Whether borrowers’ solvency actually remains at an acceptable level is a risk that many investors are currently taking probably without thinking.\n\nIn May, we made a new large investment in the fund when Lithuanian national energy company Ignitis borrowed money for 10 years with an interest rate of slightly over 2%. Some borrowers who are raising new money must currently pay a premium that is larger than usual in order to attract investors and thus Ignitis’ bonds generated additional return for the fund in an amount almost equal to annual interest already by the end of the month.\n"},{"year":2020,"month":4,"content":"### April 2020 – Central banks extended their supporting hand to the markets\n\nRomet Enok, Fund Manager\n\nBond markets have recovered to varying degrees from their sharp decline in March. While in the United States, the bond prices of companies with stronger as well as weaker solvency have increased sharply as a result of the extremely aggressive measures taken by the Federal Reserve, in Europe price movements have been considerably more modest.\n\nIn addition to the problems facing enterprises, Italian government bond prices have once again gradually dropped. The Italian economy, which has barely recovered from the previous crises, is facing a huge budget deficit and investors are worried.\n\nFund XS made no new investments in April. Our focus is still on short-term and low-risk placements.\n"},{"year":2020,"month":3,"content":"### March 2020 – High-rated bonds protected the fund from an even greater decline\n\nRomet Enok, Fund Manager\n\nMore things happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.\n\nCentral banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.\n\nAlthough the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.\n\nAs our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March. For the fund, however, this did mean a loss of slightly more than 1% for the month.\n\nAs at the end of March, nearly 85% of the fund’s assets were comprised of deposits, European Union governments and state-owned enterprises, and other public sector enterprises with a very high rating. Bond markets are facing a tough time and we are ready to take and advantage of the emerging opportunities.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]}],"strategyKey":"konservatiivne","isin":"EE3600019782","strategyType":"Conservative","managementStyle":"Active","riskLevel":2,"countryShareEe":9.66,"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":9020},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":83.41,"unit":"%"},{"name":"Money and deposits","value":16.59,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Temasek 0.5% 01/03/22 | 4.98% |\n| Latvenergo 1.9% 10/06/22 | 4.94% |\n| Luminor 1.5% 18/10/21 | 4.67% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 4.55% |\n| German Government 3.25% 04/07/21 | 4.03% |\n| Investor 4.5% 12/05/23 | 3.87% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 3.14% |\n| Ignitis Grupe 2% 21/05/30 | 3.06% |\n| Romania 2.875% 28/10/24 | 2.92% |\n| SANOFI 1.875% 04/09/20 | 2.86% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor 1.5% 18/10/21 | 4.67% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 4.55% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 3.87% |\n"}]},{"id":"info","title":"Information about the fund","content":[{"title":"Information about the fund","type":"markdown","column":"left","content":"| Information about the fund | |\n|---|--:|\n| Volume of the fund (as of 31.05.2020) | 53,159,660.75 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 270 000 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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_S_kuuaruanne_2020_05.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":5,"content":"### May 2020 – We purchased bonds of Lithuanian energy company\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nMarkets continued to recover from March lows, while a clear link could be detected in relation to the movement of bond prices: the more high-risk the borrower, the more the price of their bonds increased. Thus, lower-rated bonds offered better returns than high-rated bonds; the demand for unsecured bonds was greater than for secured bonds and the price of long-term bonds increased more than that of short-term bonds. Additionally, the organisation of new bond emissions on European markets progressed at a record speed in May.\n\nThe impact of this extremely deep recession on individual companies and states will be revealed in the coming quarters. The price increase in recent weeks can therefore be explained only by central banks announcing support measures in March and April. Whether borrowers’ solvency actually remains at an acceptable level is a risk that many investors are currently taking probably without thinking.\n\nIn May, we made a new large investment in the fund when Lithuanian national energy company Ignitis borrowed money for 10 years with an interest rate of slightly over 2%. Some borrowers who are raising new money must currently pay a premium that is larger than usual in order to attract investors and thus Ignitis’ bonds generated additional return for the fund in an amount almost equal to annual interest already by the end of the month.\n"},{"year":2020,"month":4,"content":"### April 2020 – Central banks extended their supporting hand to the markets\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nBond markets have recovered to varying degrees from their sharp decline in March. While in the United States, the bond prices of companies with stronger as well as weaker solvency have increased sharply as a result of the extremely aggressive measures taken by the Federal Reserve, in Europe price movements have been considerably more modest.\n\nA possibility to raise funds is opening up again for enterprises. The situation facing companies affected most by the crisis, is characterised by Boeing, who had to offer investors an interest rate of 4.5–6% (depending on the maturity) in order to get a loan.\n\nAs unemployment is increasing in many parts of the world, and the credit quality of enterprises is deteriorating, we will continue to keep the assets of fund S primarily in short-term bonds with sound solvency in the future.\n"},{"year":2020,"month":3,"content":"### March 2020 – High-rated bonds protected the fund from an even greater decline\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nMore things have happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.\n\nCentral banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.\n\nAlthough the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.\n\nAs our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March. For the fund, however, this did mean a loss of slightly more than 1% for the month.\n\nAs at the end of March, nearly 60% of the fund’s assets were comprised of deposits, European Union governments and state-owned enterprises, and other public sector enterprises with a very high rating. Bond markets are facing a tough time and we are ready to take and advantage of the emerging opportunities.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600019824","strategyType":"Balanced","managementStyle":"Active","riskLevel":2,"countryShareEe":13.28,"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":13840},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":73.11,"unit":"%"},{"name":"Shares","value":8.64,"unit":"%"},{"name":"Equity funds","value":0.71,"unit":"%"},{"name":"Real Estate funds","value":8.27,"unit":"%"},{"name":"Private Equity funds","value":3.53,"unit":"%"},{"name":"Money and deposits","value":5.74,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| German Government 3.25% 04/07/21 | 3.40% |\n| German Government 2.25% 04/09/21 | 3.34% |\n| EfTEN Kinnisvarafond | 3.30% |\n| Luminor 1.5% 18/10/21 | 3.28% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.76% |\n| France Government 25/05/21 | 2.39% |\n| France Government 2.25% 25/10/22 | 2.28% |\n| JP Morgan 1.375% 16/09/21 | 2.07% |\n| Transpordi Varahaldus 2.85% 18/04/25 | 1.90% |\n| BNP Paribas 0.75% 11/11/22 | 1.76% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 3.30% |\n| Luminor 1.5% 18/10/21 | 3.28% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.76% |\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 31.05.2020) | 138,715,786.27 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 380 000 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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_M_kuuaruanne_2020_05.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":5,"content":"### May 2020 – We added two new bond investments to the portfolio\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets continued to rebound in May and returns were positive on stock exchanges of developed countries as well as on most emerging markets. The Euro Stoxx 50 index, which brings together the largest stock companies in the euro area, added 4.7% during the month.\n\nFinnish (6.9%) and German (6.7%) stock exchanges showed the best returns and LHV pension funds have also made large investments in the stock markets of both countries. The return of the Japanese Nikkei index was 8.3% in local currency and 5.9% in euros. The upward trend also continued on Baltic stock exchanges, of which Tallinn Stock Exchange showed the best return at 5.7% growth. Vilnius stock exchange ended up showing a 3.8% return, followed by Riga stock exchange with 2.4%.\n\nIn May, Tallink Group, which belongs to the M pension fund portfolio, published its financial results for Q1 2020. The company’s turnover decreased by 13.4% y-o-y, while loss increased by 19.6%, amounting to more than 30 million euros. Even though the first months of the year were good for Tallink, the closing of the borders due to the pandemic cut the number of passengers by 59% in March and 96% in April. For the company to survive this difficult time, the state decided to grant Tallink a loan of 100 million euros with a term of three years and an interest of 12 months’ Euribor plus 2% per year. Tallink stock price was up by 20.6% on the stock exchange in May.\n\nBond markets also continued to recover. Prices in May generally followed the principle that the more high-risk the borrower, the more the price of their bonds increased. Markets are clearly dominated by the view that central banks will cover all risks for investors. Whether this turns out to be true will be revealed in the following quarters along with the impact of the recession on individual companies and states.\n\nWe also made new bond investments when Lithuanian national energy company Ignitis and the Romanian government borrowed money for 10 years with an interest rate of slightly over 2% and 3.5% respectively.\n\nSome borrowers who are raising new money must currently pay a premium that is larger than usual in order to attract investors and thus Ignitis’ and Romanian bonds generated additional return for the fund in an amount almost equal to annual interest already by the end of the month.\n"},{"year":2020,"month":4,"content":"### April 2020 – Risk appetite of investors restored in April\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAfter a decline in February and March, the global stock markets began to recover rapidly in April, and the index MSCI World rose by 11.1% during the month. The good mood on the markets is mostly the result of record support measures promised by state governments. In Europe, the stock exchanges in Finland and Germany rose the most, with rates of return being 10.1% and 9.3%, respectively, in April. The value of Japanese Nikkei index rose by 6.7%, measured in local currency, and 7.9% in euros.\n\nAlso, the Baltic stock markets have recovered well: the Vilnius stock index rose by 15% and the Tallinn and Riga stock exchanges offered a return of slightly above 11%. However; year-to-date, the Baltic stock markets still remain in the red, as is the case with all global markets.\n\nIn April, Q1 results were published by Lithuanian tour operator Novaturas, whose activity has, in essence, stopped, as no trips are taking place. Despite the strong start to the year, the company’s turnover dropped by 18.9% in Q1 compared to 2019, and net loss worsened. As the travel ban resulting from the emergency situation will likely continue to exist for some time, we can continue to expect very weak performance from the company in the coming quarters.\n\nBond markets have recovered to varying degrees from their sharp decline in March. While in the United States, the bond prices of companies with stronger as well as weaker solvency have increased sharply as a result of the extremely aggressive measures taken by the Federal Reserve, in Europe price movements have been considerably more modest.\n\nThere have been several price fluctuations among listed bonds, but considering the severity of the current situation in the real economy, the decline has still prevented the creation of attractive investment opportunities. We will be ready to respond promptly as soon as these open up, as we keep a considerable volume of highly-rated liquid bonds.\n\nFrom our local bond investments, the activity of Transpordi Varahaldus (leases planes to Nordica) and the Peetri Centre are the most hindered. At the same time, state support for TVH and permission to keep open the grocery stores at Peetri Centre is of help.\n"},{"year":2020,"month":3,"content":"### March 2020 – We moved from Berkshire Hathaway bonds to its shares\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn March, the global stock market decline continued due to the spread of the corona virus and the fear of an economic crisis and, as a result, the first quarter of 2020 was one of the weakest ever for global stock exchanges. The Euro Stoxx 50 Index, which includes the large enterprises of the Eurozone, lost 16.2% of its value in March and fell by a total of 25.3% throughout the first quarter.\n\nAt the same time, the stock exchange indices of the largest European countries fell by more than 10% in March, and by more than 20% in Southern Europe. The value of the Japanese stock market index declined in March by 10%, measured in euros, and in the first quarter by a total of 17.4%. Stock markets in the Baltic Republics also continued to decline, with the Tallinn Stock Exchange dropping by a total of 20% in March. The Vilnius stock index dropped by 12.1% and the rate of return for the Riga Stock Exchange was –10.8%.\n\nAt the beginning of the month, the Lithuanian real estate fund Lords LB Baltic Green Fund, part of the pension fund M portfolio, made its first investment by acquiring an office building complex in the city centre of Vilnius. The complex includes more than 17,000 square metres of rental premises and the fund also sees the potential to build new buildings there and thus increase the rental income.\n\nAs a notable change, we sold the short-term Berkshire Hathaway bonds when the stock markets declined and instead acquired a position in the same company’s shares.\n\nMore things have happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.\n\nCentral banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.\n\nAlthough the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.\n\nAs our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March.\n\nBy the end of March, the majority of the fund’s bonds portfolio (almost one-half) were the bonds of European Union governments and public sector companies, and larger financial institutions from the United States of America. Bond markets are facing a tough time and we are ready to take and advantage of the emerging opportunities.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]}],"strategyKey":"tasakaalustatud","isin":"EE3600019774","strategyType":"Balanced","managementStyle":"Active","riskLevel":2,"countryShareEe":31.71,"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":100751},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":44.8,"unit":"%"},{"name":"Shares","value":18.27,"unit":"%"},{"name":"Equity funds","value":12.35,"unit":"%"},{"name":"Real Estate funds","value":10.53,"unit":"%"},{"name":"Private Equity funds","value":9.16,"unit":"%"},{"name":"Money and deposits","value":4.88,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| EfTEN Kinnisvarafond | 4.21% |\n| Luminor 1.5% 18/10/21 | 3.35% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.34% |\n| German Government 2.25% 04/09/21 | 3.03% |\n| German Government 3.25% 04/07/21 | 2.94% |\n| iShares Gold Producers UCITS ETF | 2.88% |\n| France Government 2.25% 25/10/22 | 2.68% |\n| iShares STOXX Europe 600 DE | 2.12% |\n| Barrick Gold Corp | 1.90% |\n| East Capital Baltic Property Fund III | 1.84% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 4.21% |\n| Luminor 1.5% 18/10/21 | 3.35% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 3.34% |\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 31.05.2020) | 937,753,838.65 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 2 400 000 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):** 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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_L_kuuaruanne_2020_05.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":5,"content":"### May 2020 – Private equity funds adjusted asset values\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets continued to rebound in May and returns were positive on stock exchanges of developed countries as well as on most emerging markets. The Euro Stoxx 50 index, which brings together the largest stock companies in the euro area, added 4.7% during the month.\n\nFinnish (6.9%) and German (6.7%) stock exchanges showed the best returns and LHV pension funds have also made large investments in the stock markets of both countries. The return of the Japanese Nikkei index was 8.3% in local currency and 5.9% in euros. The upward trend also continued on Baltic stock exchanges, of which Tallinn Stock Exchange showed the best return at 5.7% growth. Vilnius stock exchange ended up showing a 3.8% return, followed by Riga stock exchange with 2.4%.\n\nIn May, several private equity funds in L pension fund portfolio published their financial results for Q1: the value of investments was mainly written down. The share prices of listed companies had reacted to the pandemic and the expected recession already in March. For instance, the return of the Novalpina Capital Fund (the portfolio also includes Olympic casinos) for Q1 turned out to be –16.1%. The value of the shares of INVL Baltic Sea Growth private equity fund, however, decreased by 33.1%, mainly due to the temporary closing of InMedica chain of medical institutions, which is included in the portfolio, during the state of emergency.\n\nBond markets also continued to recover. Prices in May generally followed the principle that the more high-risk the borrower, the more the price of their bonds increased. Markets are clearly dominated by the view that central banks will cover all risks for investors. Whether this turns out to be true will be revealed in the following quarters along with the impact of the recession on individual companies and states.\n\nWe also made a new large investment when Lithuanian national energy company Ignitis borrowed money for 10 years with an interest rate of slightly over 2%. Some borrowers who are raising new money must currently pay a premium that is larger than usual in order to attract investors and thus Ignitis’ bonds generated additional return for the fund in an amount almost equal to annual interest already by the end of the month.\n"},{"year":2020,"month":4,"content":"### April 2020 – New equity investments supported the growth of the fund’s rate of return\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAfter a decline in February and March, the global stock markets began to recover rapidly in April, and the index MSCI World rose by 11.1% during the month. The good mood on the markets is mostly the result of record support measures promised by state governments. In Europe, the stock exchanges in Finland and Germany rose the most, with rates of return being 10.1% and 9.3%, respectively, in April. The value of Japanese Nikkei index rose by 6.7%, measured in local currency, and 7.9% in euros.\n\nThe global index of developing markets achieved a 9.3% outcome, whereas Asian stock exchanges were among the strongest. For example, the Chinese stock exchange index rose by 6.7% in a month.\n\nAlso, the Baltic stock markets have recovered well: the Vilnius stock index rose by 15% and the Tallinn and Riga stock exchanges offered a return of slightly above 11%. However; year-to-date, the Baltic stock markets still remain in the red, as is the case with all global markets.\n\nThe rate of return of pension fund L was supported in April by new equity investments made over the past few months. For example, the shares of Swedish companies Sweco and NIME Industrier appreciated on the Stockholm stock exchange by 23.9% and 11.9%, respectively. Also, the Finnish companies operating in the forestry and pulp and packaging industry gave a strong return. Out of these, the rise in the share price of Huhtamäki and Stora Enso was nearly 17% in April, while shares of forest machinery manufacturer Ponsse rose by 15.1%.\n\nWe took advantage of the increase in bond prices, by selling the subordinated bonds with extra-long maturity of Danske bank and Sampo bank. Despite the difficult times on financial markets, both investments guaranteed a nearly 10% rate of return during the 12–18-month suspension period.\n\nThere have been several price fluctuations among listed bonds, but considering the severity of the current situation in the real economy, the decline has still prevented the creation of attractive investment opportunities. We will be ready to respond promptly as soon as these open up, as we keep a considerable volume of highly-rated liquid bonds.\n\nFrom our local bond investments, the activity of Transpordi Varahaldus (leases planes to Nordica) and the Peetri Centre are the most hindered. At the same time, state support for TVH and permission to keep open the grocery stores at Peetri Centre is of help.\n"},{"year":2020,"month":3,"content":"### March 2020 – We sold bonds to take more risks on share markets\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn March, the global stock market decline continued due to the spread of the corona virus and the fear of an economic crisis and, as a result, the first quarter of 2020 was one of the weakest ever for global stock exchanges. The Euro Stoxx 50 Index, which includes the large enterprises of the Eurozone, lost 16.2% of its value in March and fell by a total of 25.3% throughout the first quarter.\n\nAt the same time, the stock exchange indices of the largest European countries fell by more than 10% in March, and by more than 20% in Southern Europe. The value of the Japanese stock market index declined in March by 10%, measured in euros, and in the first quarter by a total of 17.4%. Stock markets in the Baltic Republics also continued to decline, with the Tallinn Stock Exchange dropping by a total of 20% in March. The Vilnius stock index dropped by 12.1% and the rate of return for the Riga Stock Exchange was –10.8%.\n\nWe took an advantage of declining markets to make new investments to the Nordic stock exchanges. For instance, in Sweden, we acquired the shares of Fabege, Sweco, and Nibe Industrier. Fabege is a company that develops real estate and has a very strong building portfolio in the city centre of Stockholm. Sweco advises infrastructure project implementers and is an industry leader in the Nordic countries. Nibe Industrier produces air heat pumps and energy-efficient air conditioners, while the Danish company GN Store Nord mainly produces hearing aids.\n\nMore things have happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.\n\nCentral banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.\n\nAlthough the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.\n\nAs our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March.\n\nWithin a month we sold more than a quarter of the fund’s bond investments and prepared our money for new investments. By the end of March, the majority of the fund’s bonds portfolio (almost one-half) were the bonds of European Union governments and public sector companies.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]}],"strategyKey":"progressiivne","isin":"EE3600019832","strategyType":"Progressive","managementStyle":"Active","riskLevel":3,"countryShareEe":32.04,"fundManager":"LHV"},"LXK75":{"heading":"LHV Pensionifond XL","id":"xl","code":"xl","dataMarker":"XLK50","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you are prepared to take above-average risks,\n- your aim is the long-term growth of your pension savings.\n","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":34559},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":30.64,"unit":"%"},{"name":"Shares","value":24.46,"unit":"%"},{"name":"Equity funds","value":21.16,"unit":"%"},{"name":"Real Estate funds","value":10.58,"unit":"%"},{"name":"Private Equity funds","value":8.86,"unit":"%"},{"name":"Money and deposits","value":4.3,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| German Government 3.25% 04/07/21 | 5.02% |\n| German Government 2.25% 04/09/21 | 4.93% |\n| Xtrackers DAX UCITS ETF | 4.63% |\n| iShares STOXX Europe 600 DE | 4.42% |\n| EfTEN Kinnisvarafond | 3.24% |\n| iShares Gold Producers UCITS ETF | 2.77% |\n| iShares DAX EX | 2.74% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.68% |\n| TRIGON - New Europe Fund D | 2.58% |\n| Luminor 1.5% 18/10/21 | 2.38% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 3.24% |\n| Riigi Kinnisvara 1.61% 09/06/27 | 2.68% |\n| Luminor 1.5% 18/10/21 | 2.38% |\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 31.05.2020) | 202,617,516.62 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 500 000 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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_XL_kuuaruanne_2020_05.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":5,"content":"### May 2020 – Fund’s return benefitted from new equity investments\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets continued to rebound in May and returns were positive on stock exchanges of developed countries as well as on most emerging markets. The Euro Stoxx 50 index, which brings together the largest stock companies in the euro area, added 4.7% during the month.\n\nFinnish (6.9%) and German (6.7%) stock exchanges showed the best returns and LHV pension funds have also made large investments in the stock markets of both countries. The return of the Japanese Nikkei index was 8.3% in local currency and 5.9% in euros. The performance of MSCI Emerging Markets index turned out to be somewhat weaker, as the index gained only 0.6% in local currency. The upward trend also continued on Baltic stock exchanges, of which Tallinn Stock Exchange showed the best return at 5.7% growth. Vilnius stock exchange ended up showing a 3.8% return, followed by Riga stock exchange with 2.4%.\n\nIn May, the return of XL pension fund once again benefited from new stock exchange investments made in spring. Latin American e-commerce company MercadoLibre also achieved a very good return as its share price rose by 42.5% during the month. The shares of Swedish infrastructure company Sweco, which rose by 19.5%, and Danish hearing aid manufacturer GN Store Nord, which added 16.3% in showed a good performance as well. The share price of German industrial giant Siemens increased by 16.4% in May.\n\nBond markets also continued to recover. Prices in May generally followed the principle that the more high-risk the borrower, the more the price of their bonds increased. Markets are clearly dominated by the view that central banks will cover all risks for investors. Whether this turns out to be true will be revealed in the following quarters along with the impact of the recession on individual companies and states.\n\nWe also made a new large investment when Lithuanian national energy company Ignitis borrowed money for 10 years with an interest rate of slightly over 2%. Some borrowers who are raising new money must currently pay a premium that is larger than usual in order to attract investors and thus Ignitis’ bonds generated additional return for the fund in an amount almost equal to annual interest already by the end of the month.\n"},{"year":2020,"month":4,"content":"### April 2020 – Rate of return for the fund was supported by increasing the equity risk\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAfter a decline in February and March, the global stock markets began to recover rapidly in April, and the index MSCI World rose by 11.1% during the month. The good mood on the markets is mostly the result of record support measures promised by state governments. In Europe, the stock exchanges in Finland and Germany rose the most, with rates of return being 10.1% and 9.3%, respectively, in April. The value of Japanese Nikkei index rose by 6.7%, measured in local currency, and 7.9% in euros.\n\nThe global index of developing markets achieved a 9.3% outcome, whereas Asian stock exchanges were among the strongest. For example, the Chinese stock exchange index rose by 6.7% in a month.\n\nAlso, the Baltic stock markets have recovered well: the Vilnius stock index rose by 15% and the Tallinn and Riga stock exchanges offered a return of slightly above 11%. However; year-to-date, the Baltic stock markets still remain in the red, as is the case with all global markets.\n\nA sound rate of return for pension fund XL was generated in April by the shares of companies mining mineral resources. For example, the shares of Agnico Eagle Mines and Barrick Gold appreciated 48.6% and 41.4%, respectively, over the month. The companies Freeport-McMoRan and KAZ Minerals, focussing on copper mining, provided a rate of return of 31.8% and 22.4%.\n\nAlso, the outcome of the pension fund was supported by e-trade companies MercadoLibre, from Latin America, and Rakuten, from Japan, the shares of which appreciated by 20.3% and 14.6%, respectively.\n\nWe took advantage of the increase in bond prices, by selling the subordinated bonds with extra-long maturity of Danske bank and Sampo bank. Despite the difficult times on financial markets, both investments guaranteed a nearly 10% rate of return during the 12–18-month suspension period.\n\nThe volume of the bond portfolio in the fund XL has dropped to the lowest level in recent years, as we have allocated more of the money in the fund to stock markets.\n"},{"year":2020,"month":3,"content":"### March 2020 – We sold bonds to seize the opportunities on stock markets\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn March, the global stock market decline continued due to the spread of the corona virus and the fear of an economic crisis and, as a result, the first quarter of 2020 was one of the weakest ever for global stock exchanges. The Euro Stoxx 50 Index, which includes the large enterprises of the Eurozone, lost 16.2% of its value in March and fell by a total of 25.3% throughout the first quarter.\n\nAt the same time, the stock exchange indices of the largest European countries fell by more than 10% in March, and by more than 20% in Southern Europe. The value of the Japanese stock market index declined in March by 10%, measured in euros, and in the first quarter by a total of 17.4%.\n\nThe stock index of developing markets was also hit hard, in which the greatest losses were carried by Latin American countries. The Chinese stock exchange endured rather well and declined only by 7.1% (in euros) in March. Stock markets in the Baltic Republics also continued to decline, with the Tallinn Stock Exchange dropping by a total of 20% in March. The Vilnius stock index dropped by 12.1% and the rate of return for the Riga Stock Exchange was –10.8%.\n\nWe took advantage of the declining markets to make new investments in the Nordic stock exchanges. For instance, we acquired shares of Valmet, KONE, and UPM-Kymmene on the Finnish Stock Exchange. Valmet is an industrial enterprise that produces solutions for cellulose and paper manufacturers as well as energy sector enterprises. The main business area of KONE is the production and maintenance of lifts and escalators. The company earn 40% of its revenue from China, 40% from Europe, and 20% from the United States. UPM-Kymmene has focused on the production of renewable materials and finding responsible solutions for the forest industry.\n\nMore things have happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.\n\nCentral banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.\n\nAlthough the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.\n\nAs our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March.\n\nWithin a month we sold more than one-half of the fund’s bond investments, acquired shares, and prepared money for new investments. By the end of March, the majority of the remaining bonds portfolio (almost one-half) were the bonds of European Union governments and public sector companies.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]}],"strategyKey":"agressiivne","isin":"EE3600019766","strategyType":"Aggressive","managementStyle":"Active","riskLevel":3,"countryShareEe":28.31,"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":6219},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":72.41,"unit":"%"},{"name":"Real Estate funds","value":27.32,"unit":"%"},{"name":"Money and deposits","value":0.27,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Lyxor Core MSCI World DR UCITS | 27.50% |\n| Amundi Index FTSE EPRA Nareit Global UCITS ETF | 27.32% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 13.02% |\n| HSBC MSCI WORLD UCITS ETF | 11.10% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 10.09% |\n| iShares Core MSCI World UCITS | 5.69% |\n| iShares MSCI Frontier 100 ETF | 2.19% |\n| db x-trackers MSCI World Index UCITS ETF | 2.05% |\n| Vanguard FTSE Emerging Markets UCITS ETF | 0.78% |\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 31.05.2020) | 31,888,831.01 € |\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_2019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_Indeks_kuuaruanne_2020_05.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":"agressiivne","isin":"EE3600109401","strategyType":"Aggressive","managementStyle":"Passive","riskLevel":6,"countryShareEe":0,"fundManager":"LHV"},"TUK00":{"heading":"Tuleva Maailma Võlakirjade Pensionifond","id":"tv","code":"tv","dataMarker":"TUK00","suitability":"**Suitable if**\n- you have less than 10 years till retirement,\n- you are willing to forgo higher returns in order to avoid losses.\n","strategy":"**Strategy**\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":2478},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bond funds","value":97.04,"unit":"%"},{"name":"Money and deposits","value":3.02,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| BlackRock FIDF - Euro Credit Bond Index Fund - Flexible | 24.52% |\n| BlackRock BGIF - Euro Aggregate Bond Index Fund - X2 | 24.41% |\n| BlackRock FIDF - Euro Government Bond Index Fund - Flexible | 24.27% |\n| BlackRock BGIF - Global Government Bond Index - X2 | 23.84% |\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":16560},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":77.86,"unit":"%"},{"name":"Bond funds","value":20.95,"unit":"%"},{"name":"Money and deposits","value":1.21,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| BlackRock ISF - Developed World Index | 27.94% |\n| BlackRock BGIF - World Equity Index - X2 | 27.86% |\n| BlackRock BGIF - Global Government Bond Index - X2 | 20.95% |\n| BlackRock ISF - Developed World ex Tobacco | 13.29% |\n| BlackRock ISF - Emerging Markets Index | 8.77% |\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":"agressiivne","isin":"EE3600109435","strategyType":"Aggressive","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":89274},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":18.16,"unit":"%"},{"name":"Shares","value":1.87,"unit":"%"},{"name":"Equity funds","value":41.76,"unit":"%"},{"name":"Real Estate funds","value":2.98,"unit":"%"},{"name":"Private Equity funds","value":1.13,"unit":"%"},{"name":"Bond funds","value":32.44,"unit":"%"},{"name":"Money and deposits","value":1.66,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI World UCITS ETF | 15.12% |\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 12.30% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 9.30% |\n| iShares Core S&P 500 UCITS ETF | 7.65% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 5.83% |\n| SEB Sustainability Global Index Fund | 5.26% |\n| SEB Ethical Global Index Fund | 5.12% |\n| Bundesrepublic Deutschland 2.25% 04.09.2021 | 3.22% |\n| Robeco QI Global Dynamic Duration | 3.18% |\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 | 1.96% |\n| Tallinna Sadam AS | 1.87% |\n| EfTEN Real Estate Fund IV | 1.28% |\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":"progressiivne","isin":"EE3600019725","strategyType":"Progressive","managementStyle":"Active","riskLevel":4,"countryShareEe":8.63,"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":6188},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":27.54,"unit":"%"},{"name":"Shares","value":1.62,"unit":"%"},{"name":"Equity funds","value":16.47,"unit":"%"},{"name":"Real Estate funds","value":2.69,"unit":"%"},{"name":"Private Equity funds","value":0.49,"unit":"%"},{"name":"Bond funds","value":45.8,"unit":"%"},{"name":"Money and deposits","value":5.39,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 12.45% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 7.27% |\n| Bundesrepublic Deutschland 2% 15.08.2023 | 7.18% |\n| iShares Core MSCI World UCITS ETF | 5.18% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 5.07% |\n| PIMCO Funds Global Investors Series PLC - Global Investment Grade Credit Fund | 4.95% |\n| Robeco QI Global Dynamic Duration | 4.12% |\n| Goldman Sachs Global Credit Portfolio (Hedged) I | 3.47% |\n| iShares Core S&P 500 UCITS ETF | 3.43% |\n| Bundesrepublic Deutschland 2.25% 04.09.2021 | 3.04% |\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 | 1.73% |\n| Tallinna Sadam AS | 1.62% |\n| EfTEN Real Estate Fund IV | 1.13% |\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":"tasakaalustatud","isin":"EE3600098612","strategyType":"Balanced","managementStyle":"Active","riskLevel":3,"countryShareEe":7.43,"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":11887},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":41.74,"unit":"%"},{"name":"Equity funds","value":5.2,"unit":"%"},{"name":"Bond funds","value":48.79,"unit":"%"},{"name":"Money and deposits","value":4.27,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares EUR Corp Bond 1-5yr UCITS ETF EUR Dist | 15.35% |\n| iShares Core EUR Corp Bond UCITS ETF EUR (Dist) | 14.09% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 13.21% |\n| UBS ETF-Barclays Euro Area Liquid Corporates 1-5 Year UCITS ETF | 7.87% |\n| iShares EUR Corporate Bond Large Cap UCITS ETF | 7.57% |\n| Bundesrepublic Deutschland 2.25% 04.09.2021 | 6.39% |\n| Bundesrepublic Deutschland 1.5% 15.02.2023 | 4.31% |\n| Bundesrepublic Deutschland 3% 04.07.2020 | 4.30% |\n| iShares Euro Ultrashort Bond UCITS ETF | 2.69% |\n| Luminor Bank Estonia 1.5% 18.10.2021 | 1.97% |\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 | 1.97% |\n| Elering 0.875% 03.05.2023 | 1.76% |\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":4.4,"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":508},"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":"agressiivne","isin":"EE3600001699","strategyType":"Aggressive","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":13522},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.25,"unit":"%"},{"name":"Money and deposits","value":0.78,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Amundi Prime Global Ucits ETF DR | 26.76% |\n| SPDR MSCI World Ucits ETF | 23.94% |\n| LYXOR Core MSCI World | 18.54% |\n| Access Global | 18.40% |\n| HSBC MSCI World UCITS ETF | 11.61% |\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":"agressiivne","isin":"EE3600109393","strategyType":"Aggressive","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":109234},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":8.97,"unit":"%"},{"name":"Shares","value":44.72,"unit":"%"},{"name":"Equity funds","value":32.37,"unit":"%"},{"name":"Real Estate funds","value":4.38,"unit":"%"},{"name":"Private Equity funds","value":0.69,"unit":"%"},{"name":"Bond funds","value":2.87,"unit":"%"},{"name":"Money and deposits","value":6.04,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 15.34% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 7.07% |\n| Access Europa A | 6.66% |\n| Vanguard Long-Term Treasury ETF | 2.87% |\n| iShares Gold Producers UCITS ETF | 1.58% |\n| Apple | 1.56% |\n| Eften Kinnisvarafond II aktsia | 1.51% |\n| Microsoft | 1.24% |\n| Access Edge Emerging Markets A | 1.03% |\n| East Capital Baltic Property III | 1.03% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II aktsia | 1.51% |\n| East Capital Baltic Property III | 1.03% |\n| Luminor Bank 1.500% 211018 | 0.99% |\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":"agressiivne","isin":"EE3600103248","strategyType":"Aggressive","managementStyle":"Active","riskLevel":5,"countryShareEe":8.72,"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":137308},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":38.03,"unit":"%"},{"name":"Shares","value":27.17,"unit":"%"},{"name":"Equity funds","value":18.73,"unit":"%"},{"name":"Real Estate funds","value":5.83,"unit":"%"},{"name":"Private Equity funds","value":0.81,"unit":"%"},{"name":"Bond funds","value":5.77,"unit":"%"},{"name":"Money and deposits","value":5.53,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 7.85% |\n| Access Europa A | 3.81% |\n| iShares USD Corporate Bond UCITS | 2.91% |\n| Vanguard Long-Term Treasury ETF | 2.85% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 2.60% |\n| Eften Kinnisvarafond II | 2.30% |\n| iShares Gold Producers UCITS ETF | 1.57% |\n| Luminor Bank 1.500% 211018 | 1.50% |\n| East Capital Baltic Property III | 1.47% |\n| Spain Government 0.750% 210730 | 1.09% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II | 2.30% |\n| Luminor Bank 1.500% 211018 | 1.50% |\n| East Capital Baltic Property III | 1.47% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.54%\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":"progressiivne","isin":"EE3600019758","strategyType":"Progressive","managementStyle":"Active","riskLevel":4,"countryShareEe":12.48,"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":43806},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":62.79,"unit":"%"},{"name":"Shares","value":0.46,"unit":"%"},{"name":"Equity funds","value":17.74,"unit":"%"},{"name":"Real Estate funds","value":7.04,"unit":"%"},{"name":"Private Equity funds","value":0.89,"unit":"%"},{"name":"Bond funds","value":7.01,"unit":"%"},{"name":"Money and deposits","value":6.92,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares USD Corporate Bond UCITS | 5.27% |\n| Amundi ETF MSCI Europe UCITS | 3.37% |\n| Vanguard S&P 500 ETF | 3.34% |\n| Eften Kinnisvarafond II aktsia | 3.09% |\n| Access Europa A | 3.01% |\n| Luminor Bank 1.375% 221021 | 2.95% |\n| Spain Government 0.750% 210730 | 2.62% |\n| Luminor Bank 1.500% 211018 | 2.59% |\n| UBS ETF-MSCI Emerging Markets UCITS ETF | 2.08% |\n| S&P 500 SPDR | 1.78% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Eften Kinnisvarafond II aktsia | 3.09% |\n| Luminor Bank 1.375% 221021 | 2.95% |\n| Luminor Bank 1.500% 211018 | 2.59% |\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":"tasakaalustatud","isin":"EE3600019741","strategyType":"Balanced","managementStyle":"Active","riskLevel":3,"countryShareEe":19.9,"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":10892},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":83.35,"unit":"%"},{"name":"Real Estate funds","value":5.1,"unit":"%"},{"name":"Money and deposits","value":16.08,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Luminor Bank 1.500% 211018 | 4.65% |\n| East Capital Baltic Property Fund III | 4.42% |\n| Luminor Bank 1.375% 221021 | 3.41% |\n| French Government 1.000% 251125 | 2.21% |\n| Eesti Energia 2.384% 230922 | 2.15% |\n| EssilorLuxottica 0.375% 260105 | 2.04% |\n| Landesbank Hessen-Thueringen Giroze 0.375% 250512 | 2.04% |\n| Hungary Government 1.250% 251022 | 1.97% |\n| Bulgaria 1.875% 230321 | 1.81% |\n| French Government 0.000% 220225 | 1.79% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Luminor Bank 1.500% 211018 | 4.65% |\n| East Capital Baltic Property Fund III | 4.42% |\n| Luminor Bank 1.375% 221021 | 3.41% |\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":20.81,"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":35841},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":11.79,"unit":"%"},{"name":"Shares","value":1.17,"unit":"%"},{"name":"Equity funds","value":64.71,"unit":"%"},{"name":"Real Estate funds","value":2.1,"unit":"%"},{"name":"Private Equity funds","value":0.38,"unit":"%"},{"name":"Bond funds","value":15.53,"unit":"%"},{"name":"Money and deposits","value":4.32,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core MSCI World UCITS ETF | 15.36% |\n| iShares Core S&P 500 UCITS ETF | 12.18% |\n| SEB Sustainability Global Index Fund | 7.58% |\n| SEB Ethical Global Index Fund C | 7.18% |\n| iShares Core EUR Corp Bond UCITS ETF EUR | 5.43% |\n| Amundi Index MSCI World UCITS ETF DR | 4.64% |\n| Xtrackers MSCI World UCITS ETF | 4.27% |\n| Amundi MSCI Emerging Markets ETF | 3.32% |\n| Bundesrepublic Deutschland 0% 15.02.2030 | 2.76% |\n| PIMCO Funds Gloval Investors Series PLC-Global Investment Grade Credit Fund | 2.56% |\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 | 1.35% |\n| Tallinna Sadam AS | 1.17% |\n| EfTEN Real Estate Fund IV | 0.93% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.72%\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":"agressiivne","isin":"EE3600103297","strategyType":"Aggressive","managementStyle":"Active","riskLevel":4,"countryShareEe":5.64,"fundManager":"SEB"},"LEK75":{"heading":"LHV Pensionifond Eesti","id":"eesti","code":"eesti","dataMarker":"LEK75","suitability":"**Suitable if**\n- you have more than 15 years left until retirement,\n- you want to link your pension with the Estonian economy,\n- you also have investments in other regions.\n","strategy":"**Strategy**\n\nThe assets of the Fund shall be invested up to 100% in Estonia and in instruments related to Estonia, if possible and upon finding suitable instruments. At the same time, the proportion of Estonian-related instruments in the Fund is at least 50% of the value of the Fund’s assets. The assets of the Fund may be fully invested in the equity markets. In addition, the Fund is authorized to borrow up to 10%. The Fund’s long-term preferred asset class is investments related to Estonia.\n\n
\n\n[LHV Pension Fund Eesti and LHV Pension Fund L will merge on 2 September 2020.](https://fp.lhv.ee/news/newsView?locale=et&newsId=5519799)\n","fundInfo":{"company":{"title":"AS LHV Varahaldus"},"investors":175},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Bonds","value":35.03,"unit":"%"},{"name":"Shares","value":33.66,"unit":"%"},{"name":"Real Estate funds","value":22.13,"unit":"%"},{"name":"Private Equity funds","value":0.99,"unit":"%"},{"name":"Money and deposits","value":8.2,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Tallinna Sadam | 5.84% |\n| Tallink Grupp | 5.54% |\n| EfTEN Kinnisvarafond II | 4.34% |\n| EfTEN Real Estate Fund III | 4.30% |\n| Birdeye Timber Fund | 4.28% |\n| Tallinna Kaubamaja | 4.22% |\n| Birdeye Timber Fund 2 | 3.90% |\n| Merko Ehitus | 3.81% |\n| Eesti Energia 2.384% 22/09/23 | 3.78% |\n| France Government 25/05/21 | 3.63% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| Tallinna Sadam | 5.84% |\n| Tallink Grupp | 5.54% |\n| EfTEN Kinnisvarafond II | 4.34% |\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 31.05.2020) | 2,765,363.49 € |\n| Management company | AS LHV Varahaldus |\n| Equity in the fund | 2,690,184.87 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):** 1.26%\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_Eesti_tingimused_02092019.pdf)\n- [Information to unit-holders (in Estonian)](/assets/files/pension/Osakuomanikele_antav_teave_LHV_Pensionifond_Eesti.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_Eesti_KIID.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_Eesti_kuuaruanne_2020_05.pdf)\n- [Annual report for 2019 (in Estonian)](/assets/files/pension/LHV_pensionifond_Eesti_aruanne_2019.pdf)\n- [Annual report for 2018 (in Estonian)](/assets/files/pension/LHV_pensionifond_Eesti_aruanne_2018.pdf)\n"}]},{"id":"history","title":"Fund’s fortunes","type":"listofarticles","content":[{"year":2020,"month":5,"content":"### May 2020 – Re-opening of economies increased optimism on Baltic stock exchanges\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nBaltic stock exchanges continued to recover from early springtime lows in May. Tallinn stock exchange showed the best performance with 5.7% growth. Vilnius stock exchange ended up showing a 3.8% return, followed by Riga stock exchange with 2.4%.\n\nIn May, the Port of Tallinn published its financial results for Q1. This revealed that due to the state of emergency declared in March the company suffered a loss in both turnover and profit compared to the Q1 of the previous year: the sales revenue decreased by 2.2% and profit by 9.6% y-o-y. Even though the volume of goods passing through ports grew by 2% over the year, the number of passengers fell by a total of 13.3% due to the suspension of international passenger ship traffic. The company also announced that it is planning to pay its shareholders dividends of 0.115 euros per share, i.e. 30.2 million euros in total. This enables it to keep the promise made at the time of listing and makes the company’s dividend yield a little more than 6%.\n"},{"year":2020,"month":4,"content":"### April 2020 – Investors began buying again on Baltic stock exchanges\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nBaltic stock exchanges recovered rapidly in April from the decline of the last months: The Vilnius stock index even rose 15% during the month and the Tallinn and Riga stock exchanges offered both a return of slightly more than 11%. However; year-to-date, the Baltic stock markets still remain in the red, as is the case with all global markets.\n\nIn April, Coop Pank published its 2020 Q1 results. The bank had acquired 5600 new customers during the quarter, which meant that by the end of March it had 69,400 clients. The bank’s loan portfolio increased by 9.5% compared to the end of 2019, reaching EUR 504 million, with the home loan business showing the fastest growth. Deposit volumes also continued to grow; yet, due to the emergency situation, the loan impairment cost increased significantly and the negative impact is expected to continue also in the coming quarters. Therefore, the net profit earned by Coop Pank decreased by 7.7% compared to Q4 2019.\n"},{"year":2020,"month":3,"content":"### March 2020 – The emergency situation impacted the shares of Tallink and the Port of Tallinn the most\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nSimilarly to the situation in February, stock exchanges all over the world continued to fall in March due to the corona virus. The value of the Tallinn Stock Exchange Index dropped during the month by 20%. The stock exchanges of Riga and Vilnius did slightly better, and their rates of return were –10.8% and –12.1%, respectively.\n\nThe biggest losers on the Tallinn Stock Exchange included the shipping company Tallink, which had to stop almost all of their traffic because of the emergency situation declared by the government. The company’s shares fell by more than 30% in March and, as a result Tallink, decided not to pay any dividends for 2019.\n\nDeclaring the emergency situation has also had a notable impact on the Port of Tallinn as well, with shares falling by almost 20% during the month. Tallink is the undertaking’s largest client, and many cruise ships have also already announced that they will not be visiting Tallinn this year. At present it is also difficult to predict when marine traffic will recover.\n\nThe share price of Tallinna Kaubamaja has fared much better, mainly backed up by the Selver supermarkets chain.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]}],"strategyKey":"agressiivne","isin":"EE3600109476","strategyType":"Aggressive","managementStyle":"Active","riskLevel":3,"countryShareEe":71.16,"fundManager":"LHV"},"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":7489},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":99.21,"unit":"%"},{"name":"Money and deposits","value":0.79,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| iShares Core S&P 500 UCITS ETF | 26.50% |\n| Vanguard S&P 500 UCITS ETF | 20.28% |\n| Lyxor Core STOXX Europe 600 DE ETF | 17.25% |\n| UBS ETF - MSCI Emerging Markets UCITS ETF | 8.93% |\n| Xtrackers Nikkei 225 UCITS ETF | 7.32% |\n| iShares Core S&P 500 UCITS ETF | 6.20% |\n| iShares Core MSCI Pacific ex-Japan UCITS ETF USD Acc | 3.26% |\n| UBS ETF-MSCI Canada UCITS ETF | 2.89% |\n| Amundi MSCI Emerging Markets UCITS ETF | 2.42% |\n| Xtrackers MSCI USA UCITS ETF | 2.07% |\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":"agressiivne","isin":"EE3600109427","strategyType":"Aggressive","managementStyle":"Passive","riskLevel":5,"countryShareEe":0,"fundManager":"SEB"},"NPK00":{"heading":"Luminor C Pensionifond","id":"c","code":"c","dataMarker":"NPK00","suitability":"**Suitable if**\n- your saving period is less than 3 years,\n- you would rather protect your pension assets instead of focusing on the growth.\n","strategy":"**Strategy**\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":4742},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":3.31,"unit":"%"},{"name":"Bond funds","value":93.89,"unit":"%"},{"name":"Money and deposits","value":2.81,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Nordea 1 - US Corporate Bond Fund | 11.22% |\n| Nordea 2 - US Corporate Enhanced Bd Fd | 10.83% |\n| Xtrackers USD Corporate Bond UCITS ETF | 9.04% |\n| Nordea Pro Euro Bond I Growth | 7.26% |\n| iShares Core Euro Government Bond UCITS ETF | 6.73% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 6.62% |\n| Nordea Euro Bond I Growth | 6.33% |\n| iShares Euro Corporate Bond Interest Rate Hedged | 5.46% |\n| Nordea Euro Medium Term Bond Growth | 5.29% |\n| Nordea Corporate Bond I Growth | 4.12% |\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:** 0.70%\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":0,"fundManager":"Luminor"},"NPK25":{"heading":"Luminor B Pensionifond","id":"b","code":"b","dataMarker":"NPK25","suitability":"**Suitable if**\n- your saving period is more than 3 years,\n- you want to grow your pension assets, but do not want to take the risk of significant decreases in the price of the accumulated assets.\n","strategy":"**Strategy**\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":2466},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":18.07,"unit":"%"},{"name":"Real Estate funds","value":4.72,"unit":"%"},{"name":"Bond funds","value":74.67,"unit":"%"},{"name":"Money and deposits","value":2.55,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Xtrackers USD Corporate Bond UCITS ETF | 9.00% |\n| Nordea 1 - US Corporate Bond Fund | 8.02% |\n| Nordea Euro Bond I Growth | 7.75% |\n| SPDR Barclays Euro Government Bond UCITS ETF | 6.14% |\n| Nordea 2 - Emerging Mkt Hard Ccy Bond Fd | 5.98% |\n| Vanguard U.S. Government Bond Index Fund | 5.96% |\n| iShares Core Euro Government Bond UCITS ETF | 5.31% |\n| EfTEN Kinnisvarafond II AS | 4.72% |\n| iShares Euro Corporate Bond Large Cap UCITS ETF | 4.10% |\n| iShares Core Euro Corporate Bond UCITS | 3.51% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 4.72% |\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":"tasakaalustatud","isin":"EE3600098448","strategyType":"Balanced","managementStyle":"Active","riskLevel":3,"countryShareEe":4.72,"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":9110},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":71.05,"unit":"%"},{"name":"Real Estate funds","value":2.82,"unit":"%"},{"name":"Bond funds","value":19.91,"unit":"%"},{"name":"Money and deposits","value":6.23,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Nordea 1 - Global Stars Equity Fund | 9.34% |\n| iShares MSCI North America UCITS ETF | 7.85% |\n| Nordea Corporate Bond I Growth | 7.11% |\n| iShares S&P 500 Health Care Sector UCITS ETF USD A | 6.96% |\n| RBC Funds - Global Equity Focus Fund | 6.86% |\n| iShares S&P 500 ETF | 6.37% |\n| Robeco Emerging Markets Equities Class I EUR | 5.48% |\n| Vanguard U.S. Government Bond Index Fund | 5.42% |\n| iShares MSCI Europe UCITS ETF DIST | 5.14% |\n| Nordea 1 - Emerging Stars Equity Fund | 4.69% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 2.66% |\n| EfTEN Kinnisvarafond AS | 0.17% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.94%\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":"agressiivne","isin":"EE3600103503","strategyType":"Aggressive","managementStyle":"Active","riskLevel":4,"countryShareEe":2.83,"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":26937},"accordion":[{"id":"assets","title":"Current asset allocation","active":true,"content":[{"title":"Asset Classes","type":"piechart","column":"right","content":[{"name":"Equity funds","value":41.24,"unit":"%"},{"name":"Real Estate funds","value":4.54,"unit":"%"},{"name":"Bond funds","value":54.07,"unit":"%"},{"name":"Money and deposits","value":0.15,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|---:|\n| Nordea Pro Euro Bond I growth | 8.23% |\n| Xtrackers USD Corporate Bond UCITS ETF | 7.11% |\n| iShares S&P 500 Health Care Sector UCITS ETF USD A | 6.40% |\n| iShares Core Euro Government Bond UCITS ETF | 5.97% |\n| Nordea 2 - Emerging Mkt Hard Ccy Bond Fd | 5.44% |\n| Nordea 1 - Global Stars Equity Fund | 4.96% |\n| Vanguard U.S. Government Bond Index Fund | 4.82% |\n| iShares MSCI North America UCITS ETF | 4.73% |\n| iShares MSCI Europe UCITS ETF | 4.49% |\n| Nordea 1 - US Corporate Bond Fund | 3.99% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond II AS | 3.38% |\n| EfTEN Kinnisvarafond AS | 1.16% |\n"}]},{"id":"expenses","title":"Expenses","content":[{"title":null,"type":"markdown","column":"left","content":"**Entry fee:** 0%\n\n**Exit fee:** 0%\n\n**Management fee:** 0.94%\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":"progressiivne","isin":"EE3600098430","strategyType":"Progressive","managementStyle":"Active","riskLevel":4,"countryShareEe":4.54,"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":"31.05.2020","capacity":"16,669,022.07 €","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":33.75,"unit":"%"},{"name":"Shares","value":25.12,"unit":"%"},{"name":"Equity funds","value":16.7,"unit":"%"},{"name":"Real Estate funds","value":14.94,"unit":"%"},{"name":"Private Equity funds","value":3.91,"unit":"%"},{"name":"Bond funds","value":0.13,"unit":"%"},{"name":"Money and deposits","value":5.44,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020.\n\n| Biggest investments | |\n|---|--:|\n| EfTEN Kinnisvarafond | 5.36% |\n| iShares STOXX Europe 600 DE | 3.66% |\n| Luminor 1.5% 18/10/21 | 3.59% |\n| East Capital Baltic Property Fund III | 3.38% |\n| iShares Gold Producers UCITS ETF | 2.77% |\n| Xtrackers DAX UCITS ETF | 2.68% |\n| East Capital Baltic Property Fund II | 2.55% |\n| France Government 25/05/21 | 2.41% |\n| Citadele banka 6.25% 06/12/2026 | 2.41% |\n| Barrick Gold Corp | 1.93% |\n"},{"title":"Biggest investments in Estonia","type":"markdown","column":"left","content":"| Biggest investments in Estonia | |\n|---|---:|\n| EfTEN Kinnisvarafond | 5.36% |\n| Luminor 1.5% 18/10/21 | 3.59% |\n| East Capital Baltic Property Fund III | 3.38% |\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 31.05.2020) | 16,669,022.07 € |\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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_taiendav_kuuaruanne_2020_05.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":5,"content":"### May 2020 – Fund’s return benefitted from new equity investments\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nGlobal equity markets continued to rebound in May and returns were positive on stock exchanges of developed countries as well as on most emerging markets. The Euro Stoxx 50 index, which brings together the largest stock companies in the euro area, added 4.7% during the month.\n\nFinnish (6.9%) and German (6.7%) stock exchanges showed the best returns and LHV pension funds have also made large investments in the stock markets of both countries. The return of the Japanese Nikkei index was 8.3% in local currency and 5.9% in euros. The performance of MSCI Emerging Markets index turned out to be somewhat weaker, as the index gained only 0.6% in local currency. The upward trend also continued on Baltic stock exchanges, of which Tallinn Stock Exchange showed the best return at 5.7% growth. Vilnius stock exchange ended up showing a 3.8% return, followed by Riga stock exchange with 2.4%.\n\nIn May, the return of Täiendav pension fund once again benefitted from new stock exchange investments made in spring. Latin American e-commerce company MercadoLibre also achieved a very good return as its share price rose by 42.5% during the month. The shares of Swedish infrastructure company Sweco, which rose by 19.5%, and Danish hearing aid manufacturer GN Store Nord, which added 16.3% in showed a good performance as well. The share price of German industrial giant Siemens increased by 16.4% in May.\n\nBond markets also continued to recover. Prices in May generally followed the principle that the more high-risk the borrower, the more the price of their bonds increased. Markets are clearly dominated by the view that central banks will cover all risks for investors. Whether this turns out to be true will be revealed in the following quarters along with the impact of the recession on individual companies and states.\n\nWe also made a new large investment when Lithuanian national energy company Ignitis borrowed money for 10 years with an interest rate of slightly over 2%. Some borrowers who are raising new money must currently pay a premium that is larger than usual in order to attract investors and thus Ignitis’ bonds generated additional return for the fund in an amount almost equal to annual interest already by the end of the month.\n"},{"year":2020,"month":4,"content":"### April 2020 – Stock markets turned up again in April\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nAfter a decline in February and March, the global stock markets began to recover rapidly in April, and the index MSCI World rose by 11.1% during the month. The good mood on the markets is mostly the result of record support measures promised by state governments. In Europe, the stock exchanges in Finland and Germany rose the most, with rates of return being 10.1% and 9.3%, respectively, in April. The value of Japanese Nikkei index rose by 6.7%, measured in local currency, and 7.9% in euros.\n\nThe global index of developing markets achieved a 9.3% outcome, whereas Asian stock exchanges were among the strongest. For example, the Chinese stock exchange index rose by 6.7% in a month.\n\nAlso, the Baltic stock markets have recovered well: the Vilnius stock index rose by 15% and the Tallinn and Riga stock exchanges offered a return of slightly above 11%. However; year-to-date, the Baltic stock markets still remain in the red, as is the case with all global markets.\n\nThe shares of companies mining mineral resources were quite beneficial to the rate of return of pension fund Täiendav in April. For example, the shares of Agnico Eagle Mines and Barrick Gold rose by 48.6% and 41.4%, respectively, over the month. The companies Freeport-McMoRan and KAZ Minerals, focussing on copper mining, provided a rate of return of 31.8% and 22.4%.\n\nAlso, the outcome of the pension fund was supported by e-trade companies MercadoLibre, from Latin America, and Rakuten, from Japan, the shares of which appreciated by 20.3% and 14.6%, respectively.\n\nWe took advantage of the increase in bond prices, by selling the subordinated bonds with extra-long maturity of Danske bank and Sampo bank. Despite the difficult times on financial markets, both investments guaranteed a nearly 10% rate of return during the 12–18-month suspension period.\n"},{"year":2020,"month":3,"content":"### March 2020 – We took advantage of declining markets to make new investments\n\nKristo Oidermaa and Romet Enok, Fund Managers\n\nIn March, the global stock market decline continued due to the spread of the corona virus and the fear of an economic crisis and, as a result, the first quarter of 2020 was one of the weakest ever for global stock exchanges. The Euro Stoxx 50 Index, which includes the large enterprises of the Eurozone, lost 16.2% of its value in March and fell by a total of 25.3% throughout the first quarter.\n\nAt the same time, the stock exchange indices of the largest European countries fell by more than 10% in March, and by more than 20% in Southern Europe. The value of the Japanese stock market index declined in March by 10%, measured in euros, and in the first quarter by a total of 17.4%.\n\nThe stock index of developing markets was also hit hard, in which the greatest losses were carried by Latin American countries. The Chinese stock exchange endured rather well and declined only by 7.1% (in euros) in March. Stock markets in the Baltic Republics also continued to decline, with the Tallinn Stock Exchange dropping by a total of 20% in March. The Vilnius stock index dropped by 12.1% and the rate of return for the Riga Stock Exchange was –10.8%.\n\nThe rate of return of LHV’s Täiendav Pensionifond was negatively affected, among other things, by large European car manufacturers Volkswagen and Daimler, shares of which declined during the month by 28.1% and 26.7%, respectively. The sales of new cars has dramatically dropped all over the world and currently it is hard to estimate when it could recover.\n\nHowever, the Siemens Healthineers share showed a positive rate of return (+12.7%) because the company produces medical equipment. Moreover, we also took advantage of the declining markets to make new investments on Nordic, German, and Chinese stock exchanges as well as companies that mine mineral resources all over the world.\n\nMore things have happened in large bond markets in March than sometimes do over a period of five years. The spreading virus caused bond prices to drop and, what’s more important, even the world’s largest enterprises almost completely lost the opportunity to borrow any money.\n\nCentral banks intervened with measures that were essentially the same as those used during the crisis ten years ago, although they did so more vigorously and quickly this time: banks were offered support and, for the first time, loans were issued directly to enterprises. Nevertheless, at the end of the month the losses on the European and US corporate bond markets were still between 6% and 15%. On some markets, the rise of the last three years was wiped out all at once.\n\nAlthough the measures employed by central banks helped to stop the price drop, the problem remains. The extremely low interest rates of the last decade have allowed many lower rated enterprises to become so indebted that, according to the latest assessment of the International Monetary Fund, around 40% of all enterprises may find themselves in default during the next crisis. This crisis has arrived.\n\nAs our monthly overviews have emphasised in recent years, we are mainly investing in high-rated and short-term bonds. Doing so has allowed us to avoid enterprises that have borrowed substantial sums of money as well as long-term bonds, which were hit in March. Within a month, we sold more than a third of the fund’s bond investments and acquired equity positions.\n"}]},{"id":"market","title":"Market overview","content":[{"type":"singlearticle","column":"center","picture":"/pension/viisemann-turuylevaade.png","title":"**Cheap credit leads into temptation**\n*Andres Viisemann, Head of LHV Pension Funds*\n","preview":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n","text":"There is no doubt that we are living in extraordinary times. At the end of March, the economies of the world’s biggest countries were partly transferred to a special regime and many economic sectors were more or less shut down. Those who could do so worked from home, but not every product and service can be created and delivered to customers by virtual means.\n\nIn just a couple of months, an enormous amount of value went ungenerated around the globe. This was the price we paid to hopefully avoid even greater social and material ruin. The virus has yet to be conquered, but our adversary has grown a little more familiar. And the more familiar it becomes, the less fear it creates.\n\nStock investors, in particular, have shown themselves to be a fearless bunch. By the end of May, the S&P 500 Index, which reflects the stock prices of major US companies, had risen from its lowest point in March by 39%, while the EURO STOXX 50 Index, which reflects the value of large European companies, saw a 32% increase.\n\nAlthough the pension funds of LHV were doing some aggressive buying on the stock markets in the second half of March, I could hardly have dreamt of such a rapid rise at the time. I do not think that such a reaction from the markets is adequate, even when taking into account the support packages issued by central banks and governments to keep the economy alive, which were unprecedented in their extent.\n\nAlthough the stock markets are said to be an indicator of the health of the economy, empirically, this has not been the case for at least the last 10 years. Rather, the drop in interest rates on the bond markets has indicated what kind of economic growth might be expected in the future.\n\nThe stock markets, on the other hand, have followed the logic that bad news is good news. This means that when the economy is in a tight spot, central banks and governments come up with ways of avoiding a drop in asset prices.\n\nDuring crises, such economic stabilisation may be justified. The problem, however, is that the economic model based on an ever-increasing leverage effect has become incredibly fragile and even the smallest rise in interest rates could lead to an economic crisis.\n\n**Investment or expense**\n\nI cannot agree with those who argue that taking out a loan is entirely self-evident and suppose that money borrowed today will basically never have to be repaid. I think it is dangerous to forget the wisdom of our parents: loans belong to others.\n\nTaking out a loan in order to consume more now implies restricting consumption in the future, which is irrational. If everyone were to act in this way, it would mean a swift increase in wages today and serious unemployment tomorrow, should future consumption decrease more or less by the same amount previously spent.\n\nMoney should only be borrowed for investment, and this too only when the return on the investment will be higher than the interest payable on the loan. Otherwise, it reduces our full income as well as our wealth. In theory, this is easy to understand. In practice, however, the problem seems to lie in the fact that investment is rather a vague concept.\n\nFlippant, careless and arrogant attitudes towards borrowing are further exacerbated by the fact that loans can be obtained with growing ease and lower interest rates. Can a cottage which stands empty for most of the year, requires heating during winter and work from time to time and on which land tax is payable be considered an investment?\n\nTravelling and studying broaden our horizons, and offering self-development opportunities to youngsters assists in moving life forward, but is investment truly the right term for such activities? Not every good deed will bring in more money than is outlaid on it. Yet to make it possible for us to take any good and morally right actions, we must also be economically prudent.\n\n**How are your balance sheet and cash flow looking?**\n\nIn light of the above, not every expense qualifies as an investment – only the allocation of funds preceded by a comprehensive cost-benefit analysis can be considered one. I suspect that companies conduct such analyses more thoroughly than individuals or governments.\n\nThis can already be seen in the fact that companies prepare an income statement, balance sheet and cash flow statement at least once a year. Governments do prepare a state budget, but I have not heard of them making any effort to put together a substantial balance sheet.\n\nMany individuals do not analyse their expenses at all and spend as much money as they have in their wallet and bank account. The heavier the burden of debt, the more important it is to monitor your balance sheet and the movement of your money (i.e. your cash flows).\n\nIn today’s rapidly-changing world, is a professional higher education diploma in, say, business management which is acquired with a student loan of any value if there are no specialist jobs to be found? Is a hospital, half-empty due to a lack of doctors and financed by credit, an asset or a liability?\n\nA situation where the value of assets falls below the cost of liabilities is called bankruptcy. A situation where there is not enough income to service loans is called insolvency.\n\nWith growing indebtedness – even if interest rates are low at the moment – comes a higher risk of bankruptcy and insolvency because liabilities (loan amounts) are usually fixed, but asset prices can fluctuate enormously.\n\nWhen interest rates are at a historic low, it is also dangerous to ignore the fact that such a development is in no way an indication of accelerating economic growth or recovery.\n\nPresumably, it is also a sign of the times, exceptional as they are, that the most powerful country in the world is being led by a man who has declared, “I’m the king of debt. I love debt!” and whose CV lists the bankruptcy of four of his companies. In spring 2016, when then presidential candidate Donald Trump was asked about the future servicing and repayment of US government debt, he gave the following answer: “I would borrow, knowing that if the economy crashed, you could make a deal.”\n"}]},{"id":"payments","title":"Payment details","content":[{"title":"LHV Täiendav Pensionifond","type":"markdown","column":"left","content":"**Recipient**\nAS Pensionikeskus\n\n**Account**\nEE141010220263146225 - SEB Pank AS\nEE362200221067235244 - Swedbank AS\nEE961700017004379157 - Luminor Bank AS\n\n**Explanation**\n30101119828, EE3600010294, IK: Your ID Code\n\n**Amount**\nAmount invested in euros.\n"}]},{"id":"disbursements","title":"Disbursements","content":[{"title":"Disbursements","type":"markdown","column":"left","content":"**Pension agreement**\n\nThe state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.\n\n[See more at Pensionikeskus.ee](http://www.pensionikeskus.ee)\n\n**Resale of shares**\n\nFund shares can always be sold, in which case income tax applies. After turning 55, but not before five years have passed from the initial investment, disbursements are taxed a rate of 10%.\n\n**The third pillar savings can also be bequeathed**\n\nThe heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.\nIncome tax of 20% applies to cash withdrawals.\n"}]}],"strategyKey":null,"isin":"EE3600010294","strategyType":null,"managementStyle":"Active","riskLevel":3,"countryShareEe":23.33,"fundManager":"LHV","minSumInEurWhenBuying":6.39,"decimalPlacesInNumberOfShares":3,"decimalPlacesInPrice":4,"transactionDaysForBuy":1,"transactionDaysForSell":3,"transactionDaysForExchange":3},"LIT100":{"heading":"LHV Pensionifond Indeks Pluss","id":"indeks-pluss","code":"lhv_lit","dataMarker":"LIT100","securityId":147612,"suitability":"**Suitable if**\n- you are prepared to tolerate the risks arising from potentially significant fluctuations in equity markets,\n- you have previous investment experience.\n","strategy":"**Strategy**\nThe fund invests all of its assets in equity markets and the fund manager does not actively change the fund’s risk level. The fund’s assets are invested in index-following investment funds. The share of assets invested in equities is kept close to 100% of the fund’s volume. Whenever the proportion of money in the fund exceeds 2%, it is invested within five working days.\n\nNo particular indices are followed in investing the assets of the fund. Investments in funds investing in equities are distributed between three types of markets – developed markets, emerging markets and frontier markets – based on their approximate share in global gross domestic product (GDP).\n","costs":{"entraceFee":"0%","exitFee":"0%","managementFee":"0.39%"},"fundInfo":{"date":"31.05.2020","capacity":"5,627,596.11 €","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":98.75,"unit":"%"},{"name":"Money and deposits","value":1.25,"unit":"%"}]},{"title":"Biggest investments","type":"markdown","column":"left","content":"The data is presented as at 31.05.2020\n\n| Biggest investments | |\n|---|--:|\n| Lyxor Core MSCI World DR UCITS | 26.95% |\n| HSBC MSCI WORLD UCITS ETF | 16.66% |\n| db x-trackers MSCI Emerging Markets Index UCITS | 16.38% |\n| iShares Core MSCI Emerging Markets IMI UCITS ETF | 16.35% |\n| iShares Core MSCI World UCITS | 14.73% |\n| db x-trackers MSCI World Index UCITS ETF | 5.04% |\n| iShares MSCI Frontier 100 ETF | 2.63% |\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 31.05.2020) | 5,627,596.11 € |\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_2019.pdf)\n"},{"title":"Reports","type":"markdown","column":"right","content":"- [Investment report (31 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_LIT100_kuuaruanne_2020_05.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":214},"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 31.05.2020) | 1,188,548.14 € |\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 May 2020) (in Estonian)](/assets/files/pension/LHV_pensionifond_Roheline_kuuaruanne_2020_05.pdf)\n"}]}],"strategyKey":"agressiivne","isin":"EE3600001723","strategyType":"Aggressive","managementStyle":"Active","riskLevel":5,"countryShareEe":0,"fundManager":"LHV"}}