etru

II pillar

LHV pension funds have the highest 10-year rate of return¹

As retirement age approaches, the pension fund should involve lower risk. When choosing your second pension pillar, keep in mind two important things:

  • how much time you have left until retirement
  • what level of risk you are willing to take

II pillar funds

LHV Pension Fund XS – The safest choice

Suitable if

  • you have less than 3 years left until retirement,
  • you have low risk tolerance,
  • your aim is to preserve your savings and avoid losses.
Join the fund

Strategy
We invest the money into the bonds of various governments and their affiliated organisations. They offer the greatest stability and the lowest risks. There is no stock market risk. The money accumulated for your pension remains stable.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 0,62802%

Information about the fund

Volume of the fund (as of 30.09.2017)20,710,191.89 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund110 000 units

Rate of the depositary’s charge0,06% (paid by LHV)

AS SEB Pank

We will allocate your money into international enterprises, the development of which we believe in. At the same time, it must be taken into consideration that the future of these enterprises depends on both their internal decisions as well as the changes in the global economy.

The data is presented as at 30.09.2017

Biggest investments
France 05/20276.85%
Czech Republic 05/20224.61%
Transpordi Varahaldus 04/20254.50%
Riigi Kinnisvara 06/20274.37%
Temasek Financial 03/20224.26%
Slovakia 11/20243.93%
Elering 07/20183.70%
United States 08/20192.88%
Amber Circle Funding 12/20222.74%
Lithuania 09/20172.16%
Current asset allocation
Money and deposits39.2%
Government bonds27.0%
Corporate bonds33.8%
Regional distribution
Money and deposits39.2%
The Baltic states25.0%
Europe (excl. the Baltic states)19.7%
Asia9.0%
North America2.9%
Other4.3%

The fund earned a positive result in August

Romet Enok, portfellihaldur

Last month, we increased the investment in short-term bonds of Eesti Energia. The continued bond purchasing programme of the European Central Bank has caused a situation, where the prices of short-term bonds of blue chips have been pushed so high that their further expected yield is often negative. Based on the conservative rules established to funds we purchased US government bonds in parallel to the specified transaction to keep the share of investments with a very high rating. Depreciation of the dollar has made the latter more attractive for European investors. From the previously acquired fund positions, the Lithuanian energy company bonds, bought from the new issue in the summer are worth mentioning in August, which by the end the month had appreciated by 4.7%. Altogether, the fund had a slightly positive monthly result similar to the European as well as the government bond market price movements.

The type of disbursement depends on how much you have accumulated in the fund. The type of payments can be predicted with the concept of the national pension rate, the sum of which is established on the basis of an annually set index. Since April 2017 the sum is EUR 175.94.

How can the funds be withdrawn from the second pillar?

See video

Pension agreement: when more than 50 times the national pension rate has been accumulated

The main option of withdrawing the money accumulated in the 2nd pillar fund is to conclude a pension agreement. This means that upon retirement you conclude an agreement with a life insurance company, handing the funds accumulated in the pension fund over to the disposal of the company. In return, the insurance company will pay you a regular pension until the end of your life. This is important information, as insurance companies are making estimations about the duration of the pension age and calculate the sum of the disbursements made to you. If you live a healthy life and to an old age, the insurance company will make payments to you in a larger amount than the one accumulated in the fund. Otherwise, the insurance company keeps some of the money and uses it to make payments to clients who live to an older age.

Funded pension: when up to 50 times the national pension rate has been accumulated

When up to EUR 9000 has been accumulated in the pension account, the money can be used with periodical payments from the pension fund. For this, an application must be filled in at a bank office or the online bank. In your application, notify the bank of the desired period of the payments and the total duration of the pension payments. How short the period can be is determined by the Funded Pensions Act and depends on the age of the pensioner. Unlike an insurance company, which pays you a pension for the rest of your life, payments from the pension fund are only made as long as there is money on your account. On the other hand, all of the assets in the fund belong to the recipient of the pension, and when they pass away, they are transferred to their heirs.

In a lump sum: when up to 10 times the national pension rate has been accumulated

Money can be withdrawn from the 2nd pension pillar in a lump sum, when less than EUR 1800 have been accumulated in the pension fund.

Bequeathing

The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to inherit fund shares. An income tax of 20% applies to the cash payments.

Taxes

An income tax of 20% applies to the payments from the pension fund. The income tax calculation is based on the tax exemption to the monthly income of a pensioner, which in 2017 is EUR 416.

LHV Pension Fund S – A safe choice

Suitable if

  • you have less than 3 years left until retirement,
  • you have low risk tolerance,
  • your aim is the preservation and modest growth of your pension savings.
Join the fund

Strategy
We invest your money into strong corporate bonds. They offer stability in the maintenance of your money and are not affected as much by the prevalent economic situation as corporate shares. There is no stock market risk. The growth of your pension savings is limited, but will be stable.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 0,79800%

Information about the fund

Volume of the fund (as of 30.09.2017)63,712,663.35 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund270 000 units

Rate of the depositary’s charge0,06% (paid by LHV)

AS SEB Pank

We will allocate your money into international enterprises, the development of which we believe in. At the same time, it must be taken into consideration that the future of these enterprises depends on both their internal decisions as well as the changes in the global economy.

The data is presented as at 30.09.2017

Biggest investments
Transpordi Varahaldus 04/20254.63%
Temasek Financial 03/20224.20%
Latvenergo 06/20224.11%
Slovakia 11/20244.04%
Riigi Kinnisvara 06/20273.94%
Investor 05/20233.30%
Latvia 09/20252.95%
Romania 10/20242.63%
Elering 07/20182.57%
Amber Circle Funding 12/20222.57%
Current asset allocation
Money and deposits27.4%
Government bonds20.0%
Corporate bonds52.7%
Regional distribution
Money and deposits27.4%
The Baltic states24.5%
Europe (excl. the Baltic states)30.7%
Asia7.2%
North America5.2%
Other5.0%

The fund earned a positive result in August

Romet Enok, Portfolio Manager

Riigi Kinnisvara AS continued using the money from the fund under a contract concluded in spring. To increase the fund’s cash position, we sold in the same period within a month the 6-year Lithuanian government bonds. The bonds of RKAS became the fifth biggest investment of the fund by the end of August and according to the plan, the position will also continue to grow during the autumn. After the entire limit has been taken into use in November, the company will be the largest investment of the fund outside of government bonds. From the positions acquired by the fund from the international market last month, the bonds of the Lithuanian energy company are worth mentioning, which by the end of August appreciated in value by 4.7%. No new positions were acquired in August; as with the European bond markets, the result of the fund remained slightly on the positive side.

The type of disbursement depends on how much you have accumulated in the fund. The type of payments can be predicted with the concept of the national pension rate, the sum of which is established on the basis of an annually set index. Since April 2017 the sum is EUR 175.94.

How can the funds be withdrawn from the second pillar?

See video

Pension agreement: when more than 50 times the national pension rate has been accumulated

The main option of withdrawing the money accumulated in the 2nd pillar fund is to conclude a pension agreement. This means that upon retirement you conclude an agreement with a life insurance company, handing the funds accumulated in the pension fund over to the disposal of the company. In return, the insurance company will pay you a regular pension until the end of your life. This is important information, as insurance companies are making estimations about the duration of the pension age and calculate the sum of the disbursements made to you. If you live a healthy life and to an old age, the insurance company will make payments to you in a larger amount than the one accumulated in the fund. Otherwise, the insurance company keeps some of the money and uses it to make payments to clients who live to an older age.

Funded pension: when up to 50 times the national pension rate has been accumulated

When up to EUR 9000 has been accumulated in the pension account, the money can be used with periodical payments from the pension fund. For this, an application must be filled in at a bank office or the online bank. In your application, notify the bank of the desired period of the payments and the total duration of the pension payments. How short the period can be is determined by the Funded Pensions Act and depends on the age of the pensioner. Unlike an insurance company, which pays you a pension for the rest of your life, payments from the pension fund are only made as long as there is money on your account. On the other hand, all of the assets in the fund belong to the recipient of the pension, and when they pass away, they are transferred to their heirs.

In a lump sum: when up to 10 times the national pension rate has been accumulated

Money can be withdrawn from the 2nd pension pillar in a lump sum, when less than EUR 1800 have been accumulated in the pension fund.

Bequeathing

The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to inherit fund shares. An income tax of 20% applies to the cash payments.

Taxes

An income tax of 20% applies to the payments from the pension fund. The income tax calculation is based on the tax exemption to the monthly income of a pensioner, which in 2017 is EUR 416.

LHV Pension Fund M - A balanced choice

Suitable if

  • you have more than 3–10 years left until retirement age,
  • you have moderate risk tolerance
  • the aim is the long-term stable growth of your pension savings.
Join the fund

Strategy
We allocate most of the funds into bonds, which offer stability when it comes to the preservation of your money. For added balance, we also invest into real estate and enterprises to allow for stable growth by your pension savings. Up to 25% of the fund’s assets will be allocated to shares, that is, holdings in companies will be acquired. We invest the rest into bonds and real estate.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 1,06400%

Information about the fund

Volume of the fund (as of 30.09.2017)92,018,727.02 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund380 000 units

Rate of the depositary’s charge0,06% (paid by LHV)

AS SEB Pank

We will allocate your money into international enterprises, the development of which we believe in. At the same time, it must be taken into consideration that the future of these enterprises depends on both their internal decisions as well as the changes in the global economy.

The data is presented as at 30.09.2017

Biggest investments
EfTEN Kinnisvarafond4.98%
Transpordi Varahaldus 04/20254.10%
Riigi Kinnisvara 06/20273.50%
Latvia 01/20213.29%
Bulgaria 09/20243.22%
Autolist 04/20222.74%
East Capital Baltic Property Fund II2.59%
Latvenergo 06/20222.47%
Citadele banka 12/20262.32%
Lithuania 11/20242.14%
Current asset allocation
Money and deposits22.1%
Government bonds16.4%
Corporate bonds44.9%
Real estate9.0%
Shares7.5%
Regional distribution
Money and deposits22.1%
The Baltic states45.3%
Europe (excl. the Baltic states)17.5%
Asia3.1%
North America9.6%
Other1.2%

New local investments to be added to the fund

Romet Enok, Portfolio Manager

Compared to July, August was predominantly calm in the stock markets of developed countries and the result of the Japanese and most of the European stock exchanges remained slightly in the red. In the Baltics, the best yield of 5.3% was demonstrated by the Vilnius stock exchange and the Tallinn and Riga stock exchanges increased by 3.3% and 0.3%, respectively. For now, the Vilnius and Riga stock markets have shown a positive return for the six months starting from March; the Tallinn stock exchange only moved in May, by 0.7%. Performance of the pension fund was also supported in August by Finnish real estate company Technopolis, the shares of which rose by 7.8% in a month on the Helsinki stock exchange. The company reported strong quarterly results for Q2, largely thanks to the recovery of economic growth and the real estate sector.

Although, the contracts related to bonds were only signed in September, we reached an agreement last month on financing the purchase of Autoleht by auto24. During the transaction, the company will issue and the fund will subscribe identical bonds with them, which were used in spring to finance the buyout from former foreign owners. Active work with local issuers continues and we hope to get some additions to the portfolio with new investments soon. From the previously acquired fund positions, the Lithuanian energy company bonds, bought from the new issue in July are worth mentioning, which by the end August had appreciated by 4.7%.

The type of disbursement depends on how much you have accumulated in the fund. The type of payments can be predicted with the concept of the national pension rate, the sum of which is established on the basis of an annually set index. Since April 2017 the sum is EUR 175.94.

How can the funds be withdrawn from the second pillar?

See video

Pension agreement: when more than 50 times the national pension rate has been accumulated

The main option of withdrawing the money accumulated in the 2nd pillar fund is to conclude a pension agreement. This means that upon retirement you conclude an agreement with a life insurance company, handing the funds accumulated in the pension fund over to the disposal of the company. In return, the insurance company will pay you a regular pension until the end of your life. This is important information, as insurance companies are making estimations about the duration of the pension age and calculate the sum of the disbursements made to you. If you live a healthy life and to an old age, the insurance company will make payments to you in a larger amount than the one accumulated in the fund. Otherwise, the insurance company keeps some of the money and uses it to make payments to clients who live to an older age.

Funded pension: when up to 50 times the national pension rate has been accumulated

When up to EUR 9000 has been accumulated in the pension account, the money can be used with periodical payments from the pension fund. For this, an application must be filled in at a bank office or the online bank. In your application, notify the bank of the desired period of the payments and the total duration of the pension payments. How short the period can be is determined by the Funded Pensions Act and depends on the age of the pensioner. Unlike an insurance company, which pays you a pension for the rest of your life, payments from the pension fund are only made as long as there is money on your account. On the other hand, all of the assets in the fund belong to the recipient of the pension, and when they pass away, they are transferred to their heirs.

In a lump sum: when up to 10 times the national pension rate has been accumulated

Money can be withdrawn from the 2nd pension pillar in a lump sum, when less than EUR 1800 have been accumulated in the pension fund.

Bequeathing

The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to inherit fund shares. An income tax of 20% applies to the cash payments.

Taxes

An income tax of 20% applies to the payments from the pension fund. The income tax calculation is based on the tax exemption to the monthly income of a pensioner, which in 2017 is EUR 416.

LHV Pension Fund L – LHV’s flagship

Suitable if

  • you have more than 10 years left until retirement,
  • you have average risk tolerance
  • the aim is the long-term growth of your pension savings.
Join the fund

Strategy
We invest in different areas, the development of which we believe in (e.g. real estate, forest, private equity, Baltic shares, international stock markets and bonds). We allocate up to 50% of the fund’s assets onto stock markets, obtaining holdings in companies. We invest the rest into bonds and real estate.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 1,33000%

Information about the fund

Volume of the fund (as of 30.09.2017)724,347,755.34 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund2 400 000 units

Rate of the depositary’s charge0,06% (paid by LHV)

AS SEB Pank

We will allocate your money into international enterprises, the development of which we believe in. At the same time, it must be taken into consideration that the future of these enterprises depends on both their internal decisions as well as the changes in the global economy.

The data is presented as at 30.09.2017

Biggest investments
EfTEN Kinnisvarafond5.45%
Riigi Kinnisvara 06/20273.61%
Latvia 01/20213.33%
Latvia 09/20253.29%
Bulgaria 09/20242.91%
JP Morgan Chase 08/20212.53%
Wells Fargo & Company 07/20212.51%
Lithuania 11/20242.44%
Lithuania 01/20242.37%
Morgan Stanley 12/20181.92%
Current asset allocation
Money and deposits15.2%
Government bonds19.1%
Corporate bonds38.4%
Real estate9.3%
Shares18.0%
Regional distribution
Money and deposits15.2%
The Baltic states44.0%
Europe (excl. the Baltic states)20.9%
Asia6.1%
North America11.3%
Other1.3%

Good month on Baltic stock exchanges

Kristo Oidermaa, Portfolio Manager

Compared to July, August was predominantly calm in the stock markets of developed countries and the result of the Japanese and most of the European stock exchanges remained slightly in the red. In the Baltics, the best yield of 5.3% was demonstrated by the Vilnius stock exchange and the Tallinn and Riga stock exchanges increased by 3.3% and 0.3%, respectively. For now, the Vilnius and Riga stock markets have shown a positive return for the six months starting from March; the Tallinn stock exchange only moved in May, by 0.7%. The performance of the pension fund in August was also supported by Finnish real estate company Technopolis, which reported strong results for Q2. In a month, the shares of the company had a 7.8% upsurge at the Helsinki stock exchange. The exit of East Capital Baltic Property Fund II in the real estate investment portfolio of the pension fund from the shopping centre Go9 investment was successful for clients. The shopping centre in the heart of Vilnius was purchased in 2012 and earned a 15% annual rate of return for the investors.

In the bond portfolio, Riigi Kinnisvara AS continued to use the limit under the contract concluded in spring, becoming the biggest investment in the corporate bond portfolio of the fund in August. Although, out of the new investments the contracts related to bonds were only signed in September, we reached an agreement in August on financing the purchase of Autoleht by auto24. During the transaction, the company will issue and the fund will subscribe identical bonds with them, which were used in spring to finance the buyout from former foreign owners. Active work with local issuers continues and we hope to get some additions to the portfolio with new investments soon. From the previously acquired fund positions, the Lithuanian energy company bonds, bought from the new issue in July are worth mentioning, which by the end August had appreciated by 4.7%.

The type of disbursement depends on how much you have accumulated in the fund. The type of payments can be predicted with the concept of the national pension rate, the sum of which is established on the basis of an annually set index. Since April 2017 the sum is EUR 175.94.

How can the funds be withdrawn from the second pillar?

See video

Pension agreement: when more than 50 times the national pension rate has been accumulated

The main option of withdrawing the money accumulated in the 2nd pillar fund is to conclude a pension agreement. This means that upon retirement you conclude an agreement with a life insurance company, handing the funds accumulated in the pension fund over to the disposal of the company. In return, the insurance company will pay you a regular pension until the end of your life. This is important information, as insurance companies are making estimations about the duration of the pension age and calculate the sum of the disbursements made to you. If you live a healthy life and to an old age, the insurance company will make payments to you in a larger amount than the one accumulated in the fund. Otherwise, the insurance company keeps some of the money and uses it to make payments to clients who live to an older age.

Funded pension: when up to 50 times the national pension rate has been accumulated

When up to EUR 9000 has been accumulated in the pension account, the money can be used with periodical payments from the pension fund. For this, an application must be filled in at a bank office or the online bank. In your application, notify the bank of the desired period of the payments and the total duration of the pension payments. How short the period can be is determined by the Funded Pensions Act and depends on the age of the pensioner. Unlike an insurance company, which pays you a pension for the rest of your life, payments from the pension fund are only made as long as there is money on your account. On the other hand, all of the assets in the fund belong to the recipient of the pension, and when they pass away, they are transferred to their heirs.

In a lump sum: when up to 10 times the national pension rate has been accumulated

Money can be withdrawn from the 2nd pension pillar in a lump sum, when less than EUR 1800 have been accumulated in the pension fund.

Bequeathing

The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to inherit fund shares. An income tax of 20% applies to the cash payments.

Taxes

An income tax of 20% applies to the payments from the pension fund. The income tax calculation is based on the tax exemption to the monthly income of a pensioner, which in 2017 is EUR 416.

LHV Pension Fund XL - The boldest choice

Suitable if

  • you have more than 15 years left until retirement,
  • you are prepared to take above-average risks,
  • your aim is the long-term growth of your pension savings.
Join the fund

Strategy
We allocate up to 75% of the fund’s assets into shares, i.e. obtaining holdings in companies. We invest the rest into bonds and real estate. In 2012, we changed our investment strategy; until then, up to 50% was invested into shares.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 1,33000%

Information about the fund

Volume of the fund (as of 30.09.2017)129,054,355.62 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund500 000 units

Rate of the depositary’s charge0,06% (paid by LHV)

AS SEB Pank

We will allocate your money into international enterprises, the development of which we believe in. At the same time, it must be taken into consideration that the future of these enterprises depends on both their internal decisions as well as the changes in the global economy.

The data is presented as at 30.09.2017

Biggest investments
EfTEN Kinnisvarafond5.08%
East Capital Baltic Property Fund II4.16%
Riigi Kinnisvara 06/20273.43%
Latvia 09/20253.04%
Bulgaria 09/20243.03%
WisdomTree Japan Hedged Equity Fund2.53%
Amber Circle Funding 12/20222.47%
iShares STOXX Europe 600 Health Care2.42%
JP Morgan Chase 08/20212.40%
Wells Fargo & Company 07/20212.38%
Current asset allocation
Money and deposits22.8%
Government bonds10.2%
Corporate bonds31.8%
Real estate12.9%
Shares22.3%
Regional distribution
Money and deposits22.8%
The Baltic states38.6%
Europe (excl. the Baltic states)17.2%
Asia7.8%
North America10.3%
Other2.1%

Good month on Baltic stock exchanges

Kristo Oidermaa, Portfolio Manager

Compared to July, August was predominantly calm in the stock markets of developed countries and the result of the Japanese and most of the European stock exchanges remained slightly in the red. Among developing markets, however, a good yield was demonstrated by Latin American countries and also the Russian stock exchange, with its 8.5% rise, was strong. In the Baltics, the best yield of 5.3% was demonstrated by the Vilnius stock exchange and the Tallinn and Riga stock exchanges increased by 3.3% and 0.3%, respectively. Performance of the pension fund was also supported in August by Finnish real estate company Technopolis, the shares of which rose by 7.8% in a month on the Helsinki stock exchange. The company reported strong quarterly results for Q2, largely thanks to the recovery of economic growth and the real estate sector. A negative impact, however came from the 5.6% drop in the shares of the Latvian pharmaceutical company Olainfarm. This was caused by lowering of the sales and profit expectations for this year by the company’s management.

August was a relaxed month for bond markets. The European governments as well as the corporate market ended the month in a slightly positive side. The fund did not acquire any new investments from the market; from the previously acquired positions we should mention the bonds of the Lithuanian energy company acquired from the new issue, the price of which had increased by 4.7% by the end of August. We made another payment to Riigi Kinnisvara Aktsiaselts, which for now has become the biggest investment in the corporate bond portfolio.

The type of disbursement depends on how much you have accumulated in the fund. The type of payments can be predicted with the concept of the national pension rate, the sum of which is established on the basis of an annually set index. Since April 2017 the sum is EUR 175.94.

How can the funds be withdrawn from the second pillar?

See video

Pension agreement: when more than 50 times the national pension rate has been accumulated

The main option of withdrawing the money accumulated in the 2nd pillar fund is to conclude a pension agreement. This means that upon retirement you conclude an agreement with a life insurance company, handing the funds accumulated in the pension fund over to the disposal of the company. In return, the insurance company will pay you a regular pension until the end of your life. This is important information, as insurance companies are making estimations about the duration of the pension age and calculate the sum of the disbursements made to you. If you live a healthy life and to an old age, the insurance company will make payments to you in a larger amount than the one accumulated in the fund. Otherwise, the insurance company keeps some of the money and uses it to make payments to clients who live to an older age.

Funded pension: when up to 50 times the national pension rate has been accumulated

When up to EUR 9000 has been accumulated in the pension account, the money can be used with periodical payments from the pension fund. For this, an application must be filled in at a bank office or the online bank. In your application, notify the bank of the desired period of the payments and the total duration of the pension payments. How short the period can be is determined by the Funded Pensions Act and depends on the age of the pensioner. Unlike an insurance company, which pays you a pension for the rest of your life, payments from the pension fund are only made as long as there is money on your account. On the other hand, all of the assets in the fund belong to the recipient of the pension, and when they pass away, they are transferred to their heirs.

In a lump sum: when up to 10 times the national pension rate has been accumulated

Money can be withdrawn from the 2nd pension pillar in a lump sum, when less than EUR 1800 have been accumulated in the pension fund.

Bequeathing

The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to inherit fund shares. An income tax of 20% applies to the cash payments.

Taxes

An income tax of 20% applies to the payments from the pension fund. The income tax calculation is based on the tax exemption to the monthly income of a pensioner, which in 2017 is EUR 416.

LHV Pension Fund Indeks – Continuous investment

Suitable if

  • you want to invest on financial markets on a continuous basis,
  • wish to grow your pension pillar at the lowest possible costs,
  • have prior personal investment experience.
Join the fund

Strategy
We 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.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 0,39%

Information about the fund

Volume of the fund (as of 30.09.2017)6,807,565.00

Price of a unit

Management companyLHV Varahaldus

Equity in the fund468 750 units

Rate of the depositary’s charge0,06% (paid by LHV)

AS SEB Pank

We invest up to 75% of the fund’s assets 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.

The data is presented as at 30.09.2017

Biggest investments
Amundi Index FTSE EPRA Nareit Global UCITS ETF9.38%
iShares Global REIT ETF8.76%
db x-trackers MSCI World Index UCITS ETF8.01%
Vanguard Total World Stock ETF7.92%
iShares Core MSCI Emerging Markets ETF7.73%
BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped7.57%
Vanguard FTSE All-World UCITS ETF7.51%
Vanguard FTSE Emerging Markets ETF7.48%
iShares Core MSCI World UCITS7.02%
db x-trackers MSCI USA Index UCITS ETF4.95%
Current asset allocation
Money and deposits0.2%
Real estate26.6%
Shares73.2%
Regional distribution
Money and deposits0.2%
Emerging Markets23.5%
Frontier Markets2.6%
Developed Markets73.8%

The type of disbursement depends on how much you have accumulated in the fund. The type of payments can be predicted with the concept of the national pension rate, the sum of which is established on the basis of an annually set index. Since April 2017 the sum is EUR 175.94.

How can the funds be withdrawn from the second pillar?

See video

Pension agreement: when more than 50 times the national pension rate has been accumulated

The main option of withdrawing the money accumulated in the 2nd pillar fund is to conclude a pension agreement. This means that upon retirement you conclude an agreement with a life insurance company, handing the funds accumulated in the pension fund over to the disposal of the company. In return, the insurance company will pay you a regular pension until the end of your life. This is important information, as insurance companies are making estimations about the duration of the pension age and calculate the sum of the disbursements made to you. If you live a healthy life and to an old age, the insurance company will make payments to you in a larger amount than the one accumulated in the fund. Otherwise, the insurance company keeps some of the money and uses it to make payments to clients who live to an older age.

Funded pension: when up to 50 times the national pension rate has been accumulated

When up to EUR 9000 has been accumulated in the pension account, the money can be used with periodical payments from the pension fund. For this, an application must be filled in at a bank office or the online bank. In your application, notify the bank of the desired period of the payments and the total duration of the pension payments. How short the period can be is determined by the Funded Pensions Act and depends on the age of the pensioner. Unlike an insurance company, which pays you a pension for the rest of your life, payments from the pension fund are only made as long as there is money on your account. On the other hand, all of the assets in the fund belong to the recipient of the pension, and when they pass away, they are transferred to their heirs.

In a lump sum: when up to 10 times the national pension rate has been accumulated

Money can be withdrawn from the 2nd pension pillar in a lump sum, when less than EUR 1800 have been accumulated in the pension fund.

Bequeathing

The assets of the pension fund can be bequeathed. Heirs are free to choose whether to withdraw the amount at once or to inherit fund shares. An income tax of 20% applies to the cash payments.

Taxes

An income tax of 20% applies to the payments from the pension fund. The income tax calculation is based on the tax exemption to the monthly income of a pensioner, which in 2017 is EUR 416.

Market overview of pension funds

Significant upswing on Baltic stock markets in August
Andres Viisemann, Head of LHV Pension Funds

August was a relatively calm month on the securities markets, as befits the summer. Measured in euros, the global stock markets closed slightly in the red (-0.5 %). European stock markets dropped 0.8 % and North American stock markets 0.6 %. North American and Western European stock markets showed a significant rise at the end of last year and the beginning of this year, reaching a relatively high level, compared to the profits posted by the companies.

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Do not hesitate to ask, together we will find a suitable solution.

Reet Roos
Pension Consultant
Mon–Fri 8–17
680 2743
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