II pillar

LHV funds are no 1 in accruing pension since 2002¹

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 Pensionifond 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 0.585%

Information about the fund

Volume of the fund (as of 31.12.2018)20,429,040.02 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund110 000 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS 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 31.12.2018.

Biggest investments
France 05/20275.56%
Germany 09/20224.75%
Czech Republic 05/20224.52%
Temasek Financial 03/20224.32%
Riigi Kinnisvara 06/20273.92%
Transpordi Varahaldus 04/20253.88%
Slovakia 11/20243.85%
United States 08/20192.99%
Amber Circle Funding 12/20222.74%
Stedin Holding 10/20222.53%
Current asset allocation
Money and deposits27.83%
Government bonds30.38%
Corporate bonds41.82%
Regional distribution
Money and deposits27.83%
The Baltic states27.89%
Europe (excl. the Baltic states)28.00%
Asia9.03%
North America2.99%
Other4.29%

The fund ended the month on a positive note

Romet Enok, Fund Manager

Government bonds were the only winners of a very complex November. The corporate bond markets in Europe and in the United States are very clearly declining and for corporations with a low rating, the decrease in Europe fell to nearly 2% in November.

Even though it is definitely early to talk about a credit crisis, the price of loaning money is definitely increasing and for some world-famous companies it has reached a level on which it cannot stay for long. This type of situation classically raises the interest of market participants for government bonds and it happened this time as well – the government bond markets of both Europe and the USA managed to end the month on the positive side. XS fund managed to do the same.

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 2018 the sum is 189.31 €.

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 9465 € 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 1893 € 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 2018 is 500 €.

LHV Pensionifond 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 0.684%

Information about the fund

Volume of the fund (as of 31.12.2018)59,326,569.23 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund270 000 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS 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 31.12.2018.

Biggest investments
Temasek Financial 03/20224.51%
Latvenergo 06/20224.42%
Transpordi Varahaldus 04/20254.23%
Luminor Bank 10/20214.20%
Riigi Kinnisvara 06/20274.05%
Investor 05/20233.42%
Total Capital Intl 03/20203.04%
France 10/20222.76%
Romania 10/20242.76%
Amber Circle Funding 12/20222.73%
Current asset allocation
Money and deposits13.67%
Government bonds17.18%
Corporate bonds69.18%
Regional distribution
Money and deposits13.67%
The Baltic states26.74%
Europe (excl. the Baltic states)41.97%
Asia7.72%
North America7.27%
Other2.66%

The assets in the fund are protected against market fluctuations

Romet Enok, Fund Manager

November was quite difficult in corporate bond markets where the price reduction reached 2% in a month amongst the companies of the lowest rating in Europe. The price of debt finance is steadily increasing for companies and even though it is definitely still early to call this situation a crisis, there are obvious warning signs in the air.

Firstly, new sales of bonds have clearly decreased i.e. the real accessibility of money to the companies. Secondly, the debt finance of some world-famous companies has reached a level on which it cannot stay for long. All of this is taking place in a situation where the European Central Bank is still purchasing bonds and the end of the purchasing programme is still ahead. Regardless of the difficult market situation, the S fund managed to protect its assets.

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 2018 the sum is 189.31 €.

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 9465 € 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 1893 € 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 2018 is 500 €.

LHV Pensionifond 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 1.008%

Information about the fund

Volume of the fund (as of 31.12.2018)113,587,954.03 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund380 000 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS 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 31.12.2018.

Biggest investments
Luminor Bank 10/20214.02%
EfTEN Kinnisvarafond3.77%
Riigi Kinnisvara 06/20273.35%
France 10/20222.84%
Transpordi Varahaldus 04/20252.83%
Berkshire Hathaway 01/20212.78%
Tartu Linnavalitsus 10/20322.27%
Coop Pank 12/20272.03%
Latvenergo 06/20222.00%
Citadele banka 12/20261.93%
Current asset allocation
Money and deposits6.78%
Government bonds11.33%
Corporate bonds65.93%
Real estate7.82%
Shares8.27%
Regional distribution
Money and deposits6.78%
The Baltic states50.53%
Europe (excl. the Baltic states)30.53%
Asia2.51%
North America9.74%
Other0.04%

The world's bond markets recovered in November, the Tallinn Stock Exchange offered great surprises

Romet Enok, Fund Manager

November in the world's stock markets was quite modest compared to October and there were no major increases or decreases in the stock exchanges of developed countries. The stock markets of larger European markets mostly saw a slight decrease. For example, the stock exchange indices of Germany, France and Finland decreased by 1.7%, 1.8% and 3.1% respectively. In the Baltics, the Tallinn Stock Exchange showed the best rate of return with a 3.9% increase in November. The Riga Stock Exchange index rose by 0.3% in a month and the stock market of Vilnius decreased by 1.2%.

The increase in the Tallinn Stock Exchange was led by the shipping company Tallink; its stocks rose by 17% in a month. The stocks of the company were listed in Helsinki Stock Exchange at the end of November and the first trading day in Finland was 3 December. The company is also planning to change their dividend policy, according to which the shareholders could receive dividends in the amount of 5 cents per stock every year if the financial results allow it. In addition, it is planned to reduce the share capital of Tallink in a way that shareholders receive a payment of 7 cents per share.

Nelja Energia announced that the new owner of Eesti Energia has decided to pay back the bonds of Nelja Energia prematurely. We purchased the bonds in the summer of 2015 and we have earnt an interest of 6.5% per year from them. In addition, the company pays a premium of 4% for the funds of the company for the premature redemption of bonds.

November was a difficult month in international bond markets where the only winners were government bonds. On the contrary, loaning money is still getting more expensive for companies. The bond market of companies with the lowest credit rate in Europe had the biggest fall; the price loss was almost 2% in a month.

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 2018 the sum is 189.31 €.

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 9465 € 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 1893 € 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 2018 is 500 €.

LHV Pensionifond 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 1.260%

Information about the fund

Volume of the fund (as of 31.12.2018)812,853,414.62 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund2 400 000 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS 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 31.12.2018.

Biggest investments
EfTEN Kinnisvarafond4.54%
Luminor Bank 10/20214.01%
Riigi Kinnisvara 06/20273.83%
France 10/20223.14%
Latvia 01/20212.63%
JP Morgan Chase 08/20212.28%
Wells Fargo & Company 07/20212.26%
Siauliu Bankas 12/20201.97%
Lithuania 01/20241.78%
Baltic Horizon Fund 05/20231.77%
Current asset allocation
Money and deposits4.27%
Government bonds14.48%
Corporate bonds50.83%
Real estate10.31%
Shares20.12%
Regional distribution
Money and deposits4.27%
The Baltic states52.02%
Europe (excl. the Baltic states)30.08%
Asia4.39%
North America9.13%
Other0.12%

The world's bond markets recovered in November, the Tallinn Stock Exchange offered great surprises

Kristo Oidermaa, Fund Manager

November in the world's stock markets was quite modest compared to October and there were no major increases or decreases in the stock exchanges of developed countries. The Japanese stock exchange index, measured in the local currency, increased by 2%. The stock markets of larger European markets mostly saw a slight decrease. For example, the stock exchange indices of Germany, France and Sweden decreased by 1.7%, 1.8% and 1.5% respectively. The Finnish Stock Exchange also continued to decrease with a result of -3.1%. In the Baltics, the Tallinn Stock Exchange showed the best rate of return with a 3.9% increase in November. The Riga Stock Exchange index rose by 0.3% in a month and the stock market of Vilnius decreased by 1.2%.

The real estate fund EfTEN 4, which is part of the newest investments in pension fund L, made its first investment, which was into a shopping centre in Lithuania. The RYO shopping centre in the city of Panevežyse has 132 tenants, from which the largest ones are Rimi, Jysk and H&M. The price of the centre was 47 million euros and this is the second largest investment from all the EfTEN real estate funds. In addition, the Kadrioru Business Centre in Tallinn also belongs to the fund portfolio of EfTEN 4.

Nelja Energia announced in the bond portfolio that the new owner of Eesti Energia has decided to pay back the bonds of Nelja Energia prematurely. We purchased the bonds in the summer of 2015 and we have earnt an interest of 6.5% per year from them. In addition, the company pays a premium of 4% for the funds of the company for the premature redemption of bonds.

November was a difficult month in international bond markets where the only winners were government bonds. On the contrary, loaning money is still getting more expensive for companies. The bond market of companies with the lowest credit rate in Europe had the biggest fall; the price loss was almost 2% in a month.

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 2018 the sum is 189.31 €.

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 9465 € 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 1893 € 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 2018 is 500 €.

LHV Pensionifond 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 1.260%

Information about the fund

Volume of the fund (as of 31.12.2018)167,009,246.52 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund500 000 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS 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 31.12.2018.

Biggest investments
Luminor Bank 12/20193.97%
EfTEN Kinnisvarafond3.67%
Riigi Kinnisvara 06/20273.23%
France 10/20222.86%
Berkshire Hathaway 01/20212.47%
East Capital Baltic Property Fund II2.43%
East Capital Baltic Property Fund III2.34%
iShares DAX EX1.91%
Amber Circle Funding 12/20221.88%
JP Morgan Chase 08/20211.87%
Current asset allocation
Money and deposits4.42%
Government bonds5.45%
Corporate bonds53.95%
Real estate12.72%
Shares23.46%
Regional distribution
Money and deposits4.42%
The Baltic states42.90%
Europe (excl. the Baltic states)36.39%
Asia5.08%
North America11.04%
Other0.17%

The world's bond markets recovered in November, the Tallinn Stock Exchange offered great surprises

Kristo Oidermaa, Fund Manager

November in the world's stock markets was quite modest compared to October and there were no major increases or decreases in the stock exchanges of developed countries. The Japanese stock exchange index, measured in the local currency, increased by 2%. The stock markets of larger European markets mostly saw a slight decrease. For example, the stock exchange indices of Germany, France and Finland decreased by 1.7%, 1.8% and 3.1% respectively.

The index of developing stock markets rose by 4.1%, while the increase was led by Asian countries, especially China. In the Baltics, the Tallinn Stock Exchange showed the best rate of return with a 3.9% increase in November. The Riga Stock Exchange index rose by 0.3% in a month and the stock market of Vilnius decreased by 1.2%.

The great results of Tallinn Stock Exchange were assisted by the shipping company Tallink; its stocks rose by 17% in a month. The stocks of the company were listed in the Helsinki Stock Exchange and it was also announced that there is a plan to increase the dividend payment by 5 cents per stock. In addition, shareholders receive a payment of 7 cents per share within the framework of the reduction of equity capital.

The reduction of the Vilnius Stock Exchange was largely caused by the travel agent Novaturas as its shares decreased by 18% in a month. The company reported an increase in revenue, which was lower than expected, in the third quarter and the profit margins decreased.

Nelja Energia announced in the bond portfolio that the new owner of Eesti Energia has decided to pay back the bonds of Nelja Energia prematurely. We purchased the bonds in the summer of 2015 and we have earnt an interest of 6.5% per year from them. In addition, the company pays a premium of 4% for the funds of the company for the premature redemption of bonds.

November was a difficult month in international bond markets where the only winners were government bonds. On the contrary, loaning money is still getting more expensive for companies. The bond market of companies with the lowest credit rate in Europe had the biggest fall; the price loss was almost 2% in a month.

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 2018 the sum is 189.31 €.

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 9465 € 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 1893 € 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 2018 is 500 €.

LHV Pensionifond 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 31.12.2018)11,348,147.01 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund468 750 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS 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 31.12.2018.

Biggest investments
Lyxor Core MSCI World DR UCITS28.70%
Amundi Index FTSE EPRA Nareit Global UCITS ETF26.35%
db x-trackers MSCI Emerging Markets Index UCITS22.20%
iShares Core MSCI World UCITS12.91%
db x-trackers MSCI World Index UCITS ETF4.78%
Vanguard FTSE Emerging Markets UCITS ETF2.24%
iShares MSCI Frontier 100 ETF2.01%
Current asset allocation
Money and deposits0.82%
Real estate26.35%
Shares72.84%
Regional distribution
Money and deposits0.82%
Emerging Markets24.44%
Frontier Markets2.01%
Developed Markets72.74%

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 2018 the sum is 189.31 €.

How can the funds be withdrawn from the second pillar?

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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 9465 € 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 1893 € 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 2018 is 500 €.

LHV Pensionifond Eesti – maximum investment in Estonia

Suitable if

  • you have more than 15 years left until retirement,
  • you want to link your pension with the Estonian economy,
  • you also have investments in other regions.
Join the fund
Strategy

The fund invests, subject to the availability of suitable investments, 100% in Estonia. Investments are made in shares, debts, real estate, and also in other funds. Since the number of securities traded on the Tallinn Stock Exchange is low, the fund invests extensively outside the exchange. Since the fund is linked to one region, it would not be wise to invest all your pension assets in this fund.

Rate of return

From the beginning / Current year / Current month

Expenses

Entry fee 0% / Exit fee 0% / Management fee 1.26%

Information about the fund

Volume of the fund (as of 31.12.2018)2,197,316.29 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund2 690 184.87 units

Rate of the depository’s charge0.0588% (paid by LHV)

DepositoryAS SEB Pank

The assets of LHV Pensionifond Eesti are invested mostly in Estonia – the country in whose development we have faith and whose potential we know the best. The results of the fund are directly dependent on the well-being of the Estonian economy and Estonian companies. Due to a scarcity of suitable investments, the share of each investment is relatively high.

The data is presented as at 31.12.2018.

Biggest investments
Birdeye Timber Fund5.06%
EfTEN Kinnisvarafond II5.05%
Eesti Energia 09/20234.74%
auto24 04/20224.68%
Allianz Finance 12/20204.58%
Berkshire Hathaway 01/20214.58%
Baltic Horizon Fund 05/20234.57%
SAP 04/20204.56%
Transpordi Varahaldus 12/20264.56%
Birdeye Timber Fund 24.55%
Current asset allocation
Money and deposits5.66%
Corporate bonds50.49%
Real estate19.60%
Shares24.27%
Regional distribution
Money and deposits5.66%
The Baltic states69.24%
Europe (excl. the Baltic states)20.54%
North America4.58%

A lot of good news came from the Tallinn Stock Exchange in November

Kristo Oidermaa, Romet Enok, Fund Managers

The index of the Tallinn Stock Exchange rose by 3.9% in November, which was largely led by the shipping company Tallink; its share rose to 17%. The shares of the company were listed on the Helsinki Stock Exchange at the end of November and the first trading day in Finland was 3 December. The company is also planning to change their dividend policy, according to which the shareholders could receive dividends in the amount of 5 cents per stock every year if the financial results allow it. In addition, it is planned to reduce the share capital of Tallink in a way that shareholders receive a payment of 7 cents per share.

Strong quarterly results were also reported by Tallinna Sadam; its shares rose by 1.9% in November. The company's revenue increased compared to the same period of last year by 16.1%, mainly due to the strong increase of the volume of goods. The volume of liquid bulk which was problematic for a while, increased by 76% in a year. In addition, the company improved its profitability in all business segments.

Market overview of pension funds

New ways must be found to grow money
Andres Viisemann, Head of LHV Pension Funds

Although the major stock markets remained slightly upside in November, the overall mood was rather nervous. Investors sense that good times do not last forever and the current increase in stock prices has been one of the longest ones in history. However, markets will not decline just because the increase has been going on for too long. In general, this is still due to the fact that the price level of assets has increased faster than justified by the economic environment.

Ask for advice

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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