II pillar

LHV pension funds have the highest 15-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 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 31.07.2018)20,415,919.94 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund110 000 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
France 05/20276.03%
Germany 09/20224.80%
Czech Republic 05/20224.53%
Temasek Financial 03/20224.31%
Transpordi Varahaldus 04/20254.12%
Riigi Kinnisvara 06/20273.92%
Slovakia 11/20243.91%
United States 08/20192.91%
Amber Circle Funding 12/20222.67%
Stedin Holding 10/20222.55%
Current asset allocation
Money and deposits31.90%
Government bonds30.93%
Corporate bonds37.19%
Regional distribution
Money and deposits31.90%
The Baltic states25.83%
Europe (excl. the Baltic states)26.16%
Asia8.96%
North America2.91%
Other4.26%

Fund continues to provide a good result, with conservatism being behind the success

Romet Enok, Fund Manager

The month of July saw European bond markets move in the opposite direction to the rest of this year – the prices of corporate bonds rose slightly, while the markets of larger governments fell. Measured from the beginning of the year the situation is the opposite; corporate bonds have offered a negative rate of return at -0.4% while those of governments have offered a positive rate of return at +0.2%. Among the larger markets the movement of government bonds in July had nearly the same result, although the reason for this was different – in the case of Germany, interest rates rose slightly once again based on the expectation of a better economic outlook, while prices in Italy were lowered by investors’ worries about political topics.

The focusing of the fund on opportunities that are located outside of the Euro Zone’s large governments has provided a better result, with Transpordi Varahaldus showing a growth in profit in July in light of the continued growth in the number of air travellers. Among new investments to the fund we added the bonds of Lithuanian Energy, which raised new capital from the market. The term for the bonds is 10 years and the interest is 1.875%.

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 EUR 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 EUR 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 EUR 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 EUR 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 31.07.2018)60,932,437.99 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund270 000 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
France 10/20225.24%
Temasek Financial 03/20224.38%
Transpordi Varahaldus 04/20254.37%
Latvenergo 06/20224.29%
Riigi Kinnisvara 06/20273.94%
Investor 05/20233.32%
Total Capital Intl 03/20202.97%
Romania 10/20242.74%
Sanofi 09/20202.59%
Amber Circle Funding 12/20222.58%
Current asset allocation
Money and deposits16.04%
Government bonds20.76%
Corporate bonds63.20%
Regional distribution
Money and deposits16.04%
The Baltic states23.63%
Europe (excl. the Baltic states)40.99%
Asia7.43%
North America6.80%
Other5.11%

The fund is searching for investment opportunities outside of European bond markets

Romet Enok, Fund Manager

The month of July saw European bond markets move in the opposite direction to the rest of this year – the prices of corporate bonds rose slightly, while the markets of larger governments fell. Measured from the beginning of the year the situation is the opposite; corporate bonds have offered a negative rate of return at -0.4% while government bonds have offered +0.2%. Among the larger markets the movement of government bonds in July had nearly the same result, although the reason for this was different – in the case of Germany, interest rates rose slightly once again based on the expectation of a better economic outlook, while prices in Italy fell due to investors’ worries about political topics.

The focusing of the fund on opportunities located outside of the Euro Zone’s large governments has yielded a better result, with Transpordi Varahaldus, among others, showing a growth in profit in July in light of the continued growth in the number of air travellers. Among new investments to the fund we added the bonds of Lithuanian Energy, which raised new capital from the market. The maturity date for the bonds is 10 years and the interest is 1.875%.

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 EUR 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 EUR 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 EUR 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 EUR 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 31.07.2018)108,021,146.68 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund380 000 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
EfTEN Kinnisvarafond4.14%
Riigi Kinnisvara 06/20273.52%
Transpordi Varahaldus 04/20253.15%
Luminor Bank 12/20193.06%
France 10/20223.04%
Tartu Linnavalitsus 10/20322.57%
Coop Pank 12/20272.14%
Latvenergo 06/20222.10%
Citadele banka 12/20262.04%
auto24 04/20221.96%
Current asset allocation
Money and deposits4.58%
Government bonds11.92%
Corporate bonds66.52%
Real estate8.03%
Shares8.90%
Regional distribution
Money and deposits4.58%
The Baltic states53.28%
Europe (excl. the Baltic states)29.19%
Asia2.61%
North America9.38%
Other0.91%

Global securities markets moved in a positive direction in July

Romet Enok, Fund Manager

After several anxious months, July turned out to be a predominantly positive month for global stock markets. The stock exchanges of the United States, Japan and the majority of European countries showed good results. For example, the German stock exchange index rose in July by 3.6% and the Finnish stock exchange showed a somewhat more restrained rate of return of 1%. The rate of return of Pension Fund M was affected negatively in July by Finnish forestry shares, which had experienced a very strong increase since the start of this year. Investor expectations regarding the forestry sector as such were already too high, and both Stora Enso as well as the Metsä Board’s quarterly results fell below their expectations. Company shares fell during the month by 8.4% and 6.7%, respectively. On the other hand, the rise in the shares of Finnish company Neste and Nokian Renkaat, by 7.7% and 11.1%, respectively, had a positive effect on the pension fund’s rate of return.

Inherent to the improved risk appetite the shares of lower rated corporate bonds rose along with stock markets, while government bonds fell at the same time. Measured from the start of the year, the situation is the opposite – the only market segment in positive territory is government bonds. Although even in their case, the win was modest, as expected. We are continuing to focus on alternatives in place of the Euro Zone’s large markets, where Transpordi Varahaldus, among already performed investments, showed growth in profit based on the increase in the number of air travellers, and we acquired Lithuanian Energy 10 year bonds, which had raised new capital from the market, at an interest rate of 1.875%.

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 EUR 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 EUR 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 EUR 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 EUR 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 31.07.2018)796,216,028.31 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund2 400 000 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
EfTEN Kinnisvarafond4.85%
Riigi Kinnisvara 06/20273.91%
France 10/20223.27%
Luminor Bank 12/20193.23%
Latvia 01/20212.97%
JP Morgan Chase 08/20212.27%
Wells Fargo & Company 07/20212.23%
Lithuania 01/20242.12%
Siauliu Bankas 12/20202.02%
East Capital Baltic Property Fund III1.76%
Current asset allocation
Money and deposits3.87%
Government bonds15.53%
Corporate bonds50.15%
Real estate10.06%
Shares20.35%
Regional distribution
Money and deposits3.87%
The Baltic states52.61%
Europe (excl. the Baltic states)28.63%
Asia4.67%
North America9.21%
Other0.97%

Global securities markets moved in a positive direction in July

Kristo Oidermaa, Fund Manager

After several anxious months, July turned out to be a predominantly positive month for global stock markets. The stock exchanges of the United States, Japan and the majority of European countries showed good results. For example, the German stock exchange index rose in July by 3.6% and the Finnish stock exchange showed a somewhat more restrained rate of return of 1%. The only stock exchange in the Baltic Republics to record a positive return in July was the Vilnius exchange, which rose by 1%. The Tallinn Stock Exchange fell by 0.2% and the Riga stock market index by 2.9%. In July, two of the rental apartment buildings in the L portfolio, located in the Manufaktuuri Quarter of Northern-Tallinn, were completed, and a party was held in celebration. The buildings with 127 apartments will be completed by the end of the year, and the first residents will be able to move in as soon as the spring of 2019.

Inherent to the improved risk appetite the shares of lower rated corporate bonds rose along with stock markets, while government bonds fell at the same time. Measured from the start of the year, the situation is the opposite – the only market segment in positive territory is government bonds. Although even in their case, the win was modest, as expected. We are continuing to focus on alternatives in place of the Euro Zone’s large markets, where Transpordi Varahaldus, among already performed investments, showed growth in profit based on the increase in the number of air travellers, and we acquired Lithuanian Energy 10 year bonds, which had raised new capital from the market, at an interest rate of 1.875%.

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 EUR 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 EUR 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 EUR 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 EUR 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 31.07.2018)156,826,211.51 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund500 000 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
EfTEN Kinnisvarafond4.09%
Luminor Bank 12/20193.83%
Riigi Kinnisvara 06/20273.38%
East Capital Baltic Property Fund II2.61%
East Capital Baltic Property Fund III2.46%
WisdomTree Japan Hedged Equity Fund2.13%
France 10/20222.13%
iShares STOXX Europe 600 Health Care2.03%
Amber Circle Funding 12/20221.95%
JP Morgan Chase 08/20211.94%
Current asset allocation
Money and deposits3.75%
Government bonds6.71%
Corporate bonds53.82%
Real estate12.64%
Shares23.03%
Regional distribution
Money and deposits3.75%
The Baltic states47.03%
Europe (excl. the Baltic states)33.05%
Asia5.64%
North America8.95%
Other1.53%

Global securities markets moved in a positive direction in July

Kristo Oidermaa, Fund Manager

After several anxious months, July turned out to be a predominantly positive month for global stock markets. The stock exchanges of the United States, Japan and the majority of European countries showed good results. For example, the German stock exchange index rose in July by 3.6% and the Finnish stock exchange showed a somewhat more restrained rate of return of 1%. The rate of return for pension fund XL was supported by the shares of Swiss pharmaceutical manufacturer Roche, with the share price rising by 12.3% during the month. Company revenue grew by 7% in Q2 2018, in comparison with the same period of the previous year, and net profit increased by 35%. The company also raised expectations in terms of the expected growth in this year’s income and profit. German car maker Daimler also showed a good rate of return in July, with shares rising by 4.8% over the month. The lowering of tensions between Europe and the United States regarding trade tariffs, which could have exhibited a significant impact on Europe’s automotive industry, had a positive impact on the share price.

Inherent to the improved risk appetite the shares of lower rated corporate bonds rose along with stock markets, while government bonds fell at the same time. Measured from the start of the year, the situation is the opposite – the only market segment in positive territory is government bonds. Although even in their case, the win was modest, as expected. In place of the large markets of the Euro Zone, we are continuing to concentrate on alternatives, having acquired Lithuanian Energy 10 year bonds in July, which had raised new capital from the market, at an interest rate of 1.875%.

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 EUR 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 EUR 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 EUR 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 EUR 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 31.07.2018)10,691,561.31 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund468 750 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
Amundi Index FTSE EPRA Nareit Global UCITS ETF14.73%
iShares Core MSCI World UCITS13.47%
db x-trackers MSCI Emerging Markets Index UCITS11.54%
iShares Global REIT ETF6.40%
db x-trackers MSCI World Index UCITS ETF5.65%
Vanguard Total World Stock ETF5.41%
BNP Paribas Easy FTSE EPRA/NAREIT Eurozone Capped5.20%
Vanguard FTSE All-World UCITS ETF5.17%
db x-trackers MSCI USA Index UCITS ETF5.11%
iShares Core MSCI Emerging Markets ETF4.96%
Current asset allocation
Money and deposits0.82%
Real estate26.91%
Shares72.27%
Regional distribution
Money and deposits0.82%
Emerging Markets23.93%
Frontier Markets2.61%
Developed Markets72.64%

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 EUR 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 EUR 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 EUR 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 EUR 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 31.07.2018)1,877,326.44 €

Price of a unit

Management companyLHV Varahaldus

Equity in the fund2 343 750 units

Rate of the depository’s charge0,06% (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 31.07.2018

Biggest investments
Birdeye Timber Fund5.92%
Eesti Energia 09/20235.77%
EfTEN Kinnisvarafond II5.60%
Baltic Horizon Fund 05/20235.42%
Allianz Finance 12/20205.38%
auto24 04/20225.38%
Daimler Intl Finance 05/20225.31%
Tallinna Kaubamaja4.37%
Tallink Grupp4.01%
BMW 09/20202.83%
Current asset allocation
Money and deposits31.44%
Corporate bonds35.43%
Real estate13.66%
Shares19.46%
Regional distribution
Money and deposits31.44%
The Baltic states49.69%
Europe (excl. the Baltic states)18.86%

Companies in the portfolio reported positive news

Kristo Oidermaa, Romet Enok, Fund Managers

July was a calm month for the Tallinn Stock Exchange, with the exchange index exhibiting a -0.2% rate of return. Among the companies in the portfolio of the Estonia Pension Fund, Harju Elekter reported Q2 2018 results. In comparison with the previous year, the company’s revenue rose during the same period by nearly 35%, mainly due to the increase in orders and takeover transactions in Finland and Sweden. The company’s profit fell by 1.5% over the year. In July, the Silvano Fashion Group paid investors dividends of 20 cents per share, which makes the dividend yield a respectable 7% at the current market price. The newest publicly traded company, Tallinna Sadam, announced that over the summer period it was able to lease the icebreaker Botnica, which has stood idle for several summers. The icebreaker was rented this summer and for the summers of 2019-2022 by a Canadian iron ore mining company.

Market overview of pension funds

The world's stock markets continue to direct us towards the local market
Andres Viisemann, Head of LHV Pension Funds

The new publicly traded company, Port of Tallinn, had its first trading day in June and is the first company with the state's qualifying holding on the Tallinn stock exchange in almost 20 years. The initial public offering of the shares was successful and interest in share purchase was strong: the offered shares were almost three times over-allotted. In addition to LHV pension funds, the investors included many local and foreign institutions and more than 13,000 retail investors.

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
Sign up for a consultation