LHV Pensionifond L

Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
32.31%
0%
100%
Invests into Estonia
66056
Fund investors

Suitable if

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

The assets of the Fund are invested in various asset classes in both local and foreign markets. The Fund's assets may be invested extensively in unquoted instruments, which are primarily used for investing in securities issued by companies domiciled in the home market. The long-term preferred asset class of the fund is private equity investments.

Performance
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Current year
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The Fund's return is expressed as the net yield after deduction of all fees.

Biggest investments

The data is presented as at 30.04.2022

Biggest investments
EfTEN Kinnisvarafond5.01%
iShares Gold Producers UCITS ETF4.40%
ZKB Gold ETF4.26%
Riigi Kinnisvara 1.61% 09/06/273.12%
France Government 25/05/20222.42%
East Capital Baltic Property Fund III2.29%
Lyxor EURO STOXX Banks DR UCITS2.17%
Barrick Gold Corp2.11%
SG Capital Partners Fund 12.08%
KJK Fund II Balkan Discovery A June 20142.05%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond5.01%
Riigi Kinnisvara 1.61% 09/06/273.12%
East Capital Baltic Property Fund III2.29%

Asset Classes

The data is presented as at 30.04.2022.

Information about the fund

Information about the fund
Volume of the fund (as of 30.04.2022)827,822,342.30 €
Management companyAS LHV Varahaldus
Equity in the fund2 000 000 units
Rate of the depository’s charge0,0576% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0,6240%

Success fee: Performance fee is 20% of the positive difference between the fund's performance and the benchmark, maximum of 2% per annum of the fund's volume. Performance fee for 2021 0,24%.

Ongoing charges (inc management fee): 1,62%

The ongoing charges figure is an estimate based on the current management fee and the 2021 level of all other recognized costs. Ongoing charges may vary from year to year.

March 2022: Rising commodity prices supported the fund’s equity positions

Kristo Oidermaa and Romet Enok, Fund Managers

In March, world stock exchanges moved in quite mixed directions. Measured in euros, the MSCI World Index rose 3.7%, and the US S&P 500 Index rose 4.7%, while the European Euro Stoxx 50 Index fell slightly (0.5%) and the Japanese Nikkei Index rose slightly (0.4%). The MSCI Emerging Markets Index fell 1.4%. The Baltic stock markets also moved in different directions in March: The value of the Tallinn stock market increased by 1.8% during the month, the value of the Riga stock market decreased by 4.8%, and the Vilnius stock market remained almost at the same level as last month, falling by 0.3%.

Astorg Mid-Cap I was added as a new investment in the fund’s private equity portfolio. This private capital fund seeks investment opportunities in European mid-sized companies, focusing on the industrial, business services, health, and software sectors. Astorg was founded in 1998 in France and manages more than 15 billion euros in assets. The company has offices in France, the UK, Italy, Germany, Luxembourg, and the US.

LHV pension funds acquired an office building at Sõpruse pst 157, Tallinn, one of Estonia’s greenest commercial buildings. The office building in the Kristiine district was completed in 2015. The building has a leasable area of more than 2,500 sq. m and the anchor tenant is the reputable information technology company Proekspert AS.

The Sõpruse pst 157 building differs from the rest of Tallinn’s office buildings in terms of its green solutions: the building has been developed following the principles of the green building concept, which makes it one of the most sustainable commercial buildings in Estonia. The building draws its heating and cooling energy from underground energy piles, and electricity is obtained from the solar park on the roof. To reduce the need for cooling, the windows have sunscreens and sun protection ribs. Rainwater collected from the roof is used for flushing the toilets.

In March, we continued to hold listed equities in the commodities sector, where military action in Ukraine exacerbated current trends and increased the structural shortage of many commodities in global markets. Commodity prices rose by an average of 10% during the month, and the commodity sector companies in the fund benefited significantly from this increase. The biggest contributors to the rise were gold and silver-related equity positions and energy companies. The gold mining companies Agnico Eagle Mines and Barrick Gold contributed the most to the price increase of the individual shares.

In the fund’s bond portfolio, we made the last payment to subscribe for the securities of the Estonian renewable energy company Sunly. The company has now fully utilised the bonds needed to finance its solar parks. The interest rate of the bonds is 8% per annum, and they will be redeemed by the end of 2025 at the latest.

February 2022: New real estate and venture capital fund investments

Kristo Oidermaa and Romet Enok, Fund Managers

World stock markets continued to fall in February. The MSCI World Index, the US S&P 500 and the Japanese Nikkei Index fell 2.7%, 3% and 1.6% over the month in euros, respectively. The decline of the European Euro Stoxx 50 index was particularly sharp (5.9%). The MSCI Emerging Markets Index was no exception as it fell 2.9%. In February, local stock markets also fell somewhat more than usual: The Tallinn, Riga and Vilnius stock markets fell by 5.1%, 5.1% and 5.7%, respectively.

We continue to pay great attention to finding real estate and private equity investments for the pension fund. We made the first direct investment in real estate outside Estonia, acquiring five rental apartment buildings in Riga with the aim of earning long-term rental income. Three of the five buildings were completed in 2021, and two are architecturally valuable buildings that recently underwent extensive renovations. There are 109 apartments in the five houses, which are almost fully rented out. In addition, the properties come with building rights for another six-storey apartment building. LHV pension funds’ rental buildings in Riga are located at Sparģeļu iela 10 and Matīsa iela 52 and 65a.

In February, we also invested in the venture capital fund Specialist VC II. The leading partners of the fund, founded in Estonia in 2018, are Gerri Kodres and Riivo Anton, who have long-term experience in start-up investment. The fund mainly focuses on early-stage technology start-ups in the Baltics and Finland, and at least 50% of the fund is planned to be invested in Estonia.

The fund’s equity positions in public markets managed to avoid the general decline in equity indices in February. Positive returns were earned from equity investments related to precious metals and other equity positions in the commodities sector, in which we have invested the most at the moment. In February, we did not make any significant changes to the fund’s equity investments. We see that our investments offer good protection in difficult times thanks to openness to the raw materials and precious metals sectors.

In the bond portfolio, we sold part of the bonds of Riigi Kinnisvara AS. We have held the bonds for about five years. The company’s results have grown rapidly during the period. But given the new rules imposed on pension funds, we have now set the return expectation significantly higher than the interest rate offered by the securities of state-owned companies. Among debt securities, such returns are primarily reached by private company projects, which we want to continue to add to the fund.

January 2022: Energy and financial sector equities defied the general market decline

Kristo Oidermaa and Romet Enok, Fund Managers

World stock markets started the year with a decline. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index and the European Euro Stoxx 50 fell 3.9%, 3.8%, 5.4% and 2.8% over the month in euros, respectively.

Developments on emerging markets were somewhat more modest, with the MSCI Emerging Markets Index declining by only 0.5% in euros over the month. The Tallinn, Riga and Vilnius stock markets were no exception and fell by 2.2%, 1% and 1.5%, respectively.

The beginning of the year brought stronger selling pressure to the stock markets. Due to uncomfortably fast inflation and increased geopolitical tensions, major stock indices fell by 3–10%. Many future technology companies that have reached astronomic price levels in recent years’ stock market boom were at the centre of the decline.

Among technology giants, Netflix share fell 20% after disclosing financial results, as low user growth was a clear disappointment to the markets. Many other growth stocks that gained popularity during the pandemic also fell sharply as they failed to meet new expectations.

Although the fund’s equity investments fell slightly overall, the falls in individual shares remained small. Investments in the energy sector, which benefited from a 15% rise in oil prices, and bank shares, which ended the month with a positive return, are encouraging.

We continued to invest in equities of the commodities and materials sector. These companies are making high profits at current commodity prices and trading at low prices.

Several long-term trends are reversing
Andres Viisemann, Head of LHV Pension Funds

Although Russia’s bloody aggression in Ukraine has lasted for more than a month and a speedy peace agreement is unlikely, international securities markets have remained surprisingly peaceful. The Euro Stoxx 50 index, which tracks the share prices of Europe’s largest companies, fell by only 0.6% in March. The global stock index MSCI World rose 3.7% last month, and the S & P500 index, which reflects the value of the largest listed companies in the US, rose as much as 4.7%.