LHV Pensionifond L

Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
34.46%
0%
100%
Invests into Estonia
63510
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 31.08.2022

Biggest investments
ZKB Gold ETF4.25%
EfTEN Kinnisvarafond3.68%
iShares Gold Producers UCITS ETF3.32%
Riigi Kinnisvara 1.61% 09/06/273.30%
East Capital Baltic Property Fund III2.30%
SG Capital Partners Fund 12.19%
Lyxor EURO STOXX Banks DR UCITS2.16%
Usaldusfond EfTEN Real Estate Fund 42.12%
Baltic Horizon Fund 4.25% 08/05/232.00%
Ardian ASF VIII1.82%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond3.68%
Riigi Kinnisvara 1.61% 09/06/273.30%
East Capital Baltic Property Fund III2.30%

Asset Classes

The data is presented as at 31.08.2022.

Information about the fund

Information about the fund
Volume of the fund (as of 31.08.2022)781,467,656.85 €
Management companyLHV 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.

August 2022: We made a new private equity investment

Kristo Oidermaa and Romet Enok, Fund Managers

In August, world markets were predominantly pessimistic. The MSCI World Index, the US S&P 500, and the Japanese Nikkei Index fell 2.8%, 2.9% and 1.5% over the month in euros, respectively. The European stock exchanges went through a steeper decline last month, with the Euro Stoxx 50 index falling by 5.1%. Emerging markets were a contrast to this, as the MSCI Emerging Markets index rose by 1.5% in euros over the last month. The performance of local stock exchanges was mixed: while the Tallinn and Vilnius stock markets grew by 2.4% and 1.9%, respectively, the Riga stock market declined by 4.5%.

We included a new private equity fund, Investindustrial Growth III, in our over-the-counter (OTC) investments. The fund is managed by Investindustrial, a private equity company operating mainly in Southern Europe. This company has been investing in OTC companies since 1990, when it was first founded in Italy. While Investindustrial’s background gives it an edge in southern European markets, the company is also looking for investment opportunities in the rest of Europe. The Growth III fund focuses on fast-growing medium-sized companies operating primarily in Southern Europe and in four sectors: consumer, industrial, healthcare, and technology. The fund is now starting to invest and plans to buy into eight to ten companies.

Domestic venture capital fund Superangel sold its first investment. Nordigen, an open banking company founded in Latvia, was sold to GoCardless, a company established in the United Kingdom. The Superangel fund invested in Nordigen in early 2020, and the fund’s portfolio still includes more than 40 companies.

In equity positions, precious metals investments showed signs of weakness. Investments were strong, however, in the energy sector, which forms the second cornerstone of our equity investments.

The fund’s listed stock investments remain in the commodity sector, with a focus on precious metals, energy, energy metals, renewable materials (wood) and various links in the related value chains. We believe that in an environment of rapid inflation, equity investments in the commodity sector will help us maintain and increase the purchasing power of our capital.

July 2022: We invested in Rimac, an electric hypercar manufacturer

Kristo Oidermaa and Romet Enok, Fund Managers

Stock markets mostly recovered in July. Measured in euros, the MSCI World index, the US stock market index, the S&P 500, and the Nasdaq Composite index, which tracks the technology sector, rose 10.7%, 12.2%, and 15.5%, respectively. Measured in euros, the Japanese Nikkei index fell 10.2%, while the European Euro Stoxx 50 index and the MSCI Emerging Markets index rose 7.4% and 2.1%, respectively. The local Baltic markets fluctuated: while the Riga and Vilnius stock markets rose by 0.6% and 1.1% respectively during the month, the Tallinn stock market fell by 1.2%.

We have added a new direct investment to the portfolio of over-the-counter investments: Rimac Automobili, a manufacturer of electric hypercars and high-capacity electric batteries. Founded in Croatia in 2009, the company owns brands such as Bugatti, which was acquired last November, in addition to Rimac. What makes the company unique is its focus segments of hypercars and supercars. Rimac manufactures electric batteries and other components for both Rimac’s own vehicle model and Bugatti, as well as car manufacturers such as Koenigsegg, Pininfarina, Aston Martin, and Porsche.

LHV pension funds L and XL invested in Rimac Automobili in cooperation with the private capital company Investindustrial, which offered this investment opportunity to its fund investors. In addition to Investindustrial, Rimac’s leading investors include Porsche, Softbank, Hyundai, and Goldman Sachs. In June, the car manufacturer raised 500 million euros of new capital in its Series D investment round, as a result of which the value of the company rose to more than 2 billion euros. Rimac will use the new capital to finance growth and development.

In July, the local private equity company BaltCap announced that the BaltCap Latvia Venture Capital Fund, which they manage, had sold Vendon. Vendon, a company founded in Riga in 2011, has a primary business focus of the management of vending machines and the processing of related payments. Vendon’s core markets are European countries, where they handle more than 45,000 vending machines. The fund managed, by BaltCap, invested in Vendon in 2011 and Vendon was sold to the Spanish technology company Azkoyen.

In July, the fund’s investments in listed shares recovered from the previous month’s decline. Shares in US and European energy and copper mining companies rose the most. The share prices of Nordic listed companies also rose after several months. Against the background of a general rise in the markets, we saw a decline in investments related to precious metals.

Our fund’s key investments remain in commodity-related shares, which have weathered this year’s market declines well. In July, we bought more shares in copper mining companies for the fund. Any level of economic activity reveals a deficit in the copper market, which comes from low capital investments and the continuing electrification trend.

As regards financing the projects of Estonian companies, we finalised a deal with Perton Ehitus to finance a development project of apartment buildings. Perton Ehitus sold bonds to LHV pension funds for the development of Kotzebue Park in the Kalamaja district in Tallinn for three years. The interest rate is 8.5% per annum and the bond is secured by a mortgage.

June 2022: We invested in the new venture capital fund Plural

Kristo Oidermaa and Romet Enok, Fund Managers

In June, we saw a larger decline in stock markets. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index and the European Euro Stoxx 50 fell 6.4%, 6.2%, 6.2% and 8.8% over the month in euros, respectively. The situation was no different in emerging markets, and the MSCI Emerging Markets index fell by 4.9% in June, measured in euros.

The Baltic markets were more modest. The Tallinn and Vilnius stock markets fell by 3.2% and 3.4%, respectively. The Riga stock market was an exception, growing by 7.2%.

We added the venture capital fund Plural 2022 as a new investment to the OTC investment portfolio. It is a fund founded by Taavet Hinrikus, Sten Tamkivi, Ian Hogarth and Khaled Helioui, experienced founders and investors in start-ups, whose focus is on start-ups with a global growth plan, operating mainly in Europe. What makes Plural unique is that only those who have first-hand experience in founding and developing start-ups can become investment managers and leaders. The size of the fund is 250 million euros and it has invested in 14 start-ups so far.

In June, local private equity firm BaltCap announced that their managed BaltCap Private Equity Fund II was selling the pump and pumping system rental company Uprent. It was acquired by Renta Group, a construction machinery and accessories rental company established in Finland. The BaltCap fund invested in Uprent in 2016. During the investment period, the company’s product range was successfully expanded, as were its operations in both the Baltic and Polish markets.

June was a negative month for listed equity investments, ending the worst half-year for equity markets in decades. Due to the decrease in economic activity, stock investments related to the commodity sector, which had better withstood market fluctuations in the first half of the year, fell the most in June. Equity investments in other industries were also under pressure.

In June, we acquired shares in US natural gas companies Range Resources and Antero Resources due to weakness in the energy sector. On the back of the continued electrification trend, we acquired shares in copper miner Freeport McMoran and the Global X Copper Miners ETF.

In our opinion, the structural deficit of commodities has not disappeared. Commodities have generally provided a good hedge against high inflation, because companies in the sector earn high profits, pay generous dividends and have low debt burdens. With limited supply, commodity companies are among the most interesting industries in the stock market right now.

Bond markets offer one of the best expected return prospects in an environment of rising interest rates. We therefore subscribed to the subordinated bonds of Coop Pank last month. The interest on the instruments is 10% per annum and the bank will have the first redemption right after five years. These are securities that in terms of complexity are closer to bank equity than deposits. LHV pension funds were the largest investor in the private placement.

Investing in an inflationary environment
Andres Viisemann, Head of LHV Pension Funds

After a surprisingly substantial rise in July, the world’s largest stock markets were in decline again in August. The S&P 500 index, which tracks the value of the largest US companies, lost 2.9% of its value measured in euros last month, while the Japanese Nikkei index fell by 1.5%.