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LHV Pensionifond M

10%
-10%
10%
10 year net yield
2
1
7
Risk level
38.18%
0%
100%
Invests into Estonia
6575
Fund investors

Suitable if

  • you have 3–10 years left until retirement age,
  • you have moderate risk tolerance,
  • your aim is the long-term stable growth of your pension savings.
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Unit NAV
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A stable choice in M

  • The M fund’s investment strategy focuses on assets that generate a steady cash flow: real estate and bond investments.
  • For bond investments, we have focused on Estonian companies. This has given the fund a significantly higher rate of return over the past seven years, compared to the global bond markets.
  • M is actively managed, which is why the risks are managed and the pension saver’s money is kept safe. Our investment team makes decisions based on thorough analysis and the economic situation.
...

Romet Enok

Fund Manager at LHV

„Unstable times have shown that LHV pension fund M’s strategy has proven its worth: investments with a stable rate of return have protected and grown the assets of pension savers even in a market in decline.“

Market overview

Biggest investments

The data is presented as at 31.01.2024

Biggest investments
Luminor 7.75% 08/06/20274.98%
German Treasury Bill 16/10/20244.60%
France Treasury Bill 30/10/20244.59%
ZKB Gold ETF4.09%
Riigi Kinnisvara 1.61% 09/06/273.59%
EfTEN Real Estate Fund3.38%
France Government 2.25% 25/05/20242.86%
German Treasury Bill 1% 15/08/20242.80%
German Treasury Bill 19/06/242.79%
SG Capital Partners Fund 12.70%

Biggest investments in Estonia

Biggest investments in Estonia
Luminor 7.75% 08/06/20274.98%
Riigi Kinnisvara 1.61% 09/06/273.59%
East Capital Real Estate Fund IV2.58%

Asset Classes

The data is presented as at 31.01.2024.

Information about the fund

Information about the fund
Volume of the fund (as of 31.01.2024)106,093,256.78 €
Management companyLHV Varahaldus
Equity in the fund300,000 units
Rate of the depository’s charge0.0427% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0,6120%

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 0,00%.

Ongoing charges (inc management fee): 1.08%

The ongoing charges figure is an estimate based on the current management fee and the 2023 level of all other recognized costs. Ongoing charges may vary from year to year.

January 2024: The tide kept rising in developed markets

Kristo Oidermaa and Romet Enok, Fund Managers

January was a positive month in developed markets. The US S&P 500 index increased by 1.6% in dollars, and the European Euro Stoxx 50 rose by 2.9% in euros. The situation was less positive for emerging markets, with the general index falling by 4.7% measured in dollars. The downward movement was mainly driven by China, which was down 10.6% in dollar terms for the month and where overall sentiment remains pessimistic. The OMX Baltic Benchmark index hardly budged during the month.

In our bond portfolio, we made changes to the terms and conditions of Sunly securities. Following an investment from our funds in the autumn of 2020, the company has grown rapidly and secured substantial additional capital from investors. We have now agreed on changes that will result in our bonds being repaid by the end of September this year, earlier than initially planned. Until then, the bond continues to earn an interest yield of 8%.

December 2023: The year ended strongly for listed bonds

Kristo Oidermaa and Romet Enok, Fund Managers

The year concluded on a positive note for the markets. The US S&P 500 index saw a 4.4% increase measured in dollars, and the European Euro Stoxx 50 rose by 3.2% measured in euros. While emerging markets gained 3.7% in dollar terms, China, the market’s largest member, saw a 2.6% loss. The Baltic OMX Baltic Benchmark index remained nearly unchanged in the last month of the year, registering a modest increase of 0.3%.

In December, the East Capital Real Estate fund acquired Rimi’s primary logistics centre in the Baltics, covering 94,000 square metres, including its headquarters. Situated in a rapidly developing area with numerous new residential projects and the recently opened Ikea department store and Saga shopping centre, the Rimi logistics centre underwent extensive renovations in 2020, focusing on improving its energy efficiency. Plans are underway to install a 2 MW solar park on the roof. The transaction’s value was 83 million euros, making it the largest real estate transaction in the Baltic logistics sector in the past year.

2023 ended with a robust December for listed bonds. November’s expectation that the European Central Bank will successfully curb inflation continued in December. This would alleviate the need to raise interest rates. The prospect of interest rates remaining steady would be favourable for bonds, while a decrease in interest rates would be even more advantageous.

Moreover, with the recovery of investors’ appetite for risk, bonds from companies geographically close to Russia have become a positive factor for the fund. For instance, our substantial investment last summer in Luminor bank bonds yielded a return of over 9% by year-end within a matter of months. Additionally, Volkswagen’s bonds rose by more than 7% in December alone.

However, such price movements are exceptional. As the economic downturn persists, we must be prepared for a potential decline in bond prices for weaker companies. In such scenarios, more attractive investment opportunities should also emerge.

November 2023: We increased our investments in Šiaulių Bank bonds

Kristo Oidermaa and Romet Enok, Fund Managers

November marked a buoyant period for global markets. The US S&P 500 index rose by 8.9% in dollar terms, and the Euro Stoxx 50 grew by 8% in euros. Emerging markets collectively appreciated by 7.9% in dollar value, although China, the dominant player in this segment, recorded a modest 2.5% increase. The OMX Baltic Benchmark index experienced a 2.6% rise over the month.

We increased our position in Šiaulių Bank’s bonds, coinciding with the Lithuanian bank’s latest capital borrowing initiative. While these bonds aren’t directly analogous to a deposit, they represent a senior unsecured debt obligation for the bank. Despite Šiaulių’s robust solvency and respectable credit rating, the prevailing higher interest rate environment rendered these bonds an attractive proposition, with an anticipated annual yield of 8.25%. This investment mirrors the dynamics of Luminor’s earlier issuance this spring, which secured funding at a 7.75% interest rate. The rising interest rates have positioned our fund to potentially accrue substantially greater interest income than in preceding years.

In November, the international bond markets were buoyed by the expectation that inflation has been brought under control, at least for now. This development suggests that the European Central Bank might not need to raise interest rates further. In such a climate, investors can savour the income from interest payments with less apprehension about fluctuating security prices.

Looking ahead, market participants may shift focus to the decreasing solvency of companies. This phase in the credit cycle presents a critical juncture where the potential for both significant losses and gains hinges on astute investment decision-making. We are ready to capitalise on these opportunities and aim to grow our portfolio.

We are investors with a long-term perspective
Andres Viisemann, Head of LHV Pension Funds

The securities markets closed out December with a strong finish to the previous year. During the month, the S&P 500 index, which reflects the value of major US companies, registered a 2.8% gain in euro terms. Simultaneously, the Euro STOXX 50, which tracks the value of the top 50 European companies, recorded a 3.2% increase. In the final quarter of the year, these indices saw respective growths of 6.4% and 8.3%.

Did you know that LHV’s III pillar fund Aktiivne III invests in a similar way?

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