LHV Pensionifond M
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.
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.
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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.“
Biggest investments
The data is presented as at 30.06.2024
Biggest investments | |
---|---|
Luminor 7.75% 08/06/2027 | 4.76% |
ZKB Gold ETF | 4.67% |
France Treasury Bill 30/10/2024 | 4.62% |
Riigi Kinnisvara 1.61% 09/06/27 | 3.56% |
EfTEN Real Estate Fund | 3.32% |
East Capital Real Estate Fund IV | 2.94% |
SG Capital Partners Fund 1 | 2.89% |
German Treasury Bill 1% 15/08/2024 | 2.82% |
iShares Gold Producers UCITS ETF | 2.40% |
Siauliu Bankas 6.15% 23/12/29 | 1.93% |
Biggest investments in Estonia
Biggest investments in Estonia | |
---|---|
Luminor 7.75% 08/06/2027 | 4.76% |
Riigi Kinnisvara 1.61% 09/06/27 | 3.56% |
East Capital Real Estate Fund IV | 2.94% |
Asset Classes
Information about the fund
Information about the fund | |
---|---|
Volume of the fund (as of 30.06.2024) | 106,834,400.53 € |
Management company | LHV Varahaldus |
Equity in the fund | 300,000 units |
Rate of the depository’s charge | 0.0427% (paid by LHV) |
Depository | AS 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): 1.09%
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.
Terms and Conditions
Prospectus
June 2024: We began reconstruction of the Marat Building in Tallinn
Kristo Oidermaa and Romet Enok, Fund Managers
June was a good month for the US stock market, with the S&P 500 rising by 3.5% in dollar terms. Conversely, the European Euro Stoxx 50 index fell by 1.7% in euro terms, primarily due to negative market reactions in France ahead of the parliamentary elections.
Emerging markets rose by 3.6% in dollar terms in June, led by Asian markets such as Taiwan, India and South Korea. Latin America and China had a negative impact on the markets. The OMX Baltic Benchmark index fell by approximately 2% in euros during the month.
LHV pension funds are set to begin reconstructing the old Marat knitwear factory building, colloquially known as the White House, located on Tartu maantee in Tallinn. The building, acquired in 2020, will have two additional floors added. Currently, the it mainly offers office space, but after the construction, the building will include commercial, dining, service and storage spaces. It will also achieve a class A energy rating, with plans to apply for the BREEAM Sustainable Building Certification rating of Excellent.
The fund recently concluded another direct investment in Estonia as Pertoni Real Estate Development redeemed its bonds ahead of schedule. The project to develop approximately 70 apartments in Tallinn’s Kotzebue Park has advanced to a stage where further financing will be provided through a bank loan. This marked the end of an approximately two-year investment for the fund, yielding an annual return of 8.5% plus an early redemption payment.
May 2024: Developed Stock Markets Won in May
Kristo Oidermaa and Romet Enok, Fund Managers
Contrary to the saying, “Sell in May and go away!”, May was a good month for developed markets. The US S&P 500 index rose by 4.8% in dollars, and the European Euro Stoxx 50 rose by 2.1% in euros. Emerging markets ended the month unchanged overall.
China experienced growth of 2.1% measured in dollars – a positive change from the poor mood that has surrounded the country for almost a year. Among emerging markets, Indonesia and Brazil had the most negative returns in May, falling 7.4% and 5.9% in dollars, respectively. The OMX Baltic Benchmark index fell by approximately 0.6% in euros during the month.
The situation in the venture capital industry has been difficult lately, but nevertheless, active startups are still able to raise money from both angel investors and funds. In May, the venture capital fund Tera Ventures made an investment in CARÁ Health, a company that offers support to Estonian women throughout pregnancy, including science-based guidance and other support services.
The health startup has developed the world’s first phone application that combines personal advice and AI recommendations designed for women during pregnancy. CARÁ Health addresses the problem that more than 40 million women struggle with long-term issues after giving birth while not having full access to comprehensive and verified health and wellness resources. CARÁ Health raised 750,000 euros to expand its business to Europe’s German-speaking countries: Austria, Germany and Switzerland.
April 2024: Baltic Horizon Fund continued to redeem bonds
Kristo Oidermaa and Romet Enok, Fund Managers
April was a negative month for developed markets. The US S&P 500 index fell by 4.2% in dollars and the European Euro Stoxx 50 fell by 2.4% in euros. One of the few developed economies to remain in the positive was the UK, growing by 2.4% in British pounds.
Overall, emerging markets remained flat, with the MSCI EM index up 0.3% in dollars during the month. Latin American stock markets were on a downturn, while China, where a very negative mood has prevailed for almost a year, rose by 6.5% in dollars over the month. The OMX Baltic Benchmark index gained approximately 1.4% in euros during the month.
In April, Piletilevi Group announced that it would buy majority stakes in two Polish ticket sale companies. This makes the company the second-largest market participant in Poland and the largest player in Central Europe. This is Piletilevi Group’s largest investment so far, after recently expanding operations to Romania and the Czech Republic. Piletilevi Group also operates in the Baltics, brokering around 320 million euros worth of tickets per year.
Baltic Horizon Fund redeemed another portion of its bonds as planned. The company has already redeemed almost a third of the 42 million euros worth of securities issued last May. The next and currently last early redemption payment is scheduled for July at the latest. After that, the original bond issue of 42 million euros will decrease to 22 million euros. The interest on the bond is Euribor + 8% plus early redemption fees.
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The technology sector as an economic lifeline
Andres Viisemann, Head of LHV Pension Funds
June was generally a positive month for international stock markets. The S&P 500, which tracks the value of major US companies, rose by 3.5%. The MSCI World Index, which assesses the performance of emerging markets, also increased by 3.6% over the month, driven by the growth in the stock markets of Taiwan, South Korea, and India.