LHV Pensionifond M
Active Management
10%
-10%
10%
10 year net yield
2
1
7
Risk level
36.61%
0%
100%
Invests into Estonia
10741
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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Strategy

When investing in assets, the fund prefers cash-flow assets and, where possible, the local market, including less liquid private equity and real estate investments. The investments are predominantly in local currency and up to 75% of the fund's assets can be invested directly in equities. The fund's long-term preferred asset class is real estate investments.

Performance
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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 31.10.2021

Biggest investments
France Government 2.25% 25/10/227.25%
German Government 1.5% 04/09/226.15%
EfTEN Kinnisvarafond4.23%
Luminor 0.792% 03/12/244.11%
ZKB Gold ETF3.88%
Riigi Kinnisvara 1.61% 09/06/273.57%
German Treasury Bill 23/02/20222.44%
SG Capital Partners Fund 12.35%
Eastnine 08/07/242.27%
German Treasury Bill 18/05/20222.25%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond4.23%
Luminor 0.792% 03/12/244.11%
Riigi Kinnisvara 1.61% 09/06/273.57%

Asset Classes

The data is presented as at 31.10.2021.

Information about the fund

Information about the fund
Volume of the fund (as of 31.10.2021)106,897,308.93 €
Management companyAS LHV Varahaldus
Equity in the fund400 000 units
Rate of the depository’s charge0,0576% (paid by LHV)
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 0%

Management fee: 0,576%

Success fee: 20% per annum on any increase in the fund's rate of return over the annual increase of Estonian social security pension contribution since the end date of previous calendar year.

Ongoing charges (inc management fee): 0.86%

The ongoing charges figure is an estimate based on the current management fee and the 2020 level of all other recognized costs. Ongoing charges may vary from year to year.

October 2021: We acquired Eckerö bonds

Kristo Oidermaa and Romet Enok, Fund Managers

October led to significant growth in most of the world’s stock markets. Measured in euros, the MSCI World index rose 5.8% during the month, the US index S&P 500 rose 7.2%, the European Stoxx 50 rose 5.1% and the MSCI Emerging Markets index rose 1.2%.

The odd one out was the Japanese Nikkei index, which decreased by 3.9% measured in euros, but we should keep in mind that it was one of the few winners in September. Local stock markets also grew in October, but at a somewhat more modest pace: the Tallinn stock exchange rose 1.4%, the Riga stock exchange rose 0.4% and the Vilnius stock exchange rose 2%.

The local private equity company BaltCap has announced that its BaltCap Infrastructure Fund is participating in a new large-scale investment to build an 85,000 square metre multifunctional sports complex in Vilnius. The project is being implemented in cooperation with the Lithuanian Ministry of Education, Science and Sport, and Vilnius City Council. This is the largest ever public-private partnership project in the Baltics.

We added the shipping company Eckerö to our investments in the bond portfolio. The company borrowed funds for five years, will pay 7% interest above Euribor and the bond is secured by the passenger ship Finlandia. This is the company’s first bond issue.

In general, European bond markets had a weak month once again, and the market has fallen by around 3% since the beginning of the year. Of course, long-term government bonds have become even cheaper, which is why we are still completely abstaining from this asset class. Instead, we will continue to work with Estonian and Baltic companies, bringing together non-public market instruments.

September 2021: We acquired a stake in a US financial corporation

Kristo Oidermaa and Romet Enok, Fund Managers

The euro appreciated against the US dollar in September, although world stock markets mostly fell. Many indices declined: MSCI World decreased by 2.4% in euros, the S&P 500 index that tracks the US stock market went down by 2.8%, European Stoxx 50 declined by 3.4% and the MSCI Emerging Markets index by 2.3% in euros.

As opposed to the others, the Japanese Nikkei index went up by 5.6% during the month. The results of the Baltic stock markets were quite mixed. While the Tallinn and Vilnius stock markets fell by 3.4% and 7%, respectively, the Riga stock market remained almost unchanged during the month, rising by 0.1%.

For the first time this year, we saw stronger selling pressure in the stock markets, which pushed the major indices about 5% lower in the second half of the month. The decline was driven by growing inflationary pressures in commodity markets, particularly in the energy sector, where higher energy deficits hit both Europe and the rest of the world. Uncertainty was added by news from China, where one of the largest real estate developers, the Evergrande Group, became insolvent.

As a new investment, we signed documents to acquire a stake in the US financial corporation QSCS. It is not a bank, but its operations are somewhat comparable to that of a bank: in addition to investors’ money, funds are raised with US government-guaranteed bonds at favourable rates. The funds raised this way are lent primarily to companies that banks do not finance, mainly due to their legal requirements. These are service-based (for example, in the medical field) and technology companies – and the transactions made are subordinated or converted into holdings. An important value of QSCS lies in the acquired license, which allows for raising funds at favourable rates with the guarantee of the US government and thus earn interest income for investors.

August 2021: Production building acquired in Lasnamäe

Kristo Oidermaa and Romet Enok, Fund Managers

In August, world stock markets continued to rise. The MSCI World index rose 3% in euros, the S&P 500 index, which tracks the US stock market, rose 3.4% in euros, the Euro Stoxx 50 rose 2.6% and the Japanese Nikkei index rose 3.2% in euros.

Emerging markets moved at a similar pace: The MSCI Emerging Markets Index showed a 2.9% increase in euros during the month. The local Baltic stock markets rose significantly in August, led by the Tallinn stock market with 12.9% growth. The Riga and Vilnius stock markets rose relatively equally by 4.1% and 4%, respectively.

In August, LHV pension funds acquired a production building in the Lasnamäe district in Tallinn to earn long-term rental income. The production building at 3/5 Taevakivi St. was built in several stages between 2006 and 2012 and has a leasable area of approximately 10,000 m2. The entire building is leased to Plastone OÜ, a company with a Nordic background, which produces plastic accessories for medical, electrical and electronics companies.

In addition to the production building in Lasnamäe, LHV pension funds own the Valge Maja office building in the centre of Tallinn, the Microsoft office building on the TalTech campus, three stock office-type commercial buildings in Jüri and 127 rental apartments called Lumi Kodud in the North Tallinn district. At the end of 2021, another 164 rental apartments will be completed for the pension funds on Mustamäe Road in Tallinn.

In August, a directly acquired stake in Bank North, which is starting operations in the United Kingdom, was added to the fund’s portfolio. The Bank will focus on lending to small- and medium-sized enterprises operating outside London. The founders have long-term banking experience, and the Bank’s investors include local entrepreneurs and companies.

One of our most significant investments ended in August when Transpordi Varahaldus redeemed its bonds before maturity. These offered the fund an attractive return compared to the bond markets. In the future, given the new legal requirements, we will focus on investments with higher expected returns.

What if inflation is not temporary?
Andres Viisemann, Head of LHV Pension Funds

October was a good month for stock markets, up 5.8% on the MSCI World Index. The S&P 500 index, which represents the shares of the largest US companies, rose by as much as 7.2%, reaching a new record level by the end of the month. The Stoxx 50 index, which tracks the shares of large European companies, rose by 5.1%. The value of emerging market companies also increased, but to a lesser extent: 1.2%.