LHV Pensionifond XL

Active Management
10%
-10%
10%
10 year net yield
4
1
7
Risk level
23.28%
0%
100%
Invests into Estonia
24543
Fund investors

Suitable if

  • you have more than 15 years left until retirement,
  • you are prepared to take above-average risks,
  • your aim is the long-term growth of your pension savings.
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Strategy

The Fund prefers foreign markets, more liquid and traded instruments on regulated markets when investing assets. The assets of the Fund may be invested in their entirety in equities, equity funds and other equity-like instruments. The Fund is allowed to borrow up to 10% of the Fund's assets value. The long-term preferred asset class of the fund is public equity 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 31.12.2022

Biggest investments
German Treasury Bill 22/02/236.79%
France Government 25/02/236.44%
ZKB Gold ETF4.11%
iShares Gold Producers UCITS ETF3.58%
Axcel VI2.73%
Lyxor EURO STOXX Banks DR UCITS2.60%
Usaldusfond EfTEN Real Estate Fund 42.56%
East Capital Baltic Property Fund III2.38%
EfTEN Kinnisvarafond2.25%
Monte Rosa V Class J2.13%

Biggest investments in Estonia

Biggest investments in Estonia
East Capital Baltic Property Fund III2.38%
EfTEN Kinnisvarafond2.25%
Livonia Partners Fund I1.49%

Asset Classes

The data is presented as at 31.12.2022.

Information about the fund

Information about the fund
Volume of the fund (as of 31.12.2022)205,841,764.84 €
Management companyLHV Varahaldus
Equity in the fund530 000 units
Rate of the depository’s charge0.0432% (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 0,28%.

Ongoing charges (inc management fee): 1,28%

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.

December 2022: We reduced equity positions in the energy and banking sectors

Kristo Oidermaa and Romet Enok, Fund Managers

In December, world stock markets mostly fell. Measured in euros, the MSCI World index fell by 7.6%, the US S&P 500 index fell by 9.4%, and the Nasdaq Composite index, which tracks the US technology sector, fell as much as 12.1%. The Japanese Nikkei index fell 4.4%, the European Euro Stoxx 50 index 4.3% and the MSCI Emerging Markets index 5.3%, measured in euros. The Baltic stock markets stood out last month: the Tallinn, Riga, and Vilnius stock markets rose by 0.4%, 3.4% and 0.1%, respectively.

In our portfolio of over-the-counter investments, BaltCap’s two funds had news in December. The Adoro company in BaltCap Private Equity Fund III is acquiring the social welfare centre Dzīves Ābece in Latvia. The centre was established in 2018 and currently has 97 beds. The BaltCap Infrastructure Fund announced having reached an agreement to build a new police department worth 21.9 million euros in Šiauliai, Lithuania. The development should be completed in three years, after which the company belonging to the fund will also provide administrative services for the building for a period of 12 years. The approximately 5,200 sq m building will have four floors for 245 employees and a car park for 270 cars.

Our investments in listed stocks depreciated at the end of the year, driven by profit-taking in positions related to the energy sector. Stock investments related to precious metals escaped the general decline of the markets.

At the beginning of the month, we reduced the XL fund’s equity positions in the US energy sector and European banks, which had offered good returns in the short term. With these sales, we increased the buffer that can be used for new investments in the near future.

European bond markets were again in the red in December. The entirety of 2022 was one of the most difficult years in recent decades. The sudden raising of interest rates by central banks caught most market participants by surprise, and the fluctuations were sharp at times.

The more investors sought risk and held longer-dated bonds, the more they lost. In the end, the market average result for the year was –17% in Europe, and the Estonian government bond offered a return of –21%. Fearing risks, we have avoided public bonds in recent years, but the new year may start offering new opportunities in this area.

November 2022: Stock markets continue to recover

Kristo Oidermaa and Romet Enok, Fund Managers

In November, the world’s stock markets continued to rise, and the euro strengthened significantly. Measured in euros, the MSCI World index rose by 2.7% and the US S&P 500 index by 1%, but the Nasdaq Composite index, which tracks the US technology sector, remained almost at the same level as in October, measured in euros. Japan’s Nikkei index rose by 3.6% in euros in November.

We experienced strong growth in European stock exchanges in November, when the Euro Stoxx 50 index rose by 9.7%. The same trend persisted in emerging markets: the MSCI Emerging Markets index rose by 9.9% measured in euros. While trends in the Baltic stock markets are often mixed, this month the Tallinn, Riga, and Vilnius markets moved in the same direction and rose by 5.3%, 5% and 4.7% respectively.

November was positive for the fund’s stock investments. The value of copper-related stocks rose the most, as they went up 20% as a response to the expected change in China’s Covid-19 policy. Among other investments, the share prices of gold mining companies increased to a greater extent. We saw a decline in energy stocks, where we also locked in gains from this year’s rise during the month.

The fund’s key positions on the stock markets remain primarily in investments related to mineral resources. In November, we reduced our funds’ equity investments in US energy companies to create liquidity for new purchases. We look forward to putting money back into better priced stocks during a more nervous market phase.

In November, two Estonian private and venture capital funds sold one investment each. A private equity fund led by Livonia Partners announced selling the window manufacturer Fenestra to Trigon Capital. Livonia invested in Fenestra in 2019, and after its sale, five more companies remain in the fund’s portfolio. Also, the local private equity company BaltCap announced that the BaltCap Latvia Venture Capital Fund, which they manage, was selling the digital medical services provider Blue Bridge Technologies. The company was founded in 2007 and BaltCap invested in it six years later. Blue Bridge Technologies was sold in its entirety to the software investor Everfield.

October 2022: We added a new over-the-counter investment to our portfolio

Kristo Oidermaa and Romet Enok, Fund Managers

In October, world markets recovered. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index, and the European Euro Stoxx 50 rose 6.2%, 6.9%, 2.5% and 9.1% in euros, respectively. However, emerging markets moved in the opposite direction: the MSCI Emerging Markets index fell by 4.1% in October. Compared to world stock markets, the Baltic stock exchanges remained relatively neutral: during the month, the Tallinn and Riga stock exchanges fell by 0.6% and 0.4%, respectively, and the Vilnius stock exchange rose by 1%.

We added the new local venture capital fund Superangel Two, led by experienced startup investors Veljo Otsason and Marko Oolo, as a new OTC investment in our pension fund. We have also used the pension fund to invest in Superangel One, the predecessor of Superangel Two. Superangel One’s portfolio includes well-known startups, such as Bolt, Veriff, Montonio, Salv, Starship and Parcelsea. Superangel Two continues to implement the previous fund’s strategy by investing in early-stage start-ups operating mainly in Estonia.

In the same month, encouraging quarterly results supported the fund’s listed equity investments. Among European investments, bank shares saw the most success, as the financial results of this sector are improved by rising interest income. Among US investments, shares of Valaris and Freeport McMoran, related to mineral resources, rose the most. Most of the fund’s share positions are related to mineral resources and companies that process them, which in many cases are earning record profits in the context of high commodity prices.

The rising price of money led to a decline in asset prices
Andres Viisemann, Head of LHV Pension Funds

The year 2022 was pivotal for securities markets. In early January, several of the world’s largest and most important stock indexes were at all-time highs, and global bond markets held more than 10 trillion dollars worth of low-risk bonds that investors were willing to pay to hold.