LHV Pensionifond XL
Active Management
10%
-10%
10%
10 year net yield
3
1
7
Risk level
25.90%
0%
100%
Invests into Estonia
36858
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 31.10.2021

Biggest investments
TRIGON - New Europe Fund D3.80%
ZKB Gold ETF3.40%
France Government 3% 25/04/223.39%
German Treasury Bill 18/05/20223.34%
German Treasury Bill 15/12/20213.23%
iShares Gold Producers UCITS ETF3.20%
EfTEN Kinnisvarafond3.17%
Riigi Kinnisvara 1.61% 09/06/272.66%
East Capital Baltic Property Fund III2.39%
East Capital Baltic Property Fund II2.35%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond3.17%
Riigi Kinnisvara 1.61% 09/06/272.66%
East Capital Baltic Property Fund III2.39%

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)204,221,390.06 €
Management companyAS LHV Varahaldus
Equity in the fund530 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): 1.13%

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: BaltCap Fund is participating in a large-scale investment

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%.

Most of the companies in the fund’s portfolio reported good quarterly results during the month, as recovery from the pandemic supported profits. Profits grew the most in the energy and materials sectors, which are currently one of the key positions in our funds. Nordic listed companies, which are more dependent on the economic cycle, are also doing well and reported record quarterly profits. Investments related to precious metals, supported by growing inflationary pressure on the global economy, also contributed to the increase in the fund unit’s price.

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.

September 2021: Risk aversion in stock markets grew

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%.

Those of the funds’ investments that have stronger relations with Asia were on the minus side. These are investments in the materials industry and metal mining companies with most of their demand base in China. However, investments in the energy sector provided protection against a stronger decline, which, together with banks, were the only sectors with a positive return on the stock markets. Investments in the energy sector will remain a critical part of our portfolios in the autumn and early winter.

August 2021: We reduced equity risk

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.

Against the background of good financial results, equity positions in the fund continued to appreciate, while the decline in the share prices of gold mining companies had a negative impact. Among the most significant changes, we sold some of the individual equity positions to reduce the level of equity risk following the sharp rise after the coronavirus crisis. Among larger sales, we profited from shares in Siemens Healthineers, Metsä Board, Stora Enso, Getinge and Coor Service Management Holding. We also reduced our equity positions on the Baltic stock markets.

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%.