III pillar

LHV Täiendav Pensionifond
Active Management
10%
-10%
10%
10 year net yield
10%
-10%
10%
5 year net yield
10%
-10%
10%
3 year net yield
10%
-10%
10%
2 year net yield

Suitable if

  • you have medium risk tolerance,
  • you are aware of investment risks and wish to make long-term investments in a supplementary funded pension, with the aim of using the accumulated money tax-effectively after reaching retirement age.

Details for making a payment in the fund

There is a transaction associated with the fund taking effect on
See pending transactions
In my portfolio
~
Payments deposited here
Number of units
Acquisition price
Unit NAV
Profit/loss %
Profit/loss €
Total value

Strategy
The fund makes significant investments in equity markets: to ensure maximum growth, the proportion of equity markets is kept close to 75% of the value of the fund’s assets. The proportion of equity markets may also be higher – up to 95% – or lower (in recent years close to 40%), if considered reasonable by the fund manager.

Performance
From beginning
...
Current year
...
Current month
...
...
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 3% 25/04/228.01%
German Government 1.5% 04/09/227.42%
France Government 2.25% 25/10/226.98%
German Treasury Bill 15/12/20215.33%
EfTEN Kinnisvarafond4.27%
German Treasury Bill 23/02/20223.40%
German Treasury Bill 18/05/20222.92%
East Capital Baltic Property Fund III2.81%
ZKB Gold ETF2.76%
iShares Gold Producers UCITS ETF2.57%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond4.27%
East Capital Baltic Property Fund III2.81%
East Capital Baltic Property Fund II2.30%

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)20,647,739.76 €
Management companyAS LHV Varahaldus
DepositoryAS SEB Pank

Entry fee: 0%

Exit fee: 1%

Rate of the depository’s charge: 0.0528%

Management fee: 1%

Ongoing charges (inc management fee): 1.40%

Ongoing charges are based on expenses for the last calendar year, ie 2020. Ongoing charges may vary from year to year.

October 2021: Stock markets recovered from the September decline

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.

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%.

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.

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.

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%.

LHV Täiendav Pensionifond

Recipient
AS Pensionikeskus

Account
EE547700771002908125 - LHV Pank AS
EE961700017004379157 - Luminor Bank AS
EE141010220263146225 - SEB Pank AS
EE362200221067235244 - Swedbank AS

Explanation
30101119828, EE3600010294, IK:Your ID Code

Amount
Amount invested in euros.

Disbursements

Pension agreement

The state does not tax payments from the 3rd pension pillar if you have concluded an insurance contract under which regular pension payments will be made to you for the rest of your life.

See more at Pensionikeskus.ee

Resale of shares

After reaching the age of 55 (if you started making Pillar III contributions before 2021), but not before five years have elapsed from the initial investment, the income tax on disbursements is 10%. If you have joined the third pillar before 2021 and want to take out what you have collected before the age of 55, the income tax is 20%. Those who have joined the third pillar from 2021 can withdraw money from the third pillar at a more favorable income tax rate (10%) if there is less than 5 years until retirement age.

The third pillar savings can also be bequeathed

The heir can then decide what to do with the inherited assets—whether to transfer them to their pension account or to withdraw the amount in cash.
Income tax of 20% applies to cash withdrawals.