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.

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Unit NAV
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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
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Current year
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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 30.04.2022.

Biggest investments
German Treasury Bill 21/09/20227.60%
German Government 1.75% 04/07/226.82%
German Government 1.5% 04/09/226.80%
France Government 2.25% 25/10/226.40%
France Government 25/05/20226.25%
EfTEN Kinnisvarafond4.18%
German Treasury Bill 18/05/20223.12%
ZKB Gold ETF3.01%
Lyxor EURO STOXX Banks DR UCITS2.96%
iShares Gold Producers UCITS ETF2.79%

Biggest investments in Estonia

Biggest investments in Estonia
EfTEN Kinnisvarafond4.18%
East Capital Baltic Property Fund III2.75%
Tallinna Kaubamaja1.24%

Asset Classes

The data is presented as at 30.04.2022.

Information about the fund

Information about the fund
Volume of the fund (as of 30.04.2022)22,416,089.23 €
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): 1.46%

Ongoing charges are based on expenses for the last calendar year, ie 2021. Ongoing charges may vary from year to year.

March 2022: Rising commodity prices supported the fund’s equity positions

Kristo Oidermaa and Romet Enok, Fund Managers

In March, world stock exchanges moved in quite mixed directions. Measured in euros, the MSCI World Index rose 3.7%, and the US S&P 500 Index rose 4.7%, while the European Euro Stoxx 50 Index fell slightly (0.5%) and the Japanese Nikkei Index rose slightly (0.4%). The MSCI Emerging Markets Index fell 1.4%. The Baltic stock markets also moved in different directions in March: The value of the Tallinn stock market increased by 1.8% during the month, the value of the Riga stock market decreased by 4.8%, and the Vilnius stock market remained almost at the same level as last month, falling by 0.3%.

In March, we continued to hold listed equities in the commodities sector, where military action in Ukraine exacerbated current trends and increased the structural shortage of many commodities in global markets. Commodity prices rose by an average of 10% during the month, and the commodity sector companies in the fund benefited significantly from this increase. The biggest contributors to the rise were gold and silver-related equity positions and energy companies. The US oil rig provider Valaris and the gold mining company Agnico Eagle Mines contributed the most to the price increase of the individual shares.

February 2022: precious metals and commodities protected against market declines

Kristo Oidermaa and Romet Enok, Fund Managers

World stock markets continued to fall in February. The MSCI World Index, the US S&P 500 and the Japanese Nikkei Index fell 2.7%, 3% and 1.6% over the month in euros, respectively. The decline of the European Euro Stoxx 50 index was particularly sharp (5.9%). The MSCI Emerging Markets Index was no exception as it fell 2.9%. In February, local stock markets also fell somewhat more than usual: The Tallinn, Riga and Vilnius stock markets fell by 5.1%, 5.1% and 5.7%, respectively.

The fund’s equity positions in public markets managed to avoid the general decline in equity indices in February. Positive returns were earned from equity investments related to precious metals and other equity positions in the commodities sector, in which we have invested the most at the moment. In February, we did not make any significant changes to the fund’s equity investments. We see that our investments offer good protection in difficult times thanks to openness to the raw materials and precious metals sectors.

January 2022: Stock markets hit by a sharp decline

Kristo Oidermaa and Romet Enok, Fund Managers

World stock markets started the year with a decline. The MSCI World Index, the US S&P 500, the Japanese Nikkei Index and the European Euro Stoxx 50 fell 3.9%, 3.8%, 5.4% and 2.8% over the month in euros, respectively.

Developments on emerging markets were somewhat more modest, with the MSCI Emerging Markets Index declining by only 0.5% in euros over the month. The Tallinn, Riga and Vilnius stock markets were no exception and fell by 2.2%, 1% and 1.5%, respectively.

The beginning of the year brought stronger selling pressure to the stock markets. Due to uncomfortably fast inflation and increased geopolitical tensions, major stock indices fell by 3–10%. Many future technology companies that have reached astronomic price levels in recent years’ stock market boom were at the centre of the decline.

Among technology giants, Netflix share fell 20% after disclosing financial results, as low user growth was a clear disappointment to the markets. Many other growth stocks that gained popularity during the pandemic also fell sharply as they failed to meet new expectations.

Several long-term trends are reversing
Andres Viisemann, Head of LHV Pension Funds

Although Russia’s bloody aggression in Ukraine has lasted for more than a month and a speedy peace agreement is unlikely, international securities markets have remained surprisingly peaceful. The Euro Stoxx 50 index, which tracks the share prices of Europe’s largest companies, fell by only 0.6% in March. The global stock index MSCI World rose 3.7% last month, and the S & P500 index, which reflects the value of the largest listed companies in the US, rose as much as 4.7%.

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.