LHV Pensionifond L
Suitable if
- you have more than 10 years left until retirement,
- you have average risk tolerance,
- your aim is the long-term growth of your pension savings.
Crisis-resilient flagship L
- The L fund strategy is based on the principle that a prerequisite for a proper rate of return is the ability to avoid major losses. That is why we diversify this fund’s investments across several asset classes. As the proportion of equity is moderate, the fund is less exposed to stock market movements.
- Real estate as an asset class accounts for just over 20% of the fund’s investments, providing a secure and stable cash flow in an inflationary environment. We evaluate real estate properties once per year.
- L is actively managed, which is why the risks are managed and the pension saver’s money is kept safe. Our investment team makes decisions based on thorough analysis and the economic situation.
Kristo Oidermaa
Fund Manager at LHV
„If the portfolio is diversified in terms of the money it invests, it is also possible to come out of crises with very few losses. Pension fund L has had a positive rate of return for 12 years in a row, already.“
Biggest investments
The data is presented as at 30.04.2023
Biggest investments | |
---|---|
ZKB Gold ETF | 4.37% |
iShares Gold Producers UCITS ETF | 3.79% |
Riigi Kinnisvara 1.61% 09/06/27 | 2.95% |
Investindustrial VII L.P. | 2.94% |
EfTEN Real Estate Fund | 2.66% |
AMUNDI EURO STOXX BANKS UCITS ETF | 2.58% |
German Treasury Bill 16/10/2024 | 2.52% |
East Capital Baltic Property Fund III | 2.19% |
SG Capital Partners Fund 1 | 2.18% |
Partners Group Direct Equity 2019 | 2.03% |
Biggest investments in Estonia
Biggest investments in Estonia | |
---|---|
Riigi Kinnisvara 1.61% 09/06/27 | 2.95% |
East Capital Baltic Property Fund III | 2.19% |
Usaldusfond BaltCap Private Equity Fund III | 1.64% |
Asset Classes
Information about the fund
Information about the fund | |
---|---|
Volume of the fund (as of 30.04.2024) | 891,418,030.88 € |
Management company | LHV Varahaldus |
Equity in the fund | 1,600,000 units |
Rate of the depository’s charge | 0.0415% (paid by LHV) |
Depository | AS SEB Pank |
Entry fee: 0%
Exit fee: 0%
Management fee: 0,6120%
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 0,24%.
Ongoing charges (inc management fee): 1.56%
The ongoing charges figure is an estimate based on the current management fee and the 2023 level of all other recognized costs. Ongoing charges may vary from year to year.
Terms and Conditions
Prospectus
March 2024: Gold and energy metals made strong contributions
Kristo Oidermaa and Romet Enok, Fund Managers
Markets continued to rise in March, albeit at a slower pace than in previous months. The US S&P 500 index increased by 3.1% in dollars, and the European Euro Stoxx 50 rose by 4.3% in euros. Emerging markets gained 2.2% in dollars over the month, with China, the largest player on the market, slowing to 0.9% from the previous month. In contrast, the OMX Baltic Benchmark index fell by 2.5% in euros during the month.
In March, we increased our positions in the energy sector, where we see good opportunities due to underinvestment. During the month, gold and energy metal positions made the most significant contribution to the fund’s performance among equity positions, having increased between 6% and 24%.
Looking ahead, we still see good potential in our mineral investments, supported by structural undersupply in the sector.
For private equity and venture capital transactions, March was a calmer month but not a holiday for market makers. BotGuard, a cybersecurity startup in the venture capital fund Tera Fund II portfolio, raised 12 million euros in a Series A round led by MMC Ventures. Earlier investors such as Tera and Expeditions Fund, as well as angel investors, participated in the round. The investment gives impetus to further developing BotGuard technology and allows for the recruitment of new talent and entry into global markets. BotGuard has developed a cloud-based solution that helps website owners fight against malicious software bots while protecting the infrastructure and reducing their management costs.
February 2024: Stock markets continue their strong rise
Kristo Oidermaa and Romet Enok, Fund Managers
In February, stock markets remained on the upswing. The US S&P 500 index increased by 5.2% in dollars, and the European Euro Stoxx 50 rose by 5% in euros. The same trend was observed in emerging markets: the MSCI EM index rose by 4.6% in dollars during the month. The growth was driven predominately by China, which rose 8.4% in dollar terms during the month after prolonged declines. The OMX Baltic Benchmark index ended February with a small decline of –1.3%.
No major transactions were made in the stock portfolios during the month. The most significant contributors to the return in our portfolios were the European banks index, which rose by approximately 3%, and the Swedish company Lifco, which gained approximately 8% in value. The return was driven down by investments in precious metals, which decreased in the range of 4% to 12%. We continue to see good potential in the portfolio’s mineral positions, supported by structural undersupply in the sector.
In February, the East Capital Real Estate fund announced that it was acquiring a logistics park in Tänassilma, near Tallinn, with approximately 40,000 square meters of leasable area. The value of the transaction is 42 million euros, making it the largest transaction ever on the Estonian logistics buildings market. The complex has ten tenants, including DSV Estonia AS and Humana Sorteerimiskeskus OÜ. The logistics park is the fund’s tenth and latest asset.
Baltic Horizon Fund announced a large long-term loan agreement in Lithuania. The transaction means that the company has secured a large portion of the funds to repay the obligation assumed by the bonds issued in May 2023. The company already paid back the first tranche of bonds last year, and the money raised now brings the company considerably closer to paying back the next tranche. The fund has earned an interest of Euribor +8% on the bonds, plus premium payments for earlier redemptions.
January 2024: The tide kept rising in developed markets
Kristo Oidermaa and Romet Enok, Fund Managers
January was a positive month in developed markets. The US S&P 500 index increased by 1.6% in dollars, and the European Euro Stoxx 50 rose by 2.9% in euros. The situation was less positive for emerging markets, with the general index falling by 4.7% measured in dollars. The downward movement was mainly driven by China, which was down 10.6% in dollar terms for the month and where overall sentiment remains pessimistic. The OMX Baltic Benchmark index hardly budged during the month.
During the month, we sold shares of Yellow Cake, which reflects the price of uranium, and increased our position in the mining company Glencore in our pension funds. With a 17% increase in shares, Yellow Cake made the largest contribution to our performance in January, next to the American medical company Stryker, which was up by 14%. The biggest losers were our gold mining companies, which depreciated between 9% and 12%.
Despite turbulent times in the economy and geopolitics, we still see good opportunities in positions related to commodities. This is also supported by the wider undersupply in the sector.
In January, the Investindustrial private equity fund signed an agreement to acquire 70% of Fassi. The estimated value of the family business with Italian roots exceeded 700 million euros. Fassi manufactures lifting equipment for road and off-road vehicles used in forestry, recycling, road cleaning, waste management and construction. The company’s main export markets are France and Germany, constituting almost a third of its total market. Together with other member states of the European Union, they account for 40% of its total market. Fassi holds a strong position in its segment in Europe and plans to strengthen its presence in the United States and other parts of the world.
In our bond portfolio, we made changes to the terms and conditions of Sunly securities. Following an investment from our funds in the autumn of 2020, the company has grown rapidly and secured substantial additional capital from investors. We have now agreed on changes that will result in our bonds being repaid by the end of September this year, earlier than initially planned. Until then, the bond continues to earn an interest yield of 8%.
In a complex environment, it pays to spread risks
Andres Viisemann, Head of LHV Pension Funds
Stock prices continued to rise in March. The S&P 500 index, which tracks the value of large US companies, rose 3.1%, and its European equivalent, the Stoxx50 index, rose 4.3%. Markets expect both the US and European central banks to cut interest rates this year – the only question is when and by how much.