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LHV Pensionifond M

10%
-10%
10%
10 year net yield
3
1
7
Risk level
42.09%
0%
100%
Invests into Estonia
5902
Fund investors

Suitable if

  • you have 3–10 years left until retirement age,
  • you have moderate risk tolerance,
  • your aim is the long-term stable growth of your pension savings.
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Unit NAV
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A stable choice in M

  • The M fund’s investment strategy focuses on assets that generate a steady cash flow: real estate and bond investments.
  • For bond investments, we have focused on Estonian companies. This has given the fund a significantly higher rate of return over the past seven years, compared to the global bond markets.
  • M 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.
...

Romet Enok

Fund Manager at LHV

„Unstable times have shown that LHV pension fund M’s strategy has proven its worth: investments with a stable rate of return have protected and grown the assets of pension savers even in a market in decline.“

Market overview

Biggest investments

The data is presented as at 30.09.2024

Biggest investments
Eesti Energia perpetual NC5.256.64%
ZKB Gold ETF5.13%
Luminor 7.75% 08/06/20274.92%
France Treasury Bill 30/10/20244.73%
France Treasury Bill 25/11/20244.71%
Riigi Kinnisvara 1.61% 09/06/273.62%
EfTEN Real Estate Fund3.29%
East Capital Real Estate Fund IV3.04%
SG Capital Partners Fund 12.73%
iShares Gold Producers UCITS ETF2.68%

Biggest investments in Estonia

Biggest investments in Estonia
Eesti Energia perpetual NC5.256.64%
Luminor 7.75% 08/06/20274.92%
Riigi Kinnisvara 1.61% 09/06/273.62%

Asset Classes

The data is presented as at 30.09.2024.

Information about the fund

Information about the fund
Volume of the fund (as of 31.10.2024)106,219,338 €
Management companyLHV Varahaldus
Equity in the fund300,000 units
Rate of the depository’s charge0.0427% (paid by LHV)
DepositoryAS 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 0,00%.

Ongoing charges (inc management fee): 1.09%

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.

October 2024: We sold two significant bond positions in October

Kristo Oidermaa and Romet Enok, Fund Managers

The US S&P 500 index ended October with a return of −1% in dollar terms, while the European Euro Stoxx 50 index posted −3.3% in euro terms. The emerging markets index declined by 4.4% in dollar terms over the month, driven primarily by China, where the index fell by 6% in dollars. The wave of optimism that emerged in China in September has somewhat diminished. Meanwhile, the OMX Baltic Benchmark index rose by 3.5% over the month.

October was a particularly active month for the EfTEN Real Estate Fund, which acquired a logistics centre and signed a contract to purchase a production and storage facility. The logistics centre in Tallinn has ELP Logistics OÜ as the anchor tenant, with a lease commitment extending for at least ten years. The production and storage facility under development in Harku municipality is being built for ICONFIT, the Baltic region’s leading producer of sports, diet and health foods. ICONFIT has also signed a long-term lease agreement with the fund, with a term of ten years.

In October, we sold two significant bond positions – Volkswagen and Riigi Kinnisvara AS. Bond prices on international markets have risen significantly, especially for corporate bonds. As a result, we are currently refraining from making new investments in this area and our next addition is likely to be an over-the-counter direct investment.

September 2024: The bond investment returned 9%

Kristo Oidermaa and Romet Enok, Fund Managers

The beginning of September was quite volatile, just as the beginning of August was; nonetheless, the major indices ended the month positively. The US S&P 500 index was up 2% in dollars and the European Euro Stoxx 50 rose 0.9% in euros. The emerging markets index was up as much as 6.4% in dollars during September. This was mainly due to China, whose index gained 23.5% in dollars as the market responded to the country’s long-awaited major government spending aimed at stimulating the economy. The Baltic OMX Baltic Benchmark index saw little change, ending the month down 0.8%.

After a six-year investment, the Livonia fund sold its stake in the Lithuanian company Freor to the company’s management. Freor manufactures top-quality refrigeration equipment to help food retailers reduce environmental impact and energy consumption. The company was founded in 2000 and, since then, it has managed to expand operations to 55 countries.

One of the more significant direct investments in the fund’s bond portfolio came to an end when Sunly repaid its bonds. Sunly raised 13 million euros from LHV funds for renewable energy investments in 2020. In the time since, Sunly has grown so fast that its equity went up from 13 million euros four years ago to nearly 300 million euros by the end of 2023. Our bond investment yielded around 9% per annum during this period.

We continue to look for new local projects where LHV pension funds can participate in similar developmental leaps.

August 2024: Eesti Energia bonds have started with strong results

Kristo Oidermaa and Romet Enok, Fund Managers

August was quite volatile for the markets. After falling earlier in the month, the S&P 500 index recovered to end the month up 2.3% in dollars. The European Euro Stoxx 50 ended the month up 1.8% in euros. The emerging market index rose 1.4% in dollars during the month, with China, the biggest contributor to that rise, up 1%. The OMX Baltic Benchmark index fell by approximately 2.7% in euros during the month.

In August, LHV pension funds sold a stake in the forest fund Birdeye Timber Fund 1 for 8.4 million euros. The duration of the investment was ten years, during which period we contributed to the development of Estonian forests and the management of the forest portfolio. Forest land as an asset class is based on real property and is less volatile than traditional investments such as stocks and bonds.

Our major investment this summer – Eesti Energia subordinated bonds – has started with strong results, bringing the fund a return of approximately 3% by the end of August. A significant part of the return was due to the overall decline in interest rates in Europe (reminder: after interest rates are lowered, the prices of most bonds rise automatically). If the company’s results improve, the price of the bonds could increase further. To top it off, the fund accumulates interest at the rate of 7.875% per year in the meantime.

July 2024: We made a new major investment

Kristo Oidermaa and Romet Enok, Fund Managers

July was a rather volatile month on the stock markets. While the S&P 500 index, which largely represents technology stocks, dipped during the month and ended with a 1.1% return in dollar terms, the Dow Jones index, which reflects more established industrial-sector companies, performed much better, with a monthly return of 4.4%.

The Euro Stoxx 50 index saw little change in July, with its value decreasing by 0.3% in euro terms. The emerging markets index also remained largely unchanged. The index was negatively impacted by China, which declined by 2.2% in dollar terms, but positively influenced by India and Indonesia, which rose by 3.9% and 3.5%, respectively. The OMX Baltic Benchmark index increased by approximately 1% in euro terms over the month.

In July, the largest private-equity fund in the Baltics, BaltCap, announced that it had acquired the business software platforms FitekIN and ONEA from the Belgian technology firm Unifiedpost Group. FitekIN has previously been owned by BaltCap, so the fund is already well-acquainted with the company. FitekIN and ONEA provide businesses with automation and digitisation solutions for invoice management and approval. Both platforms operate in 13 countries across Europe, with plans to expand into additional markets in the future.

The fund now holds its largest single investment position after subscribing to Eesti Energia’s new bonds. These bonds offer an annual interest rate of 7.875%, and Eesti Energia is expected to repay the loan in approximately five years. In addition to bank loans, the energy provider raised funds through bonds to complete its extensive investment plan. Capital-intensive construction projects are underway in the renewable energy, network services and fuel business sectors. The bond is traded on the international market, providing an additional opportunity to profit from potential price increases.

Meanwhile, the fund’s cash reserves were boosted by repayments from our direct investments. First, Baltic Horizon made its final planned early redemption payment, and then our subordinated bond issued to Bigbank in 2017 reached full repayment.

The Bank of Japan’s decision shook financial markets
Andres Viisemann, Head of LHV Pension Funds

The upward trend that started at the end of 2022 continued until mid-July. The S&P 500 index, which tracks the largest US companies, reached its all-time high of 5,669 points on 16 July. Japan’s Nikkei 225 index, which on 22 February this year surpassed its peak mark of 34 years ago (38,915.87), reached 42,426.77 points on 11 July.

Did you know that LHV’s III pillar fund Aktiivne III invests in a similar way?

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